- ASX 200 rallies by 1.20% on Monday
- This comes after Wall Street begins the new financial year strongly on Friday
- RBA rates decision on Tuesday
The ASX 200 has rallied by over 1% today, taking a cue from the strong session on Wall Street last Friday. All 11 sectors on the ASX rose, with Miners, Healthcare and Real Estate stocks leading the way.
A weak oil market off the back recession concerns didn’t stop energy stocks today, with major oil stocks on the ASX surging by over 2%. A steep 4% fall in iron ore prices overnight also didn’t stop investors from getting their hands on major iron ore stocks.
Meanwhile, the flooding we’re seeing in extensive parts of NSW are putting some scrutiny on insurance stocks.
At Monday’s close, QBE Insurance (ASX:QBE) closed 1% lower, Suncorp Group (ASX:SUN) rose by 1%, while IAG Insurance (ASX:IAG) was flat.
Meanwhile, the market has now all but locked in a 50bp rate hike by the RBA tomorrow, a move that would take our cash rate to 1.35%.
While the cash rate remains below the average of the past decade, it’s been the fastest increase seen in recent times.
Last week, we already saw major banks the CBA and NAB passing rate increases on fixed term mortgages on to their customers as property prices in large cities across the country fell further by 0.8%.
“It is most likely that the RBA hikes interest rate by 50 basis points, but I would not be surprised to see them bring the cash rate to 1.5% by hiking 65bps,” said Scott Solomon, Associate Portfolio Manager of T. Rowe Price.
“The RBA’s Governor Philip Lowe’s most recent statements suggest they will decide between 25 and 50 bps at this upcoming meeting but recent RBA guidance has not been dependable,” he said.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| IMU | Imugene Limited | 0.22 | 13% | 16,512,818 | $1,143,811,489 |
| APM | APM Human Services | 3.18 | 9% | 836,632 | $2,678,171,282 |
| NHC | New Hope Corporation | 3.61 | 8% | 2,527,296 | $2,780,072,654 |
| INA | Ingenia Group | 4.16 | 5% | 725,498 | $1,609,953,893 |
| JHX | James Hardie Indust | 33.67 | 5% | 892,721 | $14,276,085,056 |
| BRG | Breville Group Ltd | 19.03 | 5% | 460,412 | $2,526,588,533 |
| SQ2 | Block | 92.27 | 5% | 112,947 | $3,636,386,619 |
| RWC | Reliance Worldwide | 4.245 | 5% | 1,891,447 | $3,207,784,746 |
| VUK | Virgin Money Uk PLC | 2.38 | 4% | 1,635,523 | $1,870,530,710 |
| PRU | Perseus Mining Ltd | 1.665 | 4% | 3,766,408 | $2,175,522,741 |
| CIP | Centuria I REIT | 2.97 | 4% | 1,698,914 | $1,809,552,310 |
Imugene (ASX:IMU) was the best performing large cap today, up 12% on no specific news.
APM Human Resources (ASX:APM) was up 8% after establishing an $810 million syndicated multi-currency revolving corporate facility.
Breville Group (ASX:BRG) was up 5% today after announcing the completion of its acquisition of 100% of the Italian-based prosumer coffee group, LELIT.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| MFG | Magellan Fin Grp Ltd | 11.74 | -10% | 2,022,923 | $2,407,065,336 |
| SKC | Skycity Ent Grp Ltd | 2.49 | -6% | 446,642 | $2,014,543,804 |
| GRR | Grange Resources. | 1.17 | -6% | 2,411,496 | $1,440,886,679 |
| LKE | Lake Resources | 0.73 | -4% | 16,220,832 | $1,056,179,529 |
| SYA | Sayona Mining Ltd | 0.15 | -3% | 21,000,342 | $1,278,246,664 |
| PPT | Perpetual Limited | 28.34 | -3% | 150,259 | $1,659,434,640 |
| PDL | Pendal Group Ltd | 4.37 | -2% | 847,378 | $1,716,509,715 |
| CEN | Contact Energy Ltd | 6.49 | -2% | 9,115 | $1,647,218,194 |
| GNC | GrainCorp Limited | 9.32 | -2% | 1,444,043 | $2,183,282,691 |
| MCY | Mercury NZ Limited | 5.09 | -2% | 29,756 | $7,199,408,876 |
| NWL | Netwealth Group | 12.41 | -2% | 190,499 | $3,084,231,933 |
| BGA | Bega Cheese Ltd | 3.72 | -2% | 780,542 | $1,146,411,365 |
| AKE | Allkem Limited | 10.09 | -2% | 2,060,908 | $6,535,995,382 |
Magellan Financial Group (ASX:MFG) was down almost 10% on no announcements.