- ASX rebounds by 0.30% today
- All sectors rose except financials
- Energy stocks higher as investors assess global oil supply
The ASX 200 has rebounded after the shock 50bp RBA rate hike yesterday triggered a 1.5% selloff.
Banks were the only sector that dropped today, with Energy and Utilities leading the broader market higher by 0.40%
Bank of Queensland (ASX:BOQ) and Commonwealth Bank (ASX:CBA) have today joined Westpac (ASX:WBC) as the first major banks to pass on the full 50bp rate hike to customers.
Higher prices and mortgage rates have turned on the screw for many households, and now former RBA governor Ian Macfarlane warns that inflation could go to as high as 8% before coming back down to 2-3%.
“I find it hard to think that it will just come back to 2 per cent,” Macfarlane told the Morgan Stanley Australia summit.
“I think there’s enough scarcity out there, particularly with such a tight labour market both in the US and here, and with the feeding through of all the supply shocks… I think 3-4-5 per cent is more likely.
“It could go up to 7 or 8 per cent,” he added.
Meanwhile, Energy stocks on the ASX were well bid today as traders assessed the supply situation globally.
Brent is trading steady around the US$120 level, but some experts believe it might be the calm before the storm.
Goldman Sachs predicts a US$140 oil price between the summer months of July and September, up from its prior call of $125 a barrel.
“Returning Venezuelan and Libyan production to Europe and North America, should it occur, will not be material enough in the shorter term to force prices lower,” said Oanda senior analyst, Jeff Halley.
“Refining margins globally suggest that demand for petrol and diesel remain in heavy demand, with the refining logjam in refined products backstopping crude prices.
“A reopening China is also supportive of oil prices,” Halley continued.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ALX | Atlas Arteria | 8.25 | 16% | 10,556,234 | $6,809,029,405 |
| BLD | Boral Limited | 3.275 | 15% | 10,914,356 | $3,154,832,878 |
| PDN | Paladin Energy Ltd | 0.795 | 13% | 29,916,822 | $2,099,334,196 |
| YAL | Yancoal Aust Ltd | 6.07 | 7% | 2,056,987 | $7,473,687,213 |
| SMR | Stanmore Resources | 2.755 | 5% | 4,006,441 | $2,361,620,049 |
| WDS | Woodside Energy | 34.56 | 5% | 9,265,473 | $62,449,879,968 |
| APA | APA Group | 11.68 | 4% | 2,820,663 | $13,214,811,098 |
| GRR | Grange Resources. | 1.76 | 4% | 3,341,742 | $1,955,902,400 |
| STO | Santos Ltd | 8.78 | 4% | 12,983,703 | $28,687,226,248 |
| GQG | GQG Partners | 1.6825 | 4% | 1,685,826 | $4,798,308,830 |
| SQ2 | Block | 116.41 | 3% | 238,268 | $4,652,393,288 |
| GNC | GrainCorp Limited | 10.43 | 3% | 1,235,166 | $2,309,153,287 |
| WOR | Worley Limited | 15.4 | 3% | 1,378,880 | $7,802,948,935 |
| CMM | Capricorn Metals | 3.73 | 3% | 877,484 | $1,341,405,363 |
| CRN | Coronado Global Res | 2.135 | 3% | 5,929,974 | $3,470,259,221 |
| ARF | Arena REIT. | 4.32 | 3% | 494,585 | $1,452,580,334 |
Industrial materials company Boral Ltd (ASX:BLD) surged 15% after announcing that industry veteran Vik Bansal will become its new CEO.
Bansal has more than 30 years of leadership experience in the industry, with his latest job being the CEO of InfraBuild. He has also been at the helm of Cleanaway Waste Management (ASX:CWY).
Toll roads developer Atlas Arteria (ASX:ALX) rose 16% after IFM Global Infrastructure Fund (IFM) acquired 15% of the company after market-close yesterday at a price of $8.10 per security. Atlas says it has not yet received any proposal from IFM to acquire additional stake in the company.
Woodside Energy (ASX:WDS), Santos (ASX:STO), and Origin Energy (ASX:ORG) were some of the best performing energy and utility stocks today.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| 5EA | 5Eadvanced | 3.33 | -8% | 1,451,981 | $1,120,979,320 |
| SYA | Sayona Mining Ltd | 0.1525 | -8% | 111,613,737 | $1,360,009,226 |
| BEN | Bendigo and Adelaide | 9.845 | -7% | 3,076,441 | $5,972,241,930 |
| WBC | Westpac Banking Corp | 22.05 | -6% | 13,995,957 | $81,961,399,317 |
| BRN | Brainchip Ltd | 0.95 | -5% | 9,306,741 | $1,714,362,144 |
| CBA | Commonwealth Bank. | 97.6 | -4% | 3,474,838 | $173,983,687,842 |
| SNZ | Summerset Grp Hldgs | 9 | -4% | 331 | $2,169,997,243 |
| JRV | Jervois Global Ltd | 0.71 | -4% | 2,607,179 | $1,124,615,711 |
| NAB | National Aust. Bank | 28.96 | -4% | 7,196,944 | $96,601,297,533 |
| MFG | Magellan Fin Grp Ltd | 12.63 | -4% | 1,633,850 | $2,436,591,519 |
| BOQ | Bank of Queensland. | 7.095 | -4% | 4,242,961 | $4,771,024,620 |
| CLW | Chtr H Lwr | 4.65 | -4% | 4,278,806 | $3,484,645,346 |
Westpac dipped 6% after saying that it will pass on the full 50bp rate hike to exisiting and new mortgage customers.