Market wrap: ASX200 falls on big bank tumble, | Australian Markets

The Australian stock market declined for a second consecutive session on Tuesday as oil and gasoline giant Woodside Vitality booked one other tumble, the massive banks continued to fall sharply and the RBA struck a notice of warning following its determination to cut rates of interest.

The benchmark ASX200 misplaced 56.1 factors, or 0.66 per cent, to close at 8481 factors, whereas the broader All Ordinaries Index declined 55.2 factors, or 0.63 per cent, to settle at 8756.7 factors.

The All Expertise Index shed 0.3 per cent to finish at 4103.1.

The sell-off was broadbased, with seven of 11 industry sectors ending within the purple, led by power with a sharp 1.44 per cent fall and financials, which misplaced 1.4 per cent.

Woodside led the autumn in power shares, shedding 1.47 per cent to complete at $23.49.

Buyers are rotating out of the stock on fears higher-than-expected price estimates revealed on Monday would possibly affect dividends when the company releases its full yr outcomes on February 25.

Santos slipped 0.14 per cent to $6.89 whereas Seashore Vitality fell 1.05 per cent to $1.42.

The massive banks additionally prolonged their Monday losses, with Westpac falling one other 3 per cent fall to $32.31.

Commonwealth Financial institution misplaced 1.44 per cent to $162.60, NAB declined 2.49 per cent to $39.51 and ANZ retreated 1.77 per cent to $30.61.

The market spiked briefly at 2.30pm when the RBA introduced its determination to cut the money charge to 4.1 per cent, however then drifted downwards again in late afternoon trading.

Hawkish rhetoric from RBA governor Michele Bullock that markets have been “far too confident” of future cuts could have dampened sentiment.

However Betashares chief economist David Bassanese mentioned there was “every reason to expect” cuts in Might and August if inflation information continued to pattern decrease.

“Assuming this continued trend lower in underlying inflation, there’s every reason to expect the RBA will also continue to ease the degree of policy restrictiveness with further interest rate cuts,” he mentioned.

“My base case is the RBA will cut rates again in May and August, following the release of the March and June quarter CPI reports, respectively.

“Assuming, of course, these show underlying inflation trending lower in line with RBA forecasts.”

Bourse heavyweight BHP delivered its half-year earnings for the six months to December 31, 2024, asserting a 23 per cent fall in underlying earnings to $8bn from the prior yr.

The $207bn behemoth climbed increased 0.42 per cent throughout the day after a fall in morning trade to settle at $40.97.

“CEO Mike Henry’s optimism about demand from other major economies provides some reassurance but the challenges from declining commodity prices and Cyclone Zelia (in Western Australia) remain worrisome,” Saxo Asia Pacific Senior gross sales trader Junvum Kim mentioned on the outcomes.

“Despite these issues, BHP’s continued low-cost production advantage and ambitious plans to expand to 330Mtpa (in production) demonstrate a strategic focus on resilience and growth, positioning the company to capitalise on future opportunities.”

Rio Tinto slipped 0.23 per cent to $120.66 whereas Fortescue lifted 0.82 per cent to $19.57.

In company news, the ACCC introduced it might authorise a proposed alliance between Virgin Australia and Qatar Airways, which might lead to 28 new weekly return providers between Doha and Perth, Brisbane, Sydney and Melbourne.

Shares in Qantas slipped 1 per cent by noon however climbed within the afternoon to finish the day flat at $9.20.

Jobs platform Search jumped 1.82 per cent to $24.67 after asserting an interim dividend of 24c a share, a 26 per cent increase on the 19c a share it delivered in H124.

The $8.8bn company posted a 4 per cent slide in revenues to $536.2m.

The US markets have been closed in a single day on Monday for the Presidents’ Day vacation.

The Aussie greenback gained 0.02 per cent to buy US63.5c on the closing bell.

The highest gainer on the ASX200 was on line casino giant Star Leisure, which soared 14.8 per cent to hit 15.5c, including to Monday’s 12.5 per cent carry.

The embattled company is surging on hopes asset supervisor Oaktree Capital might buy up its debt.

The biggest laggard was annuity supplier Challenger, slumping 9 per cent to $5.58.