Market Wraps

Evening Wrap: ASX 200 edges higher, tech sector rallies on Altium and Megaport earnings

Tue 22 Aug 23, 5:21pm (AEDT)

The S&P/ASX 200 closed 6 points higher, up 0.09%. 

The S&P/ASX 200 Tech sector rallied more than 5% on better-than-expected earnings from Altium and a narrower-than-expected loss from Megaport, Coles shares spiral 7% lower on a profit miss, uranium stocks post a broad-based rally and UBS' take on some of today's results.

Let's dive in.


Today in Review

Tue 22 Aug 23, 4:37pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,121.6 +0.09%
All Ords 7,346.4 +0.14%
Small Ords 2,825.1 +0.74%
All Tech 2,573.9 +2.51%
Emerging Companies 2,028.7 +0.25%
Currency
AUD/USD 0.6433 +0.29%
US Futures
S&P 500 $4,414.25 +0.04%
Dow Jones $34,530.0 +0.02%
Nasdaq $14,994.5 +0.06%
Name Value % Chg
Sector
Information Technology 1,918.8 +5.19%
Communication Services 1,550.8 +1.92%
Real Estate 3,131.6 +0.82%
Utilities 8,770.0 +0.59%
Financials 6,194.5 +0.43%
Materials 17,263.8 +0.06%
Industrials 6,639.9 -0.25%
Energy 11,830.2 -0.68%
Consumer Discretionary 3,034.0 -0.77%
Health Care 39,287.7 -0.88%
Consumer Staples 12,308.5 -2.52%

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ASX 200 Session Chart

S&P ASX 200 (LIVE DATA) Share Prices & Charts - Market Index
ASX 200 finishes slightly higher in choppy trade (Source: Market Index)

Markets

The ASX 200 finished slightly higher, off session lows of -0.36%. Index and sector movements were again dictated by high-profile results. We'll list some of the main ones below:

  • Tech led to the upside thanks to better-than-expected results from Altium (+25.9%) and Megaport (+16.9%)

  • Telcos bounced after Telstra (+3.3%) snapped a three-day post-earnings selloff

  • Staples underperformed after Coles (-7.1%) missed FY23 net profit expectations

Economy

No major economic announcements.


Latest news


Interesting news and movers

Trading higher

  • +25.9% Altium (ALU) – Earnings

  • +16.9% Megaport (MP1) – Earnings

  • +11.3% Hub24 (HUB) – Earnings

  • +10.5% ImpediMed (IPD) – Reaffirms growth plan

  • +9.3% Audinte (AD8) – Post earnings rally

  • +6.4% Shaver Shop (SSG) – Earnings

  • +5.95% Sandfire Resources (SFR) – Secures mining license extension

  • +5.9% A2 Milk (A2M) – Earnings

  • +3.9% Helia Group (HLI) – Earnings

  • +3.8% Scentre Group (SCG) – Earnings

  • +3.6% Alpha HPA (A4N) – Project update

  • +3.2% MacMahon (MAH) – Earnings

  • +1.7% Allkem (AKE) – Earnings

  • Uranium sector move: 92Energy (+10.0%), Paladin Energy (+8.2%), Bannerman Energy (+8.2%), Alligator Energy (+7.9%), Deep Yellow (+6.8%)

Trading lower

  • -30.1% Queensland Pacific (QPM) – Capital raise

  • -18.8% Data#3 (DTL) – Earnings

  •  

  • -12.4% Perenti (PRN) – Earnings

  • -12.1% Australian Clinical Labs (ACL) – Earnings

  • -11.2% Kogan (KGN) – Earnings

  • -8.0% Alumina (AWC) – Earnings

  • -7.1% Coles (COL) – Earnings

  • -5.3% G8 Education (GEM) – Earnings

  • -4.9% Nanosonics (NAN) – Earnings

  • -4.1% ARB Corp (ARB) – Earnings

  • -3.9% IRESS (IRE) – Downgraded by multiple brokers

  • -2.9% Breville Group (BRG) – Downgraded by multiple brokers


Broker notes

UBS’ take on some of today’s results:

G8 Education (GEM) – Neutral with $1.28 target ($1.14 at 21 Aug close)

  • “Positive improvement throughout half in dealing with labour shortage impacted centres (46 down to 7), together with good cost control and inc. $2m (FY) benefit from exited centres - which should help seasonally stronger 2H23.”

Hub24 (HUB) – Buy with $30.00 target ($28.03 at 21 Aug close)

  • “Looks like a positive update overall. Revenues and earnings are below UBSe but ahead of consensus. Cost growth slightly better than our forecast. DPS is ahead of our forecast and $50m buyback announcement.”

  • “FUA guidance has been pushed out and lifted to $92-100bn by FY25 (UBSe $91.7bn). Previous FY24 FUA guidance ($80-89bn) looked stretched to us, but FY25 likely benefits from EQT transitions of $4bn over the next 18 months.”

Monadelphous (MND) – Neutral with $13.40 target ($13.26 at 21 Aug close) 

  • “FY23 earnings in line with UBSe/Cons, with outlook commentary and order book momentum suggesting a return to revenue growth in FY24.”

  • “Solid FY23 result, in line with market expectations. Construction revenue growth and margin delivery are key swing factors into FY24, with Monadelphous noting a progressive ramp-up in activity across the year.”

Scentre Group (SCG) – Neutral with $2.80 target ($2.64 at 21 Aug close)

  • “Health of the portfolio is robust with improving occupancy (+0.2% to 99%) and specialty occupancy costs of ~16% (18% in 2019).”

  • “FFO beat of 6.5% with no change to guidance suggest one-offs in 1H Net operating income and debt costs to be a headwind in 2H.”


Scans 

Top Gainers

Code Company Last % Chg
KKO Kinetiko Energy Ltd $0.125 +37.36%
HTG Harvest Technolog... $0.037 +27.59%
ALU Altium Ltd $46.44 +25.92%
KRR King River Resour... $0.011 +22.22%
NMR Native Mineral Re... $0.051 +21.43%
View all top gainers

Top Fallers

Code Company Last % Chg
QPM Queensland Pacifi... $0.065 -30.11%
EGN Engenco Ltd $0.29 -27.50%
MSG MCS Services Ltd $0.021 -25.00%
KNG Kingsland Mineral... $0.185 -19.57%
OSM Osmond Resources Ltd $0.105 -19.23%
View all top fallers

52 Week Highs

Code Company Last % Chg
KKO Kinetiko Energy Ltd $0.125 +37.36%
ALU Altium Ltd $46.44 +25.92%
WYX Western Yilgarn NL $0.22 +18.92%
RDM Red Metal Ltd $0.10 +17.65%
MP1 Megaport Ltd $12.16 +17.04%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
QPM Queensland Pacifi... $0.065 -30.11%
EGN Engenco Ltd $0.29 -27.50%
MSG MCS Services Ltd $0.021 -25.00%
OSM Osmond Resources Ltd $0.105 -19.23%
KCC Kincora Copper Ltd $0.036 -16.28%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.035 -0.48%
WVOL Ishares Edge MSCI... $36.45 -0.25%
PMGOLD Gold Corporation $29.49 +0.14%
GCI Gryphon Capital I... $1.99 +0.25%
VVLU Vanguard Global V... $65.10 -0.11%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
RAC Race Oncology Ltd $0.83 0.00%
IRE Iress Ltd $6.19 -3.88%
MSTR Morningstar Inter... $8.56 +0.23%
IGO IGO Ltd $12.77 +2.32%
ERTH Betashares Climat... $10.14 +0.10%
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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