The Australian share market has continued its soft start to the week and opened in the red. After yesterday dropping to a four-month closing low local stocks brushed off a positive finish on Wall Street. Stocks remain flat ahead of the Reserve Bank of Australia’s (RBA) monthly decision on interest rates this afternoon, with expectations the RBA will keep rates at a record low of 2.75 per cent.
Mining and energy sectors are offering support on the back of stronger commodity prices - with gold stocks looking brighter after the price of the precious metal hit a three-week high overnight.
Figures
The S&P/ASX 200 index has fallen 10 points to 4,879. On the futures market the SPI is 4 points higher.
Economic news
Australia’s current account deficit narrowed sharper than expected in the first three months of 2013. The Australian Bureau of Statistics reports a first quarter account deficit of $8.5 billion in the first quarter, down from $14.7 billion the quarter before and down from expectations of a $9 billion deficit.
Stocks to watch Shares in Billabong International Limited
(ASX:BBG) have plunged more than 40 per cent after exiting a trading halt. The troubled surf wear retailer has again downgraded its earnings guidance today and advised its takeover talks have collapsed with US equity firms walking away.
Shares in Mirvac Group
(ASX:MGR) have dipped after responding to speculation it is considering a takeover proposal for Australand Property Group
(ASX:ALZ). The real estate investor has not denied or confirmed the claims but says it continues to evaluate mergers and acquisitions (M&A) and other opportunities.
Shares in Blackwood Corporation Limited
(ASX:BWD) remain steady after the coal explorer came closer to settling a dispute with Nathan Tinkler. The embattled coal baron has agreed to pay Blackwood Corporation $12 million, which is less than half the value committed in a share placement last year.
Shares in Rex Minerals Limited
(ASX:RXM) have gained more than a third after the minerals explorer inked a Chinese financing deal for the construction and development of its Hillside Project in South Australia.
Best and worst performers The best performing sector is materials gaining 45 points to 9,336. Shares in Silver Lake Resources Limited
(ASX:SLR) have risen 6.03 per cent and trading at $0.92. Shares in Fortescue Metals Group Limited
(ASX:FMG) and PanAust Limited
(ASX:PNA) are also stronger.
The worst performing sector is utilities, falling 89 points to 5,375. Shares in APA Group
(ASX:APA) have fallen 1.88 per cent, trading at $6.27. Shares in AGL Energy Limited
(ASX:AGK) and SP AusNet
(ASX:SPN) are also lower.
Gold and the dollar
Gold is trading at $US1,412 an ounce.
The Australian dollar is buying 97.45 US cents.
