Enter your details to join our mobile app waitlist and receive early access to the Bell Direct App.
There was no good, just bad and ugly in today’s session on the ASX as investors responded to the Wall St sell-off sparked by US inflation data hitting 8.3% for August.
The ASX ended the midweek session down 181.10 points or 2.58%, weighed down by a heavy sell-off in real estate stocks, although no sector was safe from the market sell-off today with all 11 sectors ending the session in negative territory, with real estate stocks again taking the biggest hit. More than $58 billion was wiped off the ASX in the opening hour of trade today, as the local market tumbled more than 2.6%. Japanese financial firm Nomura has raised its expectations of the Fed to hand down a full 1% interest rate hike at the FOMC meeting next week, while also expecting the RBA to increase Australia’s cash rate hike by 0.5% in October instead of the previously forecasted 0.25%. Westpac also says Australia is facing a similar problem to the US with consumption remaining strong, meaning demand is continuing to drive inflation.
Finding a winning stock today was like finding a diamond in the rough, but one standout was Clover Corporation (ASX:CLV), which surged more than 11% during the session after releasing full year results in line with the top end of guidance. The strong results were boosted by the second half of the year with international borders opening and key infant milk manufacturers lifting orders. Mesoblast (ASX:MSB) ended the session as the leading stock, gaining 2.2% despite no price sensitive news released by the regenerative medicine company today.
On the losing front, Lake Resources (ASX:LKE) continued its run in the firing line of investors with the stock plunging more than 15% today after the company revealed a dispute with Lilac Solutions regarding the Kachi Pilot Plant as to the date by which certain milestones must have been achieved. Under the agreement, Lilac will earn up to a 25% stake in the Kachi Project based on meeting certain milestones, which Lake considered must be achieved by September 30, while Lilac believes it has until 30 November to do so. Investors also sharply sold-off Megaport (ASX:MP1) and Clinuvel Pharmaceuticals (ASX:CUV) shares today.
On the economic calendar for tomorrow, Australia’s unemployment rate for August is released, which will give an insight into how tight the country’s labour market was last month.