The Aussie sharemarket had its best day in around three weeks and snapped a seven day losing streak in the process, after the ASX 200 added 1.4 per cent or 90.4pts, to 6523.8. Resource stocks did most of the heavy lifting, with the Energy sector posting its largest win in almost two weeks. The big four banks all gained at least 2.4 per cent, lifting the broader Financials sector by around 2.65 per cent – its best day in close to 3½ months. Eight of 11 sectors finished in positive territory.
In a speech this morning, the Reserve Bank Governor, Philip Lowe reiterated that Australians should be prepared for further rate hikes, flagging a 25 or 50 basis point rate hike as most likely next month. The Governor indicated that future rate hikes will be data dependent.
Shares of coal miners with Queensland-based projects faced pressure after the Queensland government announced a progressive three tier royalty on coal sales. The royalty – previously 15 per cent for prices over $150/t – is now 20 per cent for prices above $175/t, 30 per cent for prices above $225/t, and 40 per cent for prices above $300/t. Shares of Terracom (TER), Stanmore (SMR) and Coronado Global Resources (CRN) fell by 15.4 per cent, 9.9 per cent and 7.0 per cent, respectively.
In company news, Dexus (DXS), a real estate portfolio manager, said that ’177 of its 186 assets’ have been externally revalued, resulting in a ~$374 million (~2.2 per cent) increase on the previous year. DXS CEO, Darren Steinberg, says that this was driven by ‘continued growth in asset values for well-located industrial and logistics facilities’. DXS will release its annual results on 17 August 2022. DXS shares finished 1.7 per cent lower but are still on track to snap a seven week losing streak.
GrainCorp (GNC) hosted its investor day and reaffirmed its FY22 guidance of Underlying EBITDA between $590 – $670 million and Underlying NPAT between $310 – $370 million. Shares of GNC climbed 4.95 per cent – its first gain in four days.
Premier Investments (PMV) traded ex-dividend today and fell inline with its interim distribution of 46 cents per share. Fisher & Paykel (FPH) is set to trade ex-dividend tomorrow. The 20.5 cents per share final dividend will be paid to eligible shareholders on 6 July 2022.
With the end of the financial year around the corner, we’ve compiled a comprehensive analysis of the 2021/2022 financial year and our forecasts for the fiscal year ahead, in our End of Financial Year Wrap report. You can access the report here.
4bn shares were traded, worth $7.5bn. 859 stocks rose, 625 fell & 376 finished unchanged.
In the US, the Chicago Fed national activity index is released with existing home sales data.
Originally published by Divik Nigam – (Author) CommSec