Market Wraps

Evening Wrap: ASX 200 bounces, Woodside closes at a 4-year high, US futures inch higher

Fri 04 Nov 22, 4:51pm (AEST)

The S&P/ASX 200 closed 37 points higher, up 0.54%.

The local sharemarket finishes the week on a positive note as miners and oil shares rally, Australian retail sales increase for a fourth-straight quarter, the US dollar snaps an almost six day winning streak and all eyes on the US jobs report tonight.

Let's dive in.


Today in Review

Fri 04 Nov 22, 4:24pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 6,892.5 +0.51%
All Ords 7,089.3 +0.55%
Small Ords 2,783.9 +0.17%
All Tech 2,077.2 +0.70%
Emerging Companies 2,114.9 +0.82%
Currency
AUD/USD 0.635 +1.03%
US Futures
S&P 500 $3,736.25 +0.23%
Dow Jones $32,062.0 +0.14%
Nasdaq $10,779.25 +0.48%
Name Value % Chg
Sector
Energy 11,822.9 +3.37%
Materials 15,616.4 +1.80%
Utilities 7,177.1 +1.52%
Information Technology 1,445.4 +1.12%
Consumer Staples 12,166.6 +0.44%
Consumer Discretionary 2,833.3 +0.07%
Financials 6,488.0 -0.21%
Industrials 6,252.4 -0.31%
Real Estate 2,956.8 -0.35%
Communication Services 1,412.6 -0.44%
Health Care 40,220.8 -0.78%

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Markets

The ASX 200 shrugged off a weak open, where it tumbled -0.41%. The index rallied from 11:30 am AEDT onwards, closing around session highs. The ASX 200 managed to finish the week 1.57% higher.

  • Resources led to the upside as the US dollar snapped an almost six day winning streak where it rallied 3.0%. The weaker dollar inspired broad-based gains across energy and metal prices

  • Energy headlined the gains after Woodside rallied 3.9% to levels not seen since October 2018

  • Materials trailed closely behind as depressed iron ore prices bounced during market hours. BHP, Rio Tinto and Fortescue closed between 1.5% to 3.9% higher

  • Tech might be a surprising sector to see showing signs of strength. Its worth noting that many large cap tech names like Altium, Xero and WiseTech rallied quite strongly intraday on Thursday

  • 52% of the top 200 advanced

Economy

Australia retail sales rose 0.2% in the September quarter.

  • A fourth consecutive quarterly increase, but the smallest since lockdowns ended in October 2021

  • “Sales volumes reached a new record level in the September quarter 2022, but growth slowed to just 0.2 per cent following 1.0 per cent quarterly rises in the June and March quarters.” - Ben Dorber, ABS Head of Retail Statistics

  • “While volumes growth eased, retail prices climbed a further 2.0 per cent in the September quarter 2022, reflecting the strong rise seen in last week’s Consumer Price Index.”

Commodities 

Energy and base metal prices extended gains during market hours as the US dollar snapped an almost six day winning streak where it rallied 3.0%. A strong US dollar has traditionally weighed on commodity prices, that are priced in dollars.

  • Singapore iron ore futures rose 3.5% to US$86.3 a tonne

    • Futures on China's Dalian Commodity Exchange rallied 4.2%


Latest news


Post market brief

The ASX 200 found some support around that key ~6,820 level we've been talking about. This move was supported broad-based strength across Energy and Materials stocks, which helped offset the weakness among Financials and Health Care.

Still, the market remains in a vulnerable and volatile state. But at least its managed to defend the lows from Thursday.

US payrolls and unemployment data is due tonight, which could see some more fireworks on Wall Street. Its interesting to note that job growth has beaten estimates in 10 of the last 12 months. The stronger-than-expected jobs data on 7 October resulted in a -2.8% selloff for the S&P 500.

Could we see another better-than-expected figure, which then reinforces the Fed's hawkish stance, driving yields and the dollar higher and the markets lower?

Charts of interest

S&P/ASX 200: A bounce from ~6,820. The short-term moving averages (20-day and 50-day) are positive sloping. The 200-day is flattening. Do we see some consolidation around these levels? Or will overnight US market performance say otherwise?

XJO chart
XJO chart (Source: TradingView)

S&P/ASX 200 Energy: Big weekly close, highest since January 2020

XEJ chart
XEJ chart (Source: TradingView)

 S&P/ASX 200 Tech: Tightening with higher lows and lower highs. Is tech poised for a big move?

XIJ chart
XIJ chart (Source: TradingView)

A few individual large cap charts of interest.

Woodside: Breakout mode. Didn't even need oil back at US$100 a barrel.

Woodside share price chart
Woodside chart (Source: TradingView)

WiseTech: Is one of several tech names that have held up pretty well in the face of a tumbling Nasdaq and hawkish Fed. Can these consolidating names break out?

Wisetech chart
WiseTech chart (Source: TradingView)

Pilbara Minerals: Haven't seen sideways action in this lithium heavyweight in a long time.

Pilbara Minerals share price chart
Pilbara Minerals (Source: TradingView)

Major announcements

Large caps (>$1bn)

  • Block (ASX: SQ2) +10.9% generated gross profits of US$1.57bn, up 38% year-on-year in the third quarter of 2022 

  • CSR (ASX: CSR) +3.5% posted 27% net profit growth in 1H22 to $110m. The building products segment posted 15% EBIT growth, reflecting “good execution across end markets, price discipline and cost management.”

  • PWR Holdings (ASX: PWH) +3.5% held its AGM. No specific FY23 guidance was provided, but the company said it expects “moderate revenue growth for FY23” for key segments including Motorsports, Automotive OEM and Aerospace & Defence

  • Pendal (ASX: PDL) -0.2% posted 17% profit growth to $194.2m for its financial year ended 30 September against a “backdrop of significant challenges that are buffeting the asset management sector.” 

  • GPT Group (ASX: GPT) -0.7% reaffirmed its 2022 guidance of approximately 32.4 cents per share. “Office lease enquiry improved over the quarter, although leasing conditions remain subdued with elevated market vacancy,” notes GPT

  • Magellan Financial (ASX: MFG) -2.4% posted its monthly funds under management update. Total FUM rose 0.2% month-on-month in October to $51bn   

Mid-to-small caps

  • Integral Diagnostics (ASX: IDX) +1.1% said YTD October 2022 revenues grew by 3.1% compared to the prior period but cost inflation is exerting pressure on margins 


Broker updates

Ticker

Company

Broker

Rating

Target price

BVS

Bravura Solutions

Macquarie

Neutral from Outperform

$0.66 from $2.00

DOW

Downer

Ord Minnett

Buy from Accumulate

$5.90 from $6.10

LLC

Lendlease

Macquarie

Outperform

$10.03 from $13.33

ORI

Orica

Orica

Buy from Neutral

$18.00 from $17.00

PPT

Perpetual

Ord Minnett

Buy

$30

WOW

Woolworths

Credit Suisse

Neutral from Underperform

$33.01 from $32.84


Scans

Top Gainers

Code Company Last % Chg
HIQ HITIQ Ltd $0.089 +85.42%
PFE Pantera Minerals Ltd $0.14 +48.94%
BIM Bindi Metals Ltd $0.24 +33.33%
DUN Dundas Minerals Ltd $0.45 +23.29%
WA1 WA1 Resources Ltd $1.77 +18.00%
View all top gainers

Top Fallers

Code Company Last % Chg
NFL Norfolk Metals Ltd $0.23 -24.59%
UBN Urbanise.com Ltd $0.57 -23.49%
SKN Skin Elements Ltd $0.019 -20.83%
ZAG Zuleika Gold Ltd $0.018 -18.18%
ICG Inca Minerals Ltd $0.029 -17.14%
View all top fallers

52 Week Highs

Code Company Last % Chg
BIM Bindi Metals Ltd $0.24 +33.33%
OD6 OD6 Metals Ltd $0.26 +10.64%
SPZ Smart Parking Ltd $0.275 +6.80%
LLI Loyal Lithium Ltd $0.61 +6.09%
DUR Duratec Ltd $0.475 +5.56%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
FFF Forbidden Foods Ltd $0.064 -13.51%
EEL Enrg Elements Ltd $0.021 -12.50%
OZZ OZZ Resources Ltd $0.07 -12.50%
AJX Alexium Internati... $0.015 -11.77%
HRN Horizon Gold Ltd $0.295 -10.61%
View all 52 week lows

Near Highs

Code Company Last % Chg
OD6 OD6 Metals Ltd $0.26 +10.64%
WVOL Ishares Edge MSCI... $34.85 -0.32%
WBCPI Westpac Banking C... $103.28 +0.04%
HLTH Vaneck Global Hea... $10.49 -0.66%
PMGOLD Gold Corporation $25.88 +0.74%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
CVW Clearview Wealth Ltd $0.48 -1.03%
QPON Betashares Austra... $25.50 +0.04%
IVZ Invictus Energy Ltd $0.12 +14.29%
SBM ST Barbara Ltd $0.485 +2.11%
EGH Eureka Group Hold... $0.45 -1.10%
View all RSI oversold

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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