ASX Market Close: Bourse surges on release of key inflation data | 31 July, 2024

The ASX200 closed up 1.75% to 8,092 points, as the Australian market surged in response to inflation data. The June quarter inflation of 1% was the same as the March quarter, and annual inflation ticked up from 3.6% to 3.8%.

The ASX responded favourably to the inflation data, but with most CPI indicators still closer to 4%, the RBA’s next move is uncertain. 

Analysts have mixed opinions, ultimately indicating there is a 50/50 chance the RBA will apply pressure to mortgage holders. VanEck’s chief investment analysis is predicting a rate hike, however, Capital Markets say otherwise.

But, if you take the ASX response to today’s inflation data as your primary cue, then it’s potentially smooth sailing from here. The local bourse had its best week in 5 weeks following the latest ABS inflation data.

In the Green

Rio Tinto (ASX:RIO) is up more than 2.4% after announcing its half yearly results, despite missing interim dividend expectations.

Rio’s share price has drifted lower by 16% over the past seven weeks, on the back of a collapsing iron ore price. Its copper and aluminium operations continue to grow and are offsetting the drag of the iron ore business.

Rio Tinto closed at $117.48.

Liontown Resources (ASX:LTR) is up more than 3.8%percent, after delivering first production on schedule at its Kathleen Valley mine, some two and a half years after construction. 

The company’s fourth-generation process plant utilises a 100% whole ore flotation flowsheet tailored to the mine’s orebody characteristics.

First shipment of spodumene concentrate is planned for shipment in September.

Liontown Resources closed at 95 cents.

Mesoblast (ASX:MSB) is up more than 1.4% upon release of its quarterlies.

The company’s resubmission to the FDA in the US for its product Ryoncil was fully approved for treatment of children with acute graft versus host disease.

Mesoblast closed at $1.02.

In the Red

Metarock Group (ASX:MYE) closed down 7% as the company revealed a coal mine fire in Queensland will cause the layoff of more than 140 staff. 

Employing 168 people at the Queensland Grosvenor mine, owners Anglo American advised Metarock only 27 staff are needed.

Metarock Group closed at 19.5 cents.

Oceana Lithium (ASX:OCN) closed down 2.5% after announcing the surprise resignation, and abrupt departure, of its CEO.

The lithium miner has been in trouble since it listed at the top of the lithium price cycle in 2022. This year the stock has retreated more than 80 percent.

Oceana Lithium closed at 3.9 cents.

Finally, Koba Resources (ASX:KOB) ended down nearly 6.7% percent after announcing drilling for uranium is imminent in Australia’s nuclear boom state, South Australia.

The company acquired a uranium project in early 2024, and despite high uranium prices and an August start date, the market reacted unfavourably.

Koba Resources closed at 14 cents.