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ASX All Ords higher on RBA interest rate decision

Last updated: 08:15 02 Apr 2013 BST, First published: 07:15 02 Apr 2013 BST

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Australian shares closed stronger today following the Reserve Bank of Australia’s decision to hold interest rates at 3% and indications it has another rate cut up its sleeve if necessary.

The All Ordinaries gained 15.6 points, or 0.3%, to close at 4,995.5 points, while the S&P/ASX 200 rose 19 points, or 0.4%, to 4,985.5 points.

RBA governor Glenn Stevens said with economic growth expected to be a little below trend over the coming year, it was prudent not to change the cash rate.

This has given homeowners some breathing room and buoyed investor sentiment with the RBA still having room to cut rates further if economic conditions deteriorate.

"The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand," Stevens said.


Financials outperform

The Financials sector was a solid performer today adding 50.6 points, or 0.9%, to close at 5,443.4 points.

The big four all gained ground with the ANZ (ASX: ANZ) jumping $0.29, or 1%, to $28.82 and Commonwealth Bank of Australia (ASX: CBA) rose $0.94, or 1.4%, to $68.95.

National Australia Bank (ASX: NAB) rallied $0.11, or 0.4%, to $30.95 and Westpac Banking Corporation (ASX: WBC) climbed $0.26, or 0.8%, to $31.02.


Investors hold back on resources stocks

Investors shied away from resources-focused stocks today.

The Energy sector closed flat at 13,098.1 points, while Materials slipped 51.5 points, or 0.5%, to 9,558.6 points.

The majority of the energy players closed in the red with the exception of a handful, including Woodside Petroleum (ASX: WPL), which increased $0.18, or 0.5%, to $36.

Origin Energy (ASX: ORG) also gained ground, climbing $0.17, or 1.3%, to $13.45, while Santos (ASX: STO) dropped $0.06, or 0.5%, to $12.37.

Meanwhile, among the miners, gold stocks shined the brightest as the spot gold price punched above the US$1,600 an ounce barrier.

Newcrest Mining (ASX: NCM) rose $0.05, or 0.2%, to $20.10, while Northern Star (ASX: NST) gained $0.03, or 3.4%, to close at $1.07.

St Barbara (ASX: SBM) added $0.03, or 2.5%, to close at $1.23 and Regis Resources (ASX: RRL) closed $0.04, or 1%, higher at $4.20.

Mining giants BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO) lost ground, with BHP slipping $0.04, or 0.1%, to $32.72 and Rio wiping off $0.70, or 1.2%, to close at $56.50.

Fellow iron ore producer Fortescue Metals Group (ASX: FMG) also dropped a notch to $3.80, marking a $0.14, or 3.5%, fall.


Asian markets mixed


Asian markets were mixed today, with Japan’s Nikkei down 84.4 points, or 0.7%, to 12,050.6 points, Hong Kong’s Hang Seng rising 17.5 points, or 0.1%, to 22,317.1 points and the Shanghai Composite Index easing 1.1 points, or 0.05%, to 2,233.3 points.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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