The Australian share market has been through rollercoaster ride today as retailers led shares higher after a lunchtime dip. The Aussie dollar also pushed higher in response to the Reserve Bank decision on interest rates.
The S&P/ASX 200 index closed 19 points stronger to finish at 5,481.
The value of trades was $3.12 billion on volume of 529 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC) National Australia Bank Limited
(ASX:NAB) and BHP Billiton Limited
(ASX:BHP)
On the futures marketthe SPI is 13 points up.
Economic news
As expected, The Reserve Bank has left interest rates on hold in its monthly meeting today. The cash rate remains at a record low of 2.5 per cent for the ninth consecutive month. The Reserve Bank seemed more upbeat on the jobs market saying there had been signs of improvement.
And a fall in mining exports means Australia’s trade surplus has back pedaled to $731million in March from a surplus of $1.26 billion in February. It’s a weaker-than-expected result but continues the positive trend so far this year. Despite the 2 per cent drop in net exports, exports to China have hit all-time highs.
Company news
Australian Ethical Investment Limited
(ASX:AEF) says earnings guidance for the end of the financial year is on track to be between $2.3 million and $2.8 million dollars. This is up from $1.06 million for the 2013 financial year. If achieved, this would result in an possible 62 per cent increase in underlying profit after tax. Funds under management have increased 5.2 per cent in the March quarter. Managing Director Phil Vernon says Australian Ethical Investment has had an exceptional quarter with significant increases in new superannuation members. The company’s philosophy of offering investment products that have the highest ethical values has struck a chord with investors. The share price of the fund has nearly doubled in the past 12 months. Today, shares dipped 11.72 per cent to close at $31.65
Materials company Lynas Corporation
(ASX:LYC) is extending declines in its share price after coming out of a trading halt today. The rare earth producer said in March it would need more funds for outstanding loans of more than $215 million to Japanese based Sojitz Corporation. It has renegotiated the terms of its debt facility with the trading house and will now undergo a Share Purchase plan in the amount of $30 million with a $10 million ‘top-up’ equity placement. The new shares will rank equally with existing shares. Lynas Corporation has been enjoying record production numbers but the financial troubles have seen the share price slaughtered in recent months. Shares have come off highs of 70 cents to trade 9.09 per cent lower at $0.15 today
Shares in Energy & Minerals Australia Limited
(ASX:EMA) continue to march sharply higher after revealing it’s received a capital injection from mining billionaire Andrew Forrest.
Online jobs firm SEEK Limited
(ASX:SEK) has today announcedthat its intends to list its Chinese website Zhaopin on the NYSE in a bid to raise up to $100 million for website redevelopment and expansion.
Department store operator David Jones
(ASX:DJS) has out-shone rival MYER Holdings Limited
(ASX:MYR) by announcing a 4% rise in Q3 sales. Myer reported a drop in Q3 sales of nearly one per cent in comparison.
And Leighton Holdings
(ASX:LEI) is also reporting strong numbers, lifting first quarter net profit by 24 per cent.
Best and worst performers
The best performing sector washealth care adding 142 points to close at 14,484.The worst performing sector was Real Estate Investment Trusts, losing 1 point to close at 1,049 points.
The best performing stock in the S&P/ASX 200 wasPacific Brands, rising 6.06 per cent to close at $0.53. Shares in Acrux and M2 Group also closed higher.
The worst performing stock was Lynas Corporation , dropping 9.09 per cent to close at $0.15 .Shares in Southern Cross Media and Transfield Services also closed lower.
Commodities
Gold is buying $US1,310 an ounce. Light crude is $0.28 down at $US99.48 a barrel. The Australian dollar is buying 92.88 US cents
