• The ASX sank after the RBA unexpectedly raised its rate by 25bp
  • The central bank says inflation and wage rises need to be contained
  • Coal stocks climbed, while discretionary stocks lagged


Share prices dropped instantly after the RBA unexpectedly hiked the cash rate by 25bp to 4.1% this afternoon. At the close of day, the benchmark ASX 200 index was down -1%.

In the accompanying statement, the RBA said although inflation in Australia has passed its peak, 7% is still too high. Meanwhile, wages growth is picking up in response to the tight labour market.

“The RBA Board is still seeking to keep the economy on an even keel as inflation returns to the 2–3 per cent target range, but the path to achieving a soft landing remains a narrow one,” it said.

The central bank also said that “some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe.”

Following the decision, analysts say the second half of the year would be painful for any mortgage holders with a fixed term rate that’s due to expire.

“We’re still seeing around 20% of people looking to refinance coming to us with an LVR (Loan-to-Value ratio) of 80% or more, which locks some homeowners into mortgage prison as they cannot afford to refinance,” said Compare Club’s Chief Operating Officer, Brendan See.

“We’re also probably close to the top of the rate increase cycle and for those that can hold on, there should be some easing over the next year.”



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Code Name Price % Change Volume Market Cap
WHC Whitehaven Coal 6.20 4.38 8,524,645 $5,187,805,676
NHC New Hope Corp 4.99 3.85 4,848,769 $4,234,893,490
NEU Neuren Pharmaceut. 13.15 3.79 406,427 $1,603,587,115
YAL Yancoal Aust Ltd 4.60 3.72 1,804,172 $5,849,546,706
WBT Weebit Nano Ltd 6.57 3.63 529,485 $1,181,381,779
SMR Stanmore Resources 2.57 3.21 576,342 $2,244,465,169
A2M The A2 Milk Company 5.49 2.72 7,407,439 $3,855,352,983
MP1 Megaport Limited 7.36 2.65 1,141,486 $1,136,037,500
RSG Resolute Mining 0.49 2.60 6,421,396 $1,021,923,153
BOE Boss Energy Ltd 3.17 2.59 2,485,998 $1,089,468,684
PRU Perseus Mining Ltd 1.89 2.16 3,098,042 $2,530,775,673
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On the ASX, coal stocks New Hope (ASX:NHC) and Whitehaven (ASX:WHC) rose as they conducted on-market share buybacks.

A2 Milk (ASX:A2M) was up almost 4% after receiving an approval from China’s regulators for the re-registration of a2MC’s China label infant milk formula (IMF) product.

“The approval provides a2MC with continued access to China’s substantial registered domestic infant milk formula market which remains the key focus of our refreshed growth strategy,” said A2M CEO, David Bortolussi.



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Code Name Price % Change Volume Market Cap
EBO Ebos Group Ltd 33.83 -10.67 176,994 $7,255,859,886
ASX ASX Limited 60.67 -10.17 1,750,665 $13,075,417,241
DHG Domain Holdings Aus 3.37 -5.07 949,401 $2,242,382,893
OCL Objective Corp 13.59 -3.75 12,520 $1,344,326,412
LOV Lovisa Holdings Ltd 19.92 -3.58 519,443 $2,227,806,290
SGR The Star Ent Grp 1.15 -3.57 6,019,868 $1,926,230,244
APM APM Human Services 2.07 -3.50 186,830 $1,962,769,364
GNE Genesis Energy Ltd 2.49 -3.49 17,432 $2,748,401,665
TLC The Lottery Corp 4.87 -3.47 1,820,949 $11,217,889,383
COH Cochlear Limited 239.67 -3.46 84,199 $16,316,069,639
MAD Mader Group Limited 5.13 -3.39 46,596 $1,062,000,000
ELD Elders Limited 6.35 -3.13 1,354,705 $1,024,921,560
DEG De Grey Mining 1.36 -3.02 1,173,742 $2,193,439,516
NCM Newcrest Mining 26.31 -2.99 2,014,927 $24,251,537,452
PME Pro Medicus Limited 63.26 -2.89 125,778 $6,802,716,960
NAN Nanosonics Limited 5.05 -2.88 340,966 $1,572,013,570
SHL Sonic Healthcare 35.18 -2.84 390,349 $17,020,775,702
QUB Qube Holdings Ltd 2.84 -2.74 7,281,355 $5,156,026,570
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Discretionary stocks meanwhile were the worst performers, with the likes of The Lottery Corporation (ASX:TLC) falling by over -3%.

Pharmaceutical distributor EBOS Group (ASX:EBO) fell -9% after being informed by Chemist Warehouse that its supply contract will not be renewed beyond the expiry date of 30 June 2024. Chemist Warehouse will instead sign up Sigma Healthcare (ASX:SIG), which rose by 22% on the news.

Market operator ASX (ASX:ASX) fell -10% after saying that its total expense will blow out by approximately 12% for FY23, and 12% – 15% for FY24, driven by CHESS related regulatory and assurance costs. At the investors meeting, new CEO Helen Lofthouse also outlined the company’s 5-year strategy.