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All Ords lower as investors don't bank on RBA rate decision

Negative leads out of Wall Street and Europe and a highly anticipated Reserve Bank of Australia rate decision saw investors back off from the Australian share market today. Investors sold off banks, underwhelmed by the rate decision. The broader All Ords fell 26.5 points, or 0.5%, to 4,902.6 points. Dow futures are trading 15 points higher.


The Australian share market started the day off strongly but fell sharply not long after the opening bell.

The market spent most of the day in recovery as investors anticipated an interest rate decision from the Reserve Bank of Australia, regaining some of the ground lost.

The broader All Ords fell 26.5 points, or 0.5%, to 4,902.6 points, while the S&P/ASX 200 closed 24.8 points, or 0.5%, lower at 4,882.7 points.

The Reserve Bank decision to hold rates saw investors take a step back again just before the closing bell.

In the U.S., a combination of profit taking, political events in Europe and the state of manufacturing in the U.S. resulted in a 128.71 point, or 0.92%, loss for the Dow Jones.

All of the major sectors ended the day in the red.

Financials lost out by 14.3 points, or 0.3%, to close at 5,079.1 points, with three of the big banks heading south.

The Commonwealth Bank (ASX: CBA) dropped A$0.41, or 0.63%, to $64.30, while National Australia Bank (ASX: NAB) fell $0.26, or 0.93%, to $27.79.

Westpac Banking Corporation (ASX: WBC) lost $0.02, or 0.07%, to close at $27.92.

Materials and Energy were among the biggest losers with an equal 1.1% loss.

Materials wiped off 123.1 points to close at 10,733.3 points, while Energy dropped 145 points to 12,915.6 points.

Blue chip stocks BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO) lost ground today.

BHP fell $0.63, or 1.67%, to $37.18, while Rio dropped $0.66, or 0.97%, to $67.33.

Atlas Iron (ASX: AGO) escaped the head south with investor buying driving the stock up $0.045, or 2.96%, to $1.56 after it announced a 21% increase in its Pilbara Ore Reserves.

The company’s reserves now stand at 499 million tonnes.

The updated Reserves included a 21% increase at Mt Dove, where production started recently, a 25% rise at Abydos, where construction is underway, and a 98% jump at McPhee Creek.

Gold stocks were also favoured with Newcrest Mining (ASX: NCM) heading up $0.12, or 0.51%, to $23.63, while St Barbara (ASX: SBM) rose $0.005, or 0.35%, to $1.45.

Silver Lake Resources (ASX: SLR) also made gains, adding $0.07, or 2.95%, to close at $2.44.

The majority of the top 200 Energy players ended the day in the red.

Woodside Petroleum (ASX: WPL) lost $0.56, or 1.58%, to finish at $34.90, while Santos (ASX: STO) dropped $0.11, or 0.92%, to $11.86.

Origin Energy (ASX: ORG) and Drillsearch Energy (ASX: DLS) were the two exceptions today.

Origin jumped $0.07, or 0.56%, to $12.56, while Drillsearch climbed $0.005, or 0.39%, to $1.28.

Other notable movers included E&A Limited (ASX: EAL), which made the top dollar movers today after revealing it expects a strong financial showing for the first half of fiscal 2013.

E&A expects to report revenue of $101 million for the six months ending 31 December 2012, up 26% over the $80 million it made in the previous corresponding period.

Net profit is expected to be up 85% to about $4 million and also exceeds the net profit of $2.9 million it recorded in the 2012 financial year.

E&A’s shares hit $0.70 today after adding $0.11, or 18.64%.

The South Australian based investment and engineering services group has had a strong run on the ASX since May last year when it was trading at a low of $0.16, adding 337.5% to its share price.

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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