Evening report Thursday

The Aussie market lifted for the first time in three days and managed to finish at session highs, with the ASX 200 rising by 1.77 per cent or 119.4 points, to 6848.7. 10 sectors out of 11, and 92 per cent of stocks in the ASX 200 finished higher. Mining stocks rallied by 2.66 per cent, and the Tech sector rose by 3.19 per cent, its most in over a month. The Big 4 banks lifted on average by 1.66 per cent, and helped the Financials sector climb 1.6 per cent. A
sharp fall in the shares of Woodside Energy (WDS) and the price of oil overnight, dragged the local Energy sector 2.8 per cent lower.

The Reserve Bank of Australia (RBA) Governor, Philip Lowe, delivered a highly anticipated speech in Sydney. Philip Lowe says that the RBA Board ‘expects that further increases in interest rates will be required over the months ahead’. However, the RBA recognises that ‘the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises’. The ASX 200 gained positive momentum following the speech, and managed to finish at session highs.

Pilbara Minerals (PLS) and Allkem (AKE) reached record highs of $4.25 and $15.10. Lithium stocks are amongst some of the best performers this week and this month so far, with Lake Resources (LKE) and Core Lithium (CXO) up over the week by around 26.4 per cent and 24.5 per cent, respectively.

Tyro Payments (TYR) surged 27.9 per cent on the back of an acquisition proposal it received from Potential Capital
Management, for $1.27 per share (28.9 per cent premium to yesterday’s close). TYR however rejected the proposal after advising shareholders that the proposal ‘significantly undervalues’ the business. Today’s rally was the biggest since March 2020.

Woodside Energy (WDS) came under pressure today and finished 5.5 per cent lower (worst day in 9 weeks) after its shares traded exdivided. Its interim dividend of US$1.09 (largest since 2014) is scheduled to be paid to eligible shareholders on October 6.

Fund manager GQG Partners (GQG) released a funds-undermanagement (FUM) update today. It noted a 1.7 per cent decline in its total FUM to US$87.4 billion, driven by a 3.7 per cent fall in its Global Equity FUM to US$26 billion. GQG rose by 2.65 per cent.

Overnight, the Bank of Canada raised its interest rates by 75 basis points to 3.25 per cent – in line with expectations.

Later tonight, the European Central Bank (ECB) will also hand down its interest rate decision. Markets are expecting the ECB to hike rates by 75 basis point to 1.25 per cent. US Federal Reserve Chair Jerome Powell also participates in a discussion during a conference in Washington.

4bn shares were traded, worth $8.7bn. 887 stocks rose, 505 fell & 393 finished unchanged.

Originally published by Divik Nigam – (Author), CommSec