Sharemarket finishes relatively flat as RBA holds interest rates at 4.35 per cent

The Australian sharemarket traded largely flat after Wall Street surged overnight and the RBA held interest rates at 4.35 per cent.

The benchmark ASX 200 index gained 3.70 points, or 0.04 per cent, to finish the session at 8,917.70 points.

The broader All Ordinaries rose by 3.30 points, or 0.04 per cent, to close at 9,131.30 points.

The Australian dollar is trading about US70.63c.

Reserve Bank governor Michele Bullock said Tuesday’s decision to hold interest rates does not rule out further increases.

“I want to be very clear that inflation remains too high,” she said.

“Leaving rates on hold today will allow the board to assess how these previous increases are flowing through the economy.”

IG analyst Tony Sycamore said the ASX200 consolidated its “strong two-day, 300-point (3.5 per cent) surge from Friday to Monday, despite some early pre-RBA nerves that saw the index tumble as much as 80 points or 0.89 per cent to a low of 8,834 in morning trade”.

“Just as we saw several times last week, buyers stepped in on the dip and were rewarded when the RBA delivered the widely expected “on hold” decision, keeping the official cash rate at 4.35 per cent,” he said.

The index closed mixed with four of the 11 sectors higher and seven lower on Tuesday.

Consumer Discretionary dropped the lowest by 1.17 per cent while the energy sector rose 1.10 per cent, a slight rebound on a recent slump and still down 4.43 per cent over the last five days.

“The Energy sector was one of the strongest performers as dip buyers moved in after WTI Crude stabilised above US$80 following a sharp 12 per cent fall over the prior three sessions,” Mr Sycamore said.

Viva Energy rose 1.42 per cent to $2.15, Woodside added 1.97 per cent to $30.04 and Santos gained 0.81 per cent to $7.45.

“Karoon Energy was a clear outlier, falling ... after cutting its full-year 2026 production guidance due to further delays at its Who Dat asset in the US Gulf of Mexico, with production now not expected to restart until 2027.”

It closed down 11.56 per cent to $1.64.

Gold producers again dominated the ASX 200 top five risers with Catalyst Metals rising by 7.10 per cent and selling at $6.03 and hitting a day high of $6.09.

Location tracking company Life360 and furniture retailer Temple and Webster also performed strongly, rising by 4.39 per cent to $23.05 and 3.91 per cent to $5.58 respectively.

Woolworths rose by 0.07 per cent to $38.26 meanwhile Coles dropped by 0.34 per cent to $23.43.

Mr Sycamore said “the financial sector posted a third straight gain, helped by lower bond yields and softer oil prices” with the big four banks all rising.

ANZ rose 0.87 per cent to $34.81, NAB added 1.15 per cent to $37.89, Westpac moved 1.22 per cent higher to $35.75 and Commonwealth Bank rose 0.05 per cent to $161.88.

The major iron ore miners had a mixed day, as BHP rallied 0.02 per cent to $65.19, Rio Tinto dropped 0.31 per cent to $188.72 and Fortescue closed 1.34 per cent lower at $20.54.