Market Wraps

Evening Wrap: ASX 200 blasts to record as every sector zooms higher, property, gold, and lithium stocks best

Thu 28 Mar 24, 5:48pm (AEST)

The S&P/ASX 200 closed 77.3 points higher, up 0.99%.

Often when we have a positive lead from the States, and often when it comes on the last trading of the week, the Aussie market tends to go out with a whimper, not a bang.

Not today! Bang! 💥

New record high. Even better, it was extremely broad-based (about 5 to 1 in terms of winners versus losers), and we closed nearly at the high of the session.

Broad based moves which close at or near the session high are usually indicative of unquenched excess demand – demand which hopefully will need to find a home in future sessions.

Let’s dive in!


Today in Review

Thu 28 Mar 24, 4:25pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,896.9 +0.99%
All Ords 8,153.7 +0.99%
Small Ords 3,123.6 +1.45%
All Tech 3,095.7 +0.51%
Emerging Companies 2,149.2 +1.33%
Currency
AUD/USD 0.6531 -0.05%
US Futures
S&P 500 5,306.25 -0.04%
Dow Jones 40,119.0 -0.06%
Nasdaq 18,501.5 -0.01%
Name Value % Chg
Sector
Materials 17,941.9 +1.80%
Real Estate 3,837.2 +1.68%
Communication Services 1,579.1 +1.45%
Utilities 8,284.3 +1.29%
Industrials 7,181.2 +1.09%
Energy 10,774.1 +1.08%
Consumer Discretionary 3,616.6 +1.03%
Consumer Staples 12,357.9 +0.73%
Health Care 43,439.0 +0.50%
Information Technology 2,277.0 +0.40%
Financials 7,458.6 +0.38%

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Markets

S&P ASX 200 (XJO) Intraday Chart 28 Mar 2024
ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 77.3 points higher at 7,896.9, 0.99% from its session low and just 0.05% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by a near-unanimous 233 to 45. A high session close and a broad-based move are indicators of potential sustainability of the prevailing rally.

For the week, the XJO finished up 226.6 points or 2.87% higher.

The Gold (XGD) (+2.53%) sub-index was the best performing sector today, likely in response to continued strength in the gold price.

Also doing well today was Real Estate Investment Trusts (XPJ) (+1.73%) as well as the broader Resources (XJR) (+1.63%) sector. Real Estate stocks are being helped by continued deteriorating market interest rates – property stocks are the biggest beneficiaries of lower rates.

Company

Last Price

Change $

Change %

1mo %

1yr %

Growthpoint Properties Australia (GOZ)

$2.54

+$0.08

+3.3%

+14.9%

-15.6%

Arena REIT/Units (ARF)

$3.97

+$0.12

+3.1%

+18.2%

+11.8%

HMC Capital (HMC)

$7.19

+$0.19

+2.7%

+3.6%

+101.4%

Centuria Office REIT (COF)

$1.335

+$0.035

+2.7%

+16.1%

-7.0%

Lifestyle Communities (LIC)

$15.67

+$0.39

+2.6%

+4.7%

+5.4%

Ingenia Communities Group (INA)

$5.23

+$0.13

+2.5%

+10.1%

+48.2%

Cromwell Property Group (CMW)

$0.435

+$0.01

+2.4%

+11.5%

-23.7%

Mirvac Group (MGR)

$2.36

+$0.05

+2.2%

+7.8%

+12.9%

Charter Hall Long Wale REIT (CLW)

$3.82

+$0.08

+2.1%

+2.4%

-9.7%

Cedar Woods Properties (CWP)

$4.80

+$0.1

+2.1%

+1.1%

+7.9%

Abacus Group (ABG)

$1.250

+$0.025

+2.0%

+9.6%

+5.1%

Charter Hall Group (CHC)

$13.75

+$0.27

+2.0%

+12.4%

+26.5%

Property stocks keep popping up at the top of the best sectors table, are you paying attention!?

Resources stocks? That one's a bit more of a mystery. Base metals prices were unanimously lower on the LME on Wednesday, as was iron ore (also lower in Asian trade). Looking at the best performers in the sector, there's a clear skew towards gold stocks as mentioned above, and a few lithium stocks.

I've explained why gold stocks are up, but the latter is getting a boost from a 2.1% gain in the spodumene index price to US$1,098/t over the last two days. It's been a volatile week though, because you'll remember many of these same stocks got baked earlier in the week as the lithium carbonate price tumbled 6%. Clearly not a sector for the feint of heart!

Company

Last Price

Change $

Change %

1mo %

1yr %

Resolute Mining (RSG)

$0.430

+$0.04

+10.3%

+30.3%

+13.2%

Arcadium Lithium (LTM)

$6.78

+$0.52

+8.3%

-10.9%

0%

Piedmont Lithium Inc (PLL)

$0.200

+$0.015

+8.1%

-9.1%

-73.9%

Alkane Resources (ALK)

$0.625

+$0.045

+7.8%

+28.9%

-13.8%

Chalice Mining (CHN)

$1.080

+$0.075

+7.5%

-14.3%

-82.6%

Alumina (AWC)

$1.420

+$0.08

+6.0%

+32.7%

-0.4%

Kingsgate Consolidated (KCN)

$1.220

+$0.06

+5.2%

+2.5%

-39.3%

Silver Lake Resources (SLR)

$1.240

+$0.05

+4.2%

+16.4%

+11.2%

29METALS (29M)

$0.375

+$0.015

+4.2%

+10.3%

-67.8%

Nickel Industries (NIC)

$0.810

+$0.03

+3.8%

+13.3%

-6.4%

Mineral Resources (MIN)

$70.87

+$2.57

+3.8%

+4.7%

-7.3%

Gold and lithium stocks featured among the best of the Resources sector

All eleven of the major ASX sectors where higher today, but if there was an underperformer, it would be the Financials (XFJ) which only gained 0.375%.


ChartWatch

S&P/ASX 200 (XJO)

S&P ASX 200 XJO
What a day, what a week for the ASX!

The XJO is a must-do today given the new record high and record close. You don't get these often, and you don't get them without a resounding vote of confidence among the demand and supply environment.

Cash wants in, bidding up prices to entice out stock from holders (i.e., motivated demand).

Stock holders aren't letting go without being enticed by higher bids (i.e., unmotivated supply).

It's the oldest tenet of economics. D > S = P⬆️.

There's nothing in the techincals to suggest the prevailing short and long term uptrends cannot continue. I see double green on my trend ribbons, supported by solid price action (with the close above the major peak at 7853), and predominantly demand-side candles (i.e., those with white bodies and/or downward pointing shadows).

7853 now moves to support, but really anything around the 7705-7746 of the short term trend ribbon is likely to be an area of excess demand. I suggest the bull market is hunk dory until we see a switch to supply side candles, falling peaks and falling troughs, and/or a close below 7585.


Economy

Today

  • AUS Retail Sales February

    • +0.3% month on month vs +0.4% forecast and +1.1% January

    • +1.6% compared to last February

Later this week

Friday

  • All day AUS Good Friday Holiday

  • 23:30 USA Core PCE Price Index February (+0.3% forecast vs +0.4% January)

Saturday

  • 02:30 USA Federal Reserve Chairman Powell speech at Monetary Policy Conference, in San Francisco


Latest News


Interesting Movers

Trading higher

  • +12.1% Mesoblast (MSB) - Continued positive response to Tuesday's: FDA Notifies Clinical Data Sufficient for Refiling aGVHD BLA

  • +10.3% Resolute Mining (RSG) - 2023 Annual Report, broad strength in ASX gold sector today on rising gold price, bouncing off short and long term trend ribbons

  • +8.3% Strike Energy (STX) - Minimum Holding Share Buy Back

  • +8.3% Arcadium Lithium (LTM) - No news, rising spodumene price (+2% last 2 days) helped general sector strength today

  • +7.8% Alkane Resources (ALK) - No news, broad strength in ASX gold sector today on rising gold price, rise is consistent with prevailing short term uptrend, trying to reclaim long term trend ribbon

  • +7.5% Chalice Mining (CHN) - No news, assisted by lithium sector strength

  • +6.3% Omni Bridgeway (OBL) - Investor Presentation

  • +6.2% Silex Systems (SLX) - No news, rise is consistent with prevailing short and long term uptrends, closed above key historical supply at 5.12

  • +6.0% SSR Mining (SSR) - No news, broad strength in ASX gold sector today on rising gold price

  • +6.0% Alumina (AWC) - 2023 Annual Review, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up

  • +5.6% Premier Investments (PMV) - No news, continued positive response to Tuesday's: 1H24 Investor Presentation, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up

  • +5.4% Catapult Group International (CAT) - No news, rise is consistent with prevailing short and long term uptrends

  • +5.3% Whitehaven Coal (WHC) - No news, bounce in thermal and met coal futures

Trading lower


Broker Notes

  • 29Metals (29M) downgraded to underweight from neutral at Jarden; Price Target: $0.30 from $0.38

  • ALS (ALQ) retained at at UBS; Price Target: $13.30

  • Alumina (AWC) downgraded to equal-weight from overweight at Morgan Stanley; Price Target: $1.30 from $1.10

  • Comet Ridge (COI) retained at buy at Bell Potter; Price Target: $0.27 from $0.26

  • Deterra Royalties (DRR) retained at overweight at Morgan Stanley; Price Target: $5.60

  • Galan Lithium (GLN) retained at outperform at Macquarie; Price Target: $0.60

  • Genesis Minerals (GMD) retained at outperform at Macquarie; Price Target: $2.00

  • Infomedia (IFM) downgraded to hold from buy at Bell Potter; Price Target: $1.80 from $1.75

  • IGO (IGO) downgraded to underweight from equal-weight at Morgan Stanley; Price Target: $5.95 from $7.20

  • Premier Investments (PMV) retained at buy at Citi; Price Target: $36.00 from $30.20

  • Platinum Asset Management (PTM) upgraded to buy from hold at Bell Potter; Price Target: $1.20 from $1.13

  • Reliance Worldwide Corporation (RWC) retained at buy at UBS; Price Target: $6.50 from $5.40

  • Westpac Banking Corporation (WBC)

    • Retained at neutral at Citi; Price Target: $22.25

    • Retained at neutral at Goldman Sachs; Price Target: $23.41 from $23.46

    • Retained at underperform at Macquarie; Price Target: $26.00

    • Retained at underweight at Morgan Stanley; Price Target: $22.40


Scans

Top Gainers

Code Company Last % Chg
APS Allup Silica Ltd $0.057 +96.55%
LPE Locality Planning... $0.055 +61.77%
TNC True North Copper... $0.10 +38.89%
MXO Motio Ltd $0.029 +31.82%
MCL Mighty Craft Ltd $0.025 +31.58%
View all top gainers

Top Fallers

Code Company Last % Chg
NGY Nuenergy Gas Ltd $0.019 -32.14%
ENX Enegex Ltd $0.018 -28.00%
TSI Top Shelf Interna... $0.185 -19.57%
RFT Rectifier Technol... $0.018 -18.18%
VMC Venus Metals Corp... $0.09 -18.18%
View all top fallers

52 Week Highs

Code Company Last % Chg
APS Allup Silica Ltd $0.057 +96.55%
VALDB Valor Resources Ltd $0.065 +30.00%
CVR Cavalier Resource... $0.19 +22.58%
MMC Mitre Mining Corp... $0.45 +16.88%
VNL Vinyl Group Ltd $0.081 +15.71%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
ENX Enegex Ltd $0.018 -28.00%
PNT Panther Metals Ltd $0.029 -17.14%
PNM Pacific Nickel Mi... $0.03 -16.67%
AVA AVA Risk Group Ltd $0.135 -15.63%
E79 E79 Gold Mines Ltd $0.028 -15.15%
View all 52 week lows

Near Highs

Code Company Last % Chg
CDA Codan Ltd $10.87 +0.56%
FGX Future Generation... $1.205 +1.69%
CPU Computershare Ltd $26.10 +0.66%
MQGPD Macquarie Group Ltd $106.73 +1.24%
IXJ Ishares Global He... $141.46 +0.46%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
TPG TPG Telecom Ltd $4.50 +2.04%
CPM Cooper Metals Ltd $0.12 +14.29%
EBO Ebos Group Ltd $31.76 +1.34%
SPK Spark New Zealand... $4.40 +0.46%
MVP Medical Developme... $0.593 +2.16%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience, helping investors navigate several bull and bear markets over this time. He is a well respected markets commentator who specialises in how the global macro impacts Australian and US equities. Carl has a passion for technical analysis and has taught his unique brand of price-action trend following to thousands of Aussie investors.

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