by Peter Milios
UBS Chief Economist George Tharenou has revised his peak cash rate forecast to 3.85 per cent in mid-2023, up from a previous forecast of 3.35 per cent in mid-February. The revision is due to the more hawkish rhetoric from the Reserve Bank, which UBS believes increases the risk of a recession in the second half of 2023 by 25 per cent.
At the closing bell, the S&P/ASX 200 was 0.76 per cent lower at 7,433.70.
Futures
The Dow Jones futures are pointing to a fall of 41 points.
The S&P 500 futures are pointing to a fall of 6.25 points.
The Nasdaq futures are pointing to a fall of 29.25 points.
The SPI futures are pointing to a fall of 64 points when the market next opens.
Best and worst performers
The best-performing sector was Consumer Staples, up 0.95 per cent. The worst-performing sector was Information Technology, down 2.04 per cent.
The best-performing large cap was Meridian Energy (ASX:MEZ), closing 2.65 per cent higher at $5.04. It was followed by shares in Endeavour Group (ASX:EDV) and EBOS Group (ASX:EBO).
The worst-performing large cap was New Hope Corporation (ASX:NHC), closing 8.61 per cent lower at $5.31. It was followed by shares in Yancoal Australia (ASX:YAL) and WiseTech Global (ASX:WTC).
Asian news
Japan’s Nikkei has gained 0.20 per cent.
Hong Kong’s Hang Seng has lost 1.97 per cent.
China’s Shanghai Composite has lost 1.02 per cent.
Company news
Consolidated Zinc (ASX:CZL) has entered into a binding agreement with Impact Silver Corp. to sell its Plomosas Project in Mexico. In response, Brad Marwood, Executive Chairman of the company, stated, “The Proposed Transaction presents a good outcome for shareholders as we will realise sufficient cash from the sale of the Plomosas Project to fund the planned exploration in Western Australia.” Shares closed 35.3 per cent higher at 2.3 cents.
Riversgold (ASX:RGL) has announced that Lithium drilling will commence imminently at their project. In response, Julian Ford, Riversgold’s CEO, commented: “The Earl Grey Prospect’s attraction lies in its proximity to the existing orebody currently being mined by SQM and Wesfarmers. The widths and tenor of the mineralised pegmatites at both Earl Grey and Bounty would be very attractive in today’s lithium market.” Shares closed flat at 2.5 cents
Arovella Therapeutics (ASX:ALA) has announced that they have advanced to the next phase of testing as part of their research collaboration with Imugene. In response, Arovella’s CEO and MD, Dr Michael Baker, commented: “We are pleased by the first set of data and delighted to continue the partnership with Imugene. Combining the two platforms made sense scientifically and seeing this play out in practice is exciting, given the impact this combination of therapeutics could have in solid tumours.” Shares closed 22 per cent higher at 3.9 cents.
Commodities and the dollar
Gold is trading at US$1,864.00 an ounce.
Iron ore is 2.1 per cent higher at US$125.50 a tonne.
Iron ore futures are pointing to a 0.1 per cent fall.
Light crude is trading $0.30 lower at US$77.76 a barrel.
One Australian dollar is buying 69.24 US cents.
