- ASX finished the week on a positive note
- Bond traders signal RBA rate hike this year
- Rotation to cyclical sectors in equities
Local blue chips traded in positive territory all day and closed 0.26% higher. For the week, the benchmark ASX 200 index was up 1.60%, narrowing its loss for the year to just 2%.
There was a clear rotation to cyclical sectors today as Aussie bond traders ditched 3-year govies, positioning themselves for a RBA rate hike this year.
The 3-year Aussie government bond yields spiked to a three-year high, which implied a cash rate of over 1.60% by December (vs the current 0.1%).
This means bond traders are expecting five or six 25bp RBA hikes throughout the year until December.
ASX cyclical stocks like Mining and Utilities led the way, while Tech stocks were sold off as investors retreated from rate sensitive sectors.
Meanwhile, energy traders are nervously watching Biden’s current visit to Europe, which could result in new sanctions on Russia’s energy.
Brent crude is seesawing around the US$120 a barrel level, but recent reports have indicated that an US/EU announcement on Russian embargo could be released as early as today (EU time).
The prospect of higher commodity prices and rise in interest rates has lifted the Aussie dollar to US 75.20, at the time of writing.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BAP | Bapcor Limited | 7.17 | 10.3% | 8,831,834 | $2,206,181,250 |
| SQ2 | Block | 157.32 | 9.2% | 242,402 | $13,737,286,715 |
| MP1 | Megaport Limited | 14.66 | 7.7% | 1,830,642 | $2,147,491,727 |
| CTT | Cettire | 2.89 | 7.0% | 1,550,106 | $1,029,343,194 |
| PDN | Paladin Energy Ltd | 0.79 | 6.8% | 25,455,015 | $1,982,416,330 |
| AMP | AMP Limited | 1.06 | 5.0% | 116,460,508 | $3,298,766,912 |
| CXO | Core Lithium | 0.86 | 4.9% | 31,092,814 | $1,389,349,984 |
| NAN | Nanosonics Limited | 4.73 | 4.9% | 2,134,816 | $1,361,022,402 |
| INR | Ioneer Ltd | 0.645 | 4.9% | 12,108,314 | $1,261,087,265 |
| HMC | Homeco Limited | 6.59 | 4.6% | 381,095 | $1,828,678,037 |
| AKE | Allkem Limited | 9.91 | 4.4% | 3,519,000 | $6,050,117,811 |
| LTR | Liontown Resources | 1.575 | 4.3% | 14,752,068 | $3,310,260,049 |
| NAB | National Aust. Bank | 29.61 | 4.3% | 8,564,259 | $92,031,747,084 |
| 29M | 29Metalslimited | 2.71 | 4.2% | 2,343,440 | $1,249,183,000 |
| VEA | Viva Energy Group | 2.49 | 4.2% | 5,111,839 | $3,708,062,204 |
| FMG | Fortescue Metals Grp | 22.31 | 4.1% | 6,708,839 | $65,982,218,193 |
| SFR | Sandfire Resources | 7.44 | 4.1% | 2,643,462 | $2,931,370,535 |
| IMD | Imdex Limited | 2.86 | 4.0% | 1,768,970 | $1,090,244,100 |
| APM | APM Human Services | 2.89 | 4.0% | 2,269,439 | $2,549,765,810 |
| APX | Appen Limited | 9 | 3.9% | 1,370,039 | $1,065,828,773 |
| SWM | Seven West Media Ltd | 0.795 | 3.9% | 10,892,566 | $1,216,440,453 |
Sayona Mining (ASX:SYA) was once again up 15% on specific news.. The SYA share price has surged 80% in the past month after revealing a doubling of its Québec lithium resource base at the beginning of March.
Firefinch (ASX:FFX) said its Viper Mineral Resource Estimate (MRE) increased by 128% to 3.27 million tonnes, while the N’Tiola MRE increased by 18% to 2.90 million tonnes.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CIM | Cimic Group Ltd | 15.94 | -6.8% | 1,318,722 | $5,326,279,453 |
| DEG | De Grey Mining | 1.165 | -6.4% | 9,683,120 | $1,750,997,289 |
| TPW | Temple & Webster Ltd | 8.35 | -5.4% | 1,296,915 | $1,063,599,354 |
| ASX | ASX Limited | 83.41 | -3.8% | 908,648 | $16,786,636,497 |
| PXA | Pexagroup | 17.82 | -3.7% | 295,483 | $3,280,527,078 |
| ABC | Adbri Limited | 2.91 | -3.6% | 1,751,467 | $1,970,935,216 |
| NCK | Nick Scali Limited | 13.5 | -3.6% | 536,258 | $1,134,000,000 |
| HSN | Hansen Technologies | 5.01 | -3.3% | 298,178 | $1,039,479,587 |
| AGL | AGL Energy Limited. | 7.29 | -3.2% | 8,716,030 | $4,957,595,030 |
| FCL | Fineos Corp Hold PLC | 3.68 | -3.2% | 35,741 | $1,211,944,496 |
| MGR | Mirvac Group | 2.54 | -2.7% | 16,300,596 | $10,290,364,166 |
| ALX | Atlas Arteria | 6.91 | -2.7% | 2,207,029 | $6,809,029,405 |