Australian shares are little changed at midday after reversing earlier gains, as investors position for a widely expected interest rate rise by the Reserve Bank of Australia and monitor rising oil prices amid ongoing disruption in the Strait of Hormuz. The S&P/ASX 200 is flat at 8583.20 at 12.30pm AEDT after reaching an intraday high earlier in the session, with five of the 11 sectors trading higher, led by real estate stocks. Markets have largely priced in a 0.25 percentage point rate increase, with further tightening expected in the coming months, while oil prices are higher, with Brent crude above US$102 a barrel.
Energy stocks are supported by higher oil prices, while coal miners come under pressure, with New Hope falling sharply after reporting earnings below expectations. Technology stocks lead declines as higher rates weigh on valuations, with WiseTech, Xero and NextDC all lower, while retailers also weaken amid concerns higher fuel costs will hit consumer spending. The major banks are mixed, and materials stocks are uneven, with gains in BHP and Rio Tinto offset by losses in Fortescue and Northern Star. Among individual stocks, Pepper Money falls after a reduced takeover offer, PEXA edges higher on an asset sale, and West African Resources gains following strong full-year results.
In other company news,
Solstice Minerals confirms copper-gold growth potential at Nanadie
Solstice Minerals (ASX: SLS) has delivered strong drilling results from its Nanadie Copper-Gold Project in Western Australia, with shares rising on the update. Step-out drilling returned broad intercepts including 44 metres at 0.52% copper and 0.23 grams per tonne gold, with higher-grade zones such as 14 metres at 1.02% copper and 0.58 grams per tonne gold. The results extend mineralisation beyond the current resource and confirm the deposit remains open, with further drilling planned to support resource growth.
Koonenberry Gold hits high-grade shallow gold at Sunnyside
Koonenberry Gold (ASX: KNB) has returned high-grade gold results from drilling at its Sunnyside project in New South Wales, with shares also moving higher. Results include 31 metres at 1.11 grams per tonne gold from 41 metres, including a high-grade interval of 0.5 metres at 62.3 grams per tonne gold. The company says the results extend mineralisation along strike and towards surface, improving confidence in a broader gold system, with further drilling underway.
Lachlan Star identifies high-grade gold at New Waverley
Lachlan Star (ASX: LSA) has identified high-grade gold and visible gold from sampling at its New Waverley project in Western Australia, with strong market reaction. Rock chip results returned grades of up to 56 grams per tonne gold, alongside multiple high-grade assays including 29.2 grams per tonne and 20.9 grams per tonne gold. The company says the results highlight a mineralised corridor of up to 400 metres, with drilling set to commence shortly to test the system.
