Evening Wrap: ASX 200 closing in on record high as investors scoop up gold, technology, and biotech stocks

The S&P/ASX 200 closed 52.8 points higher, up 0.68%.

Two gains in a row and four out of the last five now for Aussie stocks. Before that, though, we were eight out of ten down – so let's not get too excited, and let's also hope the recent extreme volatility is coming to an end.

It could end with a record high, after all, plenty of our overseas counterparts are doing it. Why can't we? What's our major malfunction? 🤔

I'll let you ponder that one for a while, but there weren't too many major malfunctions in the local bourse today as each of the major sectors rose.

Gold bounced back, and Healthcare continues its, um, healthy run. Energy and resources stocks were better today – but hardly lit the market on fire.

Let's dive in!

Markets

ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 52.8 points higher at 7,821.8, 0.68% from its session low and just 0.20% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 186 to 92.

All 11 of the major ASX sectors were up today, and notably one sub-sector Gold (XGD) (+2.2%), which happened to be the best performing of the lot. The price of gold and silver bounced on Wednesday, and each has continued edge higher in Asian trade.

Perhaps too, this very bullish research report from UBS we brought you details on yesterday is also filtering through the market...

The best of the ASX Gold sub-sector today

Also doing well today were the Information Technology (XIJ) (+1.4%), Financials (XFJ) (+0.95%) , and Health Care (XHJ) (+0.94%) sectors. No major patterns here, apart from the fact that many were longer duration technology and biotechnology stocks (see here for a definition of long duration securities and why they might be rising at the moment).

The best performers from the Information Technology, Financials, and Health Care sectors

Doing it tough today, if you could call it that, were the Energy (XEJ) (+0.01%) and Resources (XJR) (+0.33%) sectors – still lagging after a horror week.

Communication Services (XTJ) (+0.29%) was also near the bottom of the sector performance list, but this is more likely due to a bit of a hangover after its heroics yesterday.

ChartWatch

NASDAQ Composite Index

NASDAQ stocks love lower rates

Today's ChartWatch should be read in conjunction with the article I wrote earlier today which discussed the current environment for stocks, along with the trends, price action, and candles for the NASDAQ Composite and the S&P/ASX 200.

Here (and below), I'll just cap off the key levels.

Key points of demand: 16445-16539 looks very solid now, and also appears well backed up by dynamic demand at the short term uptrend ribbon – as evidenced by the long downward pointing shadow on the 31 May candle. The short term uptrend remains intact as long as the Comp continues to close above these levels.

Key points of supply: Ha ha ha! It's all blue sky here. Perhaps next round number at 18k? 20k?

S&P/ASX 200 (XJO)

Not as good as the NASDAQ 😭

Key points of demand: 7601 and the dynamic demand at the long term uptrend ribbon (seriously, how good is the long term uptrend ribbon!?). The long term uptrend remains intact as long as the XJO continues to close above the long term uptrend ribbon.

Key points of supply: 7900-7911. Will a close above here = 🚀? 🤔

Economy

Today

• There weren't any major economic data announcements in our time zone today.

Later this week:

Thursday

• 22:15 EUR Main Refinancing Rate & Monetary Policy Statement (-0.25% to 4.25%)

Friday

• 22:30 USA Non-Farm Employment Change May (189,000 forecast vs 175,000 April)

• 22:30 USA Average Hourly Earnings May (+0.3% m/m forecast vs +0.2% m/m April)

Latest News

Interesting Movers

Trading higher

• +6.5% Latin Resources (LRS) - No news, bounced off long term uptrend ribbon 🔎📈

• +6.5% Coronado Global Resources Inc. (CRN) - 2024 AGM Presentation Materials, coking coal prices have been rising since mid-May - up around 9.5%

• +6.2% Nanosonics (NAN) - No news 🤔

• +6.1% Silver Lake Resources (SLR) - Court approves Scheme of Arrangement, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, rise is consistent with prevailing short and long term uptrends 🔎📈

• +5.9% Aurelia Metals (AMI) - No news 🤔

• +5.7% Silver Mines (SVL) - No news, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, bounced off long term uptrend ribbon 🔎📈

• +5.0% Regal Partners (RPL) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈

• +4.9% Genesis Minerals (GMD) - No news, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, rise is consistent with prevailing short and long term uptrends 🔎📈

• +4.8% Zip Co Limited. (ZIP) - No news, continued positive response to yesterday's NEWS

• +4.6% Red 5 (RED) - Court approves Scheme of Arrangement, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, rise is consistent with prevailing short and long term uptrends 🔎📈

• +4.5% McMillan Shakespeare (MMS) - No news, retained at outperform at Macquarie (see Broker Notes section)

• +4.5% Iperionx (IPX) - No news, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, rise is consistent with prevailing short and long term uptrends 🔎📈

• +4.3% Perseus Mining (PRU) - No news, generally stronger ASX precious metals sector on bounce in gold and silver prices Wednesday, rise is consistent with prevailing short and long term uptrends 🔎📈

Trading lower

• -16.0% Core Lithium (CXO) - No news, fall is consistent with prevailing short and long term downtrends 🔎📉

• -13.7% Skycity Entertainment Group (SKC) - TRADING AND DIVIDEND UPDATE and UPDATE ON SOUTH AUSTRALIAN CASINO DUTY DISPUTE, fall is consistent with prevailing short and long term downtrends 🔎📉

• -9.6% Centaurus Metals (CTM) - No news, closed below short and long term trend ribbons 🔎📉

• -7.5% IDP Education (IEL) - Regulatory and Market Update, fall is consistent with prevailing short and long term downtrends 🔎📉

• -4.3% Brainchip Holdings (BRN) - No news, closed below short and long term trend ribbons 🔎📉

• -4.1% Droneshield (DRO) - No news, had to pull back eventually…

• -4.0% WA1 Resources (WA1) - No news, but note several very large black candles in recent price action 🔎📉

Broker Notes

• Alpha HPA (A4N)

  • Retained at buy at Bell Potter; Price Target: $2.00 from $1.95

• Eagers Automotive (APE)

  • Retained at neutral at Macquarie; Price Target: $10.60

• ARB Corporation (ARB)

  • Retained at neutral at Macquarie; Price Target: $40.10

  • Retained at buy at Ord Minnett; Price Target: $44.00

• Autosports Group (ASG)

  • Retained at outperform at Macquarie; Price Target: $3.10

• Bapcor (BAP)

  • Retained at outperform at Macquarie; Price Target: $5.25

• Bega Cheese (BGA)

  • Retained at buy at Bell Potter; Price Target: $5.00

• Bellevue Gold (BGL)

  • Retained at buy at UBS; Price Target: $2.30 from $2.05

• BHP Group (BHP)

  • Retained at buy at Goldman Sachs; Price Target: $49.00

  • Retained at neutral at Macquarie; Price Target: $43.00

• Champion Iron (CIA)

  • Retained at neutral at Macquarie; Price Target: $7.50

• Cooper Energy (COE)

  • Retained at hold at Bell Potter; Price Target: $0.21

• Computershare (CPU)

  • Retained at buy at UBS; Price Target: $32.00 from $31.00

• De Grey Mining (DEG)

  • Retained at buy at UBS; Price Target: $2.10 from $1.75

• Deterra Royalties (DRR)

  • Retained at neutral at Macquarie; Price Target: $4.50

• Evolution Mining (EVN)

  • Retained at buy at UBS; Price Target: $4.60 from $4.20

• Fineos Corporation Holdings (FCL)

  • Retained at outperform at Macquarie; Price Target: $2.22

• Fortescue (FMG)

  • Retained at underweight at Macquarie; Price Target: $13.50

• Fleetpartners Group (FPR)

  • Retained at neutral at Macquarie; Price Target: $3.60

• Genesis Minerals (GMD)

  • Upgraded to accumulate from hold at Ord Minnett; Price Target: $1.90 from $1.85

  • Upgraded to neutral from neutral at UBS; Price Target: $2.30 from $2.00

• Gold Road Resources (GOR)

  • Retained at buy at UBS; Price Target: $2.55 from $2.15

• G.U.D. Holdings (GUD)

  • Retained at outperform at Macquarie; Price Target: $12.65

• James Hardie Industries (JHX)

  • Retained at buy at UBS; Price Target: $60.00

• Lovisa Holdings (LOV)

  • Upgraded to outperform from neutral at Macquarie; Price Target: $33.70 from $26.90

• Mount Gibson Iron (MGX)

  • Retained at outperform at Macquarie; Price Target: $0.50

• Mineral Resources (MIN)

  • Retained at buy at Citi; Price Target: $79.00

  • Retained at outperform at Macquarie; Price Target: $75.00 from $78.00

• McMillan Shakespeare (MMS)

  • Retained at outperform at Macquarie; Price Target: $22.63

• Northern Star Resources (NST)

  • Downgraded to hold from accumulate at Ord Minnett; Price Target: $14.30 from $16.20

  • Upgraded to buy from neutral at UBS; Price Target: $18.50 from $15.00

• Rio Tinto (RIO)

  • Retained at neutral at Macquarie; Price Target: $123.00

• Regis Resources (RRL)

  • Upgraded to buy from sell at UBS; Price Target: $2.10 from $1.85

• Seek (SEK)

  • Retained at lighten at Ord Minnett; Price Target: $20.00 from $19.00

• Sandfire Resources (SFR)

  • Downgraded to hold from accumulate at Ord Minnett; Price Target: $9.30 from $10.00

• SG Fleet Group (SGF)

  • Retained at outperform at Macquarie; Price Target: $3.21

• Smartgroup Corporation (SIQ)

  • Retained at outperform at Macquarie; Price Target: $9.51

• SSR Mining Inc. Foreign Exempt TSX (SSR)

  • Upgraded to buy from neutral at UBS; Price Target: $10.20 from $8.00

• Temple & Webster Group (TPW)

  • Retained at buy at Citi; Price Target: $11.00 from $12.00

• Treasury Wine Estates (TWE)

  • Retained at outperform at Macquarie; Price Target: $13.80

  • Retained at overweight at Morgan Stanley; Price Target: $14.50

  • Retained at buy at UBS; Price Target: $15.00

• Xero (XRO)

  • Retained at buy at Citi; Price Target: $158.20

Scans