SYDNEY: The Australian stocks edged lower at the open, maintaining its wide berth from the key psychological threshold of 6,000 which it had been approaching before the Reserve Bank of Australia’s surprising decision yesterday to hold the official cash rate at a record low 2.25 per cent.
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index was down 1.3 points, or 0.02 per cent, at 5,932.6 points, while the broader All Ordinaries index slipped 0.6 of a point, or 0.01 per cent, to 5,902.3.
Yesterday, the ASX200 reached as high as 5,996.9 points before pulling back significantly after the RBA’s rates decision for March.
CMC chief market analyst Ric Spooner said lower overseas leads were likely to set a cautious tone for the local market this morning on what looks like being a relatively quiet day in terms of fresh news.
“Investor attitude towards yield stocks may be the key to the ASX 200 index today,” he said.
“Yesterday’s failure to cut rates could arrest upward momentum in this sector. It’s also possible that last week’s option expiry may have created some demand for bank stocks with investors seeking to replace stock sold as a consequence of options being exercised.”