ASX Market Close: Index gains 1% after interest rates pause | June 18, 2024

The ASX 200 has finished the day up a per cent, after interest rates were kept on hold at 4.35%, firmly in line with predictions.

Australia’s Big 4 and major investment banks were all calling for a June hold decision. However, Morgan Stanley still sees a risk of a rate rise in August. 

There was very minimal market response after the announcement, if anything, early gains were pared back before the market took its late uptick.

All sectors closed in the green.

In the Green

Commonwealth Bank of Australia (ASX:CBA) gained 2% hitting an all-time share price high today.

It’s closed the day at $127.98.

Race Oncology (ASX:RAC) gained 15% after the US FDA extended a Rare Paediatric Disease Designation (RPDD) to the company’s small molecule chemotherapy drug, RC220 bisantrene for the treatment of childhood leukemia.

The designation provides eligibility for a Priority Review Voucher which opens the door to an expedited 6 month review of the treatment – or the voucher can be on-sold to another drug developer. Such sales have recently exceeded A$150 million.

The company received the same for its RC110 bisantrene in 2018.

RAC closed the day at $2.01.

And Sun Silver (ASX:SS1) gained about 10% on pinpointing a high-grade target zone at its Maverick Springs silver and gold project in Nevada. The target zone was identified as the company went through historical data and drilling materials, as well as through recent field activities.  The news comes ahead of its inaugural drilling campaign.

SS1 closed the day at 50 cents.

In the Red

The Materials sector only scraped into the green – and it was Fortescue (ASX:FMG) that took a hit today. Down 5.2%, investors were spooked by a block trade managed by JPMorgan.

It has been reported that a billion dollars of shares are being sold at 6 per cent discount, the sale is yet to be announced to the market.

FMG shares closed at $21.79.

And PNG financial services provider Kina Securities (ASX:KSL) lost more than 7.3% after updating shareholders on a fraud incident affecting several customers’ accounts. The cost is expected to amount to between A$4.7 million and $5.8 million (PGK12m to PGK15m). The company admits the net profit after tax (NPAT) for the half year about to end, is likely to be down 13-17% on analyst expectations. KSL closed at 88 cents.

And Melbana Energy (ASX:MAY) dropped nearly 32% after the appraisal of a well in Cuba failed. The company tried to make the well flow twice, but oil did not make it to the surface.

Shares closed at 4.5cents.