Australia Market edges up after RBA rate hikes

Australian share market finished session slightly higher on Tuesday, 02 August 2022, as the Reserve Bank raised the cash rate for the fourth time by 50 basis points to 1.85% in a widely expected move to tame surging inflation.

At closing bell, the benchmark S&P/ASX200 index rose marginal 5.08 points, or 0.07%, to 6,998.05. The broader All Ordinaries index added by 3.42 points, or 0.05%, to 7,216.36.

The top performing stocks in this index were ZIP CO and THE A2 MILK CO, up 15.1% and 7.9% respectively. The worst performers of the session were APPEN and UNITED MALT GROUP, which fell 27.3% and 6.3%, respectively, at the close.

Total 8 of 11 ASX sectors closed higher, with Consumer Discretionary was the best performing sector, gaining +1.46%, followed by consumer staple (up 1.2%) and information technology (up 0.87%). Property trusts was worst performing sector, falling 1.6%, followed by materials (down 1.1%) and energy (down 0.9%).

In company news, Marvel Gold shares declined advanced 11% after the company announcing that the recently completed drilling and survey highlighted the potential for research growth at the Tabakorole gold project in Mali.

Shares of LiveTiles dropped 36% after the intranet and digital workplace software company submitted a formal request to be removed from the official list of the Australian Securities Exchange.

ECONOMIC NEWS: The Reserve Bank of Australia Board decided to increase the cash rate target by 50 basis points to 1.85%. It also increased the interest rate on Exchange Settlement balances by 50 basis points to 1.75%. The bank's governor, Philip Lowe, said Australia's economy would grow slower this year and in coming years than the RBA had forecast in its May statement on monetary policy.

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