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ASX Large Caps: Tech stocks lead laggards as RBA lifts rates by 50 basis points
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- ASX 200 dips as RBA raises rates 0.50 basis points
- Rate sensitive sectors tank on rate news with tech sector leading the laggards
- Tech stocks were among the biggest losers on the ASX today
Local shares were sharply down today, with the S&P/ASX200 dropping 110.60 points or 1.53% by close to 7095.70.
Markets throughout the day anticipated and then felt a strong jolt from the RBA’s rate hike at its June board meeting. The 2.30pm (AEST) policy decision delivered a 50 basis points rise to increase the cash rate to 0.85%, with the RBA affirming its commitment to putting the inflation genie firmly back in the bottle.
It’s the first time since 2000 the RBA has taken such a hawkish approach to rates and lifted them beyond 0.25 percentage basis points.
There’s been a whole lot of data coming out about rising inflation, including the Melbourne Institute (MI) who yesterday revealed Australia’s inflation gauge had surged to a 14-month high.
According to the MI survey, the spike in gas prices could push headline inflation beyond 6%, further compounding a case for the RBA to keep hitching rates upward, which it looks intent on doing in coming months.
The commentary on the latest rate hike quickly followed the mid-afternoon announcement with new ALP Federal Treasurer Jim Chalmers, who has been vocal about Australia’s economic challenges, taking to Twitter.
Difficult news for homeowners already facing skyrocketing costs of living, including spiking energy prices. A better future awaits but first we have to navigate together this inflation challenge we inherited, and the rising interest rates that accompany it. #ausecon #auspol
— Jim Chalmers MP (@JEChalmers) June 7, 2022
Rate sensitive sectors tank on rate hike
All rate sensitive sectors have fallen in afternoon trade. Energy, which was earlier the only sector in the green, finished in the red down 0.29%. The tech sector led the laggards, down 2.99% followed by real estate, which dropped by 2.93% and consumer discretionary which fell 2.34%.
BIG CAP WINNERS
Swipe or scroll to reveal the full table. Click headings to sort.
| HGH | Heartland Group | 1.925 | 10% | 259 | $1,037,581,685 |
|---|---|---|---|---|---|
| LKE | Lake Resources | 1.475 | 5% | 13,342,483 | $1,898,515,591 |
| CXO | Core Lithium | 1.25 | 5% | 21,365,892 | $2,070,161,983 |
| YAL | Yancoal Aust Ltd | 5.66 | 4% | 780,944 | $7,169,986,143 |
| SFR | Sandfire Resources | 5.865 | 4% | 2,961,488 | $2,320,497,514 |
| ING | Inghams Group | 2.9 | 3% | 2,604,769 | $1,044,419,679 |
| VEA | Viva Energy Group | 3 | 2% | 3,274,532 | $4,545,867,054 |
| ALD | Ampol Limited | 35.95 | 2% | 1,060,418 | $8,376,318,780 |
| MFG | Magellan Fin Grp Ltd | 13.11 | 2% | 2,266,497 | $2,386,448,248 |
| LYC | Lynas Rare Earths | 9.51 | 2% | 1,657,611 | $8,437,548,030 |
| PLS | Pilbara Min Ltd | 2.47 | 2% | 19,776,552 | $7,233,741,573 |
| AUB | AUB Group Ltd | 19 | 2% | 353,144 | $1,728,050,656 |
| S32 | South32 Limited | 5.12 | 2% | 10,420,271 | $23,365,709,287 |
| 29M | 29Metalslimited | 2.61 | 2% | 229,967 | $1,236,990,835 |
| RWC | Reliance Worldwide | 3.96 | 2% | 1,038,157 | $3,081,369,584 |
| JHX | James Hardie Indust | 34.34 | 1% | 590,739 | $15,079,514,871 |
| JLG | Johns Lyng Group | 5.605 | 1% | 1,450,006 | $1,433,348,759 |
| LFG | Liberty Fin Group | 4.95 | 1% | 256 | $1,484,604,000 |
| BSL | BlueScope Steel Ltd | 18.65 | 1% | 925,840 | $8,839,772,461 |
| AKE | Allkem Limited | 11.79 | 1% | 2,215,638 | $7,435,093,283 |
Yancoal Australia (ASX:YAL) saw its price hike today after the company announced its independent board committee can’t support its parent firm Yankuang Energy’s proposed $2.5 billion offer to acquire shares its doesn’t already own in the Aussie coal miner.
The company said the current proposed terms of the potential transaction “would not be in the best interests of Yancoal’s minority shareholders, having regard to both the value and the form of the proposed consideration”.
Sandfire Resources (SFR) was also up today on no news but defying the heavy selldown as perhaps a beneficiary of rising copper prices. The metal’s value has lifted 2.74% and is now at US$9711.85/tonne.
BIG CAP LOSERS
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| HGH | Heartland Group | 1.925 | 10% | 259 | $1,037,581,685 |
| LKE | Lake Resources | 1.475 | 5% | 13,342,483 | $1,898,515,591 |
| CXO | Core Lithium | 1.25 | 5% | 21,365,892 | $2,070,161,983 |
| YAL | Yancoal Aust Ltd | 5.66 | 4% | 780,944 | $7,169,986,143 |
| SFR | Sandfire Resources | 5.865 | 4% | 2,961,488 | $2,320,497,514 |
| ING | Inghams Group | 2.9 | 3% | 2,604,769 | $1,044,419,679 |
| VEA | Viva Energy Group | 3 | 2% | 3,274,532 | $4,545,867,054 |
| ALD | Ampol Limited | 35.95 | 2% | 1,060,418 | $8,376,318,780 |
| MFG | Magellan Fin Grp Ltd | 13.11 | 2% | 2,266,497 | $2,386,448,248 |
| LYC | Lynas Rare Earths | 9.51 | 2% | 1,657,611 | $8,437,548,030 |
| PLS | Pilbara Min Ltd | 2.47 | 2% | 19,776,552 | $7,233,741,573 |
| AUB | AUB Group Ltd | 19 | 2% | 353,144 | $1,728,050,656 |
| S32 | South32 Limited | 5.12 | 2% | 10,420,271 | $23,365,709,287 |
| 29M | 29Metalslimited | 2.61 | 2% | 229,967 | $1,236,990,835 |
| RWC | Reliance Worldwide | 3.96 | 2% | 1,038,157 | $3,081,369,584 |
| JHX | James Hardie Indust | 34.34 | 1% | 590,739 | $15,079,514,871 |
| JLG | Johns Lyng Group | 5.605 | 1% | 1,450,006 | $1,433,348,759 |
| LFG | Liberty Fin Group | 4.95 | 1% | 256 | $1,484,604,000 |
| BSL | BlueScope Steel Ltd | 18.65 | 1% | 925,840 | $8,839,772,461 |
| AKE | Allkem Limited | 11.79 | 1% | 2,215,638 | $7,435,093,283 |
Among large caps plunging were the high growth tech companies set to feel rate hike pressures from investors moving into more value stocks including Calix (ASX:CAL), Pexa Group (ASX:PXA) and Xero (ASX:XRO).
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