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ASX 200 rallies on RBA rate pause and sector gains

EditorRachael Rajan
Published 12/07/2023, 03:16 AM
© Reuters.

SYDNEY - The Australian Securities Exchange (ASX) 200 index experienced a notable upswing Wednesday, closing 1.65% higher, buoyed by a combination of an interest rate pause by the Reserve Bank of Australia (RBA) and modest GDP growth figures. The news signals a potential slowdown in economic expansion which could lead to an end to the cycle of rising interest rates.

Real estate stocks were at the forefront of the rally, with the sector surging by 3.2%. Notable performers included Lendlease Group (ASX:LLC) and Charter Hall (ASX:CHC), both climbing over four percent. Stockland (ASX:SGP) and Scentre Group (ASX:SCG) also enjoyed gains, each increasing approximately 3.7%.

Chalice Mining (ASX:CHN) saw its shares soar by more than ten percent to close at $1.65 following the approval from the Western Australian Government for exploration at the Julimar project.

In financial services, Perpetual Limited (ASX:PPT) announced a strategic review that could result in a division of its Corporate Trust and Wealth Management sectors to concentrate on Asset Management. This news spurred a six percent jump in its share price, closing at $23.76.

Evolution Mining (ASX:EVN) faced a downturn, with its stock falling thirteen percent after pricing an institutional placement at $3.80 per share to fund the Northparkes Mine acquisition. The shares closed even lower at $3.60, ahead of an upcoming Share Purchase Plan intended to raise further capital.

Adavale Resources (ASX:ADD) suffered a significant drop of twenty-seven percent after announcing the acquisition of a uranium license in South Australia, ending the trading day at just $0.008.

Despite some declines in specific stocks, broader market sentiment was lifted by positive remarks from RBA Governor Bullock in Hong Kong about the resilience of Australian businesses amid economic challenges.

The commodities sector also contributed to the market's positive performance with iron ore giants BHP (ASX:BHP) and Rio Tinto (ASX:NYSE:RIO), as well as lithium companies like Pilbara Minerals (ASX:PLS) and IGO Limited (ASX:IGO), gaining on the back of commodity price upticks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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