LA Private

ASX up 0.44% at noon as RBA June policy meeting concludes to raise the cash rate

The RBA June policy meeting minutes revealed that members discussed raising the cash rate or keeping it unchanged, but ultimately decided to increase it due to the shift in inflation risks and the need to prevent prolonged high inflation, taking into account the potential impact on the economy and low-income individuals, while acknowledging uncertainty in household spending and committing to closely monitor inflation and economic developments.

At noon, the S&P/ASX 200 is 0.44 per cent higher at 7,327.10.

The SPI futures are pointing to a rise of 22 points.

Best and worst performers

The best-performing sector is Energy, up 1.22 per cent. The worst-performing sector is Industrials, down 0.3 per cent.

The best-performing large cap is Mercury NZ (ASX:MCY), trading 3.2 per cent higher at $5.80. It is followed by shares in Pilbara Minerals (ASX:PLS) and AGL Energy (ASX:AGL).

The worst-performing large cap is Atlas Arteria (ASX:ALX), trading 3.5 per cent lower at $6.195. It is followed by shares in Meridian Energy (ASX:MEZ) and SEEK (ASX:SEK).

Asian news

Asia-Pacific markets traded mixed Tuesday as investors digested China’s loan prime rate decision, after its central bank cut some of its key lending rates last week.

China slashed its one-year and five-year loan prime rate by 10 basis points each to 3.55 per cent and 4.20 per cent respectively.

Mainland Chinese markets were mixed following the announcement, with the Shanghai Composite down 0.22 per cent, while the Shenzhen Component gained 0.24 per cent. Separately, Hong Kong’s Hang Seng index slid 0.5 per cent.

In Japan, the Nikkei 225 reversed earlier losses and gained 0.17 per cent, while the Topix lost 0.36 per cent.

South Korea’s Kospi also continued its slide from Monday, falling 0.34 per cent, along with the Kosdaq which saw a 0.2 per cent loss.

Company news

Southern Cross Media Group (ASX:SXL) announces that ARN Media (ASX:A1N) has acquired a 14.8% stake in the company for $38.3 million. Shares are trading 26.3 per cent higher at 96 cents.

Brightstar Resources (ASX:BTR) will commence gold mining operations at their Menzies project in WA, with personnel and equipment supplied by BML Ventures. MD Alex Rovira, commented, “This mining JV with BML signifies the first production for Brightstar that will generate meaningful free cash for the Company.” Shares are trading 30 per cent higher at 1.3 cents.

PARKD Ltd (ASX:PKD) has been awarded a 3-level car park construction contract for John Hughes Group in Perth. PARKD MD Peter McUtchen commented; “This project presents the Company with an exciting opportunity to utilise its Metal Deck Support Bracket which has been developed in partnership with Bluescope/Fielders.” Shares are trading 47.4 per cent higher at 2.8 cents.

Commodities and the dollar

Gold is trading at US$1959.60 an ounce.
Iron ore is 0.3 per cent lower at US$115.15 a tonne.
Iron ore futures are pointing to a 1.1 per cent fall.
One Australian dollar is buying 68.11 US cents.