The Australian share market finished the day just ahead, pegging back its early gains after disappointing retail data sent consumer staples and consumer discretionary stocks lower. The RBA played a widely expected straight bat with its latest interest rate decision, keeping rates on hold at 2.5 per cent, however it didn’t offer a clear signal on whether it could ease again. The Aussie dollar rallied on the RBA call, hitting a session high of 90.48 US cents.
The S&P/ASX 200 index closed 8 points up to finish at 5,197. The value of trades was $4 billion on volume of 807 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Rio Tinto Limited
(ASX:RIO) and Woolworths Limited
(ASX:WOW).
On the futures market the SPI is 7 points up.
Economic news
The Australian Bureau of Statistics says retail spending rose by 0.1 per cent to $21.82 billion in July, short of economist forecasts of a 0.4 per cent rise.
Also from the ABS, Australia’s current account deficit widened to $9.35 billion in the June quarter, following a deficit of $8.74 billion in the March quarter. The median market forecast was for a deficit of $8.5 billion.
Company news
An Ammonia leak occurred early this morning at Orica Limited’s
(ASX:ORI) Kooragang Island ammonium nitrate production plant in Newcastle. It is the latest in a series of toxic leaks at the site, however authorities say it caused no evacuations or offsite impact, despite ammonia vapour escaping from a pipe flange for three hours before the arrival of NSW Fire and Rescue. Shares in Orica closed 2.49 per cent up at $19.34.
Bathurst Resources (New Zealand) Limited
(ASX:BRL) has successfully raised $NZ18.9 million via a placement of approximately 104.9 million ordinary shares at $NZ0.18 per share. Chairman Craig Munro says the proceeds of the placement will provide the company with working capital to fund existing operations as well as the resource consenting process for its Escarpment Project on New Zealand’s West Coast.
Shares in Bathurst Resources are in a trading halt, they last traded at $0.17.
IOOF Holdings Limited
(ASX:IFL) shares dipped despite it making a takeover bid for Trust Company Limited
(ASX:TRU), saying its offer is better for shareholders than an earlier bid by Perpetual Limited
(ASX:PPT).
Virgin Australia Holdings Limited
(ASX:VAH) shares rose 3.7 per cent after it received conditional approval from the consumer watchdog to continue its their trans-Tasman alliance with AIR NZ
(ASX:AIZ).
Ramelius Resources Limited
(ASX:RMS) shares jumped 7.5 per cent after announcing it will acquire the Vivien gold project in Western Australia from a subsidiary of New York listed Gold Fields for $10 million.
Qantas Airways Limited
(ASX:QAN) shares eased despite passenger numbers increasing by 1.9 per cent in July, however the carrier said international yields were lower than the previous corresponding period due to continued market capacity growth and the competition response to its Emirates partnership.
Best and worst performers
The best performing sector was Utilities adding 111 points to close at 5,575.
The worst performing sector was Healthcare, losing 133 points to close at 14,041.
The best performing stock in the S&PASX 200 was Ausdrill Limited
(ASX:ASL), rising 14.97 per cent to close at $1.80. Shares in Transfield Services Limited
(ASX:TSE) and CuDeco Limited
(ASX:CDU) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 10.75 per cent to close at $0.13. Shares in Perseus Mining Limited
(ASX:PRU) and Northern Star Resources Limited
(ASX:NST) also closed lower.
Commodities
Gold is trading at $US1,392 an ounce. Light crude is $0.83 down at $US107 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9035.
