Closing Bell: ASX resilient as RBA keeps cash rate on hold

• ASX brushes aside RBA holding rates at 3.85% to close 0.02% higher
• Global markets feel jitters on US President Donald Trump’s renewed tariff push 
• First Au enters drill-for-equity deal with Newcam Minerals for Gimlet gold project

The ASX showed resilience in afternoon trade following the Reserve Bank of Australia (RBA) keeping the official cash rate on hold at 3.85%, in a move that surprised many economists and financial pundits.

There were wide expectations of a 0.25 percentage point rate cut following inflation falling back within the bank’s target range and global uncertainties softening the growth outlook.

However, after lowering interest rates in February and May, the RBA held back from delivering its third rate cut in this easing cycle, voting 6-3 in favour of the hold.

“The board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis,” the RBA board wrote in its statement.

“Uncertainty in the world economy remains elevated.”

“While the final scope of US tariffs and policy responses in other countries remains unknown, financial market prices have rebounded with an expectation that the most extreme outcomes are likely to be avoided.

“Trade policy developments are nevertheless still expected to have an adverse effect on global economic activity and there remains a risk that households and firms delay expenditure pending greater clarity on the outlook.”

The board also said domestic factors influenced its decision to keep rates on hold.

“Setting aside overseas developments, private domestic demand appears to have been recovering gradually, real household incomes have picked up and there has been an easing in some measures of financial stress,” the board said.

Hold the phone… telcos come out on top

Even before the RBA’s decision it had been a volatile day on the ASX, which fell in morning trade before staging a recovery to modestly enter green territory around lunch time.

The bourse dipped again to 8559 when the RBA held rates, but rebounded as banks recovered and US futures edged higher.

The S&P/ASX 200 closed the day up 1.4 points or around 0.02% at 8590.7, supported by the telecommunications, financials, consumer discretionary and tech sectors.

US stocks fell lower overnight with the Nasdaq, S&P 500, and Dow all retreating about 0.8-0.9% from record highs, dragged down by renewed tariff tensions stirred up by US President Donald Trump.

US markets had recently hit fresh all-time highs during a brief lull in tariff tensions, but global jitters were reignited on trade fears as the Trump administration wrote to leaders across dozens of countries, threatening to impose new tariffs ranging from 25% to 40%.

And adding to US drama, the world’s richest man and Tesla CEO Elon Musk reignited his feud with Trump by unveiling the new “American Party” in response to the White House’s latest tax bill, sending shares in the EV maker tumbling 6.8%.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Making news…

After being reinstated to ASX quotation on July 7 following an announcement about the Dartbrook coal mine in NSW entering voluntary administration, Australian Pacific Coal (ASX:AQC) surged strongly today as investors seemed to welcome clearing of the uncertainty.

The surge and increased volume prompted a price and trading volume query from the ASX to which AQC responded that it was in compliance with the Listing Rules. Stockhead’s John Miller has more in Resources Top 5.

ActivePort Group (ASX:ATV) has locked in a contract worth $375 with India-based Ishan Netsol Pvt Ltd to provide network infrastructure automations.

Under the deal ATV deploy its Fibre-to-the-Node orchestration to more than 12,000 buildings and 40+ data centres across India, tapping into a network across 100 locations and 85,000 customers in the country.

First Au (ASX:FAU) has entered into a drill-for-equity agreement with Newcam Minerals Pty Ltd for the upcoming resource drilling program at the Gimlet Gold Project, near Kalgoorlie in WA.

Under the terms, FAU will pay 100% of the drilling costs via the issue of fully paid ordinary FAU shares at a fixed price of $0.0052 per share.

FAU said the arrangement allows the company to preserve cash while rapidly advancing Gimlet with a value-accretive drilling campaign targeting near-term development.

The estimated costs of the drilling campaign is ~$660,000.00 with ~132,000,000 new fully paid ordinary shares to be issued in FAU.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

IN CASE YOU MISSED IT

StockTake: Renascor Resources (ASX:RNU) has entered a farm in to earn up to 90% of a promising uranium anomaly adjoining its Marree project in SA.

SIPA Resources (ASX:SRI) has kicked off a reverse circulation drilling program across the new Nuckulla Hill gold project in South Australia.

Medallion Metals (ASX:MM8) is advancing towards a resource update and feasibility study for its Ravensthorpe project in WA thanks to the latest in a string of high-grade gold and copper hits.

Prospect Resources (ASX:PSC) has hit broad copper up to 49m at 0.52% at the Nyungu Central deposit, part of the wider Mumbezhi copper project in northwestern Zambia.

OzAurum Resources (ASX:OZM) has started RC drilling at the Cross Fault discovery of its Mulgabbie North gold project in WA.

Blue Star Helium (ASX:BNL) is preparing to flow test its third helium well at operations in Lincoln County, Colorado.

LAST ORDERS

ClearVue Technologies (ASX:CPV) has welcomed Doug Hunt as interim CEO after global CEO Martin Deil and executive director Jamie Lyford step down from the board.

Hunt has played an instrumental role in developing the second generation of ClearVue solar glazing in his four years with the company – he’ll be joined by fresh directors Michael Pixley and Theresa Smits.

Askari Metals (ASX:AS2) has snapped up the Nejo gold project in Ethiopia in return for $200k in cash and the same again in shares. The tenure has already produced bonanza-grade gold hits up to 7.1m at 30.3 g/t gold and AS2 reckons it’ll be a relatively quick turnaround to produce a JORC resource estimate.

TRADING HALTS

Emperor Energy (ASX:EMP) – cap raise
Aguia Resources (ASX:AGR) – cap raise
Ausgold (ASX:AUC) – cap raise
ARC Funds (ASX:ARC) – cap raise

At Stockhead, we tell it like it is. While Askari Metals and ClearVue Technologies are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.