The RBA has dished out another 25bp. Picture Getty
ASX Large Caps: Shares lift as RBA gifts another 25bp, but says ‘inflation has peaked’
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- The ASX rose half a percent after RBA’s decision
- The RBA has hiked its cash rate by another 25bp to 3.6%
- InvoCare surged 35% on takeover offer, Megaport crashed 15%
Aussie shares steamed ahead half a percent as traders assessed the aftermath of RBA’s 25bp rate hike.
At its meeting today, the RBA board decided to lift the cash rate target by 25 basis points to a near 11-year high of 3.60%, and flagging at least one more increase.
Excerpt from the RBA’s accompanying statement read:
“The monthly CPI indicator suggests that inflation has peaked in Australia.
“The Board’s priority is to return inflation to target.
“The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary.”
Some analysts believe the statement spells good news for the stock market.
“Of course, a final 25bp hike is far from certain at this point, but the main takeaway for me is that the RBA have removed a key hawkish sentence from the February statement,” said Matt Simpson, a senior analyst at City Index.
“And that is another step closer to the end if their tightening cycle,” he added.
According to RateCity however, the latest increase means a household with a $1m mortgage has had to pay $1,966 more in monthly repayments since May.
Following the decision, the Aussie dollar slid to US67.14c, while on the ASX, 10 sectors rose and 1 sector (Mining) fell.
Among the advancers today were energy stocks like Yancoal (ASX:YAN) and Santos (ASX:STO), which rose by 2.5% each.
InvoCare (ASX:IVC), a funerals home company, popped 34% after receiving a takeover proposal from TPG Global at $12.25 a share.
In recent months, TPG has accumulated 17.8% of InvoCare’s shares, which had been languishing below $9 in the days before TPG became a shareholder.
Elsewhere, markets are on high alert as the US-China rivalry continues to flare up.
China’s new foreign minister Qin Gang said the “so-called competition aims to contain and suppress China in all respects, and will get the two countries locked in a zero-sum game.”
Looking ahead to tonight’s session on Wall Street, all ears will be glued to the speech by US Fed Chair, Jerome Powell.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| IVC | InvoCare Limited | 12.03 | 34.41 | 4,318,768 | $1,289,343,560 |
| WBT | Weebit Nano Ltd | 7.59 | 7.28 | 1,418,309 | $1,227,640,845 |
| SYA | Sayona Mining Ltd | 0.25 | 5.32 | 84,768,072 | $2,043,375,359 |
| PPH | Pushpay Holdings Ltd | 1.09 | 5.31 | 377,835 | $1,181,737,662 |
| CEN | Contact Energy Ltd | 7.40 | 5.26 | 2,857 | $1,759,757,874 |
| ORA | Orora Limited | 3.46 | 3.75 | 1,799,909 | $2,815,021,461 |
| AX1 | Accent Group Ltd | 2.40 | 3.45 | 1,901,507 | $1,281,707,103 |
| DOW | Downer EDI Limited | 3.41 | 3.33 | 2,480,429 | $2,216,193,141 |
| KAR | Karoon Energy Ltd | 2.21 | 3.27 | 1,253,870 | $1,204,389,002 |
| SGM | Sims Limited | 16.04 | 2.75 | 444,634 | $3,015,436,399 |
| YAL | Yancoal Aust Ltd | 6.30 | 2.61 | 4,336,277 | $8,107,498,143 |
| NAN | Nanosonics Limited | 4.55 | 2.48 | 5,413,296 | $1,341,273,721 |
| WOR | Worley Limited | 15.78 | 2.47 | 603,672 | $8,085,935,735 |
| SUL | Super Ret Rep Ltd | 13.42 | 2.36 | 811,459 | $2,960,585,415 |
| AZJ | Aurizon Holdings Ltd | 3.37 | 2.28 | 6,651,139 | $6,055,916,101 |
| STO | Santos Ltd | 7.30 | 2.24 | 6,960,382 | $23,656,953,982 |
| PTM | Platinum Asset | 1.83 | 2.24 | 430,575 | $1,047,221,837 |
Weebit Nano (ASX:WBT) rose 6% after announcing that its resistive RAM (Re-RAM) IP is now available in US foundry SkyWater Technology’s (NASDAQ:SKYT) 130nm Complementary metal–oxide–semiconductor (CMOS) S130 process.
This allows SkyWater customers to easily integrate Weebit’s non-volatile memory (NVM) in their system-on-chip (SoC) designs.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BRN | Brainchip Ltd | 0.55 | -7.56 | 18,360,836 | $1,051,399,596 |
| JDO | Judo Cap Holdings | 1.41 | -5.20 | 447,354 | $1,647,224,609 |
| LTR | Liontown Resources | 1.65 | -3.92 | 12,618,701 | $3,781,341,969 |
| GRR | Grange Resources. | 0.94 | -3.85 | 2,632,473 | $1,128,405,231 |
| BFL | Bsp Financial Group | 5.20 | -3.53 | 39,400 | $2,518,315,687 |
| ALQ | ALS Ltd | 12.32 | -3.52 | 1,084,119 | $6,182,821,325 |
| VEA | Viva Energy Group | 3.01 | -3.06 | 2,152,347 | $4,803,883,117 |
| AGY | Argosy Minerals Ltd | 0.71 | -2.74 | 3,260,696 | $1,025,217,474 |
| SGR | The Star Ent Grp | 1.46 | -2.50 | 13,150,678 | $2,074,183,067 |
| PDN | Paladin Energy Ltd | 0.70 | -2.45 | 8,697,888 | $2,130,769,859 |
| MEZ | Meridian Energy | 4.81 | -2.43 | 31,910 | $6,229,126,174 |
| CNI | Centuria Capital | 1.72 | -2.41 | 399,957 | $1,407,642,357 |
| CRN | Coronado Global Res | 1.85 | -2.37 | 2,824,951 | $3,176,879,818 |
| S32 | South32 Limited | 4.62 | -2.22 | 12,391,139 | $21,572,748,837 |
| JLG | Johns Lyng Group | 6.37 | -2.15 | 320,906 | $1,700,473,220 |
Megaport (ASX:MP1) crashed 15% after CEO Vincent English tendered his resignation, effective today. Bevan Slattery has been appointed as the Interim CEO.
Quality assurance company ALS Limited (ASX:ALQ) fell 4.5% after the resignation of its CEO, Raj Naran. ALS said Rajan resigned for personal reasons after 23 years of service with ALS, including 6 years as CEO.
Brainchip (ASX:BRN) fell 7% on no news.
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