Australia Market climbs after RBA rates decision

Australia stock market eked out modest gains on Tuesday, 19 March 2024, as the Reserve Bank of Australia left interest rates at a 12-year high and signaled it may be done tightening monetary policy.

At closing bell, the benchmark S&P/ASX200 index was up 27.38 points, or 0.36%, to 7,703.23. The broader All Ordinaries index grew 32.53 points, or 0.41%, to 7 957.76.

More sectors ended lower than higher, despite the gain in the S&P/ASX 200 Index. Materials was the best performing sector, gaining +2.11%, followed by energy (up 1.98%), A-REIT (up 1.13%), and utilities (up 0.76%). Consumer staples sector was bottom performer, falling 0.84%.

The top performing stocks in S&P/ASX200 index were NICKEL INDUSTRIES and BELLEVUE GOLD, up 8.11% and 7% respectively. The bottom performing stocks in S&P/ASX200 index were POLYNOVO and LIONTOWN RESOURCES, down 6.81% and 3.49% respectively.

Shares of materials and resources companies were the best-performing industry group after iron ore soared 4.1% to $US104 a tonne. BHP rose 2.8%, Fortescue climbed 3.6% and Rio Tinto lifted 2.5%.

The utilities shares were also higher after Origin and AGL shares went up, 0.7% and 1.8%, respectively, on the back of the Australian Energy Regulators draft decision to cut the default market offer on the eastern seaboard by as much as 10%.

Consumer staples stocks recorded the greatest slump, with Woolworths and Coles down more than 1%. Treasury Wine Estates fell 0.3% and Endeavour Group declined 0.4%.

ECONOMIC NEWS: RBA Holds Cash Rates Steady at 4.35% Amid Slowing Economic Growth- The Reserve Bank of Australia (RBA) kept its cash rates unchanged at 4.35% during its March meeting. The decision reflects a cautious stance amidst signs of economic slowdown following multiple rate hikes totaling 425 basis points over the past two years. Additionally, the RBA maintained the interest rate on Exchange Settlement balances at 4.25%.

Powered by Capital Market - Live News