ASX Large Caps: Large caps up 1.8pc as inflation softens; retail group Premier up 15pc on profit jump

The ASX was up by 1.8% on Thursday
This follows a rally on Wall Street overnight following BoE’s decision to buy back UK bonds
Aussie inflation climbed 6.8% YoY in August

The ASX 200 climbed 1.80% on Thursday on the back off BoE-triggered rally on Wall Street overnight.

US equity benchmarks surged 2% after the Bank of England (BoE) announced it will carry out temporary purchases of long-dated UK bonds and postpone the start of Quantitative Tightening Gilt sales until the end of October.

The idea is to halt the recent crash in UK government bonds that pose a “material risk to UK financial stability” after the Chancellor announced new tax cuts earlier this week.

The announcement whipped up more volatility in the already volatile bond and currency markets.

The benchmark US 10-year note plunged 22 basis points (bond prices higher) to 3.73%, while the UK’s 10-year yield tumbled 50bps.

Australian bond yields also slumped 12-15 bp across the curve today, while the AUD rebounded from a US63c handle to US64.84c.

The ABS has released its first ever data drop of monthly CPI, showing that the pace of price increases in Australia has declined from 7% in July to 6.8% in August YoY.

Here’s where most of the price increases are:

…the strongest gains year on year came from fruit & veg, new dwellings & fuel. But fuel slowed with price falls into Aug.
Inflation ex fruit, veg & fuel rose from 5.5%yoy in June to 6.2%yoy.
(ABS table) pic.twitter.com/CbesUHrope

— Shane Oliver (@ShaneOliverAMP) September 29, 2022

However, most economists believe the reprieve will be temporary as soaring energy costs across the eastern seaboard begin hitting households.

While WA reserves 15% of its gas production for domestic consumption, Australia’s eastern states are more exposed to energy price swings as most of its production is exported.

The Albanese government is now due to decide within days if it will activate the “gas trigger”, a legal mechanism to limit gas exports during periods of shortfall.

There’s also news today that AGL Energy (ASX:AGL) will spend $20bn to shut down its Loy Yang A power station a decade earlier than expected, bowing to pressure from billionaire shareholder Mike Cannon-Brookes.

The AGL share price was up 0.75%.

All 11 sectors on the ASX rose today, led by Energy and Mining.

Coal stocks have risen for the third consecutive day now, with the likes of New Hope Corporation (ASX:NHC) and Yancoal (ASX:YAN) extending their gains further.

Looking ahead to tonight’s Wall Street session, US Q2 GDP is due out while in the EU, consumer and business confidence indexes will be released.

BIG CAP WINNERS

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Code	Name	Price	% Change	Volume	Market Cap
PMV	Premier Investments	23.82	15%	465,977	$3,286,386,054.12
SYA	Sayona Mining Ltd	0.245	9%	75,080,445	$1,869,559,978.05
CRN	Coronado Global Res	1.735	8%	4,920,460	$2,699,090,505.30
APM	APM Human Services	3.21	7%	614,361	$2,742,374,018.54
DEG	De Grey Mining	1.0425	7%	3,327,634	$1,375,526,017.13
NHC	New Hope Corporation	6.3	7%	5,099,706	$4,914,055,796.70
SYR	Syrah Resources	1.615	7%	1,912,697	$1,015,914,625.65
GQG	GQG Partners	1.53	6%	492,272	$4,266,803,852.13
DHG	Domain Holdings Aus	3.175	6%	742,556	$1,894,971,459.00
SQ2	Block	89.44	6%	189,751	$3,152,160,298.80
GOR	Gold Road Res Ltd	1.2475	6%	5,126,275	$1,268,003,999.98
PDN	Paladin Energy Ltd	0.775	5%	10,510,269	$2,188,888,066.47
CHN	Chalice Mining Ltd	3.88	5%	1,905,624	$1,384,773,673.92
NST	Northern Star	7.545	5%	4,240,411	$8,353,955,011.74
INR	Ioneer Ltd	0.625	5%	3,515,780	$1,248,389,775.22

Retailer group Premier Investments (ASX:PMV) rose 14% after reporting record sales from its pyjama retailer Peter Alexander and women’s fashion chain Portmans.

The Solomon Lew chaired company also owns other brands including, Myer, Smiggle, Just Jeans and Dotti.

The $3.75bn market cap Premier also declared ordinary and special dividends totalling $200m and a $50m share buyback.

BIG CAP LOSERS

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Code	Name	Price	% Change	Volume	Market Cap
IRE	IRESS Limited	8.8	-16%	2,657,038	$1,964,196,763.88
MCY	Mercury NZ Limited	5.01	-4%	19,210	$7,186,703,784.00
MEZ	Meridian Energy	4.3	-4%	16,641	$5,636,437,476.74
CEN	Contact Energy Ltd	6.61	-3%	1,929	$1,695,213,197.10
AAC	Australian Agricult.	1.7	-2%	605,776	$1,042,786,472.31
VUL	Vulcan Energy	7.4	-2%	225,290	$1,077,881,463.52
CMW	Cromwell Prop	0.665	-1%	2,288,320	$1,767,735,021.83
LNK	Link Admin Hldg	2.96	-1%	2,464,580	$1,538,962,443.00
WBCPL	Cn 3M Per Q Rd T-28	103.2	-1%	12,333	$1,576,996,960.00
HMC	Homeco Limited	4.49	-1%	331,172	$1,365,528,238.30

Financial services tech company Iress (ASX:IRE) fell 17% after an earnings downgrade for FY22. The company said that its new profit guidance for the full year is in now between $166 million and $170 million.

Previously, Iress had forecast a profit range of $177 million to $180 million.