Mid-Market: ASX 200 trades high ahead of RBA policy statement, financial shares in red

The Australian share market continued to trade in positive on Tuesday afternoon, owing to favourable global cues, with the benchmark index ASX 200 adding 21.9 points or 0.31% to trade at 7,050.

Seven of 11 sectors were trading in green, while Material was the best performing sector. Other sectors that were leading on ASX200 include Energy, Industrials, Consumer Discretionary, Consumer Staples, Utilities, and A-REIT. Sectors with losses include Information Technology, Healthcare, Financial, and Telecommunications Services.

Earlier today, ASX 200 opened higher amid hopes that the Reserve Bank of Australia (RBA) would maintain status quo on cash rate despite a solid economic recovery and a housing boom. The RBA will release policy announcement at 12:30 PM today.

Ahead of RBA’s policy announcement, rate sensitive financial stocks were trading lower, led by the Bank of Queensland (ASX:BOQ) and Bendigo and Adelaide Bank (ASX:BEN). Three of the "Big Four" banks traded in red, while Westpac Banking Corp (ASX:WBC) edged higher.

The Australian dollar was also under stress, down 0.11% to 0.7749.

The traders will keep an eye on the RBA’s policy announcement this afternoon, with focus on guidance on economic growth as well as policy measures on bond yields. In the last policy meeting on April 6, the RBA had maintained status quo in policy settings, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond.

Top Gainers and Losers

The top performers on ASX200 are Silver Lake Resources Limited (ASX:SLR), Ramelius Resources Limited (ASX:RMS), Northern Star Resources Limited (ASX:NST), Worley Limited (ASX:WOR), and Resolute Mining Limited (ASX:RSG).

Some of the worst performing shares are Megaport Limited (ASX:MP1), Domain Holdings Australia Ltd. (ASX:DHG), ZIP Co Limited (ASX:Z1P), Altium Limited (ASX:ALU) and NRW Holdings Limited (ASX:NWH). 

Newsmakers

The shares of Odyssey Gold Ltd (ASX:ODY) rallied over 100% to A$0.155, hitting their highest since 22 October 2012, after the gold explorer stated drilling at the Bottle Dump deposit at its Tuckanarra gold project in Western Australia had revealed significant visible gold.

Shares of Recce Pharmaceuticals Ltd (ASX:RCE), which is developing new classes of synthetic anti-infectives, was trading higher by 5% at AU$1.190, after the company shared that RECCE 327 had showcased bactericidal activity against all six antibiotic-resistant ESKAPE pathogens, including drug-resistant mutations and two other WHO priority pathogens list.

The share price of ResApp Health Ltd (ASX:RAP) gained as much as 7.843% to A$0.055 per share after the company said that health technology firm Ilara Health would be promoting, marketing, and selling ResAppDx, a smartphone app for acute respiratory disease diagnosis in Kenya.

Bulletin Resources Limited (ASX:BNR) shares rose over 2% after the company unveiled results from the recent drilling programme at its Lake Rebecca gold project, 150km east north-east of Kalgoorlie, Western Australia.

Mobecom Limited (ASX:MBM) shares were spotted trading at A$0.034 after the company announced that it had signed a share purchase agreement to acquire 100% of Neat Tickets Pty Ltd, a business trading at Neat Ideas for A$2,040,000, plus up to 1,500,000 shares in MBM.

Infomedia Ltd (ASX:IFM) announced that it had acquired US-based e-commerce platform SimplePart for an upfront consideration of US$S24.5 million along with an earn-out of up to US$20.5 million over three years.

Ramsay’s (ASX:RHC) Wholly Owned Funding Group has been ascribed an investment-grade credit rating of BBB (Stable) by credit rating agency Fitch.

Nick Scali (ASX:NCK) said that it had expected 90% profit rise in FY21, with sales remaining robust through the March quarter.

Super Retail Group (ASX:SUL) said that its sales growth had remained strong through the first 44 weeks of the financial year 2021.

Wisetech Global (ASX:WTC) has matched the guidance issued at its first-half earnings result. It had anticipated A$470 million to A$510 million in revenue and A$165 million to A$190 million in EBITDA for financial year 2021.

Flight Centre (ASX:FLT) said that its March sales revenue was comfortably higher than the previous coronavirus period record. The March turnover was over A$100 million, or 32.7%, higher than February.

Domain Group’s (ASX:DHG) revenue grew 2% in the March quarter, owing to expansion in listings as Australia’s property market gained strength.

In an update to the Macquarie Australia conference, Worley (ASX:WOR) said that it was on track for an improved result in the second half compared to the first half of 2020-21.

Commodity Market Update 

Crude oil prices rose over 1% amid recovery in demand in the US and China. Brent crude Futures closed up 80 cents at US$67.56 a barrel, while the WTI crude Futures rose 91 cents to settle at US$64.49 a barrel. Oil stocks such as Santos Limited (ASX:STO), Woodside Petroleum Limited (ASX:WPL), and Beach Energy Limited (ASX:BPT) remained in focus today.

Gold prices rose over 1% on Monday due to retreat in bond yield and the US dollar. Spot gold price rose 1.40% to US$1,793.42 an ounce, while the US gold Futures settled 1.4% higher at US$1,791.80 an ounce.


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