News
Morning Wrap: ASX 200 to rise, Apple declares record buyback, Macquarie reports 32% year-on-year profit fall
Fri 03 May 24, 8:27am (AEST)
Markets
ASX 200 dives 2.6%: Which stocks and sectors are holding up?
By
Kerry Sun
Wed 14 Sep 22, 12:38pm (AEST)
Source: iStock
Stocks in article
Key Points
- Traditionally defensive sectors aren't really outperforming the market
- An upbeat OPEC monthly report buoys energy stocks and oil prices
- Coal and lithium stocks reverse steep losses, many of which are trading close to breakeven
A look at which stocks and sectors are holding up amid a sea of red for the S&P/ASX 200.
Defensives but not by much
Traditionally defensive sectors such as the ASX 200 Healthcare (-2.1%), Industrials (-2.6%) and Staples (-2.7%) Indexes are just barely outperforming or falling in line with the broader market.
The ASX 200 Utilities sector is down -1.7% but mostly due thanks to two heavyweight names APA Group (ASX: APA) and Origin Energy (ASX: ORG) that are down -0.55% and -1.6% respectively.
Upbeat OPEC buoys energy sector
The ASX 200 Energy Index is down -1.7% as OPEC's latest monthly oil market report showed little concerns about weakening demand.
"Oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties," OPEC said in the report.
Oil prices fell just -1% overnight to US$93.3 a barrel, breaking a three day winning streak.
Woodside (ASX: WDS), Beach Energy (ASX: BPT) and Santos (ASX: STO) shares are currently down -1.6%, -0.9% and -0.7% respectively.
A closer look at specialty resources
Coal: Large cap coal names like Whitehaven (ASX: WHC), New Hope (ASX: NHC) and Stanmore (ASX: SMR) are all trading close to breakeven. Clime Asset Management told The Australian Financial Review on Tuesday that smart money is rolling back into the coal sector and investors expect super profits and dividends for at least another year or so.
Lithium reversal: You'd generally expect V-shaped and richly valued lithium stocks to take a hit amid a broad-based selloff. But that's hardly been the case with several names bouncing from session lows and a small handful trading close to breakeven. Notably:
Company | Ticker | Change (%) | Session low (%) |
|---|---|---|---|
Global Lithium | GL1 | +5% | -12% |
Piedmont Lithium | PLL | +3.3% | -1.1% |
Lithium Power International | LPI | +0.7% | -11% |
Allkem | AKE | -1.9% | -4.9% |
Pilbara Minerals | PLS | -2.6% | -6.9% |
Table: Market Index (Data as at 12:15 pm AEST)
Bottom line
It appears that capital is sticking to or not fleeing from resources compared to most other sectors.
The ASX 200 Materials and Energy Indexes also happen to be the only two positive sectors for the past month, up 2.75% and 0.05% respectively.
Get the latest news and insights direct to your inbox
Related Articles
Should you buy the dip on Worley after major shareholder dumps stake?
Chris Conway · Tue 30 Apr 24, 12:25pm (AEST)
Bill Gross's top 2 dividend stocks (and how bond investors should be positioned)
Hans Lee · Fri 26 Apr 24, 1:59pm (AEST)
ASX small caps with blue-chip profiles: XRF Scientific
Kerry Sun · Wed 24 Apr 24, 3:52pm (AEST)
Latest Articles
Morning Wrap: ASX 200 to rise, Apple declares record buyback, Macquarie reports 32% year-on-year profit fall
Hans Lee · Fri 03 May 24, 8:27am (AEST)
Evening Wrap: ASX 200 edges higher despite consumer stocks chaos as Bapcor and Woolies belted
Carl Capolingua · Thu 02 May 24, 5:49pm (AEST)
RBA 40-60 hike vs hold, and you can forget about a rate cut in the next 12 months
Carl Capolingua · Thu 02 May 24, 1:15pm (AEST)