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ASX standouts: Friday’s big movers and gainers

Fri 07 Jan 22, 10:56am (AEST)
balloons higher up bounce

Key Points

  • ASX shares rebound after yesterday's sharp selloff
  • Banks, energy and technology stocks lead the charge
  • Is it too early to say 'the bottom's in'?

The ASX is trading 0.9% higher on Friday following yesterday’s US Federal Reserve induced selloff. 

Global equity markets were quick to hit the panic button after the release of minutes from the Federal Open Markets Committee meeting in December. 

The hawkish Fed minutes flagged the prospect of more interest rate hikes this year and a more aggressive stance on reeling in its massive US$8.9tn balance sheet. 

The local sharemarket is experiencing broad-based buying on Friday as value-oriented sectors shine and beaten up technology stocks bounce back. 

That said, after yesterday's heavy selling, is it too early to say the bottom's in?

ASX winners

The ASX is pushing higher as heavyweight sectors energy, financials and technology are up by more than 1.3%. 

Crude oil prices rallied overnight, retesting the US$80 a barrel levels. Prices have surged more than 20% since December lows of US$65 a barrel. Investors are expecting a mild and short-lived impact from omicron. 

Santos (ASX: STO), Woodside Petroleum (ASX: WPL) and Beach Energy (ASX: BPT) are up between 1.6% and 2.4%. 

Bank stocks are rallying in response to potentially higher interest rates in 2022. The normalisation of interest rates can drive an improvement in net interest margins. 

The big four banks are all up at least 1%, with Commonwealth Bank (ASX: CBA) leading the charge, rallying 2.2%. 

On the smaller end of town, video equipment manufacturer Atomos (ASX: AMS) jumped 12.7% following an encouraging 1H22 sales update. The company delivered a 25% growth in unaudited 1H22 revenue and reaffirmed its FY22 revenue guidance. 

Speculative rare earths explorer Ionic Rare Earths (ASX: IXR) is up 10.2%, likely driven by yesterday’s news of outstanding thick high-grade assay results. 

ASX losers 

Uranium stocks are falling across the board, triggered by a sell recommendation from Wall Street's Larry McDonald of "The Bear Traps Report". The sell alert told investors to sell a third of their Cameco Corp holdings, the world’s largest uranium player. Cameco shares slumped -6% in overnight trade. 

The recommendation was based on views to sell into strength in light of Kazakhstan’s news.

Its a sea of red for local uranium exploration, names like Vimy Resources (ASX: VMY), Bannerman Energy (ASX: BMN) and Boss Energy (ASX: BOE) all down more than -4%. 

Building materials company James Hardie Industries (ASX: JHX) fell -5.4% after sacking its CEO Jack Truong for bad conduct. James Hardie said it will appoint Harold Wiens, a former independent non-executive director, as interim chief executive.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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