- Shares higher after US Fed’s decision to keep rates steady
- Rates-sensitive stocks, like Tech and Real Estate, rallied
- Origin Energy slumped after AustralianSuper rejected consortium’s bid
The ASX rose by almost 1% on Thursday, driven by a rally in interest rates-sensitive stocks following this morning’s Fed decision to keep rates steady.
Analysts believe the Fed is done with rate hikes after back-to-back holds kept rates at a 22-year high.
“Fed Chair Powell noted the Fed has gone from penciling in one more rate hike, to now asking the question ‘Should we hike more?’” said Oanda analyst, Edward Moya.
On the ASX, the Tech sector surged by over 3%, while Real Estate, another sector sensitive to rates, also jumped by almost 3%.
Healthcare and Financials were also in the winners’ circle, while Energy and Utilities were the only sectors to have fallen.
In other markets, Aussie 10-year bond yield slipped 15bp today after the 17bp plunge in US 10 year Treasury yield overnight to below 4.8%.
The Aussie dollar meanwhile surged 1% to US64.31 following the Fed’s decision.
Across the region, Asian stocks also climbed as traders assessed that a peak in Fed policy may indeed be at hand.
Later tonight, the US weekly new unemployment claims are due, while the Bank of England (BoE) convenes a monetary policy meeting and announces its decision.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| MCY | Mercury NZ Limited | 5.41 | 6.08 | 11,911 | $7,095,258,919 |
| 360 | Life360 Inc. | 7.86 | 5.22 | 207,619 | $1,513,932,022 |
| OCL | Objective Corp | 11.03 | 4.95 | 18,641 | $1,000,410,809 |
| HMC | HMC Capital Limited | 4.48 | 4.92 | 2,259,365 | $1,488,396,906 |
| NIC | Nickel Industries | 0.81 | 4.84 | 3,769,433 | $3,321,502,657 |
| PNI | Pinnacle Investment | 8.25 | 4.83 | 257,445 | $1,597,048,436 |
| EBO | Ebos Group Ltd | 33.80 | 4.81 | 27,988 | $6,185,798,164 |
| CHC | Charter Hall Group | 9.40 | 4.79 | 665,699 | $4,242,784,875 |
| LIC | Lifestyle Communit. | 16.57 | 4.74 | 57,701 | $1,653,903,972 |
| DHG | Domain Holdings Aus | 3.58 | 4.68 | 459,861 | $2,160,267,463 |
| EMR | Emerald Res NL | 2.73 | 4.60 | 2,473,775 | $1,621,948,117 |
| HLI | Helia Group Limited | 3.76 | 4.60 | 834,526 | $1,103,959,435 |
| REA | REA Group | 151.45 | 4.34 | 80,460 | $19,176,814,048 |
| VCX | Vicinity Centres | 1.80 | 4.20 | 12,525,400 | $7,852,674,993 |
Telix Pharma (ASX:TLX) has completed its acquisition of Light Medical, paying an initial $US20m, with a further $US15m earn-out payable. TLX has paid the upfront consideration with $US19.6m cash and around $3.298m in TLX shares at $9.3659 each.
Perpetual Ltd (ASX:PPT) has promoted its deputy COO Craig Squires as COO, overseeing the Pendal Group integration and replacing chief integration officer Amanda Gazal.
Nickel Industries (ASX:NIC) announced that following the retirement of Huang as President Director of Shanghai Decent Investment, that he will also be retiring from his Non-Executive Director of NIC. His position will be taken by Wang Haijun, who is also replacing Huang as President Director of Shanghai Decent.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ORG | Origin Energy | 8.40 | -7.39 | 35,436,295 | $15,625,321,376 |
| STO | Santos Ltd | 7.51 | -3.04 | 6,487,899 | $25,137,762,718 |
| AMC | Amcor PLC | 13.67 | -2.91 | 2,562,285 | $9,033,267,288 |
| NST | Northern Star | 11.64 | -2.14 | 1,746,817 | $13,664,239,069 |
| WDS | Woodside Energy | 33.98 | -2.10 | 3,621,343 | $65,905,604,551 |
| HGH | Heartland Group | 1.42 | -2.08 | 259 | $1,033,558,315 |
| LNW | Light & Wonder Inc. | 113.63 | -1.94 | 32,218 | $1,694,865,979 |
| AGL | AGL Energy Limited. | 10.57 | -1.90 | 665,338 | $7,245,487,699 |
| EVN | Evolution Mining Ltd | 3.53 | -1.81 | 5,727,514 | $6,595,490,086 |
| RED | Red 5 Limited | 0.31 | -1.61 | 3,690,695 | $1,073,278,668 |
| CPU | Computershare Ltd | 24.69 | -1.50 | 767,103 | $15,129,457,160 |
| GOR | Gold Road Res Ltd | 1.86 | -1.46 | 1,061,618 | $2,035,088,823 |
| PRU | Perseus Mining Ltd | 1.70 | -1.45 | 3,431,951 | $2,362,530,004 |
| BXB | Brambles Limited | 13.24 | -1.45 | 2,142,996 | $18,686,436,905 |
| DOW | Downer EDI Limited | 3.81 | -1.30 | 842,410 | $2,592,274,401 |
| IGO | IGO Limited | 9.24 | -1.28 | 2,749,697 | $7,088,026,730 |
| DEG | De Grey Mining | 1.16 | -1.28 | 1,826,717 | $2,104,941,586 |
Origin Energy (ASX:ORG) slumped after its biggest shareholder, AustralianSuper, rejected a sweetened offer by Brookfield/EIG for Origin shares from $8.91 to $9.53 a share. Australian Super said today that the new offer was still “substantially below our estimate of Origin’s long-term value”.
Santos (ASX:STO) fell after the Federal Court of Australia granted an interim injunction to prevent Santos from commencing to lay the Barossa Gas Export Pipeline (GEP) until 13 November. This decision is in connection with an application by Simon Munkara who is seeking an order that Santos revise and resubmit the Environment Plan (EP) that was accepted by the regulator, NOPSEMA, in March 2020.
Packaging firm Amcor (ASX:AMC) fell after reporting lower Q1 revenues and net income, as weaker customer demand and inventory pressures took a toll, especially in the huge US market.