by Peter Milios
Westpac expects the Reserve Bank of Australia’s cash rate to peak at 3.85 per cent following a higher-than-expected inflation print. Bill Evans, chief economist at Westpac, forecasted annual pay to lift 4.5 per cent by June, and expects the RBA to increase the cash rate in February and March, pause in April, and make a final move in May, with the first interest rate cut in the first quarter of 2024. Westpac forecasts the Federal Reserve to lift the federal funds rate by 0.25 percentage points at its meeting next month and again in March for the last time.
At the closing bell, the S&P/ASX 200 was 0.34 per cent higher at 7,493.80.
Futures
The Dow Jones futures are pointing to a fall of 18 points.
The S&P 500 futures are pointing to a fall of 11.25 points.
The Nasdaq futures are pointing to a fall of 73.5 points.
The SPI futures are pointing to a fall of 6 points when the market next opens.
Best and worst performers
The best-performing sector was Consumer Staples, up 1.23 per cent. The worst-performing sector was Energy, down 1.84 per cent.
The best-performing large cap was BlueScope Steel (ASX:BSL), closing 2.86 per cent higher at $19.44. It was followed by shares in WiseTech Global (ASX:WTC) and Mercury NZ (ASX:MCY).
The worst-performing large cap was Yancoal Australia (ASX:YAL), closing 9.54 per cent lower at $5.88. It was followed by shares in New Hope Corporation (ASX:NHC) and Whitehaven Coal (ASX:WHC).
Asian news
Japan’s Nikkei has gained 0.01 per cent.
Company news
Dreadnought Resources (ASX:DRE) has announced that assay results have extended the strike length REE by 13 kms to 43 kms. In response, Dreadnought’s Managing Director, Dean Tuck, commented: “ With over 43kms of mineralised ironstones, a multi-metal, regional source at C3 and six more potential source carbonatites, we are extremely excited about what the drill rigs will deliver for us in 2023.” Shares closed 17 per cent higher at 11 cents.
Tyro Payments (ASX:TYR) rejected two non-binding indicative offers from Potentia, stating that they significantly undervalued the company. The Tyro board offered Potentia a 4 week period of due diligence to develop a significantly improved proposal and confirm funding commitments for any possible future offer, but there is no guarantee that a further offer or any kind of transaction will happen. Shares closed 4 per cent higher at $1.56.
Fortescue Metals (ASX:FMG) shipped a record volume of iron ore in the six months to December 2022, 4 per cent higher than the same period in the previous year, and 17 per cent higher than four years earlier. This puts the company on track to meet its full-year export target, despite the Iron Bridge magnetite project suffering cost and schedule blowouts, and likely to make a weaker-than-expected contribution to the goal. Shares closed 0.13 per cent lower at $22.45.
icetana (ASX:ICE), a global software company that provides AI solutions for detecting real-time anomalous events on video surveillance systems, released their activities report and Appendix 4C for Q2 FY23. The highlights of the report include an annual recurring revenue of $1.6m as of December 2022, which is up 18 per cent YoY and 2 per cent QoQ. The company also reported a quarterly revenue of $426k, which is up 10 per cent YoY and 9 per cent QoQ, and a net customer retention rate of 102 per cent. Additionally, the company achieved first sales of its next generation software and received positive feedback from early deployments. Shares closed flat at 3 cents.
Lake Resources (ASX:LKE) is a mining exploration entity that has released a quarterly cash flow report. The report shows that the company spent $13,682,000 on operating activities, $15,641,000 on investing activities, and received $569,000 in financing activities in the current quarter. Overall, the company had a net decrease in cash and cash equivalents of $28,754,000 for the period. Shares closed 2.17 per cent higher at 82.3 cents.
The quarterly report for the quarter ending December 2022 for Magnis Energy (ASX:MNS), FSE: U1P, and OTC: MNSEF highlights that the Lithium-ion battery manufacturing facility operated by Imperium3 New York Inc (“iM3NY”) completed internal qualification of its commercially produced cells. The report also states that progress was made for the planned US active anode material facility, and construction of the Eco-village as part of the Resettlement Action Plan for the Nachu Graphite Project in Tanzania was largely completed. Additionally, Magnis’ Corporate Social Responsibility programs continue to provide much needed infrastructure for the local community. Shares closed flat at 45 cents.
Commodities and the dollar
Gold is trading at US$1,922.00 an ounce.
Light crude is trading $0.36 higher at US$81.37 a barrel.
One Australian dollar is buying 71.13 US cents.
