ASX ended the month of October more than 3pc lower. Picture Getty
ASX Large Caps: Shares down 3pc in October, and RBA’s stern warning over social media
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- ASX ended the month of October more than 3pc lower
- RBA warns that social media could lead to SVB-style collapse in Australia
- The US Fed will convene for the first of its two-day meeting tonight
Local shares ended the last trading day of October flattish despite opening higher this morning. For the month, the benchmark ASX 200 index was down over -3.5%.
Today’s session began with a speech by Brad Jones, an assistant RBA governor, who told a press conference that the “emerging risks we are likely to confront over the next decade have a different complexion to those of recent decades”.
Jones listed risks we are likely to face such as sudden withdrawal of deposits sparked by social media, citing the demise of California-based Silicon Valley Bank earlier this year.
Many traders stayed on the sidelines as they await the result of the US Fed meeting, which will convene later tonight, with a rates decision announced on Thursday AEDT.
“The Fed will not raise rates this week, as there is no need to exercise that option just yet and the markets are not demanding further tightening,” said Erik Weisman, Chief Economist and Portfolio Manager at MFS Investment Management.
“But, until the labour market has cooled considerably, and inflationary pressures display sufficiently persistent containment, the Fed will keep the option of future rate hikes firmly on the table.”
On the ASX, a tsunami of companies (both large and small caps) lodged their September quarter reports today, being the last day of the month.
Gains in the Staples and Real Estate sectors were offset by losses in Mining and Energy sectors. Most energy stocks fell after a 3% slump in crude prices overnight.
Best large cap today was food company Inghams Group (ASX:ING), which rose 7% (see more details below).
Lithium stocks like Pilbara (ASX:PLS) and Mineral Resources (ASX:MIN) were the worst performers.
Treasury Wine Estates (ASX:TWE) is in a trading halt, pending an announcement on a potential acquisition of high-end Californian wine group Daou Vineyards for $US1 billion.
BIG CAP WINNERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ING | Inghams Group | 3.65 | 7.04 | 3,813,627 | $1,267,427,439 |
| 360 | Life360 Inc. | 7.81 | 5.54 | 471,925 | $1,499,745,242 |
| JLG | Johns Lyng Group | 6.06 | 4.04 | 598,201 | $1,608,156,425 |
| HDN | Homeco Daily Needs | 1.07 | 3.40 | 3,187,424 | $2,139,285,211 |
| DEG | De Grey Mining | 1.23 | 3.38 | 4,151,141 | $2,131,928,017 |
| GNE | Genesis Energy Ltd | 2.17 | 3.33 | 52,618 | $2,256,744,590 |
| MAD | Mader Group Limited | 6.32 | 3.27 | 327,911 | $1,224,000,000 |
| NEU | Neuren Pharmaceut. | 10.77 | 3.26 | 321,772 | $1,320,080,001 |
| QAN | Qantas Airways | 4.95 | 3.13 | 9,415,147 | $8,277,382,464 |
| DXS | Dexus | 6.49 | 3.02 | 5,816,896 | $6,776,061,050 |
| APM | APM Human Services | 2.08 | 2.97 | 504,865 | $1,852,707,531 |
| EVT | EVT Limited | 10.50 | 2.64 | 41,153 | $1,660,076,902 |
| VUK | Virgin Money Uk PLC | 2.80 | 2.56 | 1,842,436 | $1,845,687,939 |
| ARF | Arena REIT. | 3.23 | 2.54 | 220,818 | $1,110,538,491 |
| HLS | Healius | 1.82 | 2.39 | 542,391 | $1,014,455,759 |
| SUL | Super Ret Rep Ltd | 13.06 | 2.35 | 806,016 | $2,881,546,140 |
| EBO | Ebos Group Ltd | 32.10 | 2.16 | 19,189 | $6,026,597,777 |
Poultry company Inghams (ASX:ING) jumped 7% after releasing its H1 trading update where it expects $247 million in statutory EBITDA. However, Inghams said the second-half result is expected to be lower than the first half, due to normal seasonality, and continued inflationary headwinds across labour, feed and other costs including fuel, electricity and CO2.
Liontown Resources (ASX:LTR) said its Kathleen Valley project was more than 50% complete, with a clear line of sight to first production mid-2024. During the September quarter, Liontown awarded the final major mining and construction contracts for Kathleen Valley, bringing capital costs committed to approximately 90% and de-risking the pathway to first production.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CEN | Contact Energy Ltd | 7.29 | -5.81 | 46 | $1,970,187,851 |
| SQ2 | Block | 60.80 | -3.99 | 83,886 | $2,082,521,238 |
| PLS | Pilbara Min Ltd | 3.67 | -3.93 | 21,983,367 | $11,496,147,361 |
| DTL | Data#3 Limited | 6.86 | -3.92 | 514,752 | $1,104,587,017 |
| AKE | Allkem Limited | 9.57 | -3.63 | 3,175,148 | $6,348,460,439 |
| MIN | Mineral Resources. | 58.02 | -3.62 | 664,014 | $11,750,222,966 |
| HGH | Heartland Group | 1.40 | -3.46 | 472 | $1,033,558,315 |
| NST | Northern Star | 11.70 | -3.23 | 2,400,646 | $13,894,083,292 |
| YAL | Yancoal Aust Ltd | 4.83 | -2.62 | 1,856,402 | $6,549,379,608 |
| SMR | Stanmore Resources | 3.78 | -2.33 | 933,575 | $3,488,385,624 |
| IGO | IGO Limited | 9.48 | -2.22 | 3,413,678 | $7,337,925,108 |
| RMS | Ramelius Resources | 1.64 | -2.09 | 5,833,611 | $1,902,107,125 |
| CDA | Codan Limited | 7.77 | -1.96 | 136,860 | $1,436,023,615 |
Origin Energy (ASX:ORG) fell -0.5% after AustralianSuper, which owns around 14% of Origin shares, rejected Brookfield and EIG’s bid for the company.
Brickworks (ASX:BKW) fell as it trades ex-dividend today.
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