The Australian share market has finished lower as traders digested weaker-than-expected domestic retail trade figures showing that consumers continue to be cautious with their spending.
The benchmark S&P/ASX200 index on Tuesday closed down 21.6 points, or 0.28 per cent, to 7,766.7, while the broader All Ordinaries dropped 23.7 points, or 0.29 per cent, to 8,034.9.
The ASX200 picked up a bit after the retail sales readout but then trended lower over the course of the afternoon to end near the lows of the day.
The report from the Australian Bureau of Statistics showed that retail turnover rose just 0.1 per cent in April, compared to the 0.2 per cent that economists had predicted.
ABS head of retail statistics Ben Dorber said that April's small rise was not enough to make up for the 0.4 per cent fall in March.
"Since the start of 2024, trend retail turnover has been flat as cautious consumers reduce their discretionary spending," he said.
Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia, said the readout left retail sales broadly unchanged over the past seven months, and he expected subdued momentum for the rest of the year.
AMP economist My Bui said the poor retail sales data indicated that the Reserve Bank did not need to discuss a rate hike at its next meeting in June, and should instead allow it to begin cutting rates by year-end.
Attention now shifts to the April consumer price index figures, which the ABS will report on Wednesday and which could also influence the direction of rates.
Nine of the ASX's 11 sectors finished lower, with property basically flat and consumer staples up 0.2 per cent. Industrials was the biggest loser, dropping 1.0 per cent as Transurban slipped 1.6 per cent.
Boss Energy was the biggest loser in the ASX200, falling 10.9 per cent to $4.76 after the uranium producer announced that three insiders, including its chief executive and its chairman, had sold a significant portion of their shareholdings.
Strike Energy was the biggest winner, rising 7.3 per cent to 22c after announcing its Walyering gas field in WA had reached "payback" of its $30 million capital spend, bringing in $47 million in income.
The big four banks finished mostly higher, with ANZ advancing 0.5 per cent to $28.57 and CBA and NAB both rising 0.2 per cent to $120.31 and $34.28, respectively. Westpac was the outlier, dipping 0.4 per cent to $26.64.
In the heavyweight mining sector, BHP dropped 0.2 per cent to $45.08, Fortescue was flat at $26.51 and Rio Tinto slipped 0.1 per cent to $131.62.
In the consumer discretionary sector, Peter Warren Automotive Holdings plunged 12.6 per cent to an all-time low of $1.87 after the network of east coast dealerships announced its full-year profit would be less than the market had expected.
Consumer demand for new vehicles has reduced with cost-of-living pressures, while an increase in vehicle supply by automakers has increased competition between dealerships, resulting in lower profit margins, the dealership chain said. Higher interest rates have also cost the company money.
Elsewhere in the sector, Flight Centre dipped 2.0 per cent and Beacon Lighting slid 7.2 per cent, while Temple & Webster grew 2.3 per cent after the furniture e-retailer said it would spend $30 million on a share buyback program.
The Australian dollar was buying 66.61 US cents, from 66.38 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Tuesday dropped 21.6 points, or 0.28 per cent, to 7,766.7
* The broader All Ordinaries dropped 23.7 points, or 0.29 per cent, to 8,034.9.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.61 US cents, from 66.38 US cents at Monday's ASX close
* 104.50 Japanese yen, from 104.12 Japanese yen
* 61.25 Euro cents, from 61.19 euro cents
* 52.15 British pence, from 52.09 pence
* 108.10 NZ cents, from 108.28 NZ cents
