The Australian share market has started the second quarter of the year higher after the the Reserve Bank of Australia kept rates steady at 3 per cent. Returning from the Easter long weekend local stocks defied a negative US lead and traded in positive territory, despite the telco and mining sectors weighing.
Figures
The Australian share market finished the first session of the week 19 points higher at 4,986.
The value of trades was $4.2 billion on volume of 689 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 15 points higher.
Economic news
The Reserve Bank of Australia (RBA) has moved in line with expectations and keep Australia’s official cash rate unchanged at 3 per cent for the third straight meeting in 2013. Having cut 1.75 percentage points since November 2011 the RBA believes further expansionary effects can be expected to emerge on the economy over time.
Australia's manufacturing activity weakened again last month. Australian Industry Group’s Performance of Manufacturing Index fell 1.2 points to 44.4 points in March, remaining below 50 which indicates contraction.
Capital city house prices increased at the quickest pace in almost three years. RP Data-Rismark’s home price index shows home prices gained by an average of 2.8 per cent in capital cities since the start of January.
Company news DEXUS Property Group
(ASX:DXS) has inked a deal to divest its remaining US industrial property for $US56.2 million.
The property investor’s CEO Darren Steinberg has described the transaction as an excellent result which in line with the company’s strategy of exiting the US market and focussing on its core Australian properties. Shares in DEXUS Property Group gained 0.96 per cent to close at $1.05.
Mirvac Group
(ASX:MGR) has completed the sale of its 50 per cent stake in Treasury Office Tower in Western Australia for $165 million Singapore’s Keppel REIT.
The property investor announced the divestment last year and says Perth’s CBD market has a limited pipeline of future supply with potential underpinned by the state’s resources driven economy. Shares in Mirvac Group rose 1.85 per cent to close at $1.65. Shares in Qantas Airways Limited
(ASX:QAN) lifted after Australia’s largest airline welcomed Singapore’s regulatory approval for its partnership with Middle East based airline Emirates.
Shares in Alacer Gold Corporation (ASX:AQG, TSX:ASR) ended steady after the gold procucer affirmed shareholders can look forward to sharing a special dividend of about $70 million from the sale of its stake in the Frog's Leg gold mine.
Shares in Dart Energy Limited
(ASX:DTE) have shed almost 44 per cent after the gas exploration company cut costs, revealed a company restructure and cancelled an international listing.
Shares in Billabong International Limited
(ASX:BBG) entered into a trading halt today amid speculation the troubled surfwear retailer’s suitors have lowered their takeover offers.
Best and worst performers
The best performing sector was real estate investment trusts adding 20 points to close at 1,034.
The worst performing sector was telco services, losing 9 points to close at 1,543 points.
The best performing stock in the S&PASX 200 was Energy World Corporation Limited
(ASX:EWC), rising 8.11 per cent to close at $0.40. Shares in Coalspur Mines Limited
(ASX:CPL) and Sigma Pharmaceutical Limited
(ASX:SIP) also closed higher.
The worst performing stock was Lynas Corporation Limited
(ASX:LYC), dropping 9.82 per cent to close at $0.51. Shares in Sandfire Resources NL
(ASX:SFR) and Arrium Limited
(ASX:ARI) also closed lower.
Commodities
Gold is trading at $US1,602 an ounce.
Light crude is $0.37 down at $US96.70 a barrel.
The Australian dollar
The Australian dollar is buying $US1.046.
