Healthcare, Staples and Discretionary stocks sold off after RBA minutes release. Pic via Getty Images.
ASX Large Caps: ASX higher despite rates-sensitive stocks tumbling after RBA report, Bapcor down 12pc
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- ASX pared early gains, closing +0.4pc higher
- Healthcare, Staples and Discretionary stocks sold off after RBA minutes release
- Lithium stocks also rallied today, while gold miners fell as safe haven bids faded
The ASX 200 tracked Wall Street higher on Monday, up by +0.4% with tech stocks leading the rally.
Mining stocks also rose, while Healthcare, Staples and Discretionary were the laggards.
Stocks retreated following the release of hawkish RBA minutes which showed that policy makers considered hiking rates by 25bp in September before deciding to hold.
After the release, bond futures tumbled (bonds down means yields higher), suggesting that traders are pricing in a total of 25bp point increase in the RBA cash rate by August 2024.
Lithium stocks also rallied today, while gold miners fell as safe haven bids faded.
This comes as on optimism that diplomatic efforts could avert a full-fledged war in the Middle East involving other nations. US President Joe Biden is set to visit Israel, while Putin is currently in China.
Aside from geopolitics, traders’ eyes will be focused on earnings reports this week. Tesla, Netflix, and Bank of America are among companies to be first off the rank.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| TPG | TPG Telecom Limited | 5.45 | 5.12 | 3,585,628 | $9,631,389,845 |
| VUK | Virgin Money Uk PLC | 3.09 | 4.39 | 2,092,384 | $2,001,185,457 |
| MP1 | Megaport Limited | 11.49 | 3.98 | 602,988 | $1,757,648,515 |
| AZS | Azure Minerals | 2.55 | 3.66 | 1,706,880 | $1,096,580,382 |
| NWS | News Corp.. | 35.47 | 3.64 | 198,692 | $1,019,246,943 |
| MCY | Mercury NZ Limited | 5.81 | 3.57 | 7,726 | $7,804,784,811 |
| CNI | Centuria Capital | 1.32 | 2.93 | 709,584 | $1,030,493,093 |
| HLI | Helia Group Limited | 3.75 | 2.88 | 353,646 | $1,133,892,494 |
| AKE | Allkem Limited | 11.64 | 2.74 | 1,773,508 | $7,243,510,250 |
| 360 | Life360 Inc. | 8.37 | 2.70 | 272,233 | $1,651,746,449 |
| XRO | Xero Ltd | 116.91 | 2.55 | 129,165 | $17,267,358,726 |
| SQ2 | Block | 70.64 | 2.53 | 46,880 | $2,265,354,304 |
| AD8 | Audinate Group Ltd | 13.60 | 2.53 | 134,654 | $1,102,023,165 |
| CIA | Champion Iron Ltd | 6.27 | 2.45 | 872,802 | $3,165,849,898 |
| RWC | Reliance Worldwide | 3.60 | 2.42 | 2,437,079 | $2,773,232,625 |
| EMR | Emerald Res NL | 2.56 | 2.40 | 959,495 | $1,553,590,150 |
| VCX | Vicinity Centres | 1.78 | 2.16 | 4,827,038 | $7,920,959,123 |
| GOZ | Growthpoint Property | 2.14 | 2.15 | 519,568 | $1,575,550,291 |
| GMD | Genesis Minerals | 1.43 | 2.14 | 3,037,803 | $1,452,955,697 |
Mercury NZ (ASX:MCY) rose after releasing its quarterly update. The company reported higher national inflows during the quarter, which were reflected in spot electricity prices averaging $132/MWh in Auckland. Forward prices remained high at $152/MWh in Auckland for financial years 2024 to 2026, as at 30 September, says MCY.
Syrah Resources (ASX:SYR) was up after the graphite miner reported strong demand for its graphite anode material in the September quarter.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BAP | Bapcor Limited | 5.89 | -11.90 | 2,599,588 | $2,267,275,500 |
| WAM | WAM Capital Limited | 1.59 | -6.49 | 1,497,519 | $1,865,523,395 |
| SDR | Siteminder | 4.31 | -4.22 | 1,502,381 | $1,237,797,477 |
| CEN | Contact Energy Ltd | 7.35 | -4.05 | 3,751 | $1,944,214,466 |
| WLE | WAM Leaders Limited | 1.41 | -3.91 | 1,249,299 | $1,848,276,752 |
| HGH | Heartland Group | 1.57 | -3.40 | 323 | $1,158,729,737 |
| GUD | G.U.D. Holdings | 11.22 | -3.28 | 526,560 | $1,634,378,474 |
| ZIM | Zimplats Holding Ltd | 21.49 | -3.15 | 21,918 | $2,388,479,431 |
| PDN | Paladin Energy Ltd | 0.93 | -2.86 | 16,946,232 | $2,861,883,789 |
| BOE | Boss Energy Ltd | 4.19 | -2.67 | 1,690,753 | $1,517,614,325 |
| SMR | Stanmore Resources | 3.67 | -2.53 | 883,182 | $3,389,232,544 |
| PSI | Psc Insurance Ltd | 4.64 | -2.32 | 346,926 | $1,707,062,040 |
| AIZ | Air New Zealand | 0.64 | -2.31 | 1,046,540 | $2,189,501,805 |
| ARB | ARB Corporation. | 29.67 | -2.30 | 130,808 | $2,493,355,711 |
| BFL | Bsp Financial Group | 5.22 | -2.25 | 6,542 | $2,494,954,688 |
Vehicles parts company Bapcor (ASX:BAP) tumbled is 11.5% after reporting that its YTD revenue growth had slowed down to a low-single digit percentage rate vs the pcp.
“In terms of bottom line, these challenges are further compounded by increased short-term margin pressures from cost inflation, and other external factors such as increasing payroll taxes; as well as investments in capability, depreciation and amortisation costs and higher interest,” said the company.
Cochlear (ASX:COH) dropped 1% after saying at its AGM that its full-year profit growth guidance of between 16 and 23% did not factor in any impact from the proposed acquisition of Oticon Medical cochlear implant business, which is expected to cost $170m.
A2 Milk (ASX:A2M) says its dispute with supplier Synlait (ASX:SM1) will now be be submitted to confidential binding arbitration after a 20-business day period of negotiations did not resolve the dispute.
Synlait had earlier said it was cancelling the exclusive manufacturing and supply rights it held in respect of stages 1 to 3 of A2M’s infant milk formula products for sale by A2M in the markets of China, Australia and New Zealand.
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