Australian stocks closed lower for a
second day as resource and consumer stocks weakened and an earlier
rally after Reserve Bank meeting minutes were released ran out of steam.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was 43.7 points, or 0.77 per cent, lower at 5615.5, while the broader All Ordinaries index slipped 40.6 points, or 0.72 per cent, to 5619.4.
The materials and energy sectors were pressured by weak commodity prices, with a losing streak in the price of iron ore gathering momentum. The commodity fell for a fifth session in overnight trading, pushing the price under $US60 a tonne.
The benchmark index fell as much as 0.85 per cent in early trade before the release of the RBA minutes, which outlined the board’s deliberations when it decided this month to cut the official cash rate to a record low of 2 per cent.
IG market strategist Stan Shamu said the minutes seemed to reinforce the idea that the RBA has maintained an easing bias, but the central bank was unlikely to quickly pursue further cuts.
“While the inclination is still towards easing, as far as this cycle is concerned it seems like the RBA is happy to be on hold for a prolonged period,” he said.
The sharemarket gained ground on the back of the news and turned briefly positive, while the Australian dollar fell slightly after the release of the minutes.
Elsewhere, the ANZ-Roy Morgan weekly
consumer confidence survey climbed to its highest point since November,
after last week’s well received federal budget.
BHP Billiton retreated 1.66 per cent to $29.63, but Rio Tinto was unchanged at $57.45 after the company announced a financing plan for the Oyu Tolgoi underground mine project in Mongolia.
Fortescue dropped 3.06 per cent to $2.22.
The energy sector was also weaker, declining 1.03 per cent, after oil prices fell overnight amid signs that Gulf producers are continuing to battle for market share with high output.
Santos fell 1.34 per cent to $8.09, while Woodside Petroleum gave up 0.67 per cent to $34.35.
Consumer staples shed 1.89 per cent.
Woolworths lost 2.6 per cent to $28.10, while Wesfarmers gave up 1.78 per cent to $43.71.
Financials fell 0.73 per cent.
ANZ declined 0.87 per cent to $32, while National Australia Bank retreated 0.97 per cent to $33.67. Westpac gained 0.19 per cent to $32.28.
Orica slipped 0.99 per cent to $20.95 after appointing interim chief executive Alberto Calderon to the top job on a permanent basis.
GrainCorp edged down 0.11 per cent to $9.50 after unveiling plans for an expansion of its US malt production capacity.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was 43.7 points, or 0.77 per cent, lower at 5615.5, while the broader All Ordinaries index slipped 40.6 points, or 0.72 per cent, to 5619.4.
The materials and energy sectors were pressured by weak commodity prices, with a losing streak in the price of iron ore gathering momentum. The commodity fell for a fifth session in overnight trading, pushing the price under $US60 a tonne.
The benchmark index fell as much as 0.85 per cent in early trade before the release of the RBA minutes, which outlined the board’s deliberations when it decided this month to cut the official cash rate to a record low of 2 per cent.
IG market strategist Stan Shamu said the minutes seemed to reinforce the idea that the RBA has maintained an easing bias, but the central bank was unlikely to quickly pursue further cuts.
“While the inclination is still towards easing, as far as this cycle is concerned it seems like the RBA is happy to be on hold for a prolonged period,” he said.
The sharemarket gained ground on the back of the news and turned briefly positive, while the Australian dollar fell slightly after the release of the minutes.
BHP Billiton retreated 1.66 per cent to $29.63, but Rio Tinto was unchanged at $57.45 after the company announced a financing plan for the Oyu Tolgoi underground mine project in Mongolia.
Fortescue dropped 3.06 per cent to $2.22.
The energy sector was also weaker, declining 1.03 per cent, after oil prices fell overnight amid signs that Gulf producers are continuing to battle for market share with high output.
Santos fell 1.34 per cent to $8.09, while Woodside Petroleum gave up 0.67 per cent to $34.35.
Consumer staples shed 1.89 per cent.
Woolworths lost 2.6 per cent to $28.10, while Wesfarmers gave up 1.78 per cent to $43.71.
Financials fell 0.73 per cent.
ANZ declined 0.87 per cent to $32, while National Australia Bank retreated 0.97 per cent to $33.67. Westpac gained 0.19 per cent to $32.28.
Orica slipped 0.99 per cent to $20.95 after appointing interim chief executive Alberto Calderon to the top job on a permanent basis.
GrainCorp edged down 0.11 per cent to $9.50 after unveiling plans for an expansion of its US malt production capacity.
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