It was another positive day for the market, with the S&P/ASX 200 (ASX: XJO) gaining 0.5% after the Reserve Bank confirmed it would be taking no action on rates once again.
Concerns about a slowdown in global growth have seen a recovery in the more rate-sensitive sectors of the market with ASX technology and utilities leading the way again, gaining 2.6% and 2.4%, respectively.
Materials were the only detractor with the sector falling 1.2% on the back of a weaker iron ore price, Rio Tinto Limited (ASX: RIO) fell by more than 2%.
Boral delivers big capital return
Construction material group Boral Limited (ASX: BLD) jumped 5.8% after management made the long-awaited announcement of a $2.92 billion capital return.
The payment will be made at a rate of $2.72 per share, with 7 cents to be paid as an unfranked dividend. The payment will apply to all shareholders on the 3rd of February.
ELMO upgrades
Workplace software provider ELMO Software Ltd (ASX: ELO) jumped 7.5% after upgrading expectations for a 28% to 35% jump in annualised revenue for the financial year.
The group has benefitted from a surge in digitalisation within businesses seeking efficiency.
Elsewhere, shares in Nufarm Ltd (ASX: NHF) gained another 2.4% after inking a 10-year deal with oil giant BP on a sustainable biofuel product.
Retail sales tumble
Australian retail sales confirmed the obvious, falling 4.4% in December, despite this typically being the strongest months of the year.
The omicron outbreak clearly hit confidence and pushed foot traffic significantly lower.
Interest rates to stay low
The RBA remains conservative on its rate hike view despite a growing chorus of commentators, with the board confirming it was ‘too early’ to conclude last week’s inflation data warranted an immediate hike in rates.
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The stated 2% to 3% target is over the medium term, rather than a single year, with the governor flagging clear short-term issues in the form of supply chains, border closures, petrol prices and higher construction costs.
The cash rate was kept on hold at just 0.10% but bond buying is set to conclude on February 10 as expected.
One of the big beneficiaries has been the AUD falling to under 70 cents, aiding investors with holdings overseas.
ASX 200 today
Looking ahead, the ASX 200 is set to open higher this morning, following a positive lead from US markets overnight.
