Australian exchanges

SYDNEY: Australian shares finished higher for a third straight day, while the Australian dollar has hit the skids after the Reserve Bank opened the door to a possible rate cut.

The benchmark S&P/ASX200 index closed up 20.2 points, or 0.34%, at 6026.1 points, while the broader All Ordinaries was up 23.7 points, or 0.39%, at 6091.8.

The Australian dollar dropped more than 1.1% after Reserve Bank Governor Philip Lowe said it was possible Australia’s cash rate might be cut further.

Mr Lowe indicated a rate cut was just as likely as a rate hike, a shift from the central bank’s longstanding bias towards tightening.

The Aussie hit a oneweek low on the news, buying US71.54c, down from US72.35c on Tuesday.

The ASX200 held steady above 6000, despite weakness in the financial sector as investors took profits following Tuesday’s strong gains.

The big banks were down between 1.24% and 1.68%. ANZ was the worst hit but the stock was still up 5.9% on the week.

The technology sector and industrials were up more than 2%.

Transportation stocks also did well: Sydney Airport was up 4.26%, Qantas up 4.07% and Virgin Australia up 2.7%.

IAG shares jumped 4.25%, to $7.61, even after the insurance company said it was cutting dividends following a freak hailstorm.

Petrol company Viva Energy stock enjoyed its bestever daily performance, closing 13.77% higher, at $2.19, after it announced a new 10year partnership with Coles, involving the running of Coles Express stores.

Nick Scali recorded its best day in two years after it announced its interim dividend would be lifted to a fullyfranked 25c per share, from 14c a year ago. The furniture retailer’s shares closed at $5.55, up 39c or 7.56%.

Genworth Mortgage Insurance shares jumped 3.98%, even as the company announced a subdued housing market had pushed net profit down.

BHP gained 1.67% and Rio Tinto was up 1.93%. — AAP