Aust stocks creep higher as market awaits RBA decision

Derek Rose | February 7, 2023

The Australian share market has crept higher this morning ahead of the Reserve Bank’s latest decision on interest rates.

The S&P/ASX200 index was up 8.7 points, or 0.12 per cent, to 7,547.7 at noon on Tuesday.

The All Ordinaries had gained 9.8 points, or 0.13 per cent, to 7,756.2.

Most analysts are expecting the Reserve Bank to raise interest rates by 25 basis points, to 3.35 per cent, at its 2.30pm AEDT meeting.

But there are arguments for a more aggressive rate hike to combat sticky inflation, or a dovish pause after an unexpected drop in retail spending and a softening in business conditions.

The ASX’s 11 official sectors were mixed, with four up, five down and tech and industrials basically flat.

Energy was the biggest gainer, climbing 0.9 per cent as coal prices jumped and Brent crude recovered to $US81 a barrel on signs from more demand from China.

Woodside was up 0.6 per cent, Whitehaven Coal had gained 5.0 per cent and Yancoal was up 4.1 per cent.

In the heavyweight mining sector, Fortescue Metals was up 0.9 per cent to $22.15, BHP was flat at $48.21 and Rio Tinto had dropped 0.1 per cent to $123.84.

In the financial sector, Macquarie was up 1.6 per cent to a nine-month high of $191.96 after the investment bank released quarterly results.

Among the retail banks, ANZ had gained 1.1 per cent to $25.87, Westpac had added 0.3 per cent to $23.91, CBA was flat at $110.76 and NAB was up 0.2 per cent to $31.955.

Medibank Private was up 2.2 per cent to $3.035 as the health insurer announced it would defer premium increases for two months.

Transurban was up 0.1 per cent to $14.04 after the toll road operator raised its 2022/23 distribution guidance after record traffic in Sydney and Brisbane.

The Australian dollar was at a one-month low against its US counterpart, buying 68.97 US cents, from 69.36 US cents at Monday’s ASX close.