The Australian share market has closed flat after light and lacklustre trading as hints of a cash rate cut next week by the Reserve Bank failed to spark major moves.
The market fell in early trading on weaker than expected local building approval numbers, before it moved higher when Reserve Bank of Australia (RBA) governor Glenn Steven fuelled expectations of an interest rate cut next week in a speech.
Business confidence had to improve, he said, and further monetary easing was an option, with a decision to be made at next week’s RBA monthly board meeting.
The Australian dollar started falling as he rose to speak, but equities were more subdued, moving from being mildly below Monday’s close to slightly up.
CMC Markets sales trader Betty Lam said she was surprised Mr Stevens’ comments did not cause more gains.
“It has been neither here nor there, probably due to the fact that there has been no real overly convincing data come out from anywhere,” she told AAP.
That will change over the next week, with important data, including job numbers, to come out from the US.
Consumer staples were the big losers after Woolworths announced a rise in annual sales to $59 billion, with the market focusing more on the deflationary price war that was forcing it to lift volumes to grow earnings.
Woolworths shares closed down 55 cents, or 1.6 per cent, at $33.22 while the owner of rival Coles, Wesfarmers, was also lower, down 31 cents at $40.22.
The big four banks recovered from early losses, with ANZ five cents lower at $29.59, Commonwealth Bank up 17 cents to $74.03, NAB up three cents to $31.19 and Westpac four cents better at $30.86.
KEY FACTS
* At 1229 AEST, the benchmark S&P/ASX200 index was up 0.9 points, or 0.02 per cent, at 5,047.2.
* The broader All Ordinaries index down 1.6 points, or 0.03 per cent, at 5,026.3.
* On the ASX 24, the September share price index futures contract was off four points at 5,006 points, with 23,160 contracts traded.
* National turnover was 1.32 billion securities worth $3.9 billion.
