ASX 200 Rises Sharply As Investors Bet On Rate Cuts

The S&P/ASX 200 maintained its upward momentum today, rising 85.90 points (1.10%) to 7,914.20 as of 3:08 PM AEDT on March 20, 2025. This follows a five-day gaining streak of 2.13%, although the index remains 3.00% lower year-to-date. Investors are showing strong optimism, particularly in the energy sector, as anticipation mounts over potential interest rate cuts by the Reserve Bank of Australia (RBA).

Leading the rally was Boss Energy Ltd (ASX: BOE), which saw a notable increase of 9.24%. In close competition, Clarity Pharmaceuticals Ltd (ASX: CU6) surged 7.74%. Other significant contributors included Energy Resources of Australia (ASX: ERA) with a staggering 25.00% increase and Hutchison Telecommunications (ASX: HTA), climbing 13.64%. Nanosonics Ltd (ASX: NAN) achieved an 11.90% rise, while Imricor Medical Systems Inc (ASX: IMR) and Lotus Resources Ltd (ASX: LOT) saw gains of 10.28% and 9.46%, respectively.

Moreover, as the market anticipates further positive shifts, various sectors are posting excellent performances. The Real Estate sector led the day with an increase of +1.90%, while Information Technology followed with +1.85%. Notably, materials were the only laggard, reporting a decline of -0.52%.

What is behind the optimism? With recent job losses focusing attention on the upcoming RBA meetings, investors are speculating on a rate cut as the RBA maintains its cash rate at 4.1% following a previous 0.25% reduction in February. The markets are now viewing a potential cut in the macroeconomic landscape favorably, with estimates suggesting a 70% chance of a cut in May, while just 10% are betting on an April cut. The RBA’s next scheduled meetings will be taking place on April 1 and May 20. Nevertheless, RBA Assistant Governor Sarah Hunter has issued a word of caution, indicating that market predictions might be overinflated regarding imminent rate cuts.

At the midday mark, this upward trend is highlighted where the S&P/ASX 200 rose 91.20 points (1.17%) to 7,919.50 and showed a 2.20% increase over the last five days while still being 2.94% down for the year. Afterward, another report indicated the index rising again to 7,916.90 as of 1:55 PM AEDT, gaining 88.60 points (1.13%). Nevertheless, Judo Capital (ASX: JDO) was the day’s sharpest decline with a drop of 6.87%, and Liontown Resources (ASX: LTR) followed closely behind with a 5.10% drop.

When examining volatility among stocks within the ASX300, the table ranks the top percentage winners and losers for the day. Among the biggest winners, Nanosonics Limited (NAN) topped the list with an impressive rise of 13.96% at a price of $4.980, followed by Boss Energy Limited (BOE) with an 8.43% increase to $2.700, and Lotus Resources Limited (LOT) with a rise of 8.11% to $0.200. Other notable mentions include Weebit Nano Limited (WBT) achieving a 7.00% increase, Mesoblast Limited (MSB) gaining 6.80%, and Clarity Pharmaceuticals Limited (CU6) rising to $2.830 for a gain of 6.79%.

However, several companies faced notable declines, such as Ioneer Limited (INR), which plummeted by 8.82% to $0.155, and Imugene Limited (IMU) declining by 7.50% to $0.037. The worst performers also included Meteoric Resources NL (MEI) dropping 6.33% to $0.074 and Judo Capital Holdings Limited (JDO) falling 6.20% to $1.740. Other significant losses were in Wildcat Resources Limited (WC8), down 5.26%, and James Hardie Industries PLC (JHX) down 4.78%.

Building momentum, the ASX is reflective of broader market trends, moving with a positive investor sentiment that has emerged over recent days. The potential for a more favorable economic climate, guided by RBA decisions, remains a critical focus as the country navigates through changes in economic indicators. Active trading and significant volume shifts, particularly in Judo Capital where the trading volume surged by 2995%, indicate investor engagement. However, net increases alongside cautious forecasts make it clear that while optimism reigns, the business landscape remains dynamic.