Rates cut, market reverses: Aus shares fall 0.84% at the close

Market Reports

by Carolyn Herbert

An interest rate cut by the RBA today didn’t have the desired equity market rally we had all expected. Instead the local bourse peaked briefly before declining in the last hour of trade and closing 0.84 per cent lower. While the big banks ended up finishing the day in negative territory it was the energy stocks that were the biggest burden on the market after oil plummeted below the US$40 a barrel mark. The telcos were the best of a bad bunch with the least losses.

The S&P/ASX 200 index closed 47 points down to finish at 5,541.

The value of trades was $5.2 billion on volume of 769 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), BHP Billiton Limited (ASX:BHP) and Westpac Banking Corporation (ASX:WBC).

On the futures market the SPI is down 53 points.

Economic news

Interest rates have been cut to a record low of 1.5 per cent after the Reserve Bank of Australia decided to cut rates by 25 basis points this afternoon. The central bank cited a large decline in business investment and the threat of a rising dollar as the main impetus for the cut.

Company news

Oncosil Medical Limited (ASX:OSL) has announced it has received Investigational Device Exemption approval from the FDA for its Oncosil liver and pancreatic cancer radiation treatment. The company says it will now initiate a pivotal clinical investigation for Oncosil for the treatment of eligible subjects with pancreatic cancer. Shares in Oncosil Medical closed 13.79 per cent at $0.17.

Qube Holdings Ltd (ASX:QUB) has signed a deal to acquire Aurizon Holdings’ 33% equity in the Moorebank Intermodal Terminal, located in south-west Sydney.

Education provider, Navitas Ltd’s (ASX:NVT) net profit for FY16 has increased by 25% to $90.1 million, compared to the previous year.

The GPT Metro Office Fund (ASX:GMF) has reported $51.3 million in net profit after tax, for the year ended 30 June 2016.

Best and worst performers

The sector with the least losses was Telcos losing 0.1per cent to close at 2,115. The worst performing sector was Energy, losing 3.2 per cent to close at 8,183 points.

The best performing stock in the S&P/ASX 200 was Credit Corp, rising 13.06 per cent to close at $15.15. Shares in GWA Group and OzForex also closed higher.

The worst performing stock was Seven West Media, dropping 18.36 per cent to close at $0.84. Shares in Nine Entertainment and Santos also closed lower.

Commodities and the dollar

Gold is trading at $US1,352 an ounce.
Light crude is $1.54 lower at $US40.06 a barrel.
The Australian dollar is buying $US0.7550.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.