$A fall gives first aid to healthcare sector

The S&P/ASX 200 was only slightly lower — down about 3.1 points to 4,333.9 — because a morning selloff driven by disappointing trade balance figures was largely absorbed by resilient afternoon trade. Market analyst Ben Le Brun noted the knee‑jerk reaction to the international trade and goods and services data, but said the market steadied later in the day.

Australia's trade deficit narrowed to $480 million in February from $971 million in January, a result that disappointed some investors and triggered a short‑term market selloff. The surprise deficit also pushed the Australian dollar down — it sank to about US$1.0262 after the data and closed near US$1.0282 — which in turn fuelled expectations the Reserve Bank might cut interest rates soon.

The healthcare sector was one of the best performers on the day. Stocks mentioned in the article that rose included ResMed (up 2.7%), Ramsay Health Care (up 2.5%), Primary Health Care (up 2.5%), Cochlear (up 1.6%) and CSL (up 1.5%). For everyday investors, a stronger healthcare sector can signal defensive demand and potential resilience when broader markets are volatile, though individual company fundamentals should still guide investment choices.

The article reports that Options Xpress analyst Ben Le Brun said a continuation of soft economic data should prompt the Reserve Bank to cut interest rates next month. The RBA had kept rates on hold at its recent meeting, but the weaker trade data and a softer Aussie dollar increased market expectations of a rate cut in May.

QBE shares held up the financial sector and rose to about $14.37 on the day. The insurer said it expected premiums to rise by around 7% in 2012 after an unusually severe year for catastrophic events in 2011 — a point investors often watch because rising premiums can boost insurer revenue.

Transfield Services shares fell about 11.7% to close at $2.20 after the company cut its full‑year profit forecast by roughly a fifth. For investors, a material profit downgrade can signal operational or market challenges and often warrants reviewing the company’s outlook and risk profile before making investment decisions.

AGL shares were steady at $14.83 while the Australian Competition and Consumer Commission (ACCC) suspended its clearance process for AGL Energy’s planned purchase of Loy Yang, Australia’s largest brown‑coal power station. A suspended clearance process can delay or complicate a major acquisition and is a key regulatory risk investors should monitor.

A tumble in the gold price hit Newcrest, Australia’s biggest gold producer, which closed at $28.50. At the Sydney close, spot gold was down about US$41.72 to US$1,636.95 an ounce. Lower gold prices can pressure earnings and market value for gold producers, so investors in mining stocks often watch global gold price moves closely.