Rate cut highly likely, consumer stocks lead bourse following record high
The ASX200 remained in uncharted territory above 8800 points though, closing for a daily loss of 12.3 points or 0.14 per cent at 8831.4.
The broader All Ords lost 0.1 per cent to 9102 points while the Aussie dollar lifted above US65 cents, hitting 65.22 cents.
Red numbers flashed for six of the ASX's 10 largest health care stocks, dragging the sector to be the weakest performer with a 1.2 per cent loss.
Behemoth CSL lost 1.5 per cent (at $265.53) while Resmed and TELIX Pharmaceuticals lost 2 per cent each as well.
Reusable pallets and crates firm Brambles flattened out following its all-time high in July, shedding 3.3 per cent (at $23.31) to be among the main backsliders on the industrials sector, which as a whole lost ground. Across the board, five of 11 sectors were in the red.
With a reduction in the cash rate next Tuesday looking certain, markets are split on whether it will be a 0.25 or 0.5 point cut.
Home Loan Experts chief executive Otto Dargan says the RBA is teetering toward hard landing territory.
'The global bond markets are already pricing in emergency cuts, and with the equity crash in early April rattling confidence, the RBA has no choice but to get ahead of the curve,' Mr Dargan said.
'This isn't about inflation anymore, it's about restoring stability and avoiding a credit crunch.
'Borrowing power is still strangled, buyers have equity but can't service, and the RBA knows a slow response now risks turning a soft landing into a hard one.'
Real estate stocks were a key driver for the record high ASX200 close on Wednesday, and the sector was locked and loaded, Mr Dargan said.
'If there is another (interest rate) hold, it'll be for optics, but rate cuts are coming before Christmas. The real story is how quickly lenders will pass these on to borrowers, and how that will ignite property markets already itching for a rebound.'
Expectations of rate cuts buoyed consumer stocks to make major gains on Thursday.
JB Hi-Fi added 1.8 per cent (at $116.41) and is 74 per cent up over the past year. Heavyweights Aristocrat Leisure (up 1.5 per cent at $71.38) and Eagers Automotive (up 2.2 per cent at $20.60) pulled the discretionaries sector deep into the green on the day. The sector's seven most valuable stocks are all well into double digit gains across the past 12 months.
Wesfarmers was in on the act, with this week's gains pushing the company above $100bn market cap, joining the big four and CSL as 'hectocorns'.
There were serious rumblings for sharemarket operator ASX Ltd, as its price sank 8.6 per cent to $64.22. US competitor CBOE is pushing to conduct sharemarket listings of companies in Australia.
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