Market Wraps

Evening Wrap: ASX 200 down for third consecutive day, resources rally, US futures higher

Wed 16 Nov 22, 4:45pm (AEST)

The S&P/ASX 200 closed 19 points lower, down -0.27%.

The local sharemarket inched lower for a third consecutive session, gains from iron ore miners and energy stocks was offset by losses from banks and China's home prices continue to dip.

Let's dive in.


Today in Review

Wed 16 Nov 22, 4:20pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,122.2 -0.27%
All Ords 7,327.4 -0.25%
Small Ords 2,875.6 -0.56%
All Tech 2,095.9 -0.63%
Emerging Companies 2,211.1 -0.10%
Currency
AUD/USD 0.6751 +0.51%
US Futures
S&P 500 3,996.0 -0.09%
Dow Jones 33,593.0 -0.04%
Nasdaq 11,886.25 -0.15%
Name Value % Chg
Sector
Energy 11,675.3 +1.18%
Materials 17,476.2 +0.67%
Real Estate 3,040.4 +0.35%
Industrials 6,285.5 -0.03%
Information Technology 1,451.5 -0.24%
Consumer Staples 12,476.1 -0.25%
Health Care 41,821.7 -0.79%
Communication Services 1,402.0 -0.98%
Financials 6,434.6 -1.02%
Consumer Discretionary 2,889.2 -1.27%
Utilities 8,061.7 -1.47%

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Markets

A rather choppy session for the ASX 200 as gains from Resource sectors was offset by declines from Discretionary, Banks, Telcos and Utilities.

  • Energy led to the upside as oil prices rallied overnight after stray Russian missiles hit Poland, killing two civilians. Prices have since faded most of the overnight gains

  • Materials also green thanks to a weaker US dollar and higher iron ore prices

  • Discretionary was a notable sector of weakness after an earnings miss from Aristocrat Leisure. Most large cap retail names finished the session down around -1%

  • Financials also underperformed the market, with Commonwealth Bank shares down almost -2% after yesterday's September quarter update

  • 117 of the top 200 declined (59%)

Economy

China’s average new home prices across 70 major cities fell -1.6% year-on-year in October after a -1.5% fall in September. 

  • Prices fell -0.37% month-on-month, a faster rate of decline than September

  • Between January and October, national home sales fell -25.6% in square metres and -28.2% in terms of value 

Commodities 

"Sentiment across markets was boosted by further signs of easing inflationary pressures. Commodities gained as the subsequent weaker USD supported investor appetite in the sector," said ANZ senior commodity strategist, Daniel Hynes.

  • Newcastle coal futures +6.8% to US$330 a tonne

  • Iron ore futures +3.3% to US$95.5 a tonne, up 27% from 31 October lows

  • Copper -1.1% to US$3.77/lb, down -3.5% in the last three sessions


Latest news


Post market brief

A solid overnight session on Wall Street failed to inspire a green day for the ASX 200. The Big four banks and Macquarie all finished between 0.5% and 1.8% lower, which was enough to offset the positive gains from miners and energy stocks.

Large cap resources remains the place to be amid an easing US dollar and improving Chinese-Australia relations. As well as China's 16-point plan to rescue its depressed real estate sector, which was revealed earlier this week.

The ASX 200 is somewhat in no man's land. It's had a massive 'peak inflation' inspired rally and now drifting a little lower as euphoria dies down. Although these small red days are much better than the big rips and dips we've been seeing all year round.

The question is, what now? What's the next catalyst now that inflation is showing signs of peaking? I'll sleep on it.

XJO chart
XJO chart (Source: TradingView)

Major announcements

Large caps (>$1bn)

  • Nufarm (NUF) +8.9% FY23 EBITDA rose 24% to $447m and profits jumped 65% to $107.4m. The crop protection and seed company said ‘conditions remain favourable’ heading into FY23  

  • Pilbara Minerals (PLS) +1.9% is targeting a dividend payout ratio between 20-30% of free cash flow for FY23 

  • Vicinity Centres (VCX) +1.0% reaffirmed its FY23 earnings per share guidance of 13 to 13.6 cents and targets a dividend payout ratio of 95-100% 

  • Oz Minerals (OZL) +0% shares were halted pending another takeover offer from BHP

  • GrainCorp (GNC) -2.0% posted 173% net profit growth in FY22 to $380.4m but guided to weaker margins and expects flooding to impact both crop yield and quality 

  • Aristocrat Leisure (ALL) -5.0% posted 18% revenue growth in FY22 to $5.57bn and net profit rose 15.7% to $948.5m. The gaming company said it expects to see profit growth in FY23, no specific guidance was provided  

Mid-to-small caps

  • KMD Brands (KMD) +4.2% reported 1Q23 sales growth of 61.8% as the business cycles weak lockdown-induced numbers from last year 

  • Money3 Corp (MNY) -4.6% posted 1Q23 revenue growth of 10.8% to $51m and its loan book grew 18.2% to $753.7m. The personal loans provider is targeting a $900m loan book for FY23, up from $733m in FY22

  • Pact Group (PGH) -7.2% AGM guided to $68-73m EBIT and $20-25m net profit for the first half of FY23. This compares to a respective $83m and -$21m in 1H22


Broker updates 

Ticker

Company

Broker

Rating

Target price

AX1

Accent Group

Citi

Neutral

$1.77 from $1.61

CBA

Commonwealth Bank

Credit Suisse

Underperform from Neutral

$97.50 from $102.80

IPL

Incitec Pivot

Credit Suisse

Neutral from Outperform

$3.92 from $3.90

NIC

Nickel Industries

Macquarie

Neutral

$0.90

REA

REA Group

Citi

Neutral

$126.00 from $137.45

UMG

United Malt

Macquarie

Outperform

$3.99 from $3.85


Scans

Top Gainers

Code Company Last % Chg
AHN Athena Resources Ltd $0.013 +85.71%
BAS Bass Oil Ltd $0.061 +64.87%
RFT Rectifier Technol... $0.048 +37.14%
GMN Gold Mountain Ltd $0.013 +30.00%
LYN Lycaon Resources Ltd $0.51 +24.39%
View all top gainers

Top Fallers

Code Company Last % Chg
AER Aeeris Ltd $0.11 -15.39%
FML Focus Minerals Ltd $0.175 -14.63%
SUM Summit Minerals Ltd $0.19 -13.64%
BGT Bio-Gene Technolo... $0.105 -12.50%
CUF Cufe Ltd $0.014 -12.50%
View all top fallers

52 Week Highs

Code Company Last % Chg
BAS Bass Oil Ltd $0.061 +64.87%
ENR Encounter Resourc... $0.225 +9.76%
GRX Greenx Metals Ltd $0.40 +6.67%
LCT Living Cell Techn... $0.018 +5.88%
MRM Mma Offshore Ltd $0.755 +4.86%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
EMS Eastern Metals Ltd $0.105 -12.50%
TRU Truscreen Group Ltd $0.035 -12.50%
BSA BSA Ltd $0.043 -10.42%
AFL Af Legal Group Ltd $0.145 -9.38%
MAUCA Magnetic Resource... $0.50 -9.09%
View all 52 week lows

Near Highs

Code Company Last % Chg
WVOL Ishares Edge MSCI... $34.65 -0.92%
WBCPI Westpac Banking C... $103.35 -0.15%
VVLU Vanguard Global V... $60.81 -0.62%
IHD Ishares S&P/ASX D... $12.96 +0.08%
AWC Alumina Ltd $1.565 -4.28%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
NOL Nobleoak Life Ltd $1.625 +3.50%
GNX GENEX Power Ltd $0.178 +1.43%
MAQ Macquarie Telecom... $53.78 +0.90%
BUB Bubs Australia Ltd $0.36 -1.37%
AQC Australian Pacifi... $0.22 +4.76%
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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