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ASX up 0.31% as Australia's CPI beats expectations

PUBLISHED

2023-10-25

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Australia's September quarter CPI data have exceeded market estimates, with the quarterly headline CPI rising 1.2 percent versus the expected 1.1 percent, and the annual headline CPI increasing by 5.6 percent compared to the anticipated 5.3 percent. Additionally, the quarterly trimmed mean CPI rose by 1.2 percent, surpassing the expected 1 percent, while the annual trimmed mean CPI rose to 5.2 percent, exceeding the expected 5 percent. Notably, the quarterly trimmed mean CPI also outperformed the Reserve Bank of Australia's forecast of 0.9 percent.

The S&P/ASX 200 is 0.31 per cent higher at 6,878.20.

The SPI futures are pointing to a rise of 16 points.

Best and worst performers

The best-performing sector is Materials, up 1.46 per cent. The worst-performing sector is REITs, down 0.57 per cent.

The best-performing large cap is Lynas Rare Earths (ASX:LYC), trading 4.99 per cent higher at $7.16. It is followed by shares in Allkem (ASX:AKE) and Pilbara Minerals (ASX:PLS).

The worst-performing large cap is Auckland International Airport (ASX:AIA), trading 2.59 per cent lower at $6.77. It is followed by shares in Infratil (ASX:IFT) and Atlas Arteria (ASX:ALX).

Company news

QX Resources (ASX:QXR) has commenced drilling at the Liberty Lithium Brine Project in California, USA. QXR Managing Director, Stephen Promnitz, said, “this is potentially a new large-scale lithium brine project - in the heartland of a rapidly growing battery supply chain in the USA. Participants in the USA are aggressively seeking to secure domestic battery minerals supply to balance potential supply side risks to the energy transition.” Shares are trading 4.55 per cent higher at 2.3 cents.

Chimeric Therapeutics (ASX:CHM) has announced a non-renounceable entitlement offer to raise up to approximately $10 million (before direct offer costs). The offer price is $0.028 per new share, a 31.7% discount to the closing price of Chimeric shares on 24 October 2023. Shares are trading 29.27 per cent lower at 2.9 cents.

Peako (ASX:PKO) announced that their RC drilling increases the strike length of higher-grade mineralisation at the Brumby Prospect from 180m to 680m. Commenting on the results, Peako Executive Director Rae Clark stated, “Importantly the shallow plunging PGE mineralisation remains open down plunge to the south-west.” Shares are trading 16.67 per cent higher at 0.7 cents.

IVE Group (ASX:IGL) announces entry into the fibre based packaging sector with the strategic acquisition of JacPak, for a total purchase consideration of $35 million. Commenting on the acquisition of JacPak, IVE Group CEO Matt Aitken said, “Over the last two years we have communicated our strategic intention to enter the short to medium run folding cartons segment of the Australian packaging sector.” Shares are trading 4.84 per cent higher at $1.84.

Asian news

Asia-Pacific markets are mixed as investors prepare for Australia’s third-quarter inflation figures, which will give clues to the Reserve Bank of Australia’s monetary policy decision when it meets on Nov. 3.

Economists polled by Reuters expect the headline inflation rate to come in at 5.3%, lower than the 6% seen in the second quarter.

Japan’s Nikkei 225 rose 0.96%, while the Topix was popped 1.05%. In contrast, South Korea’s Kospi opened just below the flatline, and the Kosdaq slipped 0.36%.

Futures for Hong Kong’s Hang Seng index stood at 17,480, pointing to a rebound after the HSI ended at its lowest level since Nov. 10.

Commodities and the dollar

Gold is trading at US$1984.50 an ounce.

Iron ore is 2.6 per cent higher at US$118.55 a tonne.

Iron ore futures are pointing to a 3.43 per cent rise.

One Australian dollar is buying 63.80 US cents.

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