Australian shares close lower despite RBA rate cut

“A further rate cut from the RBA was not enough to inspire the local bulls today, with the Aussie market drifting lower pre and post the cut,” said Chris Conway, Head of Research at the Australian Stock Report.

The central bank shaved another 25 basis points off the cash rate at 2:30 pm, dropping it to a historically low 1.5 per cent. 

According to Conway, the losses were widespread, with every sector finishing lower, although losses were concentrated in the energy, consumer discretionary, materials, property and industrial sectors. 

Santos (STO) was crushed 5.8 per cent to lead the oilers lower, whilst BHP Billiton (BHP) was the worst of the big miners, off 2.2 per cent. 

The big four banks also all lost ground, with Westpac Banking Group (WBC) the worst of the lot, off 0.9 per cent. 

“There really was little to get excited about today, with the ASX 200 falling 47 points (-0.8%) to settle at 5541,” Conway said.

The Share Price Index (SPI) was all over the map today. The index pushed higher out of the blocks, collapsed 50 points, spiked 45 into and post the RBA rate cut, and then collapsed once again, ending the day sub 5500. 

According to Conway, “The bias for the index now shifts back to neutral and it remains to be seen whether today's selloff will provide a buying opportunity or be the start of a deeper pullback.”

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