by Peter Milios
At its monthly board meeting today, the RBA board raised the rates by 0.25 percentage points to 3.6 per cent.
The Reserve Bank plans to implement at least one more rate increase to address persistent inflation, following its 10th consecutive rate increase.
The central bank is battling Australia’s worst inflation in decades and has raised the cash rate target to its highest level since May 2012. Despite weaker-than-expected economic data, there is speculation among economists that the RBA may not weaken its guidance around future interest rate rises.
At the closing bell, the S&P/ASX 200 was 0.49 per cent higher at 7,364.70.
Futures
The Dow Jones futures are pointing to a rise of 43 points.
The S&P 500 futures are pointing to a rise of 9 points.
The Nasdaq futures are pointing to a rise of 44.5 points.
The SPI futures are pointing to a rise of 34 points when the market next opens.
Best and worst performers
The best-performing sector was Energy, up 1.21 per cent. The worst-performing sector was Materials, down 0.44 per cent.
The best-performing large cap was Yancoal Australia (ASX:YAL), closing 2.93 per cent higher at $6.32. It was followed by shares in Santos (ASX:STO) and Worley (ASX:WOR).
The worst-performing large cap was ALS (ASX:ALQ), closing 3.68 per cent lower at $12.30. It was followed by shares in South32 (ASX:S32) and Allkem (ASX:AKE).
Asian markets
Japan’s Nikkei has gained 0.36 per cent.
Hong Kong’s Hang Seng has gained 0.97 per cent.
China’s Shanghai Composite has lost 0.11 per cent.
Company news
DroneShield (ASX:DRO) has successfully completed its Share Purchase Plan (SPP) after raising $29.4 million from its existing shareholders at an issue price of $0.30 per share. In response, Oleg Vornik, DroneShield’s CEO, commented, “The funds will allow us to take advantage of the highly favourable environment for defence and specifically customer demand for counterdrone solutions, as we target 2023 to be a transformative year for DroneShield.” Shares last traded 12 per cent lower 33 cents.
Emerging lithium producer Sayona Mining (ASX:SYA) has entered into a subscription agreement with PearTree Securities Inc, for a A$54.9 million flow through shares (FTS) placement to advance Sayona’s Québec lithium projects. The FTS represents a 34 per cent premium to Sayona’s last closing price. Under the structure, accredited Canadian investors can get tax deductions and credits generated for specified mining investments. Sayona’s Managing Director, Brett Lynch commented: “This funding will provide an added boost to our expansion plans, with the FTS provisions allowing us to raise capital at a premium to the current share price, thereby minimising dilution for the benefit of our shareholders.” Shares last traded 4.26 per cent higher at 24.5 cents.
Pentanet (ASX:5GG) announced the signing of a Collaboration Agreement with Optus Mobile to deliver cloud gaming service to Optus customers. Optus Managing Director of Marketing and Revenue Matt Williams: “Our mission is to break down the barriers to gaming and offer our customers the freedom to play anywhere and anytime. Shares last traded 9.09 per cent higher 18 cents.
Metro Mining (ASX:MMI) announces it is remobilising the production and services team back to site from next week and has announced a MOU for additional offtake. The target for mining start is 24 March with ship-loading due to commence on 2 April, one or two weeks earlier than normal, whilst the Company has agreed offtake agreements for up to 5 Million tonnes for 2023. Shares last traded unchanged at 0.8 cents.
Commodities and the dollar
Gold is trading at US$1,853.00 an ounce.
Iron ore is 1.6 per cent lower at US$125.35 a tonne.
Iron ore futures are pointing to a 1.72 per cent rise.
Light crude is trading $0.21 higher at US$80.67 a barrel.
One Australian dollar is buying 67.13 US cents.
