Australian Stock Market Report –Afternoon 6/18/13

AFTERNOON REPORT

(5pm AEST)

The Australian share market managed to stage another recovery in late afternoon trade, but still closed lower. After hitting an intra-day low of 4750pts, the All Ordinaries Index (XAO) finished the day's session down 10.4pts or 0.2 per cent to 4794.

Financial stocks led the comeback, with the S&P/ASX 200 Financials Index (XFJ) finishing flat.

Agribusiness Elders (ELD) was one of the biggest losers of the day, easing by 22.2 per cent to 7c after shunning takeover offer for its rural services business from rival Ruralco (RHL), saying the bid was too low. RHL finished lower by 2.7 per cent to $3.30.

Winners across the rest of the board were scarce, but included Virgin Australia (VAH) up 3.5per cent to 45c, Boral (BLD) up 3 per cent to $4.21 and Fortescue Metals Group (FMG) which was firmer by 1.5 per cent to $3.30.

Minutes from the June Reserve Bank Board meeting were released today and suggested Board members were very comfortable to keep interest rates on hold. But believed that they could do more if necessary. Reserve Bank Board members discussed the response by the household sector to low interest rates "There were also signs that the appetite for borrowing in the household sector was picking up, and the housing market generally appeared to be improving, as the effects of the most recent and earlier reductions in the cash rate worked their way through the economy" The RBA seems to be comfortable with a lower Aussie dollar. "The exchange rate had also depreciated noticeably, though it remained at a high level considering the decline in export prices ... It was possible that the exchange rate would depreciate further over time as the terms of trade declined, which would help to foster a rebalancing of growth in the economy".

On the market overall, a total of 1.5 billion shares were traded, worth $5 billion. 411 were up, 543 were down and 353 were unchanged.

The SFE 200 Futures market was at 4820, down 9pts at 4.45pm AEST.

[Kick off your trading day with our newsletter]