Miners lead the way as stocks edge higher
Bargain hunters targeted resource companies that had been heavily sold lately, but other sectors, including the banks, also posted small gains.
The market had fallen more than 6 per cent in the past fortnight before Tuesday's quarter of a percentage point gain.
The Reserve Bank's decision to leave interest rates on hold had a slightly negative effect on stocks.
Among materials stocks, BHP Billiton rose 17¢ to $34.26, Rio Tinto posted a $1.33 gain to $55.13 and Fortescue shot up 20¢ to $3.46.
ANZ lifted 6¢ to $27.91, Commonwealth Bank gained 23¢ to $67.15, while National Australia Bank was the best performer, improving 31¢ to $29.61. Westpac was 5¢ weaker at $28.85.
Billabong lost $100 million in capitalisation and closed 45.6 per cent down at 22.5¢ after another takeover bid for the troubled retailer collapsed. It has downgraded earnings by 10 per cent.
The biggest losers were in consumer staples, including Wesfarmers, which shed 45¢ to $38.91, and Woolworths, down 16¢ to $32.55.
Bond futures prices fell after the central bank kept the cash rate unchanged at 2.75 per cent.
The June 10-year bond futures contract was trading at 96.560 (implying a yield of 3.440 per cent), down from 96.575 (3.425 per cent) on Monday. The three-year contract was at 97.330 (2.670 per cent), down from 97.360 (2.640 per cent).
Reserve Bank governor Glenn Stevens said the rate cuts were helping the weaker parts of the economy, but kept the door open for more reductions.
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Stocks rebounded modestly on Tuesday: the S&P/ASX 200 rose 12.5 points, or 0.26%, to 4,900.8, while the All Ordinaries increased about 0.27% to 4,886.7.
Bargain hunters targeted resource companies that had been heavily sold lately. Major materials stocks rose—BHP Billiton added 17¢ to $34.26, Rio Tinto gained $1.33 to $55.13, and Fortescue jumped 20¢ to $3.46—helping lead the market higher.
Banks posted small gains overall: ANZ lifted 6¢ to $27.91, Commonwealth Bank gained 23¢ to $67.15, and National Australia Bank was the best performer, up 31¢ to $29.61. Westpac was the exception, easing 5¢ to $28.85.
The Reserve Bank left the cash rate unchanged at 2.75%. That decision had a slightly negative effect on stocks, and bond futures prices fell after the announcement. RBA governor Glenn Stevens said prior rate cuts were helping weaker parts of the economy and left the door open to further reductions.
Bond futures fell: the June 10-year bond futures contract traded at 96.560 (implying a 3.440% yield), slightly down from 96.575 (3.425%), while the three-year contract was at 97.330 (2.670%), down from 97.360 (2.640%).
Billabong lost about $100 million in market capitalisation and closed 45.6% down at 22.5¢ after another takeover bid for the troubled retailer collapsed. The company also downgraded its earnings by 10%.
Consumer staples were among the biggest losers. Wesfarmers shed 45¢ to $38.91 and Woolworths fell 16¢ to $32.55, contributing to downside in that sector.
The market’s quarter‑of‑a‑percent gain came after a more than 6% fall over the previous fortnight, showing short‑term volatility. The rebound was driven in part by bargain hunters snapping up beaten-up resource stocks, while the RBA’s decision to hold rates had a slight dampening effect—signals that markets remain sensitive to both economic policy and sector‑specific news.
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