ASX 200 Sees Mixed Session as Core Inflation Returns to RBA Range

Highlights:

• Core inflation aligns with RBA’s preferred range for the first time since 2021

• Rate-sensitive sectors held ground while utilities and defensives faced pressure

• Wide Open Agriculture secured a key distribution deal with Univar Solutions China

The latest consumer price index figures have steered market sentiment across the Australian share market, drawing significant attention to economic indicators tied to central bank decisions. The headline inflation figure came in slightly above forecasts, while the trimmed mean, often seen as a guide for monetary policy, returned to the Reserve Bank's preferred zone.

This development has sparked renewed discussions around interest rate movements. Bond yields rose while the local currency also gained slightly in response to the figures. Meanwhile, equity markets experienced early strength that moderated as the session progressed.

Rate-Sensitive and Defensive Sectors Diverge

Sectors typically responsive to interest rates, such as technology, held relatively firm despite the economic news. On the other hand, utilities and defensive stocks underperformed. Origin Energy (ASX:ORG) faced selling pressure, with market movement reflecting broader sentiment toward companies in the utility space.

Mixed sectoral movement shaped the performance of the ASX 200, as early optimism gave way to a more cautious tone by midday. The index showed resilience despite global uncertainties and domestic policy anticipation.

Large-Cap Activity Amid Global and Domestic Shifts

Among large-cap stocks, various updates across mining and energy industries influenced price movement. Ora Banda Mining (ASX:OBM) experienced a decline following an update to its production plans for the upcoming fiscal year. Champion Iron (ASX:CIA) saw selling despite strong sales volumes, while Alcoa Corporation (ASX:AAI) reported operational issues linked to a power outage in Europe.

Woodside Energy Group (ASX:WDS) announced a new supply agreement with BP involving liquefied natural gas delivery to a major U.S.-based project. The market response to this development remained subdued, with shares finishing slightly lower in afternoon trade.

Small-Cap Gainers Led by Agriculture and Lithium Plays

Wide Open Agriculture (ASX:WOA) recorded significant gains after announcing an exclusive distribution arrangement with Univar Solutions China. The agreement outlines the shipment of lupin protein to the Chinese market, highlighting progress in export development and product commercialisation.

Arizona Lithium (ASX:AZL) also moved higher after receiving clearance to advance production activities at its Prairie project in Canada. Additional corporate activity includes funding measures and development revisions at another lithium-focused asset within its portfolio.

Small-Cap Laggards Reflect Broader Market Uncertainty

Several small-cap names saw downward movement during intraday trade, particularly across technology and energy exploration stocks. Thrive Tribe Technologies (ASX:1TT), Pointerra (ASX:3DP), and 88 Energy (ASX:88E) each recorded significant declines. Broader trading volumes and market reactions suggest a cautious approach among market participants, particularly in speculative sectors.

Project and Operational Developments Continue in Resources

Hot Chili (ASX:HCH) achieved a regulatory milestone in Chile, with both its copper-gold and water supply projects registered for accelerated approval processes. This recognition aligns the company’s plans with national development priorities.

Elsewhere in the uranium space, Koba Resources (ASX:KOB) announced asset sales as it shifts focus toward core exploration at its Yarramba project. In the silver sector, Silver Mines (ASX:SVL) submitted infrastructure-related approvals aimed at advancing its Bowdens project.

In the gold sector, Challenger Gold (ASX:CEL) continues refurbishment activities for third-party processing facilities, supporting planned throughput from its flagship exploration site.