News: Market Wrap: RBA rates steady & ASX slides

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The Australian share market lost almost 1 per cent this afternoon on the Reserve Bank’s decision to keep interest rates steady at 2.25 per cent.

 

The local market had been making steady gains today and its sudden dip on the interest rate news, points towards an expectation by investors that rates would be cut.

 

The utilities sector lost 1.9 per cent today while consumer staples was the day’s best performer, and the Australian dollar jumped above $US0.78.

 

The S&P/ASX 200 index closed 25 points down to finish at 5,934. 

 

The value of trades was $6 billion on volume of 872 million shares at the close of trade. The top three stocks by value were Woolworths Limited (ASX:WOW), Medibank Private Limited (ASX:MPL) and BHP Billiton Limited (ASX:BHP)

 

On the futures market the SPI is 20 points down.

 

Company news

 

Adslot Limited (ASX:ADJ) shares are up as it secures a contract with one of America’s largest independent media agencies, Haworth Marketing + Media. The media trading company describes Haworth as a significant agency business with a blue chip client roster representing hundreds of millions of dollars in digital media spend. Adslot closed 3.13 per cent up at $0.10

 

Shares in Suncorp Group Limited (ASX:SUN) have dipped as it outlines the anticipated financial impact of Tropical Cyclone Marcia and associated flooding in Queensland. The Brisbane-based company says last month’s cyclone and the Brisbane hailstorm in November has placed pressure on the group’s return on equity target of 10 per cent this financial year. Shares in Suncorp closed 1.86 per cent down at $13.75 

 

Animoca Brands Corporation Limited (ASX:AB1) have scored a deal to license the name and image of American celebrity Paris Hilton.

 

Telstra Corporation Limited (ASX:TLS) has announced it is extending its strategic collaboration with Cisco to advance on-demand unified services.

 

Coal explorer Cokal Limited (ASX:CKA) has received a takeover proposal from Indonesian company Cakra Mineral.

 

Benitec Biopharma Limited (ASX:BLT) has progressed its Hepatitis C drug TT-034 with a US safety board finding no drug related adverse events in the dosing of the third patient.

 

Best and worst performers

The best performing sector was consumer staples adding 0.9 per cent to close at 9,344. The worst performing sector was utilities, losing 1.86 per cent to close at 6,718 points.

 

The best performing stock in the S&P/ASX 200 was Ainsworth Game Technology Limited (ASX:AGI), rising 5.26 per cent to close at $2.60. Shares in Ten Network Holdings Limited (ASX:TEN) and Horizon Oil Limited (ASX:HZN) also closed higher.

 

The worst performing stock was Northern Star Resources Limited (ASX:NST), dropping 6.67 per cent to close at $2.24. Shares in Lynas Corporation Limited (ASX:LYC) and Cabcharge Australia Limited (ASX:CAB) also closed lower.

 

Commodities

Gold is trading at $US1,209 an ounce.
Light crude is $0.17 down at $US49.59 a barrel.

The Australian dollar is buying $US0.7825