Stocks tick higher as RBA hold temper gains amid mining jump

The RBA clipped the market’s wings but a mining boost helped keep the bourse in positive territory.

The boards at the Australian Stock Exchange in Sydney. Hollie Adams/The Australian

After a strong start to the session, the Reserve Bank’s decision to leave rates on hold prompted the local sharemarket to pare early gains and finish the session slightly higher.

At the close of trade, the ASX benchmark S&P/ASX200 had risen 11.976 points, or 0.19 per cent to 6295.7 points. The broader All Ordinaries index had lifted 13.649 points, or 0.21 per cent, to 6383.5 points.

The market gained as much as 0.9 ahead of the RBA’s rate decision at 2.30pm (AEST).

“The market was clearly pricing a rate cut already,” said CMC Markets chief market strategist Michael McCarthy.

“Trade remains the key issue for markets and the news that we get over the course of this week will be what drives the markets.

“While concerns remain, the confirmation that Chinese vice president Liu will visit the US for trade negotiations could see markets remain at ease this week.”

“If this drags on and this visit (from Chinese vice president Liu) doesn’t happen on Wednesday, things should get very ugly.”

The major iron ore miners made ground after a Brazilian court reversed its decision to allow Vale to restart operations at its Brucutu operation following the fatal dam disaster in January.

Rio Tinto made 2.3 per cent to $96.05 while BHP added 1.4 per cent to $37.30. Fortescue climbed 6.3 per cent to $7.60.

In financials, Westpac edged down 0.2 to $27.06 while ANZ slid 0.2 per cent to $27.50. NAB shed 0.3 per cent to $25.84 while Commonwealth Bank backtracked 0.4 per cent to $74.61.

Takeover target GrainCorp dropped 7 per cent to $8.15 after suitor LTAP abandoned plans for a $3.3 billion takeover on Monday night.

Packaging giant Amcor lowered 0.6 per cent to $16.30 after it told the ASX that it was still waiting on US antitrust approval for its merger with Bemis, which had been expected to close last week.

Meanwhile Computershare fell 2.2 per cent to $17.92 after Morgan Stanley flagged the stock as a good short selling opportunity.

Poker machine maker Ainsworth Game Technology sank 1.2 per cent to 83 cents after it warned of intense market competition and delays to new product approvals would mean a dip in second-half profit.

Afterpay Touch lifted 3.5 per cent to $28.46 after analysts at Ord Minnett boosted their target price on the company, lauding its US expansion.

Wisetech Global was among the best performers of the session, lifting 4.9 per cent to $23.07.

Elsewhere, specialty grooming retailer Shaver Shop surged 3.8 per cent to 42c after it delivered an earnings upgrade on the back of improved same store sales growth for the second-half of the financial year so far.

Tassal Group gained 3.6 per cent to $4.92, after the salmon producer gave a positive outlook for the full-year at the Market Eye Investor Conference.

The energy sector was mixed despite a lift in the price of oil on geopolitical tensions.

Oil Search slipped 1.2 per cent to $7.44 while Santos inched 0.3 per cent higher to $6.90. Woodside Petroleum put on 0.5 per cent to $34.90 while Origin Energy stepped up 1.5 per cent to $7.52.

The Australian dollar was trading firmly higher on the back of the RBA’s rate call and was hovering at US70.32c in late trade.