RBA keeps rates on hold: ASX closed 2.45% lower

Market Reports

by Rachael Jones

It has been a rough day of trade for the Australian share market. After dropping at the open the local bourse managed to track sideways to close 2.45 per cent lower. Pinnacle Investment Management (ASX:PNI) shares rose today despite the sell off after announcing NPAT up 32 per cent from the prior corresponding period. Lynas Corp (ASX:LYC) and Bingo Industries (ASX:BIN) have both made substantial gains today. Investors waited anxiously for the RBA decision on rates at 2:30, which are on hold at 1 per cent. As for the sectors, Materials were the best performing sector with Information Technology coming in behind.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 162 points lower to finish at 6,478.

Futures market

Dow futures are suggesting a lift of 51 points.
S&P 500 futures are eyeing a lift of 5 points.
The Nasdaq futures are eyeing a rise of 30 points.
And the ASX200 futures are eyeing a 2.4 per cent fall tomorrow.

Economic news

The Reserve Bank of Australian kept rates on hold at 1 per cent following rate cuts in June and July. Governor Philip Lowe said further interest rate cuts were still possible and reitterated that rates would stay low for a while yet.

Meantime, the ABS has reported Australia’s balance of trade bolstered ahead in June, rising to $8.036 billion, beating expectations that it would fall to $6 billion.

Company news

Road operator Transurban (ASX:TCL) says that Transurban Queensland has successfully raised $500 million of non-recourse debt via a new syndicated bank debt facility with a tenor of 3 years. Transurban has a 62.5 per cent interest. The new facility refinances an existing bank facility, which is due to mature in December 2019, and will be used to fund Transurban Queensland’s future capital expenditure requirements. Shares in Transurban (ASX:TCL) are trading 2.5 per cent lower at $15.23.

Orocobre (ASX:ORE) and Toyota Tsusho Corporation (TTC) and Toyotsu Lithium Corporation held a ceremony to officially kick off construction at one of the first of its kind lithium facility in Japan. The Naraha Lithium Hydroxide Plant is designed to convert primary grade lithium carbonate feedstock from the Olaroz Lithium Facility into purified battery grade lithium hydroxide.

The Federal Court of Australia has approved DuluxGroup (ASX:DLX) $3.6 billion takeover by Nippon Paint Holdings at $9.37 per Dulux share. DuluxGroup will lodge the court orders with ASIC today, making the take-over legally effective.

Best and worst performers 

The best performing sector was Materials losing 1.01 per cent while the worst performing sector was Information Technology, shedding 3.9 per cent.

The best performing stock in the S&P/ASX 200 was Pinnacle Investment Management (ASX:PNI), rising 10.3 per cent to close at $4.27. Shares in Lynas Corp (ASX:LYC) and Bingo Industries (ASX:BIN) followed higher.

The worst performing stock in the S&P/ASX 200 was Wisetech Global (ASX:WTC), dropping 8 per cent to close at $26.95. Shares in NRW Holdings (ASX:NWH) and Pilbara Minerals (ASX:PLS) followed lower.

Asian markets

lower:Japan’s Nikkei has lost 0.8 per cent, Hong Kong’s Hang Seng has lost 1 per cent and the Shanghai Composite has lost 1.2 per cent.

Commodities and the dollar

Gold is trading at US$1,465 an ounce.
Iron ore price fell 6.7 per cent to US$100.56
Iron ore futures are pointing to a fall of 1.6 per cent.
Light crude is US$0.65 up at US$55.01 a barrel.
One Australian dollar is buying 67.83 US cents.