5:30 PM Sydney, Australia – Reserve Bank of Australia left its reference rate on hold and held out for more easing steps on benign inflation outlook. GrainCorp issued a profit warning. Banks led the gainers in Sydney trading.
Australian market indexes advanced after the Reserve Bank left its key rate on hold and kept its easing bias intact and suggested that the positive outlook on inflation may provide additional headroom for central bank action.
Australian dollar ease to 72 U.S. cents and in stock trading turnover slipped to 560 million shares worth $4.2 billion.
At close, the ASX 200 Index jumped 73.40 or 1.4% to 5,239.20 and the broader All Ordinaries Index increased 69.90 to 5,291.20.
In commodities trading, gold fell US$3 to US$1,138 an ounce and Brent crude future for immediate month delivery slid 20 cents to US$48.59 a barrel.
Australian Stock Movers
jumped 1.1% to $8.19 after the rail and port operator’s chairman Malcolm Broomhead today said “the company will consider the options”, after the domestic logistics rival Qube Holdings Ltd plans to acquire 19.99% stake in the company.
Qube intends to acquire the Patrick container terminals in Melbourne, Sydney, Brisbane and Fremantle.
The company is in favour of doing a $8.9 billion deal with the Canada-based Brookfield Infrastructure.
Cimic Group Ltd
gained 1.5% to $27.91 after the engineering construction company’s unit Leighton Contractors was selected by QGC Pty Limited to deliver gas infrastructure in the Surat Basin, Queensland.
The project is expected to generate revenue of about $250 million over 18 months and the construction is expected to begin in late 2015 with a scheduled completion in 2017.
declined 4.6% to $8.48 after the grain handler group forecasted full-year profit to drop to $32 million from the reported profit of $50 million in last year.
Operating profit forecasted to $45 million from the earlier estimated rage of range between $45 million and $60 million.
ASC Pty Ltd formerly the Australian Submarine Corporation
, the government-owned shipbuilder reported total revenues in the year ending in September soared 12.2% from a year ago to $1.03 billion.
Net in the year swung to profit $21.9 million compared to a loss of $3.8 million in the same period a year ago.