• The ASX 200 rallied by 0.44% on Tuesday
  • This comes as the RBA expectedly raised the key cash rate by 50 bps to 1.35%
  • Energy and Tech stocks lead the rally

 

Local blue chips lifted 0.50% today as the RBA expectedly raised its key cash rate by another 50bps to 1.35%.

It was the third month in a row the central bank has increased its rate — first by 25 bp in May, then 50 bp in June, and then another 50 bp today.

The RBA has previously said it wants to bring inflation down from the current level of 5.1% to its target range of 2%-3%.

Its official announcement today confirmed that it hasn’t finished with raising rates. It read:

“Today’s increase in interest rates is a further step in the withdrawal of the extraordinary monetary support that was put in place to help insure the Australian economy against the worst possible effects of the pandemic.

“The resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed.

“The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead.

“The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market.

“The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.”

Yields on Australian bonds also rose today, with the benchmark 10-year yield jumping 10bps to 3.65%.

On the ASX, Energy and Tech were the best performing sectors.

Oil stocks rose on concerns over tight supply amid lower output from OPEC, with the benchmark Brent crude currently trading at US$113.50 a barrel. Majors like Woodside Energy (ASX:WDS) jumped by 4%, while Santos (ASX:STO) was up 1 %.

Bank shares also took the RBA news well, with Big Four stocks rising slightly.

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
RRL Regis Resources 1.61 11% 7,502,040 $1,094,717,212.60
BRN Brainchip Ltd 0.9375 10% 7,875,875 $1,461,457,822.40
SYA Sayona Mining Ltd 0.165 10% 41,468,921 $1,237,012,900.50
WAF West African Res Ltd 1.305 6% 2,562,664 $1,260,971,732.61
WTC Wisetech Global Ltd 40.89 6% 334,972 $12,629,596,082.40
DEG De Grey Mining 0.865 5% 5,990,797 $1,155,251,690.50
MFG Magellan Fin Grp Ltd 12.26 5% 1,394,575 $2,168,210,391.12
WAM WAM Capital Limited 1.905 5% 1,406,822 $1,979,787,183.92
CEN Contact Energy Ltd 6.56 5% 9,513 $1,553,091,439.68
SEK Seek Limited 22.08 4% 677,290 $7,505,879,220.40
SLR Silver Lake Resource 1.345 4% 3,209,621 $1,202,737,410.78
MGF Magellan Global Fund 1.395 4% 1,810,711 $2,064,475,972.74
JLG Johns Lyng Group 6.12 4% 782,836 $1,525,415,613.12

Regis Resources (ASX:RRL) was up 11% today after it reported record gold production in the June quarter.

The miner delivered 123,901oz including ~92,800oz at Duketon and ~31,100oz at Tropicana, helping it stretch to make its 420,000-475,000oz guidance for FY22 (437,300oz).

RBC analyst Alex Barkley said the record quarter beat consensus expectations by a massive 8%.

“We expect this strong quarter is likely to help dampen operating concerns after a difficult FY22,” he said in a note.

Tech stock Brainchip (ASX:BRN) meanwhile, was also up 10% on no specific news.

 

BIG CAP LOSERS

Swipe or scroll to reveal the full table. Click headings to sort.

Code Name Price % Change Volume Market Cap
RRL Regis Resources 1.61 11% 7,502,040 $1,094,717,212.60
BRN Brainchip Ltd 0.9375 10% 7,875,875 $1,461,457,822.40
SYA Sayona Mining Ltd 0.165 10% 41,468,921 $1,237,012,900.50
WAF West African Res Ltd 1.305 6% 2,562,664 $1,260,971,732.61
WTC Wisetech Global Ltd 40.89 6% 334,972 $12,629,596,082.40
DEG De Grey Mining 0.865 5% 5,990,797 $1,155,251,690.50
MFG Magellan Fin Grp Ltd 12.26 5% 1,394,575 $2,168,210,391.12
WAM WAM Capital Limited 1.905 5% 1,406,822 $1,979,787,183.92
CEN Contact Energy Ltd 6.56 5% 9,513 $1,553,091,439.68
SEK Seek Limited 22.08 4% 677,290 $7,505,879,220.40
SLR Silver Lake Resource 1.345 4% 3,209,621 $1,202,737,410.78
MGF Magellan Global Fund 1.395 4% 1,810,711 $2,064,475,972.74
JLG Johns Lyng Group 6.12 4% 782,836 $1,525,415,613.12

Real estate developer Winton Land (ASX:WTN) dropped 20% on no official announcement.