The Australian share market has closed lower, despite the Reserve Bank of Australia’s cash rate cut.
At the close on Tuesday, the benchmark S&P/ASX200 index was down 5.7 points, or 0.11 per cent, at 5,105.6, while the broader All Ordinaries index was down 5.8 points, or 0.11 per cent, at 5,088.
“There’s a few offshore factors that are really keeping the buyers at bay today,” IG Markets strategist Chris Weston said.
“I think that’s why the market’s slowly drifting down.”
Investors had already factored today’s cash rate cut by the Reserve Bank of Australia, from 2.75 to 2.5 per cent.
“We’ve had plenty of data and plenty of rhetoric from the RBA for the market to fully price in,” Weston said.
“Nothing has changed from yesterday to today.”
Therefore there is nothing to indicate the market would accelerate during afternoon trade, Mr Weston said.
“We seem to be in a bit of a holding pattern,” he said.
The big four banks were all lower, with ANZ down 12.5 cents to $29.70, NAB had shed 25 cents to 30.83, Westpac had dropped 25 cents to $31.12 and Commonwealth Bank was 49 cents lower at $73.27.
Iron ore miner Fortescue Metals was a rare positive in the mining sector, up four cents to $3.89.
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BHP Billiton was down 32 cents at $35.43 and Rio Tinto had dropped 8.5 cents to $59.54.
Shares in hearing implant maker Cochlear were up 30 cents at $59.45 after its net profit more than doubled in the 2012/13 financial year to $133 million.
Shares in engineering firm Downer EDI were seven cents higher at $3.98 after it also posted annual profit growth, but warned of a challenging year ahead due to weaker activity in the mining sector.
