2 days ago
Closing Bell: ASX resilient as RBA keeps cash rate on hold
ASX brushes aside RBA holding rates at 3.85% to close 0.02% higher
Global markets feel jitters on US President Donald Trump's renewed tariff push
First Au enters drill-for-equity deal with Newcam Minerals for Gimlet gold project
The ASX showed resilience in afternoon trade following the Reserve Bank of Australia (RBA) keeping the official cash rate on hold at 3.85%, in a move that surprised many economists and financial pundits.
There were wide expectations of a 0.25 percentage point rate cut following inflation falling back within the bank's target range and global uncertainties softening the growth outlook.
However, after lowering interest rates in February and May, the RBA held back from delivering its third rate cut in this easing cycle, voting 6-3 in favour of the hold.
"The board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis," the RBA board wrote in its statement.
"Uncertainty in the world economy remains elevated."
"While the final scope of US tariffs and policy responses in other countries remains unknown, financial market prices have rebounded with an expectation that the most extreme outcomes are likely to be avoided.
"Trade policy developments are nevertheless still expected to have an adverse effect on global economic activity and there remains a risk that households and firms delay expenditure pending greater clarity on the outlook."
The board also said domestic factors influenced its decision to keep rates on hold.
"Setting aside overseas developments, private domestic demand appears to have been recovering gradually, real household incomes have picked up and there has been an easing in some measures of financial stress," the board said.
Hold the phone… telcos come out on top
Even before the RBA's decision it had been a volatile day on the ASX, which fell in morning trade before staging a recovery to modestly enter green territory around lunch time.
The bourse dipped again to 8559 when the RBA held rates, but rebounded as banks recovered and US futures edged higher.
The S&P/ASX 200 closed the day up 1.4 points or around 0.02% at 8590.7, supported by the telecommunications, financials, consumer discretionary and tech sectors.
US stocks fell lower overnight with the Nasdaq, S&P 500, and Dow all retreating about 0.8-0.9% from record highs, dragged down by renewed tariff tensions stirred up by US President Donald Trump.
US markets had recently hit fresh all-time highs during a brief lull in tariff tensions, but global jitters were reignited on trade fears as the Trump administration wrote to leaders across dozens of countries, threatening to impose new tariffs ranging from 25% to 40%.
And adding to US drama, the world's richest man and Tesla CEO Elon Musk reignited his feud with Trump by unveiling the new "American Party" in response to the White House's latest tax bill, sending shares in the EV maker tumbling 6.8%.
ASX SMALL CAP LEADERS
Today's best performing small cap stocks:
Code Name Last % Change Volume Market Cap
AQC Australian Pacific Coal 0.027 440% 39,212,831 $3,502,338
HLX Helix Resources 0.002 100% 400,100 $3,364,194
ALR Altair Minerals 0.003 50% 166,733 $8,593,488
AXP AXP Energy Ltd 0.0015 50% 250,000 $6,684,681
ATV Active Port Group 0.013 44% 16,196,304 $6,182,794
AMS Atomos 0.004 33% 2,561,337 $3,645,055
FAU First Au Ltd 0.004 33% 3,029,866 $6,228,874
LNR Lanthanein Resources 0.001 33% 10,776,720 $3,161,454
QXR Qx Resources Limited 0.004 33% 5,415,767 $3,930,987
AM7 Arcadia Minerals 0.024 33% 41,636 $2,112,902
CUF Cufe Ltd 0.009 29% 6,380,929 $9,426,024
RDG Res Dev Group Ltd 0.009 29% 1,748,403 $20,656,007
SFM Santa Fe Minerals 0.18 29% 475,640 $10,194,630
SVY Stavely Minerals Ltd 0.014 27% 2,922,230 $5,984,463
SCP Scalare Partners 0.165 27% 43,429 $5,438,553
AGY Argosy Minerals Ltd 0.033 27% 15,535,866 $37,853,944
IPT Impact Minerals 0.0075 25% 2,620,792 $23,959,980
RMI Resource Mining Corp 0.015 25% 359,999 $8,813,440
1AD Adalta Limited 0.0025 25% 997,416 $2,142,633
RLG Roolife Group Ltd 0.005 25% 911,700 $6,371,125
TMK TMK Energy Limited 0.0025 25% 4,176,969 $20,444,766
VEN Vintage Energy 0.005 25% 2,207,274 $8,347,655
NFM New Frontier 0.012 20% 4,154,460 $16,052,126
SPX Spenda Limited 0.006 20% 1,280,136 $23,076,077
SUM Summit Minerals 0.048 20% 2,816,477 $3,543,043
Making news...
After being reinstated to ASX quotation on July 7 following an announcement about the Dartbrook coal mine in NSW entering voluntary administration, Australian Pacific Coal (ASX:AQC) surged strongly today as investors seemed to welcome clearing of the uncertainty.
The surge and increased volume prompted a price and trading volume query from the ASX to which AQC responded that it was in compliance with the Listing Rules. Stockhead's John Miller has more in Resources Top 5.
ActivePort Group (ASX:ATV) has locked in a contract worth $375 with India-based Ishan Netsol Pvt Ltd to provide network infrastructure automations.
Under the deal ATV deploy its Fibre-to-the-Node orchestration to more than 12,000 buildings and 40+ data centres across India, tapping into a network across 100 locations and 85,000 customers in the country.
First Au (ASX:FAU) has entered into a drill-for-equity agreement with Newcam Minerals Pty Ltd for the upcoming resource drilling program at the Gimlet Gold Project, near Kalgoorlie in WA.
Under the terms, FAU will pay 100% of the drilling costs via the issue of fully paid ordinary FAU shares at a fixed price of $0.0052 per share.
FAU said the arrangement allows the company to preserve cash while rapidly advancing Gimlet with a value-accretive drilling campaign targeting near-term development.
The estimated costs of the drilling campaign is ~$660,000.00 with ~132,000,000 new fully paid ordinary shares to be issued in FAU.
ASX SMALL CAP LAGGARDS
Today's worst performing small cap stocks:
Code Name Last % Change Volume Market Cap
BOT Botanix Pharma Ltd 0.135 -56% 168,923,914 $607,949,259
VFX Visionflex Group Ltd 0.001 -50% 447,757 $6,735,721
EEL Enrg Elements Ltd 0.001 -33% 250,101 $4,880,668
GMN Gold Mountain Ltd 0.002 -20% 1,222,891 $14,049,398
MRD Mount Ridley Mines 0.002 -20% 1,071,190 $1,946,223
OPL Opyl Limited 0.021 -19% 1,618,590 $6,109,176
AKN Auking Mining Ltd 0.005 -17% 2,192,746 $3,448,673
DGR DGR Global Ltd 0.005 -17% 423,719 $6,262,176
MBK Metal Bank Ltd 0.01 -17% 118,587 $5,969,508
TON Triton Min Ltd 0.005 -17% 299,000 $9,410,332
ADDDB Adavale Resource Ltd 0.026 -16% 445,000 $3,545,283
ZMI Zinc of Ireland NL 0.008 -16% 5,253,523 $5,529,102
HPC Thehydration 0.011 -15% 856,893 $5,021,912
NSB Neuroscientific 0.14 -15% 314,227 $54,874,991
PFT Pure Foods Tas Ltd 0.017 -15% 19,790 $2,808,512
FIN FIN Resources Ltd 0.003 -14% 509,620 $2,432,110
LU7 Lithium Universe Ltd 0.006 -14% 43,962 $6,551,857
SHE Stonehorse Energy Lt 0.006 -14% 299,735 $4,791,046
WMG Western Mines 0.24 -14% 82,444 $27,100,736
MCE Matrix C & E Ltd 0.25 -14% 1,910,828 $64,905,242
CDE Codeifai Limited 0.033 -13% 4,703,346 $17,821,570
RNX Renegade Exploration 0.0035 -13% 157,488 $5,153,454
NUC Nuchev Limited 0.14 -13% 5,263 $23,467,622
TOU Tlou Energy Ltd 0.021 -13% 479,382 $31,166,024
RML Resolution Minerals 0.044 -12% 13,640,581 $32,910,914
IN CASE YOU MISSED IT
StockTake: Renascor Resources (ASX:RNU) has entered a farm in to earn up to 90% of a promising uranium anomaly adjoining its Marree project in SA.
SIPA Resources (ASX:SRI) has kicked off a reverse circulation drilling program across the new Nuckulla Hill gold project in South Australia.
Medallion Metals (ASX:MM8) is advancing towards a resource update and feasibility study for its Ravensthorpe project in WA thanks to the latest in a string of high-grade gold and copper hits.
Prospect Resources (ASX:PSC) has hit broad copper up to 49m at 0.52% at the Nyungu Central deposit, part of the wider Mumbezhi copper project in northwestern Zambia.
OzAurum Resources (ASX:OZM) has started RC drilling at the Cross Fault discovery of its Mulgabbie North gold project in WA.
Blue Star Helium (ASX:BNL) is preparing to flow test its third helium well at operations in Lincoln County, Colorado.
LAST ORDERS
ClearVue Technologies (ASX:CPV) has welcomed Doug Hunt as interim CEO after global CEO Martin Deil and executive director Jamie Lyford step down from the board.
Hunt has played an instrumental role in developing the second generation of ClearVue solar glazing in his four years with the company – he'll be joined by fresh directors Michael Pixley and Theresa Smits.
Askari Metals (ASX:AS2) has snapped up the Nejo gold project in Ethiopia in return for $200k in cash and the same again in shares. The tenure has already produced bonanza-grade gold hits up to 7.1m at 30.3 g/t gold and AS2 reckons it'll be a relatively quick turnaround to produce a JORC resource estimate.
TRADING HALTS
Emperor Energy (ASX:EMP) – cap raise
Aguia Resources (ASX:AGR) – cap raise
Ausgold (ASX:AUC) – cap raise
ARC Funds (ASX:ARC) – cap raise
At Stockhead, we tell it like it is. While Askari Metals and ClearVue Technologies are Stockhead advertisers, they did not sponsor this article.
