The Australian share market open lower, peaked onto positive territory after the RBA’s latest meeting minutes but retreated 0.2 per cent by close. Signals rates could stay low for some time to come supported earlier gains but concerns over conflict in the Middle East weighed on sentiment as the session wore on. Losses among the miners dragged the broader bourse down throughout the day as iron ore prices slumped to two-year lows and the gold sub-index shed almost 3 per cent.
Figures
The S&P/ASX 200 index closed 12 points lower at 5,401.
The value of trades was $4.13 billion on volume of 701 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 24 points lower.
Economic news
The Reserve Bank of Australia’s June board meeting minutes have affirmed a neutral policy bias. The central bank highlighted the impact of the Federal Budget but downplayed the latest upbeat GDP figures and claims its decision to keep rates at a record low of 2.5 per cent is “likely to be appropriate for some time yet.”
New car sales rose last month but are down over the year. The Australian Bureau of Statistics reports new car sales gained 0.3 per cent in May after a gain of 0.1 per cent in April, but are 2 per cent lower over the year.
Company news
Woodside Petroleum Limited's
(ASX:WPL) biggest shareholder Shell Energy Holdings Australia will cut its stake in the oil and gas producer from 23.1 per cent to a maximum of 4.5 per cent. Subject to shareholder approval Woodside will buy back about 9.5 per cent of its capital from Shell for $US2.68 billion and Shell will sell down an extra 9.5 per cent of Woodside through an underwritten sell-down to institutional investors. Shares in Woodside Petroleum last traded at $42.85 before the announcement was made and remain in a trading halt.
Shares in Ambassador Oil and Gas Limited
(ASX:AQO) jumped as the battle to gain control of the oil and gas junior intensified. US corporation Magnum Hunter Resources has now lifted its bid to value Ambassador at $0.38 per share after Drillsearch Energy Limited
(ASX:DLS) yesterday increased its bid to value Ambassador at $0.338 per share. Shares in Ambassador Oil and Gas jumped 12.12 per cent today to close the session at $0.37.
Shares in Nine Entertainment Co Holdings Limited
(ASX:NEC) extended yesterday’s gains after the media group struck a five year strategic marketing deal with financial services firm Yellow Brick Road Holdings Limited
(ASX:YBR).
Shares in Woolworths Limited
(ASX:WOW) slipped after the supermarket giant’s Money business announced it will team up with Visa to offer consumer card payment solutions.
Shares in Virgin Australia Holdings Limited
(ASX:VAH) closed steady after its dual listed shareholder Air New Zealand Limited (ASX:AIZ, NZE:AIR) again boosted its stake in the airline to 25.99 per cent.
Shares in Watpac Limited
(ASX:WTP) closed higher after the property developer won a $60 million contract to build student accommodation for University of Melbourne.
Best and worst performers
Most sectors ended lower: The best performing sector was real estate investment trusts, adding 15 points to close at 1,080.
The worst performing sector was materials, losing 70 points to close at 9,793 points.
The best performing stock in the S&P/ASX 200 was Acrux Limited
(ASX:ACR), rising 10.7 per cent to close at $1.03. Shares in Western Areas Limited
(ASX:WSA) and Orora Limited
(ASX:ORA) also closed higher.
The worst performing stock was UGL Limited
(ASX:UGL), dropping 6.16 per cent to close at $6.55. Shares in Beadell Resources Limited
(ASX:BDR) and Transfield Services Limited
(ASX:TSE) also closed lower.
Commodities
Gold is trading at $US1,265 an ounce.
Light crude is $0.01 lower at $US106.90 a barrel.
Currencies
The Australian dollar is buying $US0.9355.
