Real estate stocks led the sharemarket lower after the central bank wrong-footed traders raising the cash rate to 3.85 per cent.
The Australian sharemarket tumbled the most in six weeks on Tuesday after the Reserve Bank of Australia’s shock decision to raise interest rates anew in its fight to tame inflation.P/ASX 200 fell 0.9 per cent to 7267.4 points, the biggest decline since March 20 after the central bank raised its cash rate by 0.25 of a percentage point to 3.85 per cent. The All Ordinaries fell 0.8 per cent to 7,459.8.
“Markets will continue to price the near term chance of another rate rise given the RBA retains a tightening bias and inflation is elevated,” said Gareth Aird, head of Australian economics at Commonwealth Bank, who had anticipated the RBA’s quarter point move.Most sectors fell into the red, led by a sell-off in property stocks that extended declines into the afternoon. Mirvac was the biggest decliner, falling 4.2 per cent to $2.28, Charter Hall fell 3.6 per cent to $10.83 and Stockland slid 2.
Qantas lost 3 per cent to $6.54 after the airline appointed chief financial officer Vanessa Hudson to succeed Alan Joyce at the flag carrier’s helm in November. Ms Hudson said she could deliver on an estimated $12.3 billion fleet renewal program over the next five years, as well as maintaining the airline’s coveted shareholder returns.
Endeavour Group lost 3.6 per cent to $6.53 despite the hotels business reporting an 18.5 per cent jump in sale to $480 million in the three months ended April 2 from the year-earlier period. Chief executive Steve Donohue said the company was closely watching for any slowdown, and that it was too hard to predict what would happen in the next few months.
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