Shares dive following rate hike: ASX closes 0.5% lower

Market Reports

by Peter Milios

The ASX has closed 0.47 per cent lower after the Reserve Bank of Australia delivered its eighth interest rate hike in a row, lifting the cash rate 25 basis higher to 3.10 per cent. This represents the highest cash rate since October 2012.

Inflation in Australia currently sits at 6.9 per cent over the year to October, and is expected to peak at around the 8 per cent mark over the year to December. Global factors have been the main drivers of this. However, strong domestic demand relative to the ability for the supply side to meet that demand is also playing a role.

At the closing bell, the S&P/ASX 200 was 0.47 per cent lower at 7291.3.


The Dow Jones futures are pointing to a rise of 42 points.
The S&P 500 futures are pointing to a rise of 4.25 points.
The Nasdaq futures are pointing to a rise of 5.75 points.
The SPI futures are pointing to a fall of 45 points when the market next opens.

Best and worst performers

The best-performing sector was Utilities, up 0.53 per cent. The worst-performing sector was Information Technology, down 2.04 per cent.

The best-performing large cap in the S&P/ASX 200 was Yancoal Australia (ASX:YAL), closing 5.42 per cent higher at $5.64. It was followed by shares in Whitehaven Coal (ASX:WHC) and Orica (ASX:ORI).

The worst-performing large cap in the S&P/ASX 200 was James Hardie Industries (ASX:JHX), closing 4.18 per cent lower at $29.36. It was followed by shares in Xero (ASX:XRO) and Meridian Energy (ASX:MEZ).

Asian news

Asian equities are mostly mixed on Tuesday.

Mainland China markets changed little following Monday's rally as Hang Seng has swung into negative territory. Nikkei marginally higher while Taiwan and Korean equities are lagging.

So far, Japan's Nikkei has gained 0.29 per cent, Hong Kong's Hang Seng has lost 1.27 per cent and China's Shanghai Composite has lost 0.24 per cent.

Company news

Immutep (ASX:IMM; NASDAQ:IMMP), a clinical-stage biotechnology company developing novel LAG-3 immunotherapies for cancer and autoimmune disease, announced today that a GMP compliant manufacturing process has been established for IMP761, its proprietary preclinical candidate for autoimmune diseases. The 200L scale attained by Northway Biotech, an end-to-end biopharmaceutical contract development and manufacturing organisation (CDMO), will ensure supply of IMP761 for IND-enabling studies and ensuing clinical trials. Immutep CEO Marc Voigt said: “We are pleased to have a GMP manufacturing process for IMP761 in hand with our manufacturing partner Northway Biotech as we move towards initiating IND-enabling studies in the first half of 2023 and subsequent clinical development.” Shares closed 4.05 per cent lower at $0.355.

Sarytogan Graphite (ASX:SGA) has announced a 99.87 per cent graphite purity from their deposit in Central Kazakhstan. This figure was achieved through combining both alkaline roasting and chemical purification. In response, Sarytogan Managing Director, Sean Gregory commented: “Sarytogan is thrilled with this breakthrough metallurgical result by our German laboratory partner Pro-Graphite. The graphite purities achieved are a significant step towards battery anode specification.” Shares closed 19.67 per cent higher at $0.365.

Eastern Resources (ASX:EFE) has announced that spodumene has been identified in drill samples at the Trigg Hill Project, by multiple methods including logging, XRD scans and fluorescence. Executive Director Myles Fang commented: “We look forward to the assay results from our phase 1 drill samples. In the meantime our phase 2 drill program is underway to accelerate exploration at Trigg Hill.” Shares closed 3.03 per cent lower at $0.034.

Ragusa Minerals (ASX:RAS) has announced that their first round of drilling has intercepted high-grade rare earth oxide mineralisation. In response, Ragusa Chair, Jerko Zuvela said: “This is a positive result for the potential multi-commodity development of our Project – with upcoming ASX laboratory analysis results used to delineate a JORC mineral resource.” Shares closed 6.9 per cent lower at $0.155.

Commodities and the dollar

Gold is trading at US$1783.90 an ounce.
Iron ore is 2.1 per cent higher at US$109.60 a tonne.
Iron ore futures are pointing to a fall of 1.2 per cent.
Light crude is trading $0.38 lower at US$77.31 a barrel.
One Australian dollar is buying 67.29 US cents.

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