Closing Bell: ASX drops again, hit by APRA lending restrictions and NZ rate hike

After a positive start the ASX finished down over 0.5%.

Today, APRA ordered the big banks to increase the home loan “serviceability buffer” from 2.5% to 3% from the end of October and hinted more regulation could be forthcoming.

Also hitting the sector was New Zealand’s Reserve Bank becoming the second in the world to lift interest rates post-COVID 19. While Australia’s RBA doesn’t expect to lift rates until 2024 it has hinted it could come earlier if inflation exceeds expectations.

Financials fell by nearly 1% making it one of the biggest laggards on the ASX. After being hit for much of the past week, tech was actually one sector that gained today (by 0.46%), along with energy.

TODAY’S BIGGEST SMALL CAP WINNERS

Stocks highlighted in yellow rose after making announcements during the trading day.

Scroll or swipe to reveal table. Click headings to sort.

Code	Company	Price	%	Volume
VIC	Victory Mines Ltd	0.002	100	5098577
RDT	Red Dirt Metals Ltd	0.82	25	7948601
LSR	Lodestar Minerals	0.01	25	2966461
FG1	Flynngold	0.18	24	36125
ATC	Altech Chem Ltd	0.082	22	28819328
GRV	Greenvale Mining Ltd	0.33	20	1214522
ECT	Env Clean Tech Ltd.	0.012	20	4126865
LNY	Laneway Res Ltd	0.006	20	6702006
ENA	Ensurance Ltd	0.275	20	318797
ZAG	Zuleika Gold Ltd	0.025	19	153618
XF1	Xref Limited	0.615	18	1697759
IEC	Intra Energy Corp	0.013	18	7137976
TPD	Talon Energy Ltd	0.013	18	204746650
AGR	Aguia Res Ltd	0.048	17	86999
DTM	Dart Mining NL	0.14	17	1484004
ELE	Elmore Ltd	0.021	17	1409054
GTE	Great Western Exp.	0.21	17	162157
KEY	KEY Petroleum	0.0035	17	60000
VOL	Victory Offices Ltd	0.18	16	72673
EMP	Emperor Energy Ltd	0.052	16	1336642
SRJ	SRJ Technologies	0.345	15	199035
DCC	Digitalx Limited	0.078	15	16512288

Lodestar (ASX:LSR) announced a drilling campaign would be getting underway in the next fortnight at its Ned’s Creek project.

Xref (ASX:XF1) rose after its quarterly cash report in which it revealed 126% sales growth.

Great Western Exploration (ASX:GTE) identified four high priority drill targets at its Yandal West project.

TODAY’S BIGGEST SMALL CAP LOSERS

Stocks highlighted in yellow rose after making announcements during the trading day.

Scroll or swipe to reveal table. Click headings to sort.

Code	Company	Price	%	Volume
YPB	YPB Group Ltd	0.002	-33	15012813
EPX	Ept Global Limited	0.13	-13	127111
GGX	Gas2Grid Limited	0.0035	-13	7265000
NET	Netlinkz Limited	0.021	-13	5336421
EGY	Energy Tech Ltd	0.115	-12	7500
CAG	Caperangeltd	0.27	-11	20000
CZL	Cons Zinc Ltd	0.024	-11	300742
X2M	X2M Connect Limited	0.205	-11	187197
AGC	AGC Ltd	0.125	-11	666276
MAY	Melbana Energy Ltd	0.025	-11	27592792
KLL	Kalium Lakes Ltd	0.21	-11	4555913
NAG	Nagambie Resources	0.069	-10	89060
ATU	Atrum Coal Ltd	0.052	-10	1617042
PRS	Prospech Limited	0.07	-10	495110
ROO	Roots Sustainable	0.009	-10	523462
PDI	Predictive Disc Ltd	0.235	-10	12844066
NNG	Nexion Group	0.19	-10	72363
MGL	Magontec Limited	0.34	-9	111
ADV	Ardiden Ltd	0.01	-9	2280615
CLE	Cyclone Metals	0.005	-9	655071
CTO	Citigold Corp Ltd	0.01	-9	464968
PIL	Peppermint Inv Ltd	0.01	-9	1701565
POW	Protean Energy Ltd	0.01	-9	413806

ANNOUNCEMENTS YOU MAY’VE MISSED

A2 Milk (ASX:A2M) pledged to fight a lawsuit against the company by shareholders alleging breaches of disclosure rules. The company said it was confident it had complied and was confident in the underlying fundamentals of the business and growth potential.

New Zealand headquartered medtech Aroa Biosurgery (ASX:ARX) told shareholders it delivered NZ$17 million in sales in the last 6 months. This figure is 108% up from the prior corresponding period.

EMVision (ASX:EMV) – a company developing a brainscanner to detect stroke – was told by the FDA it needed further clinical study data to receive Breakthrough Device Designation. The company said it expected to pursue the designation once such data was available but its pathway was unchanged.

Endeavour Group (ASX:EDV) boss and pub baron Bruce Mathieson told the company he would be stepping down from the role of managing director at the end of the year. The board said Mathieson, who is 63rd on the Top 200 rich list, was stepping down to pursue “other interests”.

Uranium play Boss Energy (ASX:BOE) says the recent surge in spot prices took its inventory to US$51.56 million ($71.52 million), representing a book profit of $21.83 million. The company also revealed it received three requests for tender proposals from three countries with nuclear energy in recent weeks.

Smartwatch maker Spacetalk (ASX:SPA) signed a deal with Elisa – Finland’s largest telco – to sell its smartwatch across its Finland retail stores and online channel. The launch is planned for next month and Elisa has over 2.8 million customers.

Gym operator Viva Leisure (ASX:VVA) said lockdowns hit its revenues in August by 53%. However its membership numbers were 289,266, representing 97% retention, and expected its gyms in NSW and the ACT would re-open in October while its Victorian assets would re-open in early November.

Telco Swoop (ASX:SWP) unveiled its latest acquisition – Newcastle-based connectivity provider Countrytell. This transaction will cost $4.2 million to be split evenly between cash and Swoop shares.