4:30 PM Sydney – Reserve Bank of Australia in its latest minutes of meeting noted rates are likely to be on hold in the near future and said recent rates cuts are having desired impact on the economy. However, the central bank noted rising home prices across the nation and said inflation is within its target range.
Australian stocks looked overseas and trended lower following a decline in the U.S. and European markets.
Members of policy committee in the latest minutes of meeting said the lower interest rates are having “a desired effect on the economy” and the central bank is likely to keep rates on hold for now.
The committee also noted inflation is within the central bank’s target and monetary policy is supporting the expansion in the interest-sensitive sectors and home prices across the nation are above the 2010 peak.
Australian dollar slipped to 93.88 U.S. cents. In stock trading, turnover gained to 728 million shares worth $3.7 billion.
The ASX 200 index slipped 31.80 or 0.6% to close at 5,352.90 and the broader All Ordinaries fell 30.10 to 5,347.80.
Stocks in Review
Rio Tinto dropped 49 cents to $65.16 after the mining company sold its most of stake in Constellium NV, the aluminum products maker in about $330 million or £204.8 million.
Rio had 28% stake and it retained 9.22% stake or 9,597,570 shares in Constellium as per the filing with the U.S. Securities and Exchange Commission.
BHP slid 5cents to $37.90. Woodside Petroleum Limited rose 5 cents to $38.50.
Westpac slumped 33 cents to $32.54.
The GPT Group
slipped 1.6% or $3.62 after the property investor launched an offer to acquire Commonwealth Property for $2.99 billion. The offer is higher than the agreed $2.8 billion transaction by Commonwealth and Dexus Property Group and a Canadian pension fund.
Monadelphous Group Limited
slid 0.3% to $17.97 after the diversified service provider said revenue in the first-half are likely to be as same as a year ago period and expect to soft in the second half of this year.
Ruralco Holdings Limited
climbed 3.1% to $3.31 after the agribusiness sales and marketing company said revenue in the year ending in September rose 2% to $1.16 billion from $1.14 billion in the prior year. Net profit for the year plunged 59% to $5.74 million compared to $13.85 million a year earlier.
Seven Group Holdings Limited
gained 1.1% to $7.55 after the diversified investment company reiterated its earlier guidance of in earnings before interest and tax in the fiscal 2013-2014 to fell between 30% and 40%. The company sheds more than 1,000 jobs at its earthmoving company WesTrac.