ASX finishes higher after RBA keeps rates steady
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The news: The Australian sharemarket finished higher after a late market rally following the announcement the Reserve Bank of Australia would hold rates steady.
The numbers: The benchmark ASX 200 finished up 0.36% to 7,703.2, despite seven out of 11 sectors ending in red.
Materials was the best performing sector, up 2.11%, followed by energy (1.98%) and AREITs (1.03%). Boral stocks were up 2.43% after it rejected a takeover bid by majority shareholder Seven West Media.
Coal miner New Hope Corporation shares rose 4.06% despite the company posting a sharp drop in profit during the first half of the financial year off the back of weaker coal prices.
Consumer staples was the worst performing sector, down 0.84%, followed by financials (-0.48%) and telecommunications (-0.42%). On the telecommunications front, Aussie Broadband announced it had commenced proceedings in the Federal Court of Australia against Superloop to maintain its 19.9% shareholding in its telco rival Superloop. Aussie Broadband’s share price fell 0.28% following this while Superloop gained 3.83%.
While the broader healthcare sector fell 0.35%, Pacific Smiles shares surged 10.74% after its board recommended shareholders to vote in favour of an improved takeover bid from private equity firm Genesis Capital.
Context: Investors remained cautious following the RBA holding rates steady at 4.35% with central bank stating that while recent data indicated inflation was easing, it remained high.
"The board expects that it will be some time yet before inflation is sustainably in the target range," the RBA said.
Today also saw the Bank of Japan raise rates for the first time since 2007 and set its policy rate between 0% to 0.1% as the country moves away from deflation.
Wednesday will see the UK publish its latest consumer price index figures ahead of its next monetary policy decision on Thursday.
All eyes will be on the US Federal Reserve on Thursday when it announces its latest monetary policy decision.
