• The ASX fell -0.70% on Friday, but up 1% for the week
  • The Bank of Japan surprised the market after tweaking its yield control policy
  • Retail spending in Australia is falling

 

At the final bell, the ASX 200 finished 1.2% lower, but was still up 0.75% for the week.

Shares were impacted by the Bank of Japan’s (BoJ) surprise move to ‘flexibly” manage its yield curve control by allowing the 10-year JGB to trade outside of the current 0-0.5% yield band.

The news sent the 10-year yield jumping to 0.565%, the highest rate since 2014, and triggered a selloff in the Nikkei which fell by 1.5% today.

Experts say the impact of the BoJ decision could reverberate globally, as higher yields would mean higher discount rates and could suppress stock prices.

“…. whether this also translates into a risk of higher market volatility will need to be closely watched,” said Benjamin Shatil at JPMorgan in Tokyo.

On the ASX, all 11 sectors fell led by Real Estate, which plunged almost 3% on concern of higher rates following the BoJ call.

Iron ore, lithium and gold miners were also in the red.

Meanwhile, retail spending in Australia  fell by 0.8% in June, according to ABS data today.

The biggest three states Victoria, New South Wales and Queensland, all saw retail spending sink last month. This includes lower turnover at department stores, and less purchases of clothing and footwear.

 

BIG CAP WINNERS

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Hotel booking platform Siteminder (ASX:SDR) surged after reporting revenue increase 30.5% on pcp to $151.4m for FY23.

Transaction revenues grew 65.6% on pcp to $48.4m for FY23, and the company says it expects to be EBITDA profitable and free cash flow positive in the second half of FY24.

 

BIG CAP LOSERS

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Gold miner Capricorn Metals (ASX:CMM) fell after reporting quarterly gold production of 28,859 ounces, and record annual gold production of 120,014 ounces.

This annual production volume only achieved the mid-point of the FY23 guidance of 115,000 – 125,000 ounces.

Uranium producer Energy Resources (ASX:ERA) said the 2022 Feasibility Study process of the Ranger Project Area continued throughout the quarter, and additional study is now expected to continue past September 2023.