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Highlights
- The ASX closed 0.19% lower at 8,126.40 points following a CPI decline to 2.7% in August.
- Mineral Resources and Sayona Mining saw significant gains amid market declines.
- Premier Investments and Sigma Healthcare faced notable losses due to disappointing sales and profit results.
The Australian Securities Exchange (ASX) closed at 8,126.40 points, marking a decline of 0.19%. This movement followed the release of Australia’s Consumer Price Index (CPI) for August, which showed a drop to 2.7%, down from 3.5% in July. The reduction aligns with the Reserve Bank of Australia’s (RBA) target range, largely influenced by the government's energy rebate measures.
Despite this positive news, Junvum Kim from SAXO Asia indicated that the latest CPI figures increase the likelihood of an earlier interest rate cut. However, the RBA recently decided to maintain the cash rate at 4.35%, with RBA Governor Michele Bullock confirming that there will be no rate cuts for the remainder of the year. Analysts anticipate the first cut may not occur until the second half of 2025.
The market experienced declines across most sectors. Financials faced the most significant downturn, falling approximately 1.7%, followed by Information Technology at 1.2%, and Telecommunications down around 0.7%. Conversely, the Materials sector bucked the trend, rising nearly 2.9%.
Winners:
- Mineral Resources (ASX:MIN) closed up 5.44% at $41.29 after successfully divesting 49% of its soon-to-open Onslow Iron Haul Road to Morgan Stanley Partners for $1.1 billion. The stock also benefited from a record increase in iron ore prices.
- Maximus Resources Ltd (ASX:MXR) jumped around 5.7% to 3.7 cents following a promising intercept grading of 3.21 grams per tonne of gold across 19 metres at its Hilditch gold deposit in Western Australia.
- Sayona Mining (ASX:SYA) experienced a rise of approximately 7.7%, closing at 2.8 cents. The company reported positive developments in its North American Lithium operation, nearing steady production ahead of schedule.
Losers:
- Premier Investments (ASX:PMV) faced a decline of more than 9.09%, closing at $30.61, after reporting a 2.9% fall in global sales to $1.6 billion for FY24. Although the Peter Alexander brand achieved record results, declines from the Smiggle and Apparel Brands impacted overall performance.
- Sigma Healthcare (ASX:SIG) ended down around 3.5% at $1.37 after revealing a 67% decrease in net profit to $3.7 million for the half-year. Investor reaction to these results was negative, compounded by the ACCC's extension of its decision on the Chemist Warehouse reverse merger.
- Zip (ASX:ZIP) saw a retreat of around 3.6%, affected by news that co-founder Larry Diamond has ceased to be a substantial shareholder. The company also announced the appointment of Hilton executive Matthew W. Schuyler as a new non-executive director.
The ASX’s mixed performance reflects the broader economic landscape and individual company developments, showcasing the dynamic nature of the market.
