- ASX 200 finished 0.85% higher
- Tech, Real Estate and Utilities led the sectors
- Qantas to buy Alliance Aviation for $614m
Rates sensitive sectors like Tech, Real Estate and Utilities led the ASX200 index to a higher close today, as fears of rapid US rate hikes subsided overnight.
The benchmark index lifted 0.80% as US Fed Chairman Jerome Powell signalled that the Fed’s tightening path would not be as aggressive as first thought.
The Fed increased its benchmark rate by 0.5%, and in a press conference meeting, Powell ruled out the possibility of a 75bp hike anytime soon, saying that it “wasn’t something the committee was actively considering.”
Wall Street reacted positively to the comments, with major US stock indices rallying by over 3% – the best one day gains since May 2020.
Back home, the 10 year Aussie government bonds lost 12 basis points to 3.43% on the Fed move, and the Aussie dollar rallied to US 72.5 cents.
All eleven sectors on the ASX rose today with the exception of Financials, which fell marginally by 0.10%.
Meanwhile, Brent crude has traded back above US$110 a barrel as the EU proposed a phased embargo on Russian oil that could turn into a full ban within six months.
EU President Ursula von der Leyen said overnight: “We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined.”
“We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimises the impact on global markets.”
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SYA | Sayona Mining Ltd | 0.295 | 11% | 49,379,129 | $1,902,696,002 |
| BRN | Brainchip Ltd | 1.03 | 11% | 14,355,229 | $1,594,356,794 |
| FFX | Firefinch Ltd | 1.1175 | 8% | 8,836,335 | $1,222,586,734 |
| CXO | Core Lithium | 1.295 | 8% | 21,462,242 | $2,060,138,312 |
| YAL | Yancoal Aust Ltd | 5.65 | 7% | 927,511 | $6,958,715,833 |
| ABC | Adbri Limited | 3.03 | 7% | 1,863,015 | $1,846,935,981 |
| LTR | Liontown Resources | 1.455 | 7% | 14,496,278 | $2,981,426,269 |
| NVX | Novonix Limited | 4.99 | 7% | 3,041,516 | $2,268,984,268 |
| SMR | Stanmore Resources | 2.71 | 7% | 2,765,175 | $2,289,509,513 |
| RRL | Regis Resources | 2.085 | 7% | 5,613,685 | $1,475,587,663 |
| PLS | Pilbara Min Ltd | 2.8 | 6% | 19,454,560 | $7,829,073,928 |
| PDN | Paladin Energy Ltd | 0.825 | 6% | 20,599,080 | $2,307,778,727 |
| RWC | Reliance Worldwide | 4.305 | 6% | 4,249,782 | $3,199,883,798 |
| GRR | Grange Resources. | 1.435 | 6% | 5,843,200 | $1,562,407,242 |
| HMC | Homeco Limited | 6.57 | 6% | 316,642 | $1,854,634,219 |
| LKE | Lake Resources | 1.77 | 6% | 10,885,614 | $2,164,527,140 |
| NHC | New Hope Corporation | 3.74 | 6% | 6,020,774 | $2,938,220,499 |
| INR | Ioneer Ltd | 0.625 | 6% | 5,238,368 | $1,233,423,555 |
Charter company Alliance Aviation (ASX:AQZ) rose 22% after Qantas (ASX:QAN) reached a deal to acquire it in a $614m deal.
Qantas announced that it planned to buy the remaining 80% of Alliance by issuing new shares valued at approximately $614m.
Alliance shareholders will be offered one Qantas share worth $4.75 for each Alliance share, which is a 32% premium to Alliance’s volume weighted average price for the past three months.
QBE Insurance (ASX:QBE) rose 5% despite warning of a $75m hit from the Russia-Ukraine war. For Q3, the company also reported a 19% in in gross written premiums.
Major tech companies like WiseTech (ASX:WTC) and Brainchip (ASX:BRN) rose by 10% off the back of general positive sentiment on tech stocks today.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CEN | Contact Energy Ltd | 7.18 | -10.25 | 18,057 | $2,036,369,872 |
| CTT | Cettire | 3.07 | -8.51 | 2,376,132 | $1,277,148,037 |
| LTR | Liontown Resources | 1.25 | -8.09 | 18,722,621 | $3,285,526,258 |
| CMM | Capricorn Metals | 4.47 | -8.02 | 2,609,627 | $1,827,156,731 |
| PLS | Pilbara Min Ltd | 3.28 | -7.08 | 49,752,832 | $10,623,403,190 |
| MMS | McMillan Shakespeare | 16.89 | -6.74 | 181,568 | $1,261,235,165 |
| EMR | Emerald Res NL | 2.70 | -6.25 | 1,551,126 | $1,794,427,857 |
| LFG | Liberty Fin Group | 3.85 | -6.10 | 6,307 | $1,245,595,879 |
| IGO | IGO Limited | 7.56 | -5.85 | 4,481,363 | $6,080,860,538 |
| RMS | Ramelius Resources | 1.66 | -5.43 | 3,687,423 | $1,989,363,213 |
| MCY | Mercury NZ Limited | 5.70 | -5.00 | 6,443 | $8,347,363,434 |
| SLR | Silver Lake Resource | 1.09 | -5.00 | 3,980,280 | $1,074,955,983 |
| PRU | Perseus Mining Ltd | 1.94 | -4.68 | 5,359,813 | $2,788,334,831 |
| IFL | Insignia Financial | 2.07 | -4.61 | 2,380,436 | $1,446,580,054 |
| RED | Red 5 Limited | 0.36 | -4.61 | 12,116,319 | $1,315,631,915 |
| MIN | Mineral Resources. | 57.35 | -4.29 | 908,699 | $11,695,570,766 |
| NST | Northern Star | 12.36 | -4.19 | 2,418,019 | $14,824,952,396 |
Fund manager Janus Henderson (ASX:JHG) plunged 13% after its Q1 operating income fell by 45% on pcp, and 21% on the last quarter. Its revenue also declined by US$624m on pcp to US$620m.