• The ASX 200 is down around 0.7% on Thursday
  • Oil and lithium stocks sold down
  • Hindenburg Research promised a new report soon

 

The ASX 200 index fell 0.7% across the board on Thursday, with Staples and Comm Services the only sectors in the green.

Local shares tracked Wall Street lower after the US Fed lifted the Funds rate overnight by another 25bp to 4.75%-5%, despite the banking turmoil.

The collapse of SVB, Credit Suisse and Silvergate are signals that rates are starting to bite, and language conveyed by Jerome Powell during his post meeting conference suggested that a pause in rate hikes could be imminent.

“Signs that the US is nearing the end of its rate cycle could bode well for the longer term prospects of US technology stocks, which have been hit hard by rate increases over the past year,” said Megan Stals, markets analyst at brokerage platform, Stake.

“But the Fed does not expect to cut rates by the end of the year, and the short term outlook is still uncertain,” she added.

Oil stocks weighed on the ASX bourse today after crude prices fell 1% in Asian hours.

Lithium stocks were also sold down, with the likes of Pilbara Minerals (ASX:PLS) and Allkem (ASX:AKE) leading the rout, down by 4% each.

 

Hindenburg promises another bombshell

A report by Russell Investments said that Australian growth should continue to slow through 2023, but recession risk is lower than in the northern hemisphere.

“Many mortgage interest rates will reset from April, and the increase in mortgage payments will weigh on household consumption,” the report said.

“Importantly, however, many households have substantial home equity which reduces the potential for significant mortgage defaults.”

The report went on to say the RBA could near the end of its tightening cycle, which means that Australian government bonds could offer attractive valuations.

Elsewhere, short seller Hindenburg Research has created a buzz again after tweeting that it will soon release a new report on another target, without offering details.

The New York based firm had earlier caused a selloff of more than US$150 billion from Indian Adani Group shares after publishing a damning report on Jan 24.

Meanwhile, the UK’s inflation accelerated unexpectedly to 10.4% in February, complicating the Bank of England’s rate decision later tonight.

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
BKW Brickworks Limited 23.75 3.08 272,607 $3,507,717,773
BLD Boral Limited 3.57 2.59 778,135 $3,838,747,698
IFT Infratil Limited 8.19 2.50 5,626 $5,784,628,820
EVN Evolution Mining Ltd 2.88 2.49 5,533,947 $5,156,395,856
NST Northern Star 11.455 2.09 2,704,272 $12,902,388,061
PRU Perseus Mining Ltd 2.235 2.05 1,530,355 $2,994,744,217
MEZ Meridian Energy 4.76 1.93 14,508 $5,900,612,421
LSF L1 Long Short Fund 2.67 1.91 167,741 $1,608,223,054
GUD G.U.D. Holdings 9.38 1.85 267,978 $1,297,640,150
MXT Metrics Master 1.935 1.84 595,076 $1,674,825,919
SLR Silver Lake Resource 1.11 1.83 3,121,094 $1,013,421,323
NEC Nine Entertainment 1.9375 1.71 3,421,236 $3,248,774,147
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Brickworks (ASX:BKW) rose 3% after reporting a record half-year underlying NPAT of $410 million (statutory NPAT $354 million).

BKW paid interim dividend 23 cents per share, extending its 47-year record of maintaining or increasing dividends.

 

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap
PNV Polynovo Limited 1.82 -12.32 6,046,382 $1,427,953,794.57000000
ARU Arafura Rare Earths 0.47 -7.92 15,860,135 $1,067,098,241.12000000
SYA Sayona Mining Ltd 0.19 -7.50 57,038,326 $1,775,017,633.00000000
SYR Syrah Resources 1.49 -7.30 2,762,552 $1,082,650,779.00000000
LTR Liontown Resources 1.43 -5.94 9,846,103 $3,330,658,768.99500000
NAN Nanosonics Limited 4.71 -5.80 632,489 $1,510,443,380.00000000
CIA Champion Iron Ltd 6.80 -5.63 1,492,188 $3,723,790,507.20000000
SQ2 Block 108.96 -5.38 187,256 $3,557,153,115.95000000
TLX Telix Pharmaceutical 6.87 -4.92 805,429 $2,291,110,687.00000000
CRN Coronado Global Res 1.60 -4.76 3,256,464 $2,816,442,266.40000000
PLS Pilbara Min Ltd 3.44 -4.58 34,833,641 $10,792,848,668.40000000
JDO Judo Cap Holdings 1.14 -4.20 859,689 $1,315,568,647.68000000
AKE Allkem Limited 10.01 -4.17 2,988,079 $6,657,150,417.84000000
MFG Magellan Fin Grp Ltd 8.02 -3.61 1,161,981 $1,510,162,226.56000000
CNI Centuria Capital 1.54 -3.59 883,798 $1,279,674,870.40000000
HGH Heartland Group 1.50 -3.54 3 $1,103,518,501.00000000
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Sigma Healthcare (ASX:SIG), Australia’s biggest pharmaceutical wholesaler, fell 1.6% as it swung to a narrow full-year profit of $1.8m, up from ($7.2m) loss a year earlier.

Polynovo (ASX:PNV) plunged 12% on no specific news.

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