The ASX fell overall this week, shedding 1.41% over the last week, although the index is still up 2.02% for the last year to date, remaining well above the lows of early January.
Most other indices languished right alongside us, although the Nikkei225 bucked the trend to lift 1.40% this week.
Commodities were down across the board, with tin (-5.50%), palladium (-5.06%) and silver (-4.02%) taking the biggest hits.The sectors had a more mixed showing, with Energy falling 5.15% right alongside Materials (-4.79%) but Consumer Discretionary (+2.34%) and Information Technology (+3.01%) gaining ground.
During the week, the RBA hiked rates once again to a cash rate of 3.6%, but flagged a potential slowdown or pause in further hikes pending important economical information due to be released throughout the next few weeks:
- Labour Force Data (March 16)
- Retail Sales (March 28)
- February Monthly inflation indicator (March 29)
- March quarter inflation data (April 26).
A report from technology market research company IDTechEX has revealed the solid-state battery market could grow to US$8 billion in size, and may have the potential to reshuffle the energy storage market as a next-generation battery technology.
Solid-state battery addressable market size. Source: IDTechEx.
While lithium electrolyte batteries currently dominate the market, a raft of new material and component selections within manufacturing processes in the battery industry have indicated a possible reshuffle of the battery supply chain, according to IDTechEX.
“From both technology and business point of view, the development of solid-state batteries has become part of the next-generation battery strategy,” an excerpt from the report reads.
“It has become a global game with regional interests and governmental support. Opportunities will be available with new materials, components, systems, manufacturing methods, and know-how.”
Global major solid-state battery players. Source: IDTechEx.
Given solid-state batteries’ differing chemistries and manufacturing requirements to lithium-ion, their rising popularity may lead to even higher demand for already sought after critical minerals.
Average mortgage up $1,000 since April 2022
This month’s Finder RBA Cash Rate Survey revealed Australian mortgages have risen by A$1,000 a month on average since April last year.
The RBA raised the cash rate to 3.6% this week, a move Graham Cooke, Finder head of consumer research, says is bad news for struggling homeowners.
“Australians with the average loan size of around $600,000 will be forking out over $13,000 more per year on their mortgage compared to what they were paying a year ago,” Cooke said.
“While homeowners deserve a break from the relentless increase in pressure, we can expect ever more hikes from the RBA this year.”
A full third or 36% of homeowner respondents said they struggled to pay their mortgage in February, according to Finder’s Consumer Sentiment Tracker.
Lucky for Australian consumers, three out of four experts surveyed by Finder believe the general rise in cost of living has peaked.
Shane Oliver from AMP said inflation in several major countries including the US appears to have peaked and is leading Australia by around six months.
“Supply shortages are fading, freight costs have fallen, many commodity prices (including for energy) are off their highs, business surveys report slowing input and output prices and falling order backlogs and delivery times and demand is likely to slow,” Oliver said.
Mark Crosby from Monash University agreed, noting “Already [there are] indications that inflation is falling in most peer economies, and energy and supply chain pressures appear to be lessening."
However, the panel does not think inflation will ease with any speed in 2023. The majority of experts (80%) do not believe the quarter-on-quarter price rises will return to the pre-pandemic average of 0.5% in 2023.
Most experts also expect more rate rises to come.
"Inflation, especially the trimmed mean of the CPI, remains significantly above the RBA's target band. The RBA is still in catch-up mode with respect to matching their cash rate settings to the inflation reality,” said Associate Professor Mark Melatos, School of Economics, University of Sydney.
Small cap wins for the week
Prescient Therapeutics surges 46%
Prescient Therapeutics Ltd (ASX:PTX) gained a whopping 46% on its share price this week, having been granted additional Orphan Drug Designation for PTX-100 for the treatment of T-cell lymphomas (TCL), including cutaneous TCL (CTCL).
Read more
Remsense Technologies leaps 37.75%
Remsense Technologies Ltd jumped a full 37.75% over the last five days, buoyed by winning a contract from AGC Industries Pty Ltd on behalf of Chevron (NYSE:CVX) Australia to undertake virtualplant scanning of its additional LNG facilities through 2023 and 2024.
Read more
Lindian Resources jumps 23.9%
Lindian Resources Ltd (ASX:LIN) shares gained ground this week after the company fielded a further batch of broad high-grade assay results from phase one drilling at the Kangankunde Rare Earths Project in Malawi.
Read more
Surefire Resources gains 20%
Surefire Resources NL (ASX:SRN) shares lifted 20% over the last five days, pushed upward after delivering a substantial upgrade to the conceptual exploration target at its Victory Bore Vanadium Project in Western Australia, which it says has elevated the high-grade vanadium and critical metals project to "world-class" status.
Read more
HyTerra lifts 17.6%
HyTerra Ltd (ASX:HYT) shares gained 17.6% on new the company had kicked off the first phase of testing operations at its Hoarty NE3 natural hydrogen exploration well at Project Geneva in Nebraska.
Read more
Read more on Proactive Investors AU
