Closing Bell: ASX climbs back toward record highs as inflation softens

The ASX has added 0.6pc in a convincing day of broad gains after the June CPI came in softer than expected, lowering yearly inflation to 2.1pc.

After an uncertain start to the trading week the ASX has made some solid progress, climbing back toward new heights on soft CPI data. Pic: Getty Images

• June CPI comes in at 0.7pc, annual inflation at 2.1pc

• Broad market strength across six sectors

• Banks move higher on interest rate cut anticipation

Soft inflation read points to likely rate cut

The ASX wasn’t in bad shape by midmorning, but June quarter CPI coming in with the lowest inflation levels in almost four years gave the bourse some real legs.

Climbing 0.60% on six of 11 sectors, it’s hard to pick which one had the most effect.

It was a steady climb from 11.30am AEST when the ABS revealed our June CPI print was just 0.7%, with inflation sitting at 2.1% for the past 12 months.

That’s a good bit lower than the 2.6% expected, meaning markets are as sure as they can be that the RBA will be slicing interest rates yet again at its August meeting.

Westpac's Chief Economist and former RBA Assistant Governor Dr Luci Ellis threw down the gauntlet, saying the RBA no longer has any justification for keeping rates on hold.

"If they do decide to hold, I'd like to see what that argument is,” she challenged. Strong words from an economist.

Turning our attention back to the market itself, it was a group effort from the sectors on the bourse today.

Source: Market Index

Staples, real estate, discretionary and financials collectively lifted the ASX higher, resisting weakness in utilities, resources and technology.

Woolworths (ASX:WOW) and Coles (ASX:COL) added 1.6% and 1.9% respectively, diversified property investment firm Charter Hall Group (ASX:CHC) climbed 1.7% and JB HiFi (ASX:JBH) added 4.1%

Source: Market Index

The banks were, unsurprisingly, celebrating the inflation read and rubbing their hands together in anticipation of that juicy August rate cut, perhaps just around the corner now.

Our top seven banks climbed a minimum of 0.71%, with special mentions for Commonwealth Bank (ASX:CBA) up 1.55%, Westpac (ASX:WBC) with a 1.6% lift and ANZ (ASX:ANZ) adding 1.25%.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Code	Name	Last	% Change	Volume	Market Cap
OLI	Oliver'S Real Food	0.009	80%	9582179	$2,703,660
CMB	Cambium Bio Limited	0.46	59%	103971	$5,301,973
BSA	BSA Limited	0.14	56%	14673353	$6,777,023
ECT	Env Clean Tech Ltd.	0.003	50%	6552072	$8,030,871
MX1	Micro-X Limited	0.086	39%	2656871	$41,366,540
SFG	Seafarms Group Ltd	0.002	33%	583466	$7,254,899
PIM	Pinnacleminerals	0.053	33%	2213674	$1,818,533
ATV	Activeportgroupltd	0.014	27%	9695536	$7,556,748
SP3	Specturltd	0.015	25%	4485916	$3,802,801
MEL	Metgasco Ltd	0.0025	25%	2910399	$3,674,173
MOH	Moho Resources	0.005	25%	1880328	$2,981,656
ATS	Australis Oil & Gas	0.011	22%	2267595	$11,862,562
IMI	Infinitymining	0.011	22%	1764790	$3,807,142
DVL	Dorsavi Ltd	0.029	21%	15438314	$21,868,727
1AI	Algorae Pharma	0.006	20%	1681427	$8,436,974
AAU	Antilles Gold Ltd	0.006	20%	3177272	$11,895,340
JGH	Jade Gas Holdings	0.038	19%	397646	$53,978,693
IRD	Iron Road Ltd	0.033	18%	130793	$23,259,398
IME	Imexhs Limited	0.33	18%	3424	$15,021,790
FAL	Falconmetalsltd	0.51	17%	1238811	$77,237,429
M4M	Macro Metals Limited	0.007	17%	1020453	$23,864,505
OVT	Ovanti Limited	0.007	17%	8182194	$25,645,942
TYX	Tyranna Res Ltd	0.0035	17%	227750	$9,865,276
UNT	Unith Ltd	0.007	17%	2968159	$8,872,713
PPK	PPK Group Limited	0.565	15%	91320	$44,498,124

In the news…

Cold cathode X-ray technology specialist Micro-X (ASX:MX1) has tapped into a nationwide network of 700 hospitals with a new supply agreement through a major US healthcare provider, the first of its kind for the company.

MX1 secured the contract after a highly competitive tender process and a successful in-hospital trail of its Rover Plus mobile radiology system. The company is in discussions with a second major procurement group for a similar supply agreement.

Regenerative medicine company Cambium Bio (ASX:CMB) is on the up after a strategic investment from prominent Taiwanese firm Da Jyun Capital Investment closed out a share placement raising just over $2.1m.

The funds will enable a Phase 3 trial assessing Elate Ocular in dry eye disease, a type of off-the-shelf biologic eye drops produced from human platelets.

Infinity Mining (ASX:IMI) has been building out its portfolio of copper and gold projects this financial year, adding 3000 square kilometres to its Eastern Australian portfolio across 12 tenements.

Over in the west, IMI hit lithium grades up to 3.7% lithium oxide at its Woody lithium project, and released a maiden resource of 63k oz and an exploration target of 592k oz of gold for the Central Goldfields assets. The company is looking at divestment options for its western assets.

Pinnacle Minerals (ASX:PIM) is climbing despite launching a $1.76m share placement at $0.04 per share, a more than 25% discount on its intraday trading price of $0.054 a share. PIM is also offering a free attaching option at $0.08 each for every two shares subscribed for.

The fresh capital will go to exploration programs at the Adina East project in Quebec next door to several significant lithium projects and Pinnacle’s rare earth and heavy mineral sands projects in Australia.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Code	Name	Last	% Change	Volume	Market Cap
OB1	Orbminco Limited	0.001	-33%	1	$5,103,852
M2R	Miramar	0.003	-25%	1356442	$3,987,293
RGL	Riversgold	0.003	-25%	5201000	$6,734,850
RLG	Roolife Group Ltd	0.003	-25%	901930	$6,371,125
SCP	Scalare Partners	0.135	-25%	360625	$7,530,304
CZN	Corazon Ltd	0.002	-20%	4000000	$2,961,431
JAV	Javelin Minerals Ltd	0.002	-20%	3415417	$15,630,562
PIL	Peppermint Inv Ltd	0.002	-20%	2163343	$5,752,724
VFX	Visionflex Group Ltd	0.002	-20%	646413	$8,419,651
RPG	Raptis Group Limited	0.165	-20%	765029	$71,890,395
CDE	Codeifai Limited	0.021	-19%	20567547	$12,269,425
EQS	Equitystorygroupltd	0.023	-18%	55543	$4,670,971
WWG	Wisewaygroupltd	0.15	-17%	20000	$30,123,575
AMS	Atomos	0.005	-17%	78593	$7,290,111
EE1	Earths Energy Ltd	0.005	-17%	2477726	$3,179,785
TEG	Triangle Energy Ltd	0.0025	-17%	535535	$6,267,702
COY	Coppermoly Limited	0.011	-15%	92121	$11,474,547
AQC	Auspaccoal Ltd	0.012	-14%	5119015	$9,806,546
ENT	Enterprise Metals	0.003	-14%	150	$4,799,610
ENV	Enova Mining Limited	0.006	-14%	10501341	$10,203,200
GTR	Gti Energy Ltd	0.003	-14%	4514195	$13,029,292
MSG	Mcs Services Limited	0.006	-14%	570164	$1,386,698
TSL	Titanium Sands Ltd	0.006	-14%	1100000	$16,413,230
STH	Stepchange Holdings	0.155	-14%	283651	$28,844,158
SMS	Starmineralslimited	0.025	-14%	118888	$5,426,093

IN CASE YOU MISSED IT

Drilling of historical stockpiles at the Van Uden gold mine site in WA has delivered a strategic opportunity for TG Metals (ASX:TG6) to generate near-term cash flow.

Nordic Resources (ASX:NNL) has launched diamond drilling to test shallow targets for near-surface extensions along strike of existing resources at its Kopsa copper-gold project in Finland.

Phase 2 drilling by Ora Banda Mining (ASX:OBM) at the Davyhurst project in WA has expanded the multi-lode gold system at Little Gem prospect to a strike of more than 1km.

A desktop review and first-pass fieldwork has identified several iron-enriched rock chip samples at CuFe’s (ASX:CUF) Camp Creek project in the NT.

Australia is sharpening its focus on sovereign technology as global security risks escalate and digital warfare becomes more sophisticated, offering opportunities for technology companies like Aerologix.

Challenger Gold (AX:CEL) is on track to deliver early cashflow from its Hualilan project as Austral Gold prepares to commission its refurbished Casposo plant.

Trading halts

Energy Transition Minerals (ASX:ETM) – strategic acquisition in Spain
Locksley Resources (ASX:LKY) – cap raise
Nagambie Resources (ASX:NAG) – cap raise
Syrah Resources (ASX:SYR) – cap raise

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 climbs back toward record highs as inflation softens