ASX Large Caps: Shares climb 0.5pc; RBA keeps rates steady at 4.1pc as Phil Lowe bows out

• ASX climbed 0.5% on Tuesday
• The RBA has left the cash rate steady at 4.1%
• Lynas Rare Earths and TPG Telecom were among the large cap winners today

Local shares climbed 0.5% today as the RBA Board left the cash rate on hold at 4.1%.

This was Philip Lowe’s final meeting, and Michele Bullock will be taking over in September.

“We don’t expect significant policy changes, but we do hope for improved communication,” said Scott Solomon, Co-Portfolio Manager at T. Rowe Price.

“While Lowe received outsized blame for the current economic conditions, his communications were sometimes puzzling and inconsistent. The initial step taken to reduce the sheer frequency of RBA meetings should help on that front.”

Mozo banking expert Peter Marshall reminded mortgage borrowers that despite the pause, interest rates may remain elevated.

“For the Australians on the fixed rate mortgage cliff, who will fall into rates about 4% higher this year or next, it’s crucial to begin preparing for the rate rises ahead of time.

“For those on a low fixed-rate loan secured during COVID, it’s important to be planning ahead,” Marshall said.

Following the RBA decision, the AUD slipped to a US66c handle, bond yields dipped, while shares rallied.

Interest rate sensitive sectors like real estate gained ground, and the the tech sector was the best performer, up by 1.5%.

BIG CAP WINNERS

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Best performing large cap stocks today were miners Gold Road Resources (AX:GOR) and Sayona Mining (ASX:SYA).

Lynas Rare Earths (ASX:LYC) rose after announcing that its wholly owned subsidiary Lynas USA has signed a follow-on contract with the US Department of Defense (DoD) for the construction of the heavy rare earths component of the Lynas US Rare Earths Processing Facility in Texas.

The updated contract is an expenditure-based contract and includes a contribution by the US Government of approximately US$258 million, an increase from the approximately US$120 million announced in June 2022.

The contract is sponsored by the US Government’s Industrial Base Analysis and Sustainment (IBAS) Program to support the development of a US rare earth supply chain.

TPG Telecom (ASX:TPM) rose 6% before putting itself on a voluntary trading halt. TPG says the trading halt is to allow the company time to respond to a media article.

BIG CAP LOSERS

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For the full year FY23, Credit Corp (ASX:CCP) reported 70% growth in lending segment NPAT.

The company also reported 43% growth in the consumer loan book to a record gross closing balance of $358 million. CCP has guided the market to a solid FY24 US investment pipeline on improved pricing conditions.

Chips maker Weebit Nano (ASX:WBT) fell despite saying that its Resistive Random-Access Memory (ReRAM) can stand heat up to 125 degrees Celsius.

This is the temperature specified for automotive grade 1 Non-Volatile Memories (NVMs).

The achievement demonstrates the suitability of Weebit ReRAM for use in microcontrollers and other automotive components, as well as high-temperature industrial and IoT applications.

Strike Energy (ASX:STX) fell after revealing that it has bailed on a takeover offer for  Talon Energy (ASX: TPD).