The big news today, of course, is the first interest rates cut in Australia in more than 4 years.
The Reserve Bank of Australia cut rates by 25 basis points to 4.1% and the four big banks followed suit – vowing to cut rates in line with the decision.
With that, the financial sector lost about 1.4%, and overall the ASX200 dropped more than half a per cent to close at 8481 points.
Bucking the market trend was Star Entertainment Group (ASX:SGR), which gained nearly 15% on the back of yesterday’s debt refinancing news. Star announced Oaktree Capital Management was willing to provide a highly conditional $650 million across two facilities over a five year term.
SGR will consider the proposal. Trade closed at 15.5 cents.
HMC Capital (ASX:HMC) added nearly 10 per cent on reporting 45% growth in its assets under management, amounting to an extra $18.5 billion in value in the six months to December.
HMC closed at $10.88.
Financial services play HUB24 (ASX:HUB) gained nearly 4% thanks to a 54% leap in profits. It awarded a 30% higher dividend at 24c.
HUB closed at $84.39.
Meanwhile, as mentioned before, all the big four banks took a plunge with the interest rates news.
CBA (ASX:CBA) dropped 1.4 per cent to $162.60; but Westpac (ASX:WBC) lost the most, shedding nearly 3% to close just above $32.30 ($32.31).
Another financial stock, Challenger (ASX:CGF) fell 9% even after posting a 12% increase in net profits, to $225 million, in its half-year update.
Challenger closed at $5.58.
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