- The ASX was down 0.55% on Wednesday
- AUD drops below US64c
- RBA tells the ASX to improve its governance
The stock market continues to be volatile as local shares wiped yesterday’s gains to close 0.55% lower on Wednesday.
The Tech sector led the selloff, down by 2%, while Comm Services and Utilities were the only two sectors in the green.
Optus’ woes continues as it faces several class actions. Customers who are affected by the data breach could change their driver’s license paid for by the telco. The Opposition Liberals have even suggested that people should be able to change their passports for free too.
ABS data released today showed that Australian retail sales climbed again in August, up by 0.6% from July.
Retail sales in the country have been rising every single month this year, suggesting that households are coping well with mortgage rate increases.
The RBA will convene again on October 4th to decide on the next rates move, with consensus showing a 50bp increase.
Yields on Aussie 10 year government bonds rose 10bp to 4.12%, the highest in three months.
However the short end of the curve fails to keep up with the US yields, resulting in a slump for the Aussie dollar to US63.82c. This year, the AUD has depreciated by more than 10% against the greenback.
Bitcoin is also in retreat in the last few hours, down 2% to US$18,706.
Meanwhile, in a development that could keep oil and gas prices high, Russia has declared victory in the four occupied areas of eastern Ukraine.
According to Russian officials, 93% of people in the Zaporizhzhia region supported annexation, as well as 87% in the Kherson region, 98% in the Luhansk region, and 99% in Donetsk.
The news follows a potential sabotage incident at the Nord Stream 1 and Nord Stream 2 gas pipelines overnight.
Back home, the RBA has told market operator ASX (ASX:ASX) to shape up and improve its governance and risk management controls in the next three months.
In a released statement, the RBA said the ASX needs to expedite its planned replacement of the CHESS clearing system, and “to take a more proactive role in ensuring that its regulatory obligations are being met.”
In stock news, Telix Pharma (ASX:TLX) was the worst performing large cap today, down by 16% after the company withdrew its application to market its Illuccix product in Europe.
This came as Danish regulators requested additional data that Telix said it couldn’t deliver within the requested time period.’
Looking ahead to tonight’s trading on Wall Street, we should expect lots of Fedspeak from Messrs Daly, Bostic, Bullard, and Evans.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CRN | Coronado Global Res | 1.6125 | 6% | 6,243,494 | $2,548,209,669.60 |
| WHC | Whitehaven Coal | 8.78 | 4% | 9,785,207 | $8,080,495,459.40 |
| IPL | Incitec Pivot | 3.495 | 3% | 12,692,888 | $6,564,720,598.02 |
| NHC | New Hope Corporation | 5.91 | 3% | 6,737,906 | $4,772,464,358.49 |
| TAH | TABCORP Holdings | 0.96 | 3% | 5,754,179 | $2,131,310,951.06 |
| OBL | Omni Bridgeway Ltd | 3.86 | 3% | 513,787 | $1,020,494,189.04 |
| CCP | Credit Corp Group | 17.5 | 3% | 263,233 | $1,157,218,679.74 |
| INR | Ioneer Ltd | 0.6 | 3% | 4,908,574 | $1,227,408,434.46 |
| TLS | Telstra Corporation. | 3.81 | 2% | 23,735,525 | $42,982,469,753.16 |
| AGL | AGL Energy Limited. | 6.55 | 2% | 1,800,010 | $4,312,309,763.53 |
| PRU | Perseus Mining Ltd | 1.425 | 2% | 3,951,630 | $1,904,440,331.79 |
| NWH | NRW Holdings Limited | 2.39 | 2% | 630,043 | $1,051,112,860.20 |
| BFL | Bsp Financial Group | 5 | 2% | 4,882 | $2,289,377,897.10 |
Coal stocks New Hope Corporation (ASX:NHC) and Coronado Global (ASX:CRN) extended Tuesday’s rally and led the pack again today.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| TLX | Telix Pharmaceutical | 4.62 | -14% | 3,718,609 | $1,687,651,796.60 |
| CXL | Calix Limited | 5.89 | -7% | 731,239 | $1,022,996,364.00 |
| CXO | Core Lithium | 1.1125 | -7% | 64,802,287 | $2,067,262,473.64 |
| IMU | Imugene Limited | 0.18 | -5% | 11,606,410 | $1,190,984,927.56 |
| BRN | Brainchip Ltd | 0.85 | -4% | 6,379,904 | $1,530,232,308.16 |
| VUK | Virgin Money Uk PLC | 2.18 | -4% | 8,643,435 | $1,774,760,080.32 |
| NIC | Nickel Industries | 0.765 | -4% | 13,630,252 | $2,185,018,797.60 |
| SNZ | Summerset Grp Hldgs | 9.05 | -4% | 2,265 | $2,191,183,479.36 |
| MIN | Mineral Resources. | 63.19 | -4% | 549,636 | $12,491,288,292.23 |
Core Lithium (ASX:CXO) lost 6% on the back of broad based selloff in lithium stocks.
Other lithium plays Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE) were also down 3% today.