Market Wraps

Evening Wrap: ASX 200 fades from session highs ahead of Microsoft and Alphabet earnings

Tue 25 Oct 22, 4:45pm (AEST)

The S&P/ASX 200 closed 19 points higher, up 0.28%.

The local sharemarket struggles to close towards session highs for a second day in a row, real estate stocks headline gains, resources sell off, Australian consumer confidence hits a two month low and a massive lineup of heavyweight US companies reporting tonight.

Let's dive in.


Today in Review

Tue 25 Oct 22, 4:21pm (AEST)

Name Value % Chg
Major Indices
ASX 200 6,798.6 +0.28%
All Ords 6,993.7 +0.22%
Small Ords 2,736.7 +0.49%
All Tech 2,046.0 +0.61%
Emerging Companies 2,092.5 -0.32%
Currency
AUD/USD 0.6324 +0.19%
US Futures
S&P 500 3,807.75 -0.04%
Dow Jones 31,535.0 -0.03%
Nasdaq 11,471.5 -0.06%
Name Value % Chg
Sector
Real Estate 2,866.3 +1.67%
Communication Services 1,391.8 +1.58%
Consumer Discretionary 2,781.0 +1.28%
Health Care 40,224.5 +0.99%
Financials 6,424.7 +0.98%
Industrials 6,016.2 +0.29%
Consumer Staples 12,364.6 +0.21%
Information Technology 1,432.7 +0.18%
Utilities 6,693.3 +0.14%
Materials 15,547.1 -1.19%
Energy 11,209.7 -1.58%

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Markets

The ASX 200 briefly rallied 0.77% to a one month high but failed to hold onto gains. Despite the two day winning streak, the market continues to see some selling pressure towards session highs.

Brace yourself for a big overnight session on Wall Street with names like General Electric, Coca Cola and UPS reporting before market open as well as Microsoft, Alphabet and Visa reporting after close. Will these results be better-than-feared or will we wake up to a 'US stocks sell off on xyz earnings' headline?

  • 10 out of 11 sectors higher

  • Real Estate led to the upside, aided by positive September updates from Centuria

    • Centuria on industrial real estate: "Record low national industrial vacancy, coupled with limited supply of industrial space, continues to create a divergence between supply and demand resulting in accelerated industrial market rental growth across the country."

  • Telcos, Discretionary, Healthcare and Financials also outperformed the index

  • Materials and Energy led to the downside as a stronger US dollar a weaker outlook for Chinese demand weighed. Eurozone and US flash PMIs also showed significant weakness across services and manufacturing overnight

  • 65% of the top 200 advanced

Economy

  • Australia consumer confidence fell -1.3% last week to 81.1

    • "... its fourth decline in a row and dipping to its lowest since early August," ANZ Head of Australian Economics, David Plank said

    • "Inflation expectations were up 0.1 percentage points to 6.1 per cent, its highest since late March when petrol prices first peaked. Cost of living pressures are most likely a key reason for the renewed weakness.”

    • ‘Time to buy a major household item’ fell -0.7%, down -11% in the past three weeks 

Commodities

The commodity market mostly eased during market hours, with most base metals and energy down less than -1% weighed by President Xi's third term in power.

  • Iron ore futures on China's Dalian Commodity Exchange fell -1.4%


Latest news


Post market brief

The ASX 200 remains in a rangebound state, which isn't all that bad taking into consideration all the mayhem that's going on in Asia (Xi's power grab, Hang Seng Index freefalling to 2009 levels and wild swings for the Japanese Yen).

As noted in Tuesday's Morning Wrap, over 30% of the S&P 500's market capitalisation is due to report this week. So brace yourself for some volatile moves, surprises and upsets.

Index charts

S&P/ASX 200: Remains rangebound between the ~6,820 high and ~6,635 low.

XJO chart
XJO chart (Source: TradingView)

S&P/ASX 200 Discretionary: Pushing a one month high into the 50-day (green) and previous lows. Does it kick on or do we see some selling at these levels?

XDJ chart
XDJ chart (Source: TradingView)

Major announcements

  • Cettire (ASX: CTT) +12.9% shares rallied on no news but got a speeding ticket from the ASX. Perhaps this is a short-covering driven rally

  • Credit Corp (ASX: CCP) +7.9% notes “early signs that unsecured indebtedness may be starting to re-build”. FY23 profit and net lending guidance reaffirmed

  • Estia Health (ASX: EHE) +5.3% executed a binding agreement to acquire four residential aged care homes from Premier Health Care Group 

  • Weebit Nano (ASX: WBT) +4.3% presented at the Goldman Sachs Emerging Tech Conference. The company expects ReRam qualification to be completed in 1Q23 

  • Leo Lithium (ASX: LLL) +4.2% posted its September quarterly report. The construction of the Goulamina Lithium project is ‘ramping up on budget and schedule’

  • Centuria Industrial (ASX: CIP) +2.9% noted ‘significant tenant demand’ in 1Q23, securing 49,209 sqm of lease terms representing 99.6% portfolio occupancy

  • Centuria Office (ASX: COF) +1.1% said it achieved ‘strong leasing outcomes’ in 1Q23 with 94.9% portfolio occupancy and reaffirmed FY23 guidance 

  • SG Fleet (ASX: SGF) -0.35% said at its AGM that “our order pipeline in Australia has lengthened further, by about 10% on June 2022 and by 50% on the same time last year. The pipeline is about 6-times that seen pre-covid.” 

  • Pilbara Minerals (ASX: PLS) -0.4% posted its September quarterly. Production rose 16% QoQ to 147,105 tonnes of spodumene and cash balance jumped to $1.375bn

  • PointsBet (ASX: PBH) -1.5% burned through another -$60.7m cash in 1Q23. Betting turnover rose 18% to $1.16bn compared to last year and net wins rose 13% to $79m

  • Ampol (ASX: ALD) -12.6% posted 147% EBIT growth to $1bn for the full year to 30 September 2022. The company noted refining margins benefiting from the low Aussie dollar

  • Reliance Worldwide (ASX: RWC) -13.4% posted 16% EBITDA growth for the September quarter to US$76.8m. The company noted a ‘contraction in volumes in the first quarter’ for its Americas business 


Broker updates

Ticker

Name

Broker

Rating

Target price

CVN

Carnarvon

Macquarie

Neutral from Outperform

$0.16 from $0.24

DMP

Domino's Pizza

Macquarie

Neutral

$63.30 from $74.90

IDX

Integral Diagnostics

Citi

Buy

$3.15 from $3.70

RMD

Resmed

Morgan Stanley

Equal-weight

$35.20 from $31.70

SGM

Sims

Macquarie

Underperform from Neutral

$10.80 from $14.10

S32

South 32

Citi

Buy

$4.60

SYR

Syrah Resources

Citi

Neutral

$2.35 from $1.35


Scans

Top Gainers

Code Company Last % Chg
C29 C29 Metals Ltd $0.295 +96.67%
IHR Intellihr Ltd $0.082 +30.16%
PHL Propell Holdings Ltd $0.041 +28.13%
BTR Brightstar Resour... $0.019 +26.67%
FIN FIN Resources Ltd $0.024 +26.32%
View all top gainers

Top Fallers

Code Company Last % Chg
HCF H&G High Convicti... $1.02 -79.60%
IKW Ikwezi Mining Ltd $0.595 -61.61%
FTC Fintech Chain Ltd $0.02 -20.00%
EMP Emperor Energy Ltd $0.034 -19.05%
TOY Toys'R'US ANZ Ltd $0.043 -18.87%
View all top fallers

52 Week Highs

Code Company Last % Chg
C29 C29 Metals Ltd $0.295 +96.67%
CY5 CYGNUS Gold Ltd $0.533 +14.52%
TIE Tietto Minerals Ltd $0.73 +5.80%
POL Polymetals Resour... $0.20 +5.26%
PFG Prime Financial G... $0.25 +4.17%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
HCF H&G High Convicti... $1.02 -79.60%
HVY Heavy Minerals Ltd $0.11 -18.52%
TUL Tulla Resources Plc $0.378 -16.11%
TRT Todd River Resour... $0.021 -16.00%
LBT LBT Innovations Ltd $0.062 -15.07%
View all 52 week lows

Near Highs

Code Company Last % Chg
WVOL Ishares Edge MSCI... $34.70 +1.08%
WBCPI Westpac Banking C... $103.17 +0.23%
PMGOLD Gold Corporation $26.06 -0.19%
VVLU Vanguard Global V... $59.29 +1.09%
ETPMPM Global X Metal Se... $204.88 -0.96%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
DGL DGL Group Ltd $1.47 +2.80%
COE Cooper Energy Ltd $0.215 -6.52%
EML EML Payments Ltd $0.645 -1.53%
LFG Liberty Financial... $3.70 -0.54%
MGH Maas Group Holdin... $2.46 +0.41%
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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