News: Market Wrap: Aus shares higher, rates on hold

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The Australian share market recovered from a brief dip into the red this morning to close 0.5 per cent up this afternoon. 

 

There was a broad swathe of economic news released today and it was the RBA’s interest rate decision that had the potential to be the most influential, but the decision to keep rates on hold had been widely anticipated by the market and didn't cause too many waves.

 

Also the ABS reported a widening of Australia’s trade deficit, while building approvals were up 2.5 per cent in July.

 

The S&P/ASX 200 index closed 29 points up to finish at 5,659.

 

The value of trades was $3.79 billion on volume of 611 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), BHP Billiton Limited (ASX:BHP) and Telstra Corporation Limited (ASX:TLS).

 

On the futures market the SPI is 32 points up.

 

Economic news

 

The RBA has maintained its commitment to a period of rates stability and kept its cash rate at 2.5 per cent and forecast point to interest rates staying low until next year. RBA governor Glenn Stevens says continued accommodative monetary policy should provide support to demand and help growth to strengthen over time.

 

Company news

 

Downer EDI Limited (ASX:DOW) has secured a contract on the Chevron operated Gorgon Project off the north-west coast of Western Australia. The engineering company says the value of the contract is not to exceed $170 million and will depend on what work orders are placed. Among the scope of work expected is structural and piping erection, mechanical installations, electrical and instrumentation services and civil works.  Downer EDI closed 0.62 per cent up at $4.84

 

Aristocrat Leisure Limited (ASX:ALL) has inked a deal to divest Aristocrat Lotteries for €10.5 million, or about $AUD14.8 million. The global provider of gaming solutions has entered into an agreement to sell the business to online gaming software supplier Playtech Plc (LSE:PTEC). Shares in Aristocrat closed 1.3 per cent up at $5.47.

 

Seven West Media Limited (ASX:SWM) has confirmed reports it has won a multi-year broadcast deal for Gerry Harvey’s Magic Millions horse racing carnival.

 

Payce Consolidated Limited (ASX:PAY) has announced land acquisitions and joint operation with Sekisui House Australia Holdings.

 

Phylogica Limited (ASX:PYC, XETRA:PH7) has scored a grant for cancer drug research from the Australian Research Council.  

 

Azumah Resources Limited (ASX:AZM) has boosted its ore reserves by 45 per cent at its Wa Gold Project in North West Ghana. 

 

Best and worst performers of the day

The best performing sector was energy adding 1.7 per cent to close at 15,327. The worst performing sector was utilities, losing 0.9 per cent to close at 6,006 points.

 

The best performing stock in the S&P/ASX 200 was Paladin Energy Limited (ASX:PDN), rising 5.95 per cent to close at $0.45. Shares in Qantas Airways Limited (ASX:QAN) and Mesoblast limited (ASX:MSB) also closed higher.

 

The worst performing stock was Resolute Mining Limited (ASX:RSG), dropping 4.55 per cent to close at $0.53. Shares in BC Iron Limited (ASX:BCI) and Medusa Mining Limited (ASX:MML) also closed lower. 

 

Commodities

Gold is trading at $US1,282 an ounce.
Light crude is $0.10 down at $US95.86 a barrel.
The Australian dollar is buying $US0.9290