The share market slumped lower after failing to hold onto its post-Reserve Bank of Australia meeting rally. The benchmark S&P/ASX200 index closed 0.63 percent lower at 7324.3, while the All Ordinaries Index eased 0.59 percent to 7646.6. Ord Minnett said US . Investors looked ahead to the Federal Reserve’s on Wednesday, while European stocks hit record highs as expectations of interest rate hikes supported bank stocks.after the RBA flagged, keeping the cash rate at its historic low for another two years, but couldn’t hold onto the gains. Despite positive overseas leads, the Australian
CommSec analyst Steven Daghlian said the local bourse started in the green but faded as investors traded tentatively, awaiting the outcome of our central bank’s monthly. OMG chief executive Ivan Tchourilov said it had been a rollercoaster. The gained ground after the RBA determined to keep the cash rate on hold, as expected, while noting higher-than-expected inflation. “The Reserve did well to remain ambiguous on expectations, although we’re still looking at a 2023 interest rate hike instead of the previous 2024 forecast,” Mr. Tchourilov said. “Commodity prices were mixed, as was our resources sector.”
After iron ore prices slumped, Rio Tinto lost 2.54 percent to $88.66, BHP dropped 2.34 percent to $35.56, Fortescue shed 2.65 percent to $13.95, and Champion Iron sank 7.22 percent to $4.24. Nickel miner IGO plunged 8.42 percent to $8.92, while Whitehaven Coal plummeted 9.54 percent to $2.37. Origin Energy slid 1.95 percent to $5.02. At the same time, Beach Energy dropped 3.93 percent to $1.34 after announcing its managing director and chief executive Matt Kay had resigned to pursue other opportunities. But battery minerals company Magnis was a stellar performer, rocketing 18.48 percent to 54.5 cents.
“Magnis released their annual gaining traction in the US market, where a new battery plant is being built in New York to meet demand. “Magnis has already returned 280 percent at share price this but will be one to watch especially closely into 2022 when battery production begins to ramp up.”yesterday, and the market is starting to see some value in Magnis’ proposition,” Mr. Tchourilov said. “Despite operating at a loss without a finished product, they have $665m in binding offtake sales lined up for 2022. “The patented battery technology is
Insurance providers retreated after Insurance Australia Group downgraded its full-year guidance, upping its assumptions for hail and severe storm impacts inlast month to $1.045bn from $765m. “Cost allowances for natural perils have been lifted significantly after the first quarter was more expensive than expected,” Mr. Tchourilov said. “Margin guidance for the period has slipped a full 3 percent, and they’re allowing room for extreme weather events to continue into .
“IAG is maintainingas reported in its end-of-year results. However, if the first quarter is anything to go by, it will be an expensive year for insurance providers.” IAG shares tumbled 7.03 percent to $4.50, Suncorp gave up 4.15 percent to $11.31, and QBE softened 2.39 percent to $11.83. Financial technology platform provider Premium Ltd leaped 14.46 percent to $1.42 after knocking back Netwealth Group’s $785m , saying the bid did not appropriately value its current performance and near-term trajectory.