ASX jumps 1% as RBA cuts rates
By Mike King - October 2, 2012
The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has posted a 1% jump today, closing at 4,433.0, on the back of positive US manufacturing news overnight, and the Reserve Bank of Australia’s (RBA) 0.25% cut to official interest rates this afternoon.
The Australian dollar has fallen below US 103 cents, on the back of the RBA’s rate cut. Most economists are still expecting further cuts, with AMP’s Shane Oliver looking for a further 0.25% cut in November and then another one in February or March in 2013, to take the official cash rate to 2.75%.
All sectors of the market performed well today, these three major stocks saw rises by 2.5% or more.
Stockland (ASX: SGP) shares rose 3.3% to close at $3.42. The property developer specialising in residential and retirement living is currently trading below its net tangible asset value of $3.68, and may have benefitted from today’s rate cut and news that Australian house prices have posted their biggest rise in two years.
Goodman Group (ASX: GMG) saw its shares rise 2.5%. Another real estate manager and developer, Goodman announced today that its industrial property fund was launching a $400m equity raising, following several initiatives to secure its longer-term investment outlook, including several property transactions that appear to have been undertaken at the low point in the cycle, giving the group room to increase their value.
Qantas Airways Limited’s (ASX: QAN) share price also climbed 2.5% to end at $1.22, on news that the company had simplified its freight business, by selling its 50% stake in StarTrack to Australia Post and acquire 100% of the Australian air Express. The transaction will net Qantas $408 million and result in a profit of around $30 million. The shares rose despite news that the court has ruled that Qantas has to pay the Australian Tax Office the $34 million in GST it collected from passengers, but who then didn’t turn up for their flights.
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The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has posted a 1% jump today, closing at 4,433.0, on the back of positive US manufacturing news overnight, and the Reserve Bank of Australia?s (RBA) 0.25% cut to official interest rates this afternoon.
The Australian dollar has fallen below US 103 cents, on the back of the RBA?s rate cut. Most economists are still expecting further cuts, with AMP?s Shane Oliver looking for a further 0.25% cut in November and then another one in February or March in 2013, to take the official cash rate to 2.75%.
All sectors of the…