Following the release of softer-than-expected inflation data, the Aussie market clawed back losses and finished slightly higher for a second day. The ASX 200 rose by 15.9 pts or 0.23 per cent to 6823.2. Five sectors and 81 stocks finished lower, with resource stocks weighing most. The Mining sector shed 1.2 per cent – its worst daily loss in ~2 weeks, but this was offset by a 1.05 per cent climb in Financials. All big four banks finished higher.
In economic news, the main measure of inflation in Australia – the Consumer Price Index (CPI) – rose by 1.8 per cent in the June quarter (consensus: +1.9 per cent). The annual rate of CPI rose from 5.1 per cent to 6.1 per cent (consensus: +6.3 per cent) – equalling the annual rate in the June quarter of 2001. The most significant price rises in the June quarter were for New dwelling purchases by owner-occupiers (+5.6 per cent), Automotive fuel (+4.2 per cent) and Furniture (+7.0 per cent).
In company news, St Barbara Minerals (SBM) climbed 3.3 per cent after releasing a quarterly update this morning. SBM said that its gold production increased over the quarter by 38.7 per cent to 86koz, but its annual production is still 14.3 per cent lower than what it was a year ago. Its all-in sustaining cost fell by 12.4 per cent over the quarter to $2,007 per ounce. However, its FY22 all-in sustaining cost increased by 14.4 per cent to $1,848 per ounce, and was at the upper end of its guidance. SBM shares have more than halved this year.
Nickel and copper producer IGO (IGO) fell 0.2 per cent after it announced its fourth-quarter production results. The miner increased its Nova nickel production over the quarter by 3.5 per cent, and its Nova copper production by 1.9 per cent. Its annual copper production of 11,483 tonnes fell below its guidance (11,500 tonnes – 12,500 tonnes). Its annual Nova cash costs of $1.95/lb was also below its guidance of $2.00/lb – $2.40/lb.
BrainChip (BRN) climbed 8.6 per cent after it released a quarterly update this morning. BRN says that its cash reserves fell by ~9 per cent over the quarter to US$28.4 million. This was driven by a US$2.8 million operating cash outflow. Over the quarter, it also recorded cash receipts of US$1.2 million (so far this year, BRN’s cash receipts are US$1.4 million).
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3.2bn shares were traded, worth $5.7bn. 645 stocks rose, 707 fell & 383 finished unchanged.
In the US, the Federal Reserve hands down its rates decision. Markets are expecting a 75 basis point rate hike. Data is released on durable goods orders, pending home sales and the goods trade balance.
Originally published by Divik Nigam – (Author), CommSec
