Good Afternoon and Welcome to Market Close for Tuesday of Week 50, I’m Jon Davidson. We got the RBA call today and, well, it was what I said would happen: the RBA has kept rates on hold. But it’s not like I was the only one thinking that.
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The market responded by immediately spiking upwards, trying, it seemed, to eke a green day. But as we headed into the final hour at least, the quick injection of good vibes wasn’t enough. Within the space of 11 minutes, that upward spike was erased off the chart, and it was back to a more or less flattish red day.
Take a look at the intraday XJO chart to get an idea of what I’m talking about:
Hopefully the Fed decision, which is set for 6am Sydney time on Thursday if I’ve got my timezones right, will be a cut, and that could lead to a strong Friday down under. Maybe.
Looking at sectors, Real Estate led sectors at 2.40pm Sydney time, right after the RBA call; staples fell completely flat, with every other sector red, IT and energy leading the laggards.
Let’s turn to companies around the traps starting with those in the green:
Race Oncology popped on Tuesday with shares climbing above the price of a recent $3M placement to sophs which came in at a 6% premium to a closing price last week, generally the kind of thing rewarded by shareholders and funding Race ahead of an upcoming lung cancer trial down under.
Elsewhere, Elvira Lithium up +5% as enthusiasm for lithium players rolls on in this the era of our post-COVID lithium revival. Relative to where it sat for much of last year, anyway.
Finally, as for real estate leading the sectors, Goodman Group was up point 3 percent higher heading into the final hour, though that’s more of a data centre play at this point; Stockland and Charter Hall group also increased.
And as for the reds,
Talking of data centres, NextDC was down nearly -3% heading into the final hour as the company’s deal with OpenAI last week appears to have cooled off, or at least, profit takers are reading the room.
Meanwhile the market’s largest stock, Commonwealth Bank, dipped down three quarters of a percent heading into the final hour; Westpac down at the same time, ANZ completely flat heading into 3pm eastern, but NAB had a better day up nearly a percent.
Ending the reds with another heavy hitter, BHP Group down half a percent heading into the final hour most likely corresponding with a drop in SGX iron ore futures overnight back down to US$101 a tonne.
That’s Market Close, I’m Jon Davidson, have a fantastic evening and we’ll see you on Wednesday.