ASX soars following smaller-than-expected rate hike: Aus shares close 3.8 per cent higher

Market Reports

by Lauren Hayes

It was a stellar performance for the S&P/ASX 200 today, which soared 3.75 per cent or 242.40 points to 6699.30, with all 11 sectors performing well at the closing bell. The market started the session in positive territory following Wall Street's lead overnight and rallied hard after the Reserve Bank of Australia’s (RBA) rate announcement.

RBA rate hike

The RBA raised its benchmark interest rate by 25 basis points to 2.60 per cent. This was less than the expected 50 basis points forecasted by economists. The central bank said the quarter percentage rate increase will “help achieve a more sustainable balance of demand and supply” in the Australian economy. The central bank said it expects to continue increasing rates over the period ahead. This is the sixth consecutive move by the RBA in its attempt to control inflationary pressures in the economy. The Australian dollar was down 0.8 per cent at $0.64625 against the greenback shortly after the decision.


The Dow Jones futures are pointing to a rise of 244 points.
The S&P 500 futures are pointing to a rise of 36.25 points.
The Nasdaq futures are pointing to a rise of 134.25 points.
The SPI futures are pointing to a rise of 239 points when the market next opens.

Best and worst performers

The best-performing sector was Information Technology, up 4.94 per cent. The sector with the fewest gains was Health Care, up 1.86 per cent.

The best-performing stock in the S&P/ASX 200 was Lake Resources (ASX:LKE), closing 14.53 per cent higher at $1.02. It was followed by shares in Sayona Mining (ASX:SYA) and Pilbara Minerals (ASX:PLS).

The worst-performing stock in the S&P/ASX 200 was The Lottery Corporation (ASX:TLC), closing 0.24 per cent lower at $4.12. It was followed by shares in Telstra Corporation (ASX:TLS) and Ampol (ASX:ALD).

Asian markets

Japan's Nikkei has gained 2.84 per cent.

Hong Kong's Hang Seng is closed for the Double Ninth Festival and China's Shanghai Composite is closed for National Day.

Company news

ImpediMed (ASX:IPD) this morning announced the signing of a Global Strategic Commercial Partnership and pilot program with GenesisCare. The pilot program will consist of an initial roll out of five SOZO units to establish lymphoedema screening services for breast cancer patients in centres across the US. These units are scheduled to be installed over the coming quarter. Upon successful completion of the pilot program, GenesisCare will evaluate a staged expansion to additional sites in the US GenesisCare is one of largest global providers of cancer care at more than 300 locations across the US, Australia, Spain, and the UK. GenesisCare Global Chief Medical Officer, Wally Curran, MD said: “Lymphoedema places physical, emotional, and financial burden on cancer survivors, and it is often identified later in the course of treatment or care. We can identify lymphoedema earlier using SOZO and ImpediMed’s lymphoedema prevention program, with the hope of improving our patients’ quality of life in survivorship”. IPD closed 6.3 per cent higher at 7 cents.

Eastern Resources (ASX:EFE) today announced the maiden reverse circulation (RC) drilling program at the Trigg Hill Project is complete. The company has completed 32 generally shallow wide spaced RC holes at East Curlew and Trigg Hill prospects and has intersected pegmatites in 30 holes of the 32 holes drilled. Multiple thick downhole intervals have been intersected. Executive Director Myles Fang commented: “We are highly encouraged with the discovery of significant wide LCT pegmatites at Trigg Hill project. The drill data information collected provides us with significant information to progress the geological and metallurgical characterisation of the pegmatites at Trigg Hill Project”. EFE closed up 33 per cent at 4 cents.

Graphite producer and battery material developer Volt Resources (ASX:VRC) announced this morning a summary of progress achieved to date on its strategy to become a battery materials producer in the US and Europe, based on an integrated supply chain using flake graphite from its mine and processing plant in Ukraine, and in time, from its development-ready Bunyu graphite project in Tanzania. Volt Managing Director, Trevor Matthews, commented: “The Company is excited to summarise for investors the strong progress made across our downstream processing initiatives in the US this year, given the significant value uplift in creating finished graphite battery products. We have partnerships with a number of key groups, which allows us to develop products that utilise all graphite feedstock which supports excellent economics”. VRC closed up 8.3 per cent at 3 cents.

Immutep (ASX:IMM; NASDAQ:IMMP), a clinical-stage biotechnology company developing novel immunotherapies for cancer and autoimmune disease, today announced the US Food and Drug Administration (FDA) has granted Fast Track designation to eftilagimod alpha (“efti” or “IMP321”) in combination with pembrolizumab for the treatment of 1st line non-small cell lung cancer (NSCLC). Efti is the company’s first-in-class soluble LAG-3 clinical stage candidate which activates antigen presenting cells (APC) to engage both the innate and adaptive immune system to target solid tumours. “We are pleased to receive this Fast Track designation as it acknowledges efti’s unique potential to empower the human immune system against cancer and significantly enhance patient responses to standard-of-care immunotherapy. Efti also offers a chemotherapy-free option for NSCLC patients in need of less toxic and more durable solutions,” stated Marc Voigt, CEO of Immutep. IMM closed 6.3 per cent higher at 26 cents.

Emerging lithium producer Sayona Mining (ASX:SYA; OTCQB:SYAXF) announced this morning it is fasttracking plans to move downstream in Québec, with the launch of a prefeasibility study by Sayona Québec (SYA 75 per cent; Piedmont Lithium Inc 25 per cent), to consider the potential for lithium carbonate production at the North American Lithium (NAL) operation. Sayona is examining the options for lithium carbonate or hydroxide production in Québec, working closely with its partner Piedmont Lithium. Sayona Managing Director, Brett Lynch said the study would provide valuable intelligence on future planned downstream processing in Québec. “Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production,” Mr Lynch said. “We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector.” SYA closed 13 per cent higher to 26 cents.

Commodities and the dollar

Gold is trading at US$1698.16 an ounce.
Iron ore is 0.7 per cent lower at US$95.30 a tonne.
Iron ore futures are pointing to a rise of 0.06 per cent.
Light crude is trading $0.20 higher at US$82.90 a barrel.
One Australian dollar is buying 64.66 US cents.

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