The share market ended an eventful day slightly lower, with gains by the big miners offset by falls from the banks, retailers and health care companies.
Shares opened flat and then dropped heavily in morning trade, before staging a gradual recovery in the afternoon.
That came as the Reserve Bank kept interest rates on hold and retained its stance on “a period of stability in interest rates”.
Mining giants Rio Tinto and BHP Billiton were the key bright spots, lifted by Rio’s confirmation of a merger approach by global mining giant Glencore.
Shares in Rio rose $2.48, or 4.3 per cent, to $60.07, even though it rejected Glencore’s offer and said no further discussions were taking place.
BHP added 54 cents to $33.24 and Fortescue Metals was 14 cents higher at $3.44.
“The ASX 200 has experienced some wild swings today, with the banks and other yield plays driving significant downside despite a recovery post the RBA meeting,” IG market strategist Stan Shamu said.
Commonwealth Bank shed 40 cents to $75.77, National Australia Bank dropped 33 cents to $32.38, ANZ eased four cents to $31.51 and Westpac was flat at $32.42.
Elsewhere, Woolworths shed 14 cents to $34.06, Coles owner Wesfarmers dropped 19 cents to $42.00, CSL gave up 76 cents to $73.28 and Ramsay Health Care was 81 cents lower at $49.49.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was down 8.7 points, or 0.16 per cent, at 5,284.2.
* The broader All Ordinaries index was down 7.8 points, or 0.15 per cent, at 5,284.8.
* The December share price index futures contract was 10 points lower at 5,270, with 44,442 contracts traded.
* National turnover was 1.4 billion securities worth $4.6 billion.
