The Match Out: RBA Minutes boost local shares, Star (SGR) falls despite tax relief

A surprisingly positive session for the ASX today, courtesy of the RBA minutes that showed a July 0.25% rate hike in perhaps, not a fait accompli, with the RBA still more data dependent than the market had given it credit for. Bond yields fell after the 11.30 am release, and so too did the Australian dollar and that put a bid tone under the market which built on its impressive 6-day advance now totalling ~220pts/3%, chalking up a 7-week high in the process

• The ASX 200 finished up +62pts/ +0.86% at 7357
• The Energy sector was best on ground (+1.94%) while Real Estate (+1.34%) & Financials (+1.19%) were also strong.
• Healthcare (-0.02%) was the only sector to fall today. Industrials (+0.11%) was the other key underperformer.
• The RBA released its minutes for the June meeting showing the board considered holding rates where they were. The minutes painted a far more dovish central bank than the market had anticipated with a focus on the impact the unprecedented hikes have had on household budgets. As a result, the market stepped back rate hike expectations which helped solidify a risk on attitude.
• Star Entertainment (ASX: SGR) -3.18% has been handed a reprieve from a major tax increase on gaming revenue at its Sydney casino, with the NSW government flagging it will delay the increase that was to start in less than a fortnight. Reading between the lines, we think the reprieve speaks to how tough it is for SGR at the moment, the Govt obviously keeping one eye on the potential for job losses.
• Star also announced a sale and partial lease back deal with Charter Hall had fallen through. Delays to Brisbane’s Treasury casino and hotel had allowed Charter Hall to walk from the $248m with shares in the property company rising today highlighting who the market thought benefitted more from the result.
• Magellan (ASX: MFG) +5.84% hit a near 4-month high today, it’s back on our radar as performance improves with the view that it will stem outflows. One we will touch on in tomorrow’s Morning report.
• Woodside (ASX: WDS) +2.22% will spend $US4.8b to develop the Trion Oil project in Mexico, part-owned by Pemex. It’s a big resource, expected to produce 100k bbl. a day and first oil in 2028.
• SRG Global (ASX: SRG) +0.7% another small contract win, $50m deal with WA’s Water Corp. that’s now $1.1b in contract wins this financial year.
• Iron Ore was marginally lower in Asia today, though the weaker AUD supported the miners, BHP up 1.34%.
• Gold was flat in Asian trade, sitting around $US1952
• Asian stocks were mostly softer, Hong Kong down -1.63%, China -0.45% while Japan was marginally higher
• US Futures are all lower by around -0.4% each

Broker Moves

• Regis Healthcare Cut to Hold at Jefferies; PT A$2.40
• Breville Rated New Reduce at CLSA; PT A$19.80
• Aurizon Reinstated Neutral at Goldman; PT A$3.95

Major Movers Today

Have a great night

The Market Matters Team

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