• The ASX up 0.54% with 6 out of 11 sectors in the green
  • RBA raises forecasts for inflation, again, expects peak in mid-2023
  • CBA chief economist says need to closely watch statements from listed companies

 

After following in the footsteps of a sharp sell-off in the US yesterday, the ASX managed to scrape itself together and finish up 0.54% today.

A total of 6 out of 11 sectors were higher, led by Energy which rallied by a solid 3.51%.

Allkem (ASX:AKE) was the biggest large cap mover up 6.03%, followed by coal players Whitehaven Coal (ASX:WHC) and New Hope Corp (ASX:NHC) up 5.95% and 5.91% respectively – despite coal dropping 1.94%.

But in the major news today, the Reserve Bank of Australia (RBA) has again cut near-term forecasts for economic growth and raised forecasts for inflation. 

Forecasts assume a cash rate peaking at 3.5% in mid-2023 before easing in 2024. 

“The Reserve Bank has work to do. But ’70s style stagflation should be avoided. Supply-chain issues are improving and demand is slowing to match lower supply or production of goods. There are early signs of an easing of price pressures,” CBA chief economist Craig James said.

“Investors need to closely watch statements from listed companies – especially focussing on their plans to succeed in an environment of slower growth and relative high inflation. 

“Over coming months, the sharemarket will have to compete more heavily with bank deposits to secure investor affection.” 

 

BIG CAP WINNERS

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Security Description Last % Volume MktCap
SQ2 Block 97.28 11% 1,375,270 $3,250,277,786.84
CRN Coronado Global Res 2.28 9% 4,139,564 $3,503,788,295.70
NHC New Hope Corporation 6.47 6% 5,672,444 $5,332,664,219.61
AKE Allkem Limited 14.92 6% 3,045,357 $8,984,602,431.74
GQG GQG Partners 1.45 6% 625,505 $4,045,343,444.58
WHC Whitehaven Coal 9.95 6% 5,913,179 $8,745,464,002.69
LTR Liontown Resources 1.9 6% 14,567,425 $3,953,583,630.00
SMR Stanmore Resources 3.09 5% 2,150,423 $2,650,062,192.12
MIN Mineral Resources. 73.66 5% 617,356 $13,324,474,863.00
CXO Core Lithium 1.415 5% 18,311,212 $2,477,778,623.55
SYA Sayona Mining Ltd 0.235 4% 27,715,032 $1,870,675,344.23
SYR Syrah Resources 2.55 4% 2,524,476 $1,642,898,239.50
FMG Fortescue Metals Grp 15.9 4% 7,322,737 $47,046,583,947.04
IMU Imugene Limited 0.1975 4% 6,942,046 $1,195,947,966.39
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The biggest winner of the big guns today was Block (ASX:SQ2) up 11% after reporting a 17% increase in total revenue for the quarter to $4.5 million. 

Subscription and services-based revenue for the three and nine months ended September 30, 2022 increased by $496.7 million, or 71% and $1.3 billion, or 68%, compared to the three and nine months ended September 30, 2021, respectively. 

The company says this increase was driven by revenue generated from the BNPL platform following the acquisition of Afterpay in the first quarter of 2022, which contributed $209.9 million during the three months ended September 30, 2022, and $547.8 million from the date of acquisition through September 30, 2022.

 

BIG CAP LOSERS

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