The share market has fallen for a second straight day despite a brief lift on further indications the Reserve Bank is open to more interest rate cuts.
All sectors of the market closed weaker, though BHP spin-off South32 enjoyed strong gains, along with several healthcare stocks.
After a weak opening, the market swung upwards after the release of the minutes of the Reserve Bank’s May board meeting.
The minutes indicated the central bank would consider further cuts if necessary, after lowering the cash rate on May 5 to a historic low of two per cent.
The major banks were a key driver of the midday spike, but their gains, and the market’s momentum, evaporated in afternoon trade.
IG market strategist Stan Shamu said expectations of another rate still remain very low.
“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.
National Australia Bank shed 33 cents to $33.67, ANZ dropped 28 cents to $32.00, Commonwealth Bank dipped 15 cents to $82.85 while Westpac edged six cents higher to $32.81.
In the resources sector, BHP Billiton dropped 50 cents to $29.63, Rio Tinto was steady at $57.45, Fortescue Metals lost seven cents to $2.22 while South32 gained 28 cents, or 13.7 per cent, to $2.33.
The supermarket giants were another of the main drags on the market, with Woolworths losing 75 cents to $28.10 and Coles owner Wesfarmers dropped 79 cents to $43.71.
In the health sector, ResMed added 15 cents to $7.04, CSL gained 32 cents to $88.50 and Prima BioMed surged 1.2 cents, or 54.6 per cent, to 3.4 cents after it announced strong results for its ovarian cancer treatment.
KEY FACTS
* At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was down 43.7 points, or 0.77 per cent, at 5,615.5 points.
* The broader All Ordinaries index was down 40.6 points, or 0.72 per cent, at 5,619.4 points.
* The March share price index futures contract was down 45 points at 5,620 points, with 37,725 contracts traded.
* National turnover was 2.1 billion securities worth $7.1 billion.
