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ASX closes 1.2% lower as RBA decides to lift cash rate 25 basis points

At the closing bell, the S&P/ASX 200 was 1.2 per cent lower at 7,144.50, after the Reserve Bank’s decision to lift the cash rate by 0.25 per cent. Ten out of the 11 sectors were in the red at market close, with consumer discretionary and financials recording losses over 1 per cent.

Wesfarmers (ASX:WES) shares fell 2.1 per cent. Aristocrat Leisure (ASX:ALL) tumbled 2.5 per cent, while Lottery (ASX:TTT) dropped 3.4 per cent. Woolworths (ASX:WOW) also experienced a decline of 1.2 per cent. However, a2 Milk (ASX:A2M) shares rallied 1.9 per cent after receiving re-registration approval from Chinese authorities.

Commonwealth Bank (ASX:CBA) shares dropped 1 per cent, Westpac (ASX:WBC) shed 2 per cent, National Australia Bank (ASX:NAB) fell 1.1 per cent, and ANZ Bank (ASX:ANZ) retreated 1.6 per cent. ASX (ASX: ASX) tumbled 10.2 per cent after reporting a significant increase in capital expenditure for the next financial year.

In the industrials sector, Qantas (ASX:QAN) tumbled 4.1 per cent following reports of its CEO Alan Joyce selling $17 million in shares. Transurban (ASX:TCL) dropped 1.4 per cent. BHP Group (ASX:BHP) shares fell 0.9 per cent


The Dow Jones futures are pointing to a fall of 29 points.
The S&P 500 futures are pointing to a fall of 2 points.
The Nasdaq futures are pointing to a fall of 9.5 points.
The SPI futures are pointing to a fall of 95 points when the market next opens.

Best and worst performers

The best-performing sector was Utilities, up 0.54 per cent. The worst-performing sector was Consumer Discretionary, down 2.16 per cent.

The best-performing large cap was Whitehaven Coal (ASX:WHC), closing 4.38 per cent higher at $6.20. It was followed by shares in Yancoal Australia (ASX:YAL) and Pilbara Minerals (ASX:PLS).

The worst-performing large cap was EBOS Group (ASX:EBO), closing 12.31 per cent lower at $33.21. It was followed by shares in ASX (ASX:ASX) and Qantas Airways (ASX:QAN).

Asian markets

Japan’s Nikkei has gained 0.89 per cent.
Hong Kong’s Hang Seng has gained 0.28 per cent.
China’s Shanghai Composite has lost 0.09 per cent.

Company news

Sigma Healthcare (ASX:SIG) has been awarded a supply contract with Chemist Warehouse. CEO Vikesh Ramsunder commented: “The contract allows us to leverage our highly automated distribution centres and latent spare capacity after multiple years of investment.” Shares closed 22.1 per cent higher at 78 cents.

Musgrave Minerals (ASX:MGV) is being taken over in an all-scrip off market takeover offer for all of the issued outstanding shares by Westgold Resources (ASX:WGX). Westgold Managing Director Wayne Bramwell said: “The combination of Musgrave’s assets with our regional infrastructure and operating teams will fast track and de-risk the development of Musgrave’s Cue Gold Project.” Shares closed 17.7 per cent higher at 30 cents.

Adavale Resources (ASX:ADD) has revealed that massive nickel sulphides have been intersected at their nickel project in Tanzania. Technical Director, John Hicks commented: “With a second diamond drilling rig currently being mobilised to site, Adavale is well positioned to advance drilling its priority targets.” Shares closed 68.8 per cent higher at 3 cents.

Commodities and the dollar

Gold is trading at US$1,975.60 an ounce.
Iron ore is 4.5 per cent higher at US$109.00 a tonne.
Iron ore futures are pointing to a 2.51 per cent rise.
Light crude is trading $0.52 lower at US$71.63 a barrel.
One Australian dollar is buying 66.71 US cents.