The Match Out: RBA holds fire, stocks recover from early weakness

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The ASX was down sharply early on, off ~50pts at the lows however a spirited fightback played out, pre, but more so post the RBA decision to keep rates on hold at 4.1% as widely expected, the final call for Dr Philip Lowe.

• The ASX 200 finished down -4pts/-0.06% at 7314 – on the day’s highs = bullish
• The Healthcare sector was best on ground (+0.77%) while Industrials (+0.46%) & Staples (+0.43%) were the other standouts.
• Utilities (-1.18%) and Energy (-0.61%) the weakest links while Property also fell (-0.51%).
• A big market on close (ASX: MOC) order pushed the index +13pts up in the match.
• Another rate pause from the RBA, its third in a row, although the move / or lack of was widely expected by markets.
• Sandfire Resources (ASX: SFR) -4.14% was hit on the back of a UBS downgrade, from Buy to Neutral.
• Qantas (ASX: QAN) -0.18% edged lower after CEO Alan Joyce brought forward his retirement.
• Origin Energy (ASX: ORG) -2.9% has entered talks with the NSW government to extend the life of Eraring – they had planned to close it in 2025.
• Chalice Mining (ASX: CHN) -13.43% was hit again on Jeffries downgrade to sell equivalent – the stock is off 40% since releasing the results of the scoping study into its Gonneville project.
• Orora (ASX: ORA) still halted laid our their plans to pay ~$2.2b to buy French glass bottles maker Saverglass. They are raising ~$1.3bn in new equity at $2.70, a 21% discount to last.
• UBS downgraded Resmed (ASX: RMD) -0.37% on concerns around the rise of weight loss treatments – they had previously been bullish, saying concerns were overblown.
• We had Hansen (ASX: HSN) in for lunch today, a stock we’ve had on the Hitlist for our Emerging Companies Portfolio and will cover tomorrow morning.
• Iron Ore was flat in Asia, however, continues to defy the bears with Futures trading ~US$118/mt
• Gold edged lower trading at US$1935 at our close.
• Asian stocks were mostly down, Hong Kong off 1.9%, Japan +0.30% while China fell -0.82%
• US Futures are all down circa -0.25%

• Chalice Mining Plunges After Cut to Underperform at Jefferies
• Sandfire Cut to Neutral at UBS; PT A$7
• Mayne Pharma Cut to Underweight at Wilsons; PT A$2.68
• Leo Lithium Ltd Cut to Neutral at Jarden Securities
• Liontown Resources Cut to Neutral at Macquarie; PT A$3
• Ampol Reinstated Buy at Goldman; PT A$37
• Viva Energy Reinstated Neutral at Goldman; PT A$3.19
• SkyCity Cut to Reduce at CLSA; PT NZ$2.07
• Liontown Resources Cut to Speculative Hold at Bell Potter
• Firebrick Pharma Rated New Speculative Buy at Euroz
• Sandire Resources cut to Neutral at UBS