S&P/ASX 200 Index (ASX: XJO) shares are 1% higher at 8,797 points on Wednesday. 

However, the market has fallen into the red over 12 months, down 0.6%, amid rising oil prices and interest rates.

The Reserve Bank of Australia (RBA) lifted the official cash rate from 4.35% to 4.6% yesterday.

Experts say another rate rise may be required in November to combat persistently high inflation.

Inflation rose from 3.5% over the 12 months to July to 4% last month, according to data released today.

Amid the market weakness, brokers have raised their ratings on several ASX shares this week.

Let’s see a sample. 

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $15.22, up 1.9% today.

Over the past month, this ASX 200 gold share has fallen 8%.

Bell Potter upgraded Capricorn Metals shares to a buy rating this week.

The broker raised its 12-month price target from $18.05 to $18.10.

This implies a potential 19% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.40, up 1% today.

Over the past month, this ASX 200 mining share has fallen 10%.

UBS upgraded Evolution shares to a buy call this week.

The broker increased its 12-month price target from $15.20 to $16.

This suggests a potential 19% gain ahead.

REA Group Ltd (ASX: REA)

The REA share price is $156.16, up 4.9% today.

Over the past month, this ASX 200 communications share has dropped 12%.

Bell Potter upgraded REA to a hold recommendation with a price target of $148.

This suggests a potential 5% downside ahead.

Healius Ltd (ASX: HLS)

The Healius share price is 42 cents, up 1.7% today.

Over the past month, this ASX 200 healthcare share has fallen 2%.

RBC Capital upgraded Healius shares to a hold rating with a 12-month price target of 42 cents.

This implies the stock is fully valued.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation Services share price is 54 cents, up 6.9% today.

Over the past month, this ASX industrials share has fallen 18%.

Morgans upgraded Alliance Aviation Services shares to a buy rating on Monday.

The broker has a 12-month price target of 85 cents.

This indicates potential capital gains of 57% over the next year. 

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management shares are $13.30 apiece, down 4.7% today.

Over the past month, this ASX 200 financial share has declined 21%.

UBS upgraded the stock to a buy rating but reduced its price target from $18 to $17.

This suggest a potential 28% upside ahead.

The post 6 ASX shares upgraded by experts amid a weak market  appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The APA Group Ltd (ASX: APA) share price is in focus after announcing a new $1.3 billion majority stake in the Brigalow Peaking Power Plant, set to deliver 400MW of dispatchable energy in Queensland. A 25-year, inflation-linked agreement with CS Energy underpins project returns.

What did APA Group report?

• APA to acquire 80% majority stake in the Brigalow Peaking Power Plant for approximately $1,015 million.
• Total project cost estimated at $1,269 million, with existing balance sheet capacity to fund APA’s share.
• Returns supported by a 25-year inflation-linked hedge offtake agreement with CS Energy.
• The 400MW gas power plant will support electricity for over 150,000 homes.
• Part of APA’s broader $3.5 billion organic growth pipeline.

What else do investors need to know?

The Brigalow Peaking Power Plant will be located next to CS Energy’s Kogan Creek Power Station, boosting Queensland’s fast-start energy generation. APA will lead delivery under a construction management agreement, while CS Energy will retain a 20% interest and operate the facility once complete.

APA is also building a new gas lateral and storage pipeline, linking the plant with its Roma to Brisbane Pipeline under a separate agreement. Early works are now finished, with GE Vernova supplying turbines and Monadelphous starting main construction. Project completion is targeted for early 2029.

What did APA Group management say?

CEO and Managing Director Adam Watson said:

We are pleased to confirm this partnership with CS Energy to support Queensland’s energy security and transition.

The Brigalow project aligns with the goals of the Queensland Government’s Energy Roadmap, supporting energy reliability and affordability and demonstrating the important role the private sector can play to bring critical energy infrastructure projects to life.

The project also demonstrates momentum with our contracted power generation growth strategy as we continue to progress further opportunities to support Australia’s energy transition on both the east and west coasts.

What’s next for APA Group?

APA expects the Brigalow project to deliver returns in line with its hurdle rates and to play a vital role in supporting the energy transition. Management says the project forms part of its strategy to expand contracted power generation and strengthen national energy reliability.

Completion is slated for early 2029, with all major construction partners now engaged and works progressing. Investors can watch for further updates as APA advances its $3.5 billion growth pipeline.

APA Group share price snapshot

Over the past 12 months, APA Group shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

By now, you’d probably be aware that the Reserve Bank of Australia (RBA) increased interest rates yesterday. The RBA’s 25-basis-point hike was the third time interest rates have been increased in 2026. The new cash rate of 4.60% is the highest Australians have seen since late 2011. This move has profound implications for ASX shares and Australian investors. So let’s get into how we should be investing in a high-rate world.

Most people associate an interest rate hike with higher mortgage payments. Whilst that is probably the most obvious and painful consequence of a rise in interest rates, there are other consequences as well.

The RBA made this move in order to tame the sticky inflation that has crept into the Australian (really the global) economy. Yes, higher interest rates mean that banks and other lenders must charge higher interest rates of their own on mortgages, business lending, and other lines of credit. But it also works to encourage saving over spending by bumping up the interest rates we can receive on products like term deposits, savings accounts, and government bonds.

As such, higher rates have traditionally been bad news for the share market. For one, they slow economic activity, which increases pressure on any company trying to extract profits from the Australian economy. For another, investors have a higher incentive to leave their cash in a safe investment like a term deposit, rather than risking it on the share market.

Higher rates also tend to have an impact on how investors value ASX shares, and not in a good way. But we’ll leave that for another time.

So how does one invest in this kind of environment? Well, I can only tell you what I’m doing.

ASX shares or cash?

For starters, I am not selling out of any of my high-conviction ASX share investments. The data consistently tells us that the share market is the place where the best investing returns are generated. That’s irrespective of how high or low interest rates are.

Saying that, I have slowed down my buying. With a safe, risk-free return of what is now approaching 5.5% from many savings accounts, I am keeping more of my cash in the bank. I think this is prudent, given what is going on in the world right now. I don’t know what the future holds. But I do know that periods of high interest rates have often ended in recessions in the past. Thus, it makes sense to take advantage of these high rates while we can, and perhaps deploy that cash into more ASX shares once rates start falling.

I won’t be putting the majority of my capital into cash. International and ASX shares will remain the core of my investing portfolio for a long time to come. However, I do think that the relatively high returns that cash offers today are something to note. Depending on your own circumstances, it might be worth another look at the structure of your own portfolio.

The post Cash rate at 4.6%: Here’s how I’m investing in ASX shares appeared first on The Motley Fool Australia.

More reading

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• APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.