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Shares slip in lacklustre day as RBA leaves rates on hold

Tuesday, 6 Sep 2016 15:51:16 | Justine Parker

Shares dropped at the open despite positive leads from European markets overnight. (AAP: Paul Miller)

Australian shares have slipped in a lacklustre day of trade on the share market, after the Reserve Bank left interest rates on hold as widely expected.

Markets at 5:29pm (AEST)

  • ASX 200 -0.3% to 5,414, All Ords -0.3% to 5,510
  • Major gains: Whitehaven +8.5% to $2.17, Village +7% to $4.87, Japara +6% to $1.85
  • Major losses: Altium -5.4% to $9.36, Alumina -3.4% to $1.44, Medibank -3.3% to $2.65
  • Futures: Euro STOXX 600 +0.2% to 351, S&P 500 +0.1% to 2,181, FTSE -0.2% to 6,873
  • AUD: 76.5 US cents, 57.3 British pence, 79 Japanese yen, 68.5 euro cents, $NZ1.041

The Australian dollar jumped on the news and continued to rise after the Reserve Bank left the cash rate at an historic low of 1.5 per cent. The RBA suggested it was watching to see the effects of this year's two rate cuts.

Stocks dropped at the open despite some positive leads from European markets overnight and failed to recover.

Miners had the biggest gains — South 32 added 3.9 per cent to $2.11 and Fortescue Metals added 3 per cent to $5.17.

Some China-focussed grocery stocks were also in favour with vitamin maker Blackmores gaining 3.6 per cent to $120.76 and baby food maker Bellamy's rising 1.8 per cent to $13.85.

Elsewhere, the electronics retailer JB Hi-Fi touched a record high, up 5.6 per cent to $30.87 after it confirmed it is still in discussions with The Good Guys over a possible takeover bid.

JB Hi-Fi said it had made no decision on whether to buy the appliances retailer and would only buy the firm if the deal made compelling financial sense.

There was little joy in other sectors — the big banks were mostly lower — the Commonwealth Bank fared the worst, down 0.8 per cent to $71.76.

In other economic news, the latest official data is suggesting the economy grew at a healthy clip heading into the middle of the year.

The Bureau of Statistics figures show net exports dragged on the economy in the second quarter, but it was partly due to a big rise in imports, suggesting strength in household spending, while Government spending was much stronger than expected.

On commodity markets, oil prices are steady after jumping overnight.

Brent crude is trading at $US47.65 a barrel, while spot gold is slightly higher at around $US1,329 an ounce.

AustraliaPlus


 

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