Closing Bell: Tech and bank stocks flex as RBA cuts rates as expected

Herald Sun

20-05-2025

The RBA has cut rates as expected, delighting investors who piled into growth stocks in the Info Tech and Finance sectors.
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. ASX gains 0.62pc in trading today
RBA cut rates as expected, lopping 25 basis points off the cash rate
Rate-sensitive tech and banking stocks make strong gains
With inflation falling firmly in the RBA's 2-3% target range, another rate cut was all but inevitable, and the Central Bank has delivered.
That said, the RBA is still trying to keep future interest rate cut expectations in check, citing uncertainty from both the current tariff environment and the local jobs market.
'While recent announcements on tariffs have resulted in a rebound in financial market prices, there is still considerable uncertainty about the final scope of the tariffs and policy responses in other countries,' the RBA's note read.
"Geopolitical uncertainties also remain pronounced. These developments are expected to have an adverse effect on global economic activity, particularly if households and firms delay expenditure pending greater clarity on the outlook.
"This has also contributed to a weaker outlook for growth, employment and inflation in Australia."
The big banks have promptly begun to pass on the cut in their variable rate products – NAB (ASX:NAB), ANZ (ASX:ANZ) and Commonwealth Bank (ASX:CBA) have already pulled the trigger. Tech and finance stocks soar
Back in the market, rate-sensitive stocks in tech and finance took full advantage of the injection of liquidity, flexing their growth credentials and lifting the bourse higher after the cut was announced at 2:30pm AEST.
While Info Tech and Financials are carrying much of the bourse's momentum today, they're not the only sectors in the green.
Telecoms and Real Estate, both traditionally debt financing-heavy sectors, are also making gains.
On the other side of the table, defensive stocks like those in the Utilities sector are suffering, as investors rotate into securities with more growth potential.
Over on the index table, the All Tech and ASX 200 Banks are dominating, but the bottom of the table is also telling a story – gold is trending down as market sentiment improves, slipping 0.42% in trade today to settle near US$3216.13/oz.
That's had a knock-on effect for the Materials sector and Resources index, which are fairly gold-heavy at the moment. ASX SMALL CAP LEADERS
Today's best performing small cap stocks: Security Name Last % Change Volume Market Cap ZNO Zoono Group Ltd 0.064 64% 9063244 $13,861,919 EEL Enrg Elements Ltd 0.0015 50% 500001 $3,253,779 MEL Metgasco Ltd 0.003 50% 570268 $2,915,173 WEL Winchester Energy 0.003 50% 534385 $2,726,038 TSL Titanium Sands Ltd 0.007 40% 5000 $11,683,736 VAR Variscan Mines Ltd 0.007 40% 412368 $3,914,289 MM1 Midasmineralsltd 0.22 40% 4381871 $19,550,424 DTR Dateline Resources 0.051 38% 1.01E+08 $102,326,039 LTP Ltr Pharma Limited 0.38 36% 2461920 $31,349,630 CTO Citigold Corp Ltd 0.004 33% 3200000 $9,000,000 ATV Activeportgroupltd 0.009 29% 2859781 $4,794,840 KSN Kingston Resources 0.1175 28% 22677693 $75,619,851 ALY Alchemy Resource Ltd 0.007 27% 1428571 $6,479,419 PPY Papyrus Australia 0.015 25% 2417830 $6,872,181 C7A Clara Resources 0.005 25% 581680 $2,046,417 ERL Empire Resources 0.005 25% 300002 $5,935,653 VFX Visionflex Group Ltd 0.0025 25% 5965586 $6,735,721 VML Vital Metals Limited 0.0025 25% 5953969 $11,790,134 8CO 8Common Limited 0.021 24% 767746 $3,809,613 LM1 Leeuwin Metals Ltd 0.16 23% 564309 $13,104,830 MRR Minrex Resources Ltd 0.011 22% 4540213 $9,763,808 JCS Jcurve Solutions 0.033 22% 354953 $8,919,273 MPK Many Peaks Minerals 0.6 21% 1442928 $49,122,365 AS1 Asara Resources Ltd 0.048 20% 198199 $44,047,114 CP8 Canphosphateltd 0.024 20% 40000 $6,135,211
Making news…
Zoono Group (ASX:ZNO) has signed an exclusive UK deal with packaging giant Sharpak and its long-time food supply chain partner OSY. The agreement will see Zoono's shelf-life-extending tech used on soft fruit packaging, sold to big UK supermarkets.
It's a big step for Zoono, which pivoted into food packaging after its core antimicrobial business took a hit during the post-COVID crisis. The deal runs to the end of 2029, and includes minimum orders starting at NZ$4.3 million in year one, rising to NZ$8.6 million by year five.
Biotech LTR Pharma (ASX:LTP) has taken a big step with Spontan, its fast-acting erectile dysfunction spray, which is now available across TerryWhite Chemmart's 600+ pharmacies nationwide.
It means patients with a script can finally get Spontan filled at major pharmacies under the TGA's Special Access and Authorised Prescriber schemes. To support the rollout, LTR has built new barcoded packaging ready for pharmacy shelves and telehealth integration down the track.
Clara Resources Australia (ASX:C7A) has kicked off a strategic review of its Kildanga cobalt-nickel-copper-gold project in southeast Queensland after receiving unsolicited interest from third parties.
It's now weighing up a potential sale, joint venture or partnership to unlock value from the asset. Clara said the Kildanga project's got strong near-term potential, sitting near Gympie with good infrastructure and high-grade historical hits.
Telehealth tech outfit Visionflex (ASX:VFX) has locked in a deal with BHP (ASX:BHP) to roll out its virtual care system across 13 remote medical centres and one emergency helicopter in WA. The contract's worth $400k in year one, all paid upfront.
The full rollout is due to be wrapped up by the end of FY25. For BHP, it means better healthcare on-site, fewer medevac flights, and less time lost to travel.
Midas Minerals (ASX:MM1) is on the up, despite raising $6.5m in a placement at $0.15 a share, a 6.25% discount to its VWAP.
The company is in the midst of acquiring the Otavi project in Namibia, where MM1 recently acquired an option over a 195-square-kilometre licence. Historical exploration points to a large bedrock gold anomaly on the site, confirmed by a 60m drill core interval that revealed elevated levels of gold, silver, arsenic, lead, zinc, antimony and molybdenum.
Kingston Resources (ASX:KSN) is also enjoying some gold success, although in a very different way. KSN just sold its Misima gold project for total consideration of $95m, with a 0.5% revenue royalty on all gold production after 500k ounces are produced from the asset.
The company reckons the sale sets it up as a well-funded copper and gold producer with plenty of flexibility to pursue growth. KSN plans to pay off its $15m debt facility in full from the sale proceeds. ASX SMALL CAP LAGGARDS
Today's worse performing small cap stocks: Security Name Last % Change Volume Market Cap DUB Dubber Corp Ltd 0.021 -45% 40514881 $99,687,964 CHM Chimeric Therapeutic 0.005 -38% 43385282 $14,805,490 OFX OFX Group Ltd 0.865 -34% 10017578 $306,555,705 BP8 Bph Global Ltd 0.002 -33% 431221 $3,152,954 EDE Eden Inv Ltd 0.001 -33% 500820 $6,164,822 DTZ Dotz Nano Ltd 0.062 -29% 458368 $49,668,093 CDEDC Codeifai Limited 0.005 -29% 1056736 $2,219,220 RDN Raiden Resources Ltd 0.005 -29% 19769867 $24,156,240 CRR Critical Resources 0.003 -25% 94856 $10,456,885 SFG Seafarms Group Ltd 0.0015 -25% 1987967 $9,673,198 EPX Ept Global Limited 0.021 -25% 1920508 $18,444,609 DAL Dalaroometalsltd 0.023 -23% 379254 $7,468,558 ARV Artemis Resources 0.0055 -21% 19718067 $17,699,705 PLN Pioneer Lithium 0.091 -21% 446425 $4,894,594 AUG Augustus Minerals 0.027 -21% 706147 $4,052,509 TYX Tyranna Res Ltd 0.004 -20% 650000 $16,442,127 PHO Phosco Ltd 0.065 -19% 867810 $35,065,716 GBE Globe Metals &Mining 0.024 -17% 200000 $20,144,937 ICE Icetana Limited 0.015 -17% 144146 $7,886,568 BIT Biotron Limited 0.0025 -17% 400000 $3,981,738 EPM Eclipse Metals 0.005 -17% 1688000 $17,194,914 HCF Hghighconviction 0.031 -16% 59624 $718,040 WIN WIN Metals 0.018 -14% 1228943 $11,551,220 AZL Arizona Lithium Ltd 0.006 -14% 36482457 $31,932,702 BLU Blue Energy Limited 0.006 -14% 3795052 $12,956,815 IN CASE YOU MISSED IT
Asra Minerals (ASX:ASR) has secured $200k in cash from the sale of its Boorara tenement package to a subsidiary of Northern Star Resources after inking a binding head of sale agreement. The sale will streamline ASR's portfolio, allowing the company to concentrate resources on its core Leonora gold project, which already holds a global gold resource of about 200,000 ounces of gold.
Andromeda Metals (ASX:ADN) is also cashed up after completing a $5m placement. The new funds will go to the Great White high purity alumina project, supporting early works, advanced plant design and engineering, and technical, financial and legal requirements for the project's funding and development.
European Lithium (ASX:EUR) has revealed assays from deep historical drilling, which have further reinforced the Tanbreez deposit's massive potential in Greenland. EUR said all deep drill holes delivered consistently well-mineralised total rare earth oxide levels and they come alongside a spread of high-value commodities as the company moves on the next milestones towards uncovering the deposit's true promise. Trading Halts
Resource Mining Corporation (ASX:RMI) – cap raise
At Stockhead, we tell it like it is. While LTR Pharma, Asra Minerals, and Andromeda Metals are Stockhead advertisers, they did not sponsor this article.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Originally published as Closing Bell: Tech and bank stocks flex as RBA cuts rates as expected Stockhead
Many Peaks Minerals has received broad high-grade results from Ouarigue South prospect of the Ferké gold project in Côte d'lvoire. Stockhead
Tylah Tully dives into the details of a big time transaction between Kingston and Ok Tedi to fund KSN's multi-mine ambitions.