ASX Large Caps: Shares drop as BoJ shocks markets with new policy

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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Code	Name	Price	% Change	Volume	Market Cap
SDR	Siteminder	4.27	20.96	2,799,716	$970,983,354
SNZ	Summerset Grp Hldgs	9.99	6.84	52	$2,180,059,492
WBT	Weebit Nano Ltd	6.19	2.15	661,006	$1,136,010,260
BSL	BlueScope Steel Ltd	21.53	1.80	855,517	$9,635,221,788
PME	Pro Medicus Limited	69.14	1.77	159,508	$7,095,127,269
MGF	Magellan Global Fund	1.70	1.50	1,180,520	$2,434,412,903
AN3PI	Cn 3M Per Q Rd T-28	103.50	1.48	13,843	$1,529,850,000
EBO	Ebos Group Ltd	35.12	1.47	23,650	$6,631,567,485
ALU	Altium Limited	38.36	1.45	210,305	$4,977,576,813
SMR	Stanmore Resources	2.86	1.42	929,867	$2,541,924,408
IFL	Insignia Financial	2.97	1.37	2,583,906	$1,941,412,849
CBAPI	Cn 3M Per Q Rd T-27	103.72	1.36	9,818	$1,688,445,000
BRG	Breville Group Ltd	22.73	1.16	311,556	$3,208,297,272
LIC	Lifestyle Communit.	17.50	1.13	139,688	$1,808,630,766
IFT	Infratil Limited	9.12	1.11	24,431	$7,503,647,683
TLC	The Lottery Corp	5.18	1.07	3,666,742	$11,395,951,119

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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Code	Name	Price	% Change	Volume	Market Cap
RRL	Regis Resources	1.71	-8.18	14,194,196	$1,408,231,399
CMM	Capricorn Metals	4.43	-8.09	3,176,650	$1,812,118,404
PPT	Perpetual Limited	24.00	-7.34	1,173,573	$2,914,205,633
GOR	Gold Road Res Ltd	1.53	-5.11	6,073,175	$1,741,650,546
DEG	De Grey Mining	1.34	-4.98	3,626,156	$2,193,982,323
FMG	Fortescue Metals Grp	21.81	-4.84	8,850,218	$70,569,875,921
RMS	Ramelius Resources	1.27	-4.17	4,333,004	$1,308,513,595
PRU	Perseus Mining Ltd	1.71	-4.06	9,142,725	$2,441,856,527
CXO	Core Lithium	0.65	-3.73	19,878,990	$1,245,206,252
NEU	Neuren Pharmaceut.	12.95	-3.65	341,797	$1,701,042,685
EMR	Emerald Res NL	2.12	-3.64	2,242,669	$1,310,016,330
GUD	G.U.D. Holdings	9.83	-3.63	554,888	$1,437,125,899
BGL	Bellevue Gold Ltd	1.42	-3.57	3,222,832	$1,662,543,399
INA	Ingenia Group	4.06	-3.56	205,846	$1,715,925,541
360	Life360 Inc.	7.58	-3.56	506,246	$1,575,885,284

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.