Last Orders: ASX retreats following the budget; over fears of AAA credit rating loss & early rate hikes

While there appeared to be several winners out of Budget 2021, few of them were on the ASX.

The ASX 200 fell for the second day in a row losing 0.73 per cent to close at 7,045 points. Meanwhile the ASX Emerging Companies Index fell 0.51 per cent to 2,050.

The only sectors in the green were telcos and tech, which rose 0.19 and 0.76 per cent although even the latter retreated substantially from highs seen earlier in the day.

The biggest losers were utilities and energy which both lost over 2 per cent.

Evidently trumping all positives from the budget were concerns over debt and potential interest rate hikes earlier than expected.

While the ratings agencies have maintained Australia’s AAA credit rating in the aftermath of the budget they re-iterated the outlook was negative and the Commonwealth Bank warned today that the loss of our AAA credit rating was a realistic possibility.

Additionally, UBS has warned the RBA might bring forward interest rate hikes – albeit now at the end of 2022 rather than 2024 as previously forecast.

Resources fell by over 1 per cent too despite providing the majority of the top winning stocks today – the biggest of which was copper explorer Helix Resources (ASX:HLX) off the back of exploration success.

ANNOUNCEMENTS YOU MAY’VE MISSED

Cannabis play Emyria (ASX:EMD) obtained TGA approval for its smart-phone based monitoring application. The tool intends to help it remotely capture health data for its medicinal cannabis and telemedicine projects.

Suspended petroleum play FAR (ASX:FAR) has been told by the ASX it cannot be reinstated to trading until the sale of its interest in the Senegal RSSD Joint Venture was complete. The move comes despite the ASX promising reinstatement with a audit report promising going concern without any disclaimer.

Amidst speculation interest rates might rise again, Kiwi bank Heartland Group (ASX:HGH) announced it offered the lowest interest rates in its category – headlined by a 1.85 per cent 1 year fixed rate. It only re-entered the residential mortgage market 6 months ago but has received 6,600 applications and saw a 173 per cent increase in drawdowns in the March quarter compared to the December quarter.

Recently listed base metals play Albion Resources (ASX:ALB) reported exploration results at its Pilbara East project. Grades reported were up to 3.66 per cent copper, 36 per cent lead and 27.5 per cent zinc.

Aerial mapper Aerometrex (ASX:AMX) reported a purchase order from Google. The search engine contracted Aerometrex to provide a data license for its 3D model of downtown San Francisco.

Future First Technologies (ASX:FFT) announced its rural real estate website Farmbuy.com had topped 1 million unique visitors in the last 12 months – up 107 per cent year on year. It also announced the launch of a sister website (goregional.com.au) that provides information to aspiring treechangers – people moving from metropolitan to rural areas.