Roy Keenan from Yarra Capital Management shares insights with James Dunn from The Inside Network on the role of active management. The Inside Adviser
After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
Local market slides ahead of Federal Reserve meeting
The local share market fell for a second straight day on Tuesday, ahead of a flurry of central bank meetings, and following the release of a set of minutes from the Reserve Bank of Australia that were taken as implying that the local central bank is considered raising rates.
With the US Federal Reserve’s policy meeting occupying the bulk of market attention, the domestic indices were lower on Tuesday, with the benchmark S&P/ASX 200 down 33.8 points, or 0.5 per cent, to 7.196 points, and the broader All Ordinaries index losing 33.1 points, or 0.4 per cent, to 7,395.
Weaker iron ore prices – on mounting concerns about China’s deepening property crisis – saw the iron ore heavyweights lose ground, with BHP sliding 66 cents, or 1.4 per cent, to $45.10; Fortescue Metals giving back 23 cents, or 1.1 per cent, to $20.97; and Rio Tinto down 77 cents, or 0.7 per cent, to $118.54.
All of the Big Four banks were in the red, with ANZ leading the slippage, losing 24 cents, or 0.9 per cent, to $25.51; National Australia Bank 20 cents, or 0.7 per cent, weaker at $29.38; Westpac down 10 cents, or 0.5 per cent, to $21.69; and Commonwealth Bank off 50 cents, also 0.5 per cent, to $102.13.
Coal not cooling
In coal, New Hope Corporation rose 13 cents, or 2.1 per cent, to $6.30 – its highest level since January – after posting a $1 billion profit, on strong coal demand and record high prices. Whitehaven Coal advanced 8 cents, or 1.2 per cent, to $6.69; Stanmore Resources gained 15 cents, or 4.5 per cent, to $3.47; Coronado Global Resources was up 6.5 cents, or 3.6 per cent, to $1.86; and Yancoal Australia gained 13 cents, or 2.6 per cent, to $5.14.
Among the lithium cohort, producer Allkem dipped 25 cents, or 2 per cent, to $12.43; and fellow producer Pilbara Minerals lost 9 cents, or 2.1 per cent, to $4.26. IGO, which mines nickel and lithium, retreated 9 cents, or 0.7 per cent, to $13.06; and Mineral Resources, which mines iron ore as well as lithium, eased 13 cents, or 0.2 per cent, to $70.35.
Lithium project developer Core Lithium shed 2 cents, or 5.1 per cent, to 37 cents; and fellow developer Piedmont Lithium also gave up 2 cents, in its case 2.9 per cent, to 68 cents.
Gold miner and takeover target Newcrest advanced 36 cents, or 1.4 per cent, to $25.60 after US miner Newmont received the green light from Australia’s Foreign Investment Review Board (FIRB) to proceed with its planned acquisition, pending further regulatory approvals.
Elsewhere in gold, Ramelius Resources rose 6.5 cents, or 4.6 per cent, to $1.46; Silver Lake Resources closed 4.5 cents, or 5.1 per cent, higher at 92 cents; Evolution Mining lifted 5 cents, or 1.4 per cent, to $3.70; Gold Road Resources gained 3.5 cents, or 2.1 per cent, to $1.72; and Perseus Mining added 2.5 cents, or 1.4 per cent, to $1.78.
In energy, Woodside Energy retreated 4 cents, or 0.1 per cent, to $37.80; but Santos strengthened 7 cents, or 0.9 per cent, to $7.85.
Fed considered unlikely to shift rates
In the US, stock indices retreated as Wall Street awaited the results of this week’s Federal Reserve policy meeting. The blue-chip Dow Jones Industrial Average lost 106.57 points, or 0.3 per cent, to end at 34,517.73; the broader S&P 500 index eased 9.58 points, or 0.2 per cent, to 4,443.95; and the tech-heavy Nasdaq Composite Index walked back 32.05 points, or 0.2 per cent, to 13,678.19.
The two-day policy meeting concludes tonight Australian time. It will feature the Fed’s quarterly update on what it expects for a several key indicators — interest rates, gross domestic product, inflation and unemployment – but there is fairly widespread consensus that the central bank will not lift rates.
On the bond market, the US 10-year yield advanced 5.5 basis points, to 4.364 per cent, while the 2-year yield was up 6.4 basis points, at 5.105 per cent.
Gold retreated US$2.32 to US$1,931.88 an ounce; the global benchmark Brent crude oil grade slipped 9 cents to US$94.34 a barrel; and US West Texas Intermediate crude fell 28 cents, or 0.3 per cent, to US$91.20 a barrel.
The Australian dollar is buying 64.57 US cents this morning, up from 64.33 US cents at the ASX close on Tuesday.
