The Australian sharemarket closed marginally lower on Tuesday as investors absorbed the Reserve Bank of Australia’s decision to leave interest rates unchanged at 3.6%, in line with market expectations.
The benchmark S&P/ASX 200 index slipped 14 points or 0.2% to 8,848.8, with nine of 11 sectors in the red.
Energy stocks led the declines after crude oil prices fell more than 3% overnight as flows resumed from Iraq’s Kurdistan region for the first time in three years.
Santos fell 2.5%, Woodside Energy dipped 1.7%, Beach Energy lost 3.4% and Viva Energy closed 1.4% lower.
Materials were a bright spot, with gold miners rallying strongly on the back of bullion prices that touched record levels, aided by a weaker United States dollar and safe-haven demand ahead of a potential U.S. government shutdown.
Northern Star and Evolution Mining gained 1.2% and 0.9%, respectively, while New Murchison Gold surged 10.3% after reporting a strong production start at its Crown Prince Gold Mine, part of the Garden Gully Gold Project in Western Australia.
Newmont, the ASX’s largest gold miner, fell 2.3% after announcing the resignation of chief executive Tom Palmer. Chief operating officer Natascha Viljoen, formerly CEO of Anglo American’s platinum business, will take the helm.
The major miners were mixed, with BHP up 1.5% and Rio Tinto rising 0.6%, while Fortescue slipped 0.3%.
M&A news dominated headlines, with Seven West Media and Southern Cross shares surging after billionaire Kerry Stokes said he would step down as chairman if their proposed merger proceeds.
Seven West jumped 7.1%, while Southern Cross advanced 6.6%.
On the bond markets, the 10-year and 2-year yields were steady at 4.304% and 3.5%, respectively.
