ASX Large Caps: Rates sensitive stocks rally hard; Origin Energy slumps on rejected offer

Shares higher after US Fed’s decision to keep rates steady
Rates-sensitive stocks, like Tech and Real Estate, rallied
Origin Energy slumped after AustralianSuper rejected consortium’s bid

The ASX rose by almost 1% on Thursday, driven by a rally in interest rates-sensitive stocks following this morning’s Fed decision to keep rates steady.

Analysts believe the Fed is done with rate hikes after back-to-back holds kept rates at a 22-year high.

“Fed Chair Powell noted the Fed has gone from penciling in one more rate hike, to now asking the question ‘Should we hike more?’” said Oanda analyst, Edward Moya.

On the ASX, the Tech sector surged by over 3%, while Real Estate, another sector sensitive to rates, also jumped by almost 3%.

Healthcare and Financials were also in the winners’ circle, while Energy and Utilities were the only sectors to have fallen.

In other markets, Aussie 10-year bond yield slipped 15bp today after the 17bp plunge in US 10 year Treasury yield overnight to below 4.8%.

The Aussie dollar meanwhile surged 1% to US64.31 following the Fed’s decision.

Across the region, Asian stocks also climbed as traders assessed that a peak in Fed policy may indeed be at hand.

Later tonight, the US weekly new unemployment claims are due, while the Bank of England (BoE) convenes a monetary policy meeting and announces its decision.

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap MCY Mercury NZ Limited 5.41 6.08 11,911 $7,095,258,919 360 Life360 Inc. 7.86 5.22 207,619 $1,513,932,022 OCL Objective Corp 11.03 4.95 18,641 $1,000,410,809 HMC HMC Capital Limited 4.48 4.92 2,259,365 $1,488,396,906 NIC Nickel Industries 0.81 4.84 3,769,433 $3,321,502,657 PNI Pinnacle Investment 8.25 4.83 257,445 $1,597,048,436 EBO Ebos Group Ltd 33.80 4.81 27,988 $6,185,798,164 CHC Charter Hall Group 9.40 4.79 665,699 $4,242,784,875 LIC Lifestyle Communit. 16.57 4.74 57,701 $1,653,903,972 DHG Domain Holdings Aus 3.58 4.68 459,861 $2,160,267,463 EMR Emerald Res NL 2.73 4.60 2,473,775 $1,621,948,117 HLI Helia Group Limited 3.76 4.60 834,526 $1,103,959,435 REA REA Group 151.45 4.34 80,460 $19,176,814,048 VCX Vicinity Centres 1.80 4.20 12,525,400 $7,852,674,993

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Telix Pharma (ASX:TLX) has completed its acquisition of Light Medical, paying an initial $US20m, with a further $US15m earn-out payable. TLX has paid the upfront consideration with $US19.6m cash and around $3.298m in TLX shares at $9.3659 each.

Perpetual Ltd (ASX:PPT) has promoted its deputy COO Craig Squires as COO, overseeing the Pendal Group integration and replacing chief integration officer Amanda Gazal.

Nickel Industries (ASX:NIC) announced that following the retirement of Huang as President Director of Shanghai Decent Investment, that he will also be retiring from his Non-Executive Director of NIC. His position will be taken by Wang Haijun, who is also replacing Huang as President Director of Shanghai Decent.

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap ORG Origin Energy 8.40 -7.39 35,436,295 $15,625,321,376 STO Santos Ltd 7.51 -3.04 6,487,899 $25,137,762,718 AMC Amcor PLC 13.67 -2.91 2,562,285 $9,033,267,288 NST Northern Star 11.64 -2.14 1,746,817 $13,664,239,069 WDS Woodside Energy 33.98 -2.10 3,621,343 $65,905,604,551 HGH Heartland Group 1.42 -2.08 259 $1,033,558,315 LNW Light & Wonder Inc. 113.63 -1.94 32,218 $1,694,865,979 AGL AGL Energy Limited. 10.57 -1.90 665,338 $7,245,487,699 EVN Evolution Mining Ltd 3.53 -1.81 5,727,514 $6,595,490,086 RED Red 5 Limited 0.31 -1.61 3,690,695 $1,073,278,668 CPU Computershare Ltd 24.69 -1.50 767,103 $15,129,457,160 GOR Gold Road Res Ltd 1.86 -1.46 1,061,618 $2,035,088,823 PRU Perseus Mining Ltd 1.70 -1.45 3,431,951 $2,362,530,004 BXB Brambles Limited 13.24 -1.45 2,142,996 $18,686,436,905 DOW Downer EDI Limited 3.81 -1.30 842,410 $2,592,274,401 IGO IGO Limited 9.24 -1.28 2,749,697 $7,088,026,730 DEG De Grey Mining 1.16 -1.28 1,826,717 $2,104,941,586

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Origin Energy (ASX:ORG) slumped after its biggest shareholder, AustralianSuper, rejected a sweetened offer by Brookfield/EIG for Origin shares from $8.91 to $9.53 a share. Australian Super said today that the new offer was still “substantially below our estimate of Origin’s long-term value”.

Santos (ASX:STO) fell after the Federal Court of Australia granted an interim injunction to prevent Santos from commencing to lay the Barossa Gas Export Pipeline (GEP) until 13 November. This decision is in connection with an application by Simon Munkara who is seeking an order that Santos revise and resubmit the Environment Plan (EP) that was accepted by the regulator, NOPSEMA, in March 2020.

Packaging firm Amcor (ASX:AMC) fell after reporting lower Q1 revenues and net income, as weaker customer demand and inventory pressures took a toll, especially in the huge US market.

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