Closing Bell 27th March: ASX Rises on Steady Inflation Data Platinum Takes a Hit

Inflation in Australia for February
In February, Australia reported a 3.4% annual inflation rate, slightly below the expected 3.5%, remaining steady from the previous month. Significant price increases were observed in housing, food and beverages, alcohol and tobacco, and insurance and financial services. The Reserve Bank of Australia maintained the cash rate at 4.35%, watching for signs of inflation stabilization. Following recent jobs data indicating a tight labor market, traders are now adjusting their expectations for rate cuts, possibly delaying monetary easing to September. Upcoming retail sales data will provide further insight into economic conditions.

Platinum Asset Management Faces Major Fund Withdrawal
Platinum Asset Management’s shares dropped over 20% after losing $1.4 billion in funds from a major client, which aims to diversify its investment strategy. This move will cost Platinum approximately $18 million in annual fees, significantly impacting its financials. The firm, known for its benchmark-agnostic global equity management, is undergoing a turnaround program to improve performance and reduce costs. The loss highlights challenges within the investment sector, especially for firms relying heavily on large, institutional clients.

Iron Ore Prices Decline Amid China Demand Concerns
Iron ore futures experienced a sharp decline in Singapore, driven by uncertainties over Chinese demand, contributing to a volatile trading period. The price drop reflects broader concerns about China’s construction sector and the overall demand for steel, exacerbated by the country’s prolonged property market crisis. Iron ore prices fell to $104.05 a tonne, amidst fluctuating steel trading volumes in China and growing inventories at ports. The situation is further complicated by declines in other base metals like aluminum, copper, zinc, and nickel, underscoring the impact of weakened Chinese demand on global commodity markets.