Shares fell -1pc on Tuesday as traders parsed through Fed's comments. Picture Getty
ASX Large Caps: Shares down over 1pc; lithium stocks sell off with Sayona down 11pc
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- Shares fell -1pc on Tuesday as traders parsed through Fed’s comments
- Fed’s dot plot suggests one more hike in 2023, and 50bp cut in 2024
- Sayona Mining down 11pc
Local shares retreated over 1% on Thursday, spooked by hawkish comments from the US Fed overnight.
After deciding to hold rates steady, the US Fed’s projections, also called the dot plot, suggests another rate hike by the end of the year.
After December 2023, the dot plot shows rates falling by only 50bp in 2024, compared to the full 100bp cuts anticipated at the meeting in June.
“We believe the Fed isn’t done yet. We expect it will resume its hiking program in November,” said Nigel Green of the deVere Group.
“But this, we believe, would be an error of judgment and could leave scars on the US economy. The Fed would be making a huge mistake to resume hikes in November,” he added.
Later tonight, the Bank of England will decide whether to end its 14 consecutive interest rate increases. The market is currently putting a 50% probability that the BoE would pause.
To the ASX, all 11 sectors finished in the red with Healthcare and Financials the worst performing.
Sayona Mining (ASX:SYA) was the worst large cap stock today, down 11% on no specific news.
Other lithium players also extended their losses with Allkem (ASX:AKE), IGO (ASX:IGO) and Pilbara Minerals (ASX:PLS) all down by between 3-5%.
Over the pond, New Zealand’s economy grew more than expected in Q2, with GDP rising by 0.9% during the quarter vs a -0.1% contraction in Q1.
BIG CAP WINNERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| MGH | Maas Group Holdings | 3.35 | 3.24 | 202,026 | $1,067,871,020 |
| DRR | Deterra | 4.93 | 2.18 | 2,708,658 | $2,548,090,720 |
| PDN | Paladin Energy Ltd | 0.98 | 2.08 | 18,118,175 | $2,861,883,789 |
| DTL | Data#3 Limited | 7.12 | 2.01 | 1,125,544 | $1,079,834,367 |
| AZS | Azure Minerals | 2.62 | 1.95 | 3,324,430 | $1,121,271,823 |
| MP1 | Megaport Limited | 11.06 | 1.94 | 805,098 | $1,725,835,872 |
| S32 | South32 Limited | 3.39 | 1.80 | 19,641,709 | $15,136,227,604 |
| EMR | Emerald Res NL | 2.68 | 1.71 | 769,420 | $1,569,078,869 |
| AWC | Alumina Limited | 1.01 | 1.26 | 5,625,399 | $2,887,173,010 |
| NSR | National Storage | 2.22 | 1.14 | 3,607,894 | $2,980,315,113 |
| ZIM | Zimplats Holding Ltd | 24.22 | 1.09 | 3,329 | $2,578,998,070 |
| INA | Ingenia Group | 4.27 | 0.95 | 751,083 | $1,724,077,207 |
BIG CAP LOSERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SYA | Sayona Mining Ltd | 0.09 | -10.95 | 88,247,573 | $1,080,796,081 |
| MAD | Mader Group Limited | 6.90 | -8.73 | 170,593 | $1,512,000,000 |
| AKE | Allkem Limited | 11.61 | -4.84 | 3,558,999 | $7,799,719,775 |
| SQ2 | Block | 73.22 | -4.81 | 158,793 | $2,469,105,001 |
| GNE | Genesis Energy Ltd | 2.24 | -4.68 | 45,463 | $2,503,389,113 |
| CMM | Capricorn Metals | 4.29 | -4.67 | 521,008 | $1,691,811,788 |
| IGO | IGO Limited | 12.14 | -3.96 | 3,833,935 | $9,571,865,156 |
| RDX | Redox Limited | 2.30 | -3.77 | 140,419 | $1,254,944,613 |
| NST | Northern Star | 10.82 | -3.35 | 3,751,038 | $12,887,575,190 |
| MIN | Mineral Resources. | 67.12 | -3.33 | 668,284 | $13,548,269,915 |
| TCL | Transurban Group | 12.70 | -3.31 | 6,729,856 | $40,542,694,268 |
| KAR | Karoon Energy Ltd | 2.44 | -3.17 | 1,249,846 | $1,427,425,365 |
| HLI | Helia Group Limited | 3.52 | -3.17 | 583,801 | $1,146,904,620 |
| JLG | Johns Lyng Group | 6.52 | -2.98 | 430,842 | $1,856,840,409 |
| LYC | Lynas Rare Earths | 6.80 | -2.93 | 3,124,918 | $6,536,708,339 |
| PLS | Pilbara Min Ltd | 4.02 | -2.90 | 40,118,002 | $12,450,203,324 |
Transurban (ASX:TCL) fell after announcing that the Australian Competition and Consumer Commission (ACCC) has opposed Transurban’s proposed acquisition of a majority interest in Horizon Roads.
The ACCC concluded that the transaction would be likely to substantially lessen competition for future toll road concessions in Victoria.
Horizon Roads operates the EastLink toll road in Melbourne, and is the only other private toll road operator in Australia.
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