Closing Bell: ASX trims losses as RBA softens rate-hike language

The RBA held rates at 4.35pc, with the ASX paring losses as mining stocks rose and tech shares fell after China’s policy shift.

ASX pares losses after RBA tones down language. Picture via Getty Images

• RBA holds rates at 4.35pc and removes hike warning

• ASX pares losses after RBA statement

• Mining stocks rise, tech shares fall after China news

The RBA has left interest rates on hold at 4.35% today, but removed its previous warning about raising rates further.

The shift in tone suggested that inflationary pressures may be easing, although the RBA still sees risks.

“With underlying or trimmed mean inflation at 3.5 per cent year on year, the RBA is in no hurry to cut rates so we pushed out our expected first rate cut to May,” said AMP’s Shane Oliver.

The ASX pared its losses following the RBA's statement, closing the day 0.36% lower, while the Aussie dollar tumbled below US63.9c.

Source: Market Index

The mining sector led today after China said it will adopt a "moderately loose" monetary policy to support its recovery, a shift from its previous "prudent" stance. 

Mineral Resources (ASX:MIN) rose 8%, while Pilbara Minerals (ASX:PLS) was up 5%.

Tech stocks were the biggest losers following a sell-off on Wall Street after news that China had launched a probe into Nvidia, causing tech stocks to drop globally.

Source: Market Index

In the large caps space, Perpetual (ASX:PPT)faces a potential tax bill of $493-529 million after the ATO raised concerns over its asset sale to KKR, up from an initial estimate of $106-227 million. Shares dropped 6%.

Dual-listed Life360 (ASX:360) fell by 5% after the company revealed that a miscalculation of its stock’s weighting in the US Russell indexes had led to passive funds needing to adjust down their positions. This followed an 8% drop yesterday.

And, Insurance Australia (ASX:IAG) said it plans to fight a class action filed in the Supreme Court of Victoria, which claims that its subsidiary IAL and its related entity, IMA, misled customers about the discounts they would receive. Shares were down 2%. 

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
88E	88 Energy Ltd	0.002	50%	5,931,042	$28,933,812
ERL	Empire Resources	0.003	50%	1,212,074	$2,967,826
MOM	Moab Minerals Ltd	0.003	50%	1,694,660	$3,133,999
TAS	Tasman Resources Ltd	0.006	50%	14,244,546	$3,220,998
TKL	Traka Resources	0.002	50%	200,000	$1,945,659
EDE	Eden Inv Ltd	0.002	33%	2,106,584	$6,162,314
SFG	Seafarms Group Ltd	0.002	33%	357,733	$7,254,899
APC	Aust Potash Ltd	0.020	25%	156,437	$1,628,090
CZN	Corazon Ltd	0.003	25%	2,499	$1,535,811
ERA	Energy Resources	0.003	25%	1,034,475	$810,792,482
NRZ	Neurizer Ltd	0.003	25%	974,512	$5,635,721
SI6	SI6 Metals Limited	0.022	22%	565,938	$2,636,380
AKA	Aureka Limited	0.140	22%	908,088	$11,780,013
MQR	Marquee Resource Ltd	0.017	21%	2,233,832	$5,829,381
NFM	New Frontier	0.018	20%	7,341,304	$21,806,030
MTC	Metalstech Ltd	0.130	18%	685,256	$21,729,343
SMX	Strata Minerals	0.021	17%	209,123	$3,434,673
BRN	Brainchip Ltd	0.255	16%	22,157,251	$433,942,955
VHM	Vhmlimited	0.445	16%	295,147	$63,489,447
SMM	Somerset Minerals	0.015	15%	2,988,449	$2,680,602
CND	Condor Energy Ltd	0.023	15%	1,818,470	$11,726,674

Corazon Mining (ASX:CZN) has expanded its MacBride Base and Precious Metals Project in Canada, more than doubling its landholding. The project now covers a 14-kilometre strike, with significant potential for copper, zinc, gold and silver deposits. Historical exploration has already identified high-grade gold samples, and an aerial VTEM survey is underway to help target drilling for early 2025.

New Frontier Minerals (ASX:NFM) has contracted New Resolution Geophysics (NRG) to conduct a high-resolution airborne magnetic and radiometric survey at its Harts Range project in the Northern Territory. The survey, covering 2,253 line kilometres, will help identify potential extensions to known uranium, niobium, and rare earth mineralisation. Results from the survey are due to be completed in January 2025.

88 Energy (ASX:88E) has received initial 2D seismic data from Monitor Exploration, confirming 10 significant structural leads in its PEL 93 licence area in Namibia’s Owambo Basin. The seismic data reveals large closures, some up to 100 km², with hydrocarbon charge potential. 88 Energy said it plans to independently validate these findings.

Boab Metals (ASX:BML) has secured a US$30 million prepayment and an offtake agreement with Trafigura for lead-silver concentrate from its Sorby Hills project. Repayments start after 18 months, and Trafigura will purchase 75% of the concentrate if conditions are met, dropping to 25% otherwise.

Somerset Minerals (ASX:SMM) has agreed to acquire the high-grade Coppermine project in Nunavut, Canada, adjacent to White Cliff Minerals’ (ASX:WCN) Rae project. The acquisition will give Somerset control of a 1,208 km² land package, hosting multiple high-grade copper lodes, including rock chip results of up to 45.4% copper.

BrainChip Holdings (ASX:BRN) has secured a US$1.8 million contract with the Air Force Research Laboratory (AFRL) to develop radar signalling algorithms for neuromorphic hardware. The project will focus on micro-Doppler signature analysis, using BrainChip’s proprietary TENNs algorithm optimised for its Akida 2.0 hardware.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
VTI	Vision Tech Inc	0.057	-58%	733,530	$7,429,923
1TT	Thrive Tribe Tech	0.001	-50%	456,113	$1,406,723
MTL	Mantle Minerals Ltd	0.001	-50%	177,452	$12,394,892
SIT	Site Group Int Ltd	0.001	-50%	3,812,824	$6,514,980
LYN	Lycaonresources	0.105	-45%	8,029,314	$10,067,116
IBG	Ironbark Zinc Ltd	0.003	-38%	5,175	$7,334,591
GGE	Grand Gulf Energy	0.002	-33%	21,877	$7,351,161
LNU	Linius Tech Limited	0.001	-33%	34,500	$9,226,824
NES	Nelson Resources.	0.002	-33%	400,704	$6,515,783
RLL	Rapid Lithium Ltd	0.005	-29%	907,400	$5,124,776
WC1	Westcobarmetals	0.013	-28%	920,801	$2,866,798
GMN	Gold Mountain Ltd	0.003	-25%	702,194	$15,629,893
VRX	VRX Silica Ltd	0.045	-21%	1,660,995	$35,810,573
VMC	Venus Metals Cor Ltd	0.056	-20%	13,860	$13,729,008
AAU	Antilles Gold Ltd	0.004	-20%	1,503,272	$9,289,380
ADD	Adavale Resource Ltd	0.002	-20%	282	$3,087,330
ARV	Artemis Resources	0.008	-20%	4,823,373	$19,168,824
CDT	Castle Minerals	0.002	-20%	10,017,866	$4,182,035
CAG	Caperangeltd	0.105	-19%	3,750	$12,338,079
SVL	Silver Mines Limited	0.093	-19%	29,002,298	$173,424,170
EMH	European Metals Hldg	0.130	-19%	1,000	$33,191,153
BUS	Bubalusresources	0.115	-18%	156,275	$5,090,995
AUG	Augustus Minerals	0.033	-18%	301,465	$4,767,657

IN CASE YOU MISSED IT

Asra Minerals (ASX:ASR) has appointed the experienced Paul Stephen as its new CEO to lead its Leonora gold exploration drive. With a track record of discovering and delineating 2.8Moz, Stephen is set to leverage his expertise in the high-performing gold market.

James Bay Minerals (ASX:JBY) has unveiled historical data revealing up to 4% copper and 6,874 g/t silver from its Independence gold project in Nevada. The company is investigating the potential for multi-commodity mineralisation of the newly acquired project.

Summit Minerals (ASX:SUM)has kicked off maiden drilling at its Barra lithium project in Brazil. The 3000m RC program is targeting quartz outcrops believed to be extensions of previously unmapped pegmatite quartz cores, and is supported by recent magnetic surveys.

FintechOvanti (ASX:OVT) is raising $6 million to expand its US team. The company aims to launch a BNPL offering and is eyeing a listing on a US exchange, following the path of peers like Sezzle and Afterpay.

Lanthanein Resources (ASX:LNR) has extended its farm-in agreement with Gondwana Resources by six months to earn a 50% interest in tenement E77/2143, agreeing to pay $200,000 in cash. The extension accommodates delays in regulatory approvals and allows time to complete drilling, receive assay results and evaluate the project’s potential for the next farm-in stage.

At Stockhead, we tell it like it is. While Asra Minerals, James Bay Minerals, Summit Minerals, Ovanti and Lanthanein Resources are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Closing Bell: ASX trims losses as RBA softens rate-hike language