The share market's push toward a 6,000-point milestone has been halted by Reserve Bank's surprise decision to leave interest rates on hold.
The market plunged immediately after the RBA announced no change to its cash rate of 2.25 per cent, with the major banks the main cause of the benchmark S&P/ASX200 index's fall to 5,903 points.
Just hours earlier the index had hit 5,996.9 points, the closest it has been to 6,000 since January 2008.
"The market would definitely be somewhat disappointed by the RBA's decision not to back up the February cut," Australian Stock Report head of research Chris Conway said.
"It's wrong-footed some people - some traders and investors out there were definitely trying to get ahead of the curve and position for the ongoing yield play."
The big four banks were all higher before the RBA's announcement at 1430 AEDT, but that quickly changed, with Commonwealth Bank National Australia Bank, Westpac and ANZ all ending the day in negative territory.
Telstra also lost ground.
The wider market regained some ground in late afternoon trade, and the ASX200 closed 25 points weaker, down 0.4 per cent, at 5,933.9 points.
The market will still break through 6,000 points, Mr Conway said, but it may now take another three or four weeks to get there.
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