ASX falls flat after RBA cuts to 1.0%
The Australian share market fell flat after the Reserve Bank delivered a consecutive cash rate cut, with the big four banks and mining giants pulling in opposite directions.
The benchmark S&P/ASX200 index lost earlier gains to close just 5.1 points, or 0.08 per cent, higher at 6,653.2 points on Tuesday, while the broader All Ordinaries finished up 9.7 points, or 0.14 per cent, at 6,741.1.
The RBA cut the cash rate as expected to a fresh record low of 1.0 per cent, but analysts said the market's reaction suggested investors were hungry for more concrete guidance.
Kyle Rodda from IG Markets said the RBA's announcement lacked the enthusiasm needed to give stocks a rally.
"You'll see people pared their bets a bit - the market has pretty much erased its gains shortly after the decision," Mr Rodda said.
"They continue with this line that a cut will hopefully help see spare capacity will be absorbed ... but they also didn't really give too much away."
The mining and tech sectors were the best performers during the session, adding 1.08 per cent and 1.17 per cent respectively, but the financial sector lost 1.05 per cent - with all four major banks in the red.
Westpac, NAB, Commonwealth Bank, and ANZ each closed between 1.16 and 1.55 per cent lower having been subdued for most of the day.
ANZ was again the first of the bunch to reduce variable mortgage rates following the cash rate cut, this time passing on the full 25 basis point amount.
Mining titan BHP gained 0.86 per cent to $42.02 while Rio Tinto added 1.62 per cent to $106.45 and Fortescue Metals was up 0.33 per cent to $9.18.
Afterpay lifted 6.93 per cent to $26.09 after the buy-now-pay-later provider named co-founder Anthony Eisen as chief executive and managing director.
Blackmores was up 2.1 per cent to $91.90 following the vitamin maker's announcement that it had appointed Alastair Symington as chief executive.
The Aussie dollar is buying 69.80 US cents from 69.94 US cents on Monday.
ON THE ASX:
* The benchmark S&P/ASX200 index was up 5.1 points, or 0.08 per cent, to 6,653.2 points at 1630 AEST on Tuesday.
* The All Ordinaries was up 9.7 points, or 0.14 per cent, to 6,741.1.
* At 1630 AEST, the SPI200 futures index was up 16 points, or 0.24 per cent, to 6,603.
CURRENCY SNAPSHOT AT 1630 AEST:
One Australian dollar buys:
* 69.80 US cents, from 69.94 US cents on Monday
* 75.69 Japanese yen, from 75.86 yen
* 61.82 euro cents, from 61.72 cents
* 55.23 British pence, from 55.15 pence
* 104.68 NZ cents, from 104.44 cents
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