ASX slipped as CPI data suggests rates could stay elevated. Picture Getty
ASX Large Caps: Inflation climbs, shares down as gold and insurance stocks lead decliners
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- ASX slipped as CPI data suggests rates could stay elevated
- Australian CPI increased by 5.2% from a year earlier, matching expectations
- Star Entertainment plunged after a cap raise
Local shares closed -0.3% lower today after the CPI report shows that inflation in Australia increased to 5.2% YoY in August, matching market expectations.
According to the ABS, the biggest contributions to the annual increase were transport (+7.4%), housing (+6.6%), and insurance and financial services (+8.8%).
The latest reading supports the RBA’s case of keeping the door open for further tightening, but it’s unlikely to force the board into further hikes in the short term.
“Michele Bullock won’t be rushing to raise rates next week after just one month of headline inflation picking up steam,” said Josh Gilbert, market analyst at eToro.
On the ASX, all sectors except for Real Estate were down.
Leading the decliners were gold stocks Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM).
Insurance companies were also hit hard, with Insurance Australia (ASX:IAG) and Suncorp (ASX:SUN) falling -2% each.
The Aussie dollar meanwhile has continued its losing streak –plunging to US63.83c after being hammered by the rising USD and bleak news out of the Chinese property sector.
This comes after China’s beleaguered property developer Evergrande Group’s founder and chairman Hui Ka Yan was reportedly placed under police control.
Asian stocks were, however, mixed today as China reported improved industrial profits. This data appears to shrug off turmoil in the property sector.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| RMD | ResMed Inc. | 23.09 | 5.24 | 7,243,320 | $10,549,803,365 |
| NEU | Neuren Pharmaceut. | 10.84 | 3.44 | 238,298 | $1,326,408,284 |
| GNE | Genesis Energy Ltd | 2.29 | 2.69 | 19,225 | $2,375,556,477 |
| DXS | Dexus | 7.36 | 2.58 | 2,571,910 | $7,711,802,814 |
| HLS | Healius | 2.43 | 2.53 | 415,686 | $1,350,341,028 |
| CEN | Contact Energy Ltd | 7.50 | 2.46 | 6,277 | $1,857,917,741 |
| TAH | TABCORP | 0.99 | 2.07 | 1,127,429 | $2,202,526,604 |
| IPH | IPH Limited | 7.37 | 1.87 | 329,209 | $1,714,806,701 |
| CRN | Coronado Global Res | 1.92 | 1.86 | 4,230,040 | $3,151,733,012 |
| LLC | Lendlease Group | 7.15 | 1.85 | 1,013,472 | $4,841,218,374 |
| WPR | Waypoint REIT | 2.37 | 1.72 | 719,432 | $1,565,332,555 |
| EMR | Emerald Res NL | 2.61 | 1.56 | 1,150,602 | $1,533,282,393 |
| CLW | Chtr H Lwr | 3.33 | 1.52 | 1,115,685 | $2,371,293,928 |
| ARF | Arena REIT. | 3.48 | 1.46 | 259,177 | $1,209,253,024 |
| RHC | Ramsay Health Care | 52.56 | 1.35 | 341,618 | $11,884,851,882 |
| AIA | Auckland Internation | 7.23 | 1.26 | 365,185 | $10,514,015,118 |
| TLC | The Lottery Corp | 4.78 | 1.17 | 2,850,943 | $10,505,642,438 |
| SVW | Seven Group Holdings | 30.40 | 1.16 | 640,245 | $10,925,371,264 |
Sleep-focused tech company ResMed (ASX:RMD) jumped 5% after Goldman Sachs said that weight loss drugs would have a small impact on the obstructive sleep apnea market.
Resmed has been under pressure from short sellers who believe that weight loss drug Ozempic, produced by Novo Nordisk, could reduce demand for sleep apnoea products.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SGR | The Star Ent Grp | 0.63 | -8.78 | 57,289,201 | $1,122,352,853 |
| VSL | Vulcan Steel | 7.45 | -5.93 | 51,164 | $1,040,755,890 |
| DEG | De Grey Mining | 1.12 | -4.27 | 4,503,730 | $1,827,304,268 |
| IRE | IRESS Limited | 5.76 | -3.84 | 544,305 | $1,118,868,949 |
| EVN | Evolution Mining Ltd | 3.34 | -3.19 | 4,855,551 | $6,338,284,345 |
| APM | APM Human Services | 1.91 | -3.16 | 390,812 | $1,811,434,343 |
| OCL | Objective Corp | 10.98 | -2.75 | 56,388 | $1,075,640,671 |
| AWC | Alumina Limited | 0.96 | -2.55 | 2,831,047 | $2,843,647,789 |
| CCP | Credit Corp Group | 19.15 | -2.45 | 76,626 | $1,336,152,383 |
| NST | Northern Star | 10.47 | -2.42 | 1,523,426 | $12,357,791,045 |
| NCM | Newcrest Mining | 25.65 | -2.32 | 955,424 | $23,482,499,022 |
Embattled casino operator Star Entertainment (ASX:SPR) plunged -16% following its $565 million cap raise from institutional investors at 60c.
Liquor chain operator Endeavour (ASX:EDV) fell 1% after the board told shareholders not to vote former Myer chairman Bill Wavish as an independent non-executive director, ahead of the AGM on 30 October.
