The ASX 200 opened lower this morning as Australians braced themselves for the latest interest rates rise after the RBA once again lifted the cash rate earlier this week.
The financial sector was the hardest hit in early trade, down 2.5 per cent.
Among them was banking giant National Australian Bank (NAB), down 6 per cent following the release of its half-yearly report.
The sell-off comes despite NAB posting a profit increase of 17 per cent to just under $4.1 billion for the first half of 2023. The cash earnings were largely attributed to a 19 per cent rise in the bank’s revenue.
The bank also announced it would pay a first-half dividend of 83 cents a share — an increase on the 73 cents offered at the same time last year.
The report comes off the back of news NAB has become the first major bank to confirm it would pass on the RBA’s interest rate hike to its borrowers.
Its standard variable home loan rate will increase by 0.25 per cent from May 12.
NAB shares were last trading at $26.87.
In the industrials sector, Orbital Corporation (OEC) has climbed 6.5 per cent after signing a new engine development contract.
The new partnership is with Anduril Industries, which Orbital dubbed “one of the fastest-growing defence companies in the world”.
The $3 million contract will see Orbital develop a new and larger engine configuration for Anduril’s future propulsion requirements. Shares in OEC last traded at 16 cents.
Vulcan Energy (VUL) has tapped investors for $109 million to further develop its Zero Carbon Lithium project in Germany.
The company plans to raise the funds through the issue of 21 million shares at $5.10 per share — a 17 per cent discount to its last trading price of $6.16.
Future Metals (FME) is on the rise after reporting results from recent rock chip sampling at its Panton platinum group metals project in Western Australia.
The company is due to begin reverse circulation drilling in mid-May, starting with the BC1 prospect.
Meanwhile, FME secured $147,000 from the WA government to drill-test key targets at its Panton West prospect in June. Company shares were last trading at 6 cents.
Also in the materials space, Infinity Mining (IMI) has announced plans to begin drilling at its Brisbane nickel prospect in Western Australia’s Pilbara region.
With a cultural heritage clearance in hand, Infinity will drill 10 reverse circulation holes covering 1700 metres. IMI shares were last trading at 15.5 cents.
And finally, Resolution Minerals (RML) jumped 10 per cent after appointing a new Managing Director.
Chris McFadden will take on the role from May 22. The lawyer has over 25 years of experience in the exploration and mining sector, having previously held roles at Newcrest Mining (NCM), Tigers Realm Coal (TIG) and Rio Tinto (RIO).
Resolution was last trading at 0.6 cents.