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Highlights
- ASX 200 declined 0.5% as investors braced for the RBA’s interest rate decision.
- Banking and energy stocks saw notable declines, with (ASX:CBA) and (ASX:WDS) leading losses.
- (ASX:HMC) surged 11.9% on strong asset growth, while (ASX:HUB) gained 5.8% on profit jump.
The Australian sharemarket faced headwinds on Tuesday, with the S&P/ASX 200 index shedding 0.5% (46.51 points) to close at 8490.60. Investors treaded cautiously ahead of the Reserve Bank of Australia’s (RBA) interest rate decision, leading to declines in interest-rate-sensitive sectors such as banking, real estate, and consumer discretionary stocks. Meanwhile, the Australian dollar eased to US63.44¢, pulling back from its two-month high recorded on Monday.
Banking Sector Under Pressure
The financial sector was in focus as market participants speculated on a widely anticipated 25-basis-point rate cut from the RBA. Major banks contributed to the broader index’s decline, with (ASX:CBA) falling 1.3%, (ASX:WBC) dropping 2.6%, and (ASX:NAB) losing 1.6%. The cautious sentiment in the banking space reflects the uncertainty surrounding the central bank’s policy stance and its potential impact on lending margins.
Real Estate and Energy Stocks Decline
The real estate sector saw initial losses before stabilizing later in the session, ending 0.4% lower. (ASX:DXS) slipped 1.5%, while (ASX:SCG) and (ASX:MGR) dropped 2.3% and 2.1%, respectively.
In the energy sector, (ASX:WDS) led declines, falling 1.9% following concerns that its final dividend payout could come in 20% lower than expectations. The stock extended losses from the previous session as market participants digested the company's latest guidance.
Mixed Corporate Earnings Impact Stocks
Several corporate updates influenced stock movements. (ASX:CGF) recorded the largest single-session decline, sinking 10.4%, despite posting a 12% increase in net profit to $225 million.
Conversely, (ASX:HUB) provided some support to the index, climbing 5.8% after reporting a 54% surge in profit. The strong earnings enabled the company to boost its interim dividend by 30% to 24¢.
Notable Stock Movements
Among other movers, (ASX:SEK) reversed early gains to close 0.6% lower, despite raising its interim dividend by 26% to 24¢ fully franked. Meanwhile, (ASX:HMC) soared 11.9% after reporting a 45% increase in assets under management to $18.5 billion, largely driven by its private equity segment.
Elsewhere, (ASX:JDO) jumped 9.6% after the company raised its margin guidance to the upper end of its 2.9%-3% range. (ASX:DTM), backed by (ASX:ILU), dropped 2.9% as net profit slid to just under $64 million due to lower iron ore prices.
(ASX:AZJ) gained 1.6% after the company revisited the idea of splitting its rail haulage and rail track businesses, a move that could reshape its long-term strategy.
With market attention turning to the RBA’s decision, investors remain watchful of further developments in interest rates and corporate earnings that could drive future movements in the ASX.
