But, as has often been the case during the nine-month coronavirus rally, investors aggressively bought the dip on Tuesday to give the ASX its best day in a week.
“There is just so much cash wanting to get back into the market, and buy at any opportunity,” said TMS Capital’s Ben Clark.
“We’ve seen it all through COVID. The dips are just being bought so aggressively.”
Mr Clark did however warn against assuming the first day of summer was an indicator of gains to come.
“To be honest we’re probably due for a breather… we had a year’s worth of returns in a month, and that’s after a good six months.” he said.
“You’ve got to be more selective now… everything just got thrown into the reopening rally and I think we’ll start to see a few companies start to pull back when they re-rate.”
Milford Asset Management portfolio manager Mike Higgins offered a similarly cautious outlook even as investors look forward to the prospect of an improved economy that is still benefiting from government stimulus.
“At the moment it does feel like we’re vulnerable with the way valuations are stretched but without a trigger there… that optimism at the moment feels like it could continue to Christmas and the new year,” he said.
The Reserve Bank board was seemingly buoyed by a run of positive data as it left rates on hold at a record low 0.1 per cent and its accommodative policy settings unchanged from a month ago.
But it too ended its final statement of the year with the crucial caveat that monetary and fiscal support will be required for some time in order for the country to repair its economy.
At the top end of Tuesday’s market toll giant Transurban and Woodside Petroleum were the most notable declines.
Property advertiser REA Group also finished lower, but touched a new record intraday high of $146.72 along the way.
Employment and education portal Seek rose 1.7 per cent to close at an all-time high of $26.48 and hit $26.77 during trade, while PolyNovo closed at a record high of $3.38, up 5.3 per cent for the day.
Investors were also hungry for fast food merchants, with Domino’s Pizza leading the ASX 200 with a 12.4 per cent climb to $83.17 and KFC franchisor Collins Food jumping 10.9 per cent to $10.37.