ASX 200 Live Today - Friday, 19th September
ASX 200 to climb on Friday after the S&P 500, Nasdaq and Russell 2000 all scored fresh record highs overnight. Here are today's top stories.
Today’s ASX 200 Updates
Welcome to our live ASX coverage for Friday, September 19. We’re excited to trial this new format. Expect a high volume of posts pre-market and more periodic updates throughout the day. Today's live blog will wrap up around 2:00 pm AEST. Be sure to refresh manually for the latest updates — and let us know how we can make it even better.
It's crickets out there
[12:30 pm] There's pretty much zero newsflow out there and most stocks are chugging sideways after some early session volatility. We're probably going to call it a day.
ASX 200 currently up 0.66%, down from session highs of 0.86%.
Utilities (+1.9%) now the best performing sector after Origin Energy (+2.4%) rallied on plans to divest its Kraken business
Healthcare (+1.73%) and Tech (+1.09%) faded early gains, still some solid face value gains
Telcos (-0.49%) is the only red sector, reflecting a pullback for Telstra (-0.9%)
While the ASX 200 remains a little choppy and rangebound, the Small Ords looks as bullish as ever. Overall, the path of least resistance does seem to be higher off the back of Fed easing expectations and continued momentum in tech/growth/momentum themes. Let's see if the market can continue trending its way through the seasonally weak month of September. Have a good weekend!
S&P/ASX Small Ords daily chart (Source: TradingView)
Austal dips on block trade
[11:41 am] Austal is trading 2% lower ($7.31) after a 16.8 million share block trade crossed at $7.00, representing approximately 4% of the company.
Small caps on the move
[11:40 am] A few risk-oriented names like Qoria, Energy One and Weebit Nano trending higher today.
Ticker | Company | % Chg | Price |
|---|---|---|---|
RBD | Restaurant Brands New Zealand | 10.74% | $3.30 |
WBT | Weebit Nano | 8.65% | $3.14 |
STN | Saturn Metals | 7.27% | $0.59 |
GG8 | Gorilla Gold Mines | 6.41% | $0.42 |
CUV | Clinuvel Pharmaceuticals | 5.69% | $12.18 |
QOR | Qoria | 5.60% | $0.66 |
PYC | Pyc Therapeutics | 5.29% | $0.90 |
SGLLV | Ricegrowers | 5.19% | $15.39 |
EOL | Energy One | 4.63% | $17.64 |
OCC | Orthocell | 4.46% | $1.17 |
Analysts take on Santos
[10:43 am] Santos tumbled 12% on Thursday after the ADNOC consortium withdrew its takeover proposal. Here's what analysts are thinking:
Jarden downgraded to Underweight from Overweight, lowered target from $8.40 to $7.05. Market expected to question board tactics following bid collapse, with short-term weakness anticipated before recovery.
Morgans downgraded to Trim from Accumulate, lowered target from $8.65 to $7.20. Loss of takeover premium has reset valuation with arbitrage exits expected to weigh on shares and diminished appeal as a corporate target.
Macquarie retained Outperform, maintained target at $8.55. Deal structure and FIRB issues likely hindered progress but no material problems found in due diligence, with asset sales and demergers now being considered.
E&P retained Neutral, maintained target at $8.10. Another failed deal has damaged market perception but speculation of diligence issues is overstated, with the sell-off potentially creating a contrarian entry opportunity.
ASX 200 gainers and losers in early trade
[10:30 am] A few US-centric and tech-oriented names topping the leaderboards, while gold miners and lithium names struggle.
Ticker | Company | % Chg | Price |
|---|---|---|---|
TLX | Telix Pharmaceuticals | 7.61% | $14.70 |
PME | Pro Medicus | 6.42% | $318.00 |
MSB | Mesoblast | 3.83% | $2.44 |
SGH | SGH | 3.30% | $50.85 |
360 | Life360 | 3.24% | $51.89 |
MP1 | Megaport | 3.14% | $15.09 |
EBO | Ebos Group | 3.07% | $26.17 |
SGM | Sims | 3.02% | $14.33 |
XRO | Xero | 2.96% | $165.03 |
IFT | Infratil | 2.72% | $11.14 |
Ticker | Company | % Chg | Price |
|---|---|---|---|
PNR | Pantoro Gold | -2.80% | $5.20 |
MIN | Mineral Resources | -2.41% | $37.58 |
GNE | Genesis Energy | -2.34% | $2.09 |
SNZ | Summerset Group | -2.27% | $9.91 |
WGX | Westgold Resources | -2.02% | $3.89 |
CYL | Catalyst Metals | -1.58% | $8.10 |
IGO | IGO | -1.46% | $4.73 |
MEZ | Meridian Energy | -1.39% | $4.97 |
RIO | Rio Tinto | -1.38% | $113.94 |
ILU | Iluka Resources | -1.34% | $6.25 |
ASX 200 higher, Healthcare and Tech stocks surge
[10:22 am] ASX 200 up 0.66% in early trade, recouping most of Thursday's declines.
Healthcare sector up 2.2% after dipping to the lowest level since December 2023 on Thursday (mostly reflecting moves in CSL)
Tech sector up 2.1%, with names like Xero (+2.9%), TechnologyOne (+2.4%) and Life360 (+3.3%) all broadly higher
ASX 200 sector breakdown (Source: Market Index)
Citi cuts CSL target
[9:57 am] CSL shares have plunged about 26% since its FY25 results, trading at decade-low valuations. This drop is attributed to the planned spin-out of its vaccine business, Seqirus, and investor concerns over its core plasma business, CSL Behring.
Citi cut its target price from $300 to $265 but maintained a Buy rating.
"We think there is room for optimism if the company can convince investors of better-than-consensus’ LSD sales growth for Seqirus and a credible pipeline rebuild at its November capital markets day," analysts Laura Sutcliffe said in a note this morning.
Has anyone checked on CBA lately?
[9:57 am] I haven't noticed CBA breaking down in recent weeks. The stock is now down almost 15% from its 25 June record high, suffering several heavy days where its opened flat/slightly lower and tumbled intraday.
The stock closed right on its 200-day moving average on Thursday, so it'll be interesting to see if it can muster up some support at these levels.
CBA daily price chart (Source: TradingView)
Netwealth weakness overdone says Citi
[9:20 am] Netwealth's share price has underperformed its rival, Hub24, largely due to its exposure to the collapsed First Guardian Master Fund. However, Citi believes this negative market reaction is "overdone," as Netwealth's maximum exposure is estimated at around $100 million, which is manageable given its strong cash position.
The key concern for investors is whether Netwealth will have to compensate clients for their losses, following a potential precedent set by Macquarie. While the circumstances are different, the potential for compensation and additional penalties has factored into the market's negative sentiment.
Despite the negative press and share price drop, a survey of financial advisers indicates that the issue has not yet impacted Netwealth's near-term flows, according to Citi.
Netwealth (blue) vs. Hub24 (red) | Source: TradingView
Bank of Japan to hold, possibly hike later this year
[9:12 am] The Bank of Japan is widely expected to keep rates on hold at 0.5%, reflecting a cautious "wait-and-see" approach. The meeting takes place today at 1:00 pm AEST.
This decision comes despite inflation remaining above its 2% target for over three years, as the bank grapples with economic uncertainties.
A key reason for the pause is the need to assess the full impact of a new US-Japan trade agreement and US tariffs, which are seen as a considerable risk to Japan's export-dependent economy.
The next rate hike is highly anticipated, with almost nine out of ten analysts in a Bloomberg survey expecting a move by January. While an October hike is seen as a strong possibility by over one-third of analysts, the BOJ is likely to wait for more data to confirm a sustainable economic recovery and inflation trend.
A lot of rate decisions
[9:07 am] Lots of central bank decisions overnight. Here are the key highlights:
The Central Bank of Brazil held its benchmark interest rate at a nearly two-decade high of 15% for the second consecutive meeting, in-line with market expectations. This decision signals a firm, hawkish stance aimed at keeping its guard up against persistent inflation risks.
The Bank of England held interest rates at 4% and signaled a cautious approach to future cuts, a shift from its earlier dovish tone. This is in response to a "resurgence in inflation" and concerns that it could rise to 4% next month, double the central bank's 2% target.
Hong Kong's central bank cut its base interest rate by 25 bps to 4.50%, its first such move since December last year. This action was a direct response to the US Federal Reserve's rate cut, as Hong Kong's currency is pegged to the US dollar.
Norway's central bank enacted a "hawkish cut," lowering its key deposit rate by a quarter point to 4%. Despite the rate reduction, the bank signaled it will be slow to cut further, with its new rate path forecasting only one move annually over the next three years, a slower pace than previously indicated.
ASX IPO calendar showing signs of life
[8:53 am] I haven't seen the ASX IPO calendar this full for quite some time.
September: DPM Metals (18th), Everlast Minerals (23rd), Revolution Private Credit Income Trust (22nd), Ryman Healthcare (23rd), Golden Globe Resources (30th), Temas Resources (30th)
October: Nexsen (7th), PC Gold (7th), Desert Minerals (20th), Golden Dragon Mining (21st)
November: Black Pearl Group (28th)
TBA: Green & Gold Minerals
Source: ASX upcoming floats and listings
Fed rate cut to boost US IPO market
[8:50] The Fed's rate cut on Thursday is a key catalyst for the US IPO market, signaling a green light for private companies that were in a "wait-and-see" mode. This action, along with a strong market reaction, is expected to lead to a "very full calendar for October."
IPO activity has already seen a significant pickup. September has recorded $7 billion in IPOs so far, making it the strongest start to the month since 2020. This momentum is anticipated to accelerate in the coming weeks.
Source: Bloomberg
Russell 2000 marks first record high in four years
[8:42 am] Its taken the small cap Russell 2000 almost four years to push above its November 2021 record high. Could we see this space make some serious gains after such a prolonged period of consolidation and cheap valuations (relative to large caps)?
Russell 2000 weekly chart (Source: TradingView)
Good morning!
[8:34 am] ASX 200 futures are up 41pts (+0.46%).
S&P 500 (+0.48%) and Nasdaq (+0.94%) both scored fresh all-time highs
Russell 2000 (+2.51%) a massive standout, pushing past Nov-21 record
Nvidia (+3.4%) and semis higher, Intel (+22.7%) surged on $5bn investment from Nvidia
Markets focused on the historical upside when the Fed resumes rate cuts, rate futures also see further easing in October
If you’re new to the blog – catch up quick via today’s Morning Wrap.
