The Australian share market pegged back early losses however closed 0.3 per cent down, weighed by the materials sector and most notably gold, with prices steadying somewhat yet still finding themselves on the bottom end of a tumble.
The S&P/ASX 200 index closed 17 points down to finish at 4,951. The value of trades was $4.4 billion on volume of 910 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Newcrest Mining Limited
(ASX:NCM) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 15 points down.
Economic news
In the minutes from its April 2 board meeting, the Reserve Bank of Australia says conditions appear to be improving in weaker parts of the economy such as housing and retailing. Low interest rates are boosting underperforming sectors of the economy, but further rate cuts may still be needed, according to the RBA, although it believes the full effects of recent rate cuts may take some time to flow through the economy.
Sales of new motor vehicles in Australia fell in March, according to the Australian Bureau of Statistics (ABS). 95,113 new cars drove away in the month, down 0.6 per cent on the previous month.
Company news
Australian Agricultural Company Limited
(ASX:AAC) says ongoing dry weather has impacted domestic cattle prices, forcing it to lower the value of its herds. The cattle producer says due to continued depression in domestic cattle markets it expects to incur a negative non-cash mark-to-market impact on the valuation of trading and breeding herds, the quantum of which is currently under review. Shares in AAC closed 0.85 per cent down at $1.17.
Rio Tinto Limited
(ASX:RIO) has maintained its full year iron ore production guidance of 265 million tonnes from operations in Australia and Canada. The global miner retained its guidance- subject to weather constraints- after boosting first quarter production by 6 per cent to 61 million tonnes. Shares in Rio Tinto closed 0.20 per cent down at $54.98.
Investment company ASF Group Limited’s
(ASX:AFA) wholly owned subsidiary ASF Gold and Copper has expressed an interest in acquiring all the shares in mineral explorer ActivEX Limited
(ASX:AIV).
With gold prices among the worst affected in the commodity carnage gripping the market, Newcrest Mining Limited
(ASX:NCM) today hit their lowest point since 2006.
Syrah Resources Limited
(ASX:SYR) says diamond drilling at its Balama Graphite and Vanadium Project in Mozambique will recommence next month and expects new resources to be available by October with a significant increase in tonnage.
Quickflix Limited
(ASX:QFX) shares firmed today after the cable streaming company inked an agreement with US cable giant HBO to offer its TV series in Australia.
Best and worst performers
The best performing sector was Telco services adding 14 points to close at 1,616.
The worst performing sector was Energy, losing 220 points to close at 12,601.
The best performing stock in the S&PASX 200 was Resolute Mining Limited
(ASX:RSG), rising 5.26 per cent to close at $1.00. Shares in Charter Hall Group
(ASX:CHC) and Singapore Telecommunications Limited
(ASX:SGT) also closed higher.
The worst performing stock was Evolution Mining Limited
(ASX:EVN), dropping 18.11 per cent to close at $0.99. Shares in Boart Longyear Limited
(ASX:BLY) and Alacer Gold Corp
(ASX:AQG) also closed lower.
Commodities
Gold is trading at $US1,379 an ounce. Light crude is $0.60 down at $US88.11 a barrel.
The Australian dollar
The Australian dollar is buying $US1.037.
