The Australian share market closed slightly lower on Tuesday, as major banks and supermarket giants fell while miners lifted as iron ore prices surged.
The benchmark S&P/ASX 200 fell by 0.1% or 10.9 points, closing at 8142.
A strong rally in mining stocks helped limit the overall losses following China’s announcement of stimulus measures aimed at achieving its 5% growth target. BHP rose 3.3% to $41.12, Rio Tinto gained 3.7% to $116.45, and Fortescue Metals increased 1.8% to $18.
Meanwhile, major banks closed in the red after the Reserve Bank of Australia (RBA) held the cash rate steady at 4.35%. In a press conference, Governor Michele Bullock indicated that there would be no rate cuts in the near term.
Commonwealth Bank dropped 3% to $138.06, National Australia Bank declined 3% to $38.50, ANZ fell 1.9% to $31.11, and Westpac lost 2.4% to $32.82.
Supermarket giants faced continued selling pressure for a second consecutive day following accusations from the regulator that Woolworths and Coles engaged in false discount claims. The two companies represent two-thirds of Australia’s grocery market, with their shares dropping 2.9% to $32.80 and 3% to $18.03, respectively.
In commodities, iron ore futures in Singapore soared by 5.1% to $US94.05 a tonne after the People’s Bank of China unveiled a series of stimulus measures during a rare briefing in Beijing.
The measures include increased lending to consumers and businesses and a reduction in the key short-term interest rate, alongside a cut to the mortgage rate for existing housing loans.
On the bond markets, 10-year and 2-year rates were at 3.894% and 3.495%, respectively.
