Lunch Wrap: ASX pops higher on RBA rate-cut buzz; tech and banks lead

The ASX has bounced back amid rate-cut hopes. Meanwhile Wall Street gained and China had investors wading back into banks and tech plays.

ASX pops as RBA is expected to cut rates today. Picture via Getty Images

• ASX climbs as RBA rate cut buzz builds

• China cuts its rates again

• TechOne flies, Telstra charges, Rio digs in

The ASX got its groove back on Tuesday as punters placed their bets on an RBA rate cut later today.

By lunchtime AEST, the ASX 200 was cruising 0.6% higher, catching a tailwind from Wall Street's late comeback.

Overnight in the US, the S&P 500 only managed a 0.1% gain by the bell, but that was still enough to notch a sixth straight win and leave it sniffing at bull market territory.

US stock futures were still nudging higher again this morning, hinting the rally might even have some fuel in the tank.

Elsewhere, Trump declared that both Russia and Ukraine would “immediately” begin ceasefire talks, possibly without the US involved.

Experts say any whiff of sanctions easing on Russia or Iran could see extra barrels flood a market already swimming in crude.

Meanwhile, in a move that surprised no one, the People’s Bank of China trimmed its one and five-year benchmark lending rates by 10 basis points this morning.

For investors, the message is pretty clear: China’s still pumping stimulus, which could help support global demand.

Back home, rate cut fever was in full swing, with traders hanging tight for the RBA’s 2.30pm (AEST) verdict.

A 25bp trim would take the cash rate below 4% for the first time since 2023.

And that was more than enough to lure ASX investors back into everything from banks to tech, to bricks and mortar.

Commonwealth Bank (ASX:CBA) cracked a new intraday high, again, rising 1% to $173.54. National Australia Bank (ASX:NAB) also jumped 2%.

In the real estate space, Goodman Group (ASX:GMG) gained over 1% as interest-rate-sensitive sectors basked in the glow of rate cut optimism.

Source: Market Index

In the large caps space, giant tech firm Technology One (ASX:TNE) lit up the scoreboard, up a scorching 12.5% after lifting its interim dividend by 30% and posting a healthy bump in first-half revenue.

That sent the stock to a record high and made it Tuesday’s top performer on the ASX 200.

But not everyone had a good morning. Online retailer Kogan (ASX:KGN) dropped 7% after admitting its Mighty Ape unit wouldn’t be back in the black until 2026.

Kogan blamed a clunky website upgrade back in February that dragged down sales and left inventory levels out of whack.

And, Rio Tinto (ASX:RIO) is making another big swing into lithium, announcing a $1.4 billion deal with Chile’s state-owned Codelco.

The two will co-develop the Salar de Maricunga project, with Rio taking a 49.9% stake.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for May 20 :

Security	Description	Last	%	Volume	MktCap
ZNO	Zoono Group Ltd	0.06	54%	7,478,787	$13,861,919
VML	Vital Metals Limited	0.00	50%	5,355,943	$11,790,134
CTO	Citigold Corp Ltd	0.00	33%	3,200,000	$9,000,000
LTP	Ltr Pharma Limited	0.36	29%	1,083,282	$31,349,630
ALY	Alchemy Resource Ltd	0.01	27%	1,428,571	$6,479,419
DTR	Dateline Resources	0.05	27%	52,150,322	$102,326,039
MM1	Midasmineralsltd	0.20	27%	2,944,657	$19,550,424
C7A	Clara Resources	0.01	25%	527,223	$2,046,417
ERA	Energy Resources	0.00	25%	450,182	$810,792,482
ERL	Empire Resources	0.01	25%	75,001	$5,935,653
VFX	Visionflex Group Ltd	0.00	25%	5,965,586	$6,735,721
FRX	Flexiroam Limited	0.01	20%	4,095,888	$7,586,993
ODE	Odessa Minerals Ltd	0.01	20%	519,936	$7,997,663
RLL	Rapid Lithium Ltd	0.00	20%	756,040	$3,112,362
VAR	Variscan Mines Ltd	0.01	20%	285,491	$3,914,289
KSN	Kingston Resources	0.11	20%	11,150,357	$75,619,851
LKY	Locksleyresources	0.04	17%	4,977,540	$4,400,000
AJL	AJ Lucas Group	0.01	17%	77,164	$8,254,378
BNL	Blue Star Helium Ltd	0.01	17%	1,224,877	$16,169,312
ICR	Intelicare Holdings	0.01	17%	880,933	$2,917,129
OVT	Ovanti Limited	0.00	17%	3,182,999	$8,380,545
THB	Thunderbird Resource	0.01	17%	10,827,656	$4,436,897
FDR	Finder	0.05	16%	311,545	$12,224,397

Zoono Group (ASX:ZNO) has signed an exclusive UK deal with packaging giant Sharpak and its long-time food supply chain partner OSY. The agreement will see Zoono’s shelf-life-extending tech used on soft fruit packaging, sold to big UK supermarkets. It’s a big step for Zoono, which pivoted into food packaging after its core antimicrobial business took a hit during the post-COVID crisis. The deal runs to the end of 2029, and includes minimum orders starting at NZ$4.3 million in year one, rising to NZ$8.6 million by year five.

Biotech LTR Pharma (ASX:LTP) has taken a big step with SPONTAN, its fast-acting erectile dysfunction spray, which is now available across TerryWhite Chemmart’s 600+ pharmacies nationwide. It means patients with a script can finally get Spontan filled at major pharmacies under the TGA’s Special Access and Authorised Prescriber schemes. To support the rollout, LTR has built new barcoded packaging ready for pharmacy shelves and telehealth integration down the track.

Clara Resources Australia (ASX:C7A) has kicked off a strategic review of its Kildanga cobalt-nickel-copper-gold project in southeast Queensland after receiving unsolicited interest from third parties. It’s now weighing up a potential sale, joint venture or partnership to unlock value from the asset. Clara said the Kildanga project’s got strong near-term potential, sitting near Gympie with good infrastructure and high-grade historic hits.

Telehealth tech outfit Visionflex (ASX:VFX) has locked in a deal with BHP (ASX:BHP) to roll out its virtual care system across 13 remote medical centres and one emergency helicopter in WA. The contract’s worth $400k in year one, all paid upfront. The full rollout is due to be wrapped up by the end of FY25. For BHP, it means better healthcare on-site, fewer medevac flights, and less time lost to travel.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for May 20 :

Code	Name	Price	% Change	Volume	Market Cap
DUB	Dubber Corp Ltd	0.020	-47%	24,797,142	$99,687,964
BP8	Bph Global Ltd	0.002	-33%	431,221	$3,152,954
OFX	OFX Group Ltd	0.880	-33%	4,707,888	$306,555,705
CHM	Chimeric Therapeutic	0.006	-31%	13,772,782	$14,805,490
SFG	Seafarms Group Ltd	0.002	-25%	789,689	$9,673,198
PLN	Pioneer Lithium	0.091	-21%	349,879	$4,894,594
AUG	Augustus Minerals	0.027	-21%	360,149	$4,052,509
KPO	Kalina Power Limited	0.004	-20%	78	$14,664,849
TYX	Tyranna Res Ltd	0.004	-20%	650,000	$16,442,127
PHO	Phosco Ltd	0.065	-19%	515,559	$35,065,716
GTE	Great Western Exp.	0.014	-18%	16,307	$9,651,885
GBE	Globe Metals &Mining	0.024	-17%	200,000	$20,144,937
EG1	Evergreenlithium	0.030	-17%	917,467	$7,004,819
BIT	Biotron Limited	0.003	-17%	400,000	$3,981,738
EPM	Eclipse Metals	0.005	-17%	1,156,001	$17,194,914
FBR	FBR Ltd	0.005	-17%	593,809	$34,136,713
DTZ	Dotz Nano Ltd	0.073	-16%	295,437	$49,668,093
ARV	Artemis Resources	0.006	-14%	19,136,490	$17,699,705
AUK	Aumake Limited	0.003	-14%	38,000	$10,581,756
CDEDC	Codeifai Limited	0.006	-14%	600,000	$2,219,220
FFF	Forbidden Foods	0.006	-14%	5,000	$4,984,714
GLL	Galilee Energy Ltd	0.006	-14%	12,500	$4,950,350
RDN	Raiden Resources Ltd	0.006	-14%	4,854,095	$24,156,240
SPX	Spenda Limited	0.006	-14%	42,123	$32,306,508

IN CASE YOU MISSED IT

Asra Minerals (ASX:ASR) has secured $200k in cash from the sale of its Boorara tenement package to a subsidiary of Northern Star Resources after inking a binding head of sale agreement. The sale will streamline ASR’s portfolio, allowing the company to concentrate resources on its core Leonora gold project, which already holds a global gold resource of about 200,000 ounces of gold.

Andromeda Metals (ASX:ADN) is also cashed up after completing a $5m placement. The new funds will go to the Great White high purity alumina project, supporting early works, advanced plant design and engineering, and technical, financial and legal requirements for the project’s funding and development.

At Stockhead, we tell it like it is. While LTR Pharma, Asra Minerals and Andromeda Metals 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 Lunch Wrap: ASX pops higher on RBA rate-cut buzz; tech and banks lead