Market Wraps

Evening Wrap: ASX 200 falls, Appen nosedives on revenue decline, investors await US CPI

Wed 10 May 23, 4:33pm (AEST)

 The S&P/ASX 200 closed 8 points lower, down -0.12%. 

A rather quiet session ahead of US inflation data, Appen shares dumped after guiding to a material decline in full-year revenues, JPMorgan's playbook for inflation day and a few Goldman Sachs notes on large caps.

Let's dive in.


Today in Review

Wed 10 May 23, 4:24pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,255.7 -0.12%
All Ords 7,452.3 -0.06%
Small Ords 2,909.8 +0.28%
All Tech 2,251.2 +0.20%
Emerging Companies 2,118.9 +0.24%
Currency
AUD/USD 0.6763 +0.01%
US Futures
S&P 500 $4,138.75 +0.11%
Dow Jones $33,656.0 +0.06%
Nasdaq $13,274.5 +0.07%
Name Value % Chg
Sector
Health Care 44,334.7 +0.96%
Real Estate 3,161.0 +0.34%
Consumer Discretionary 3,063.1 +0.22%
Information Technology 1,574.1 +0.20%
Consumer Staples 13,367.9 -0.03%
Industrials 6,887.6 -0.03%
Utilities 8,654.8 -0.09%
Materials 18,093.9 -0.28%
Energy 10,661.4 -0.31%
Communication Services 1,543.8 -0.38%
Financials 6,159.3 -0.54%

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ASX 200 Session Chart

ASX 200 chart
ASX 200 finishes off worst levels (Source: Market Index)

Markets

Another relatively uneventful session. The ASX 200 was lower but off session lows of -0.40%. Sector performance was mixed. Banks led to the downside but mainly due to NAB (-4.0%) trading ex-dividend. Healthcare outperformed thanks to CSL (+1.1%), which was buoyed by solid results from Spain-based biotech rivals Grifols. Appen (-28.2%) experienced its largest volume day on record (18.9m volume) after posting -21.4% revenue growth for the four months to 30 April. Overall, markets are on hold ahead of the all-important US inflation print at 10:30 pm AEST.

Economy

No major economic announcements. 


Latest news


Market Insights: US Inflation

A few more interest takes for tonight's inflation print.

Implied volatility: The S&P implied move is currently 0.89%, which is tied for the lowest 1-day improved move heading into CPI since February 2022.

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Source: Zerohedge

JPMorgan's playbook: JPMorgan have posted a 'Game Plan' for CPI day for the past few months. The first few were pretty good and accurate. But the latest few have been a little stretched for S&P 500 reaction.

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Source: Bloomberg

Interesting news and movers

Trading higher

  • +15.5% Meteoric Resources (MEI)

  • +8.7% Weebit Nano (WBT)

  • +6.1% Dicker Data (DDR) – Trading update

  • +4.2% SRG Global (SRG) – Guidance

  • +3.3% Lynas (LYC) – Continuation rally, up 14% in previous three

  • +3.5% Blue Energy (BLU) – Sapphire Pilot gas flows

  • Uranium sector move: Alligator Energy (+17.7%), Lotus (+16.2%), Bannerman (+12.6%), Deep Yellow (+12.5%), Paladin Energy (+8.4%) 

Trading lower

  • -28.2% Appen (APX) – Trading update


Broker notes

Goldman Sachs notes:

Carsales (CAR): Neutral with $23.30 target price

  • “We believe CAR has the most diversified, global growth exposure out of our classifieds coverage with a monetisation model that is somewhat counter cyclical.”

  • “However, trading on a 12mf PER that is in-line with historical averages, at a lower discount to domestic classified peers.”

Commonwealth Bank (CBA): Sell with $84.97 target price

  • “CBA’s 3Q23 update highlighted the franchise is no more immune to the macro pressures facing the sector.”

  • “CBA’s skew to consumer banking leaves it more exposed to elevated mortgage competition.”

  • “The stock is trading on a FY24E PER of 17x, a 43% premium to its peers (21% historic average)”

Worley (WOR): Neutral with $17.30 target price

  • Management reiterated FY23e margins at its Investor Day 

  • “While we acknowledge that WOR is thematically well positioned and reiterated targets point to operating leverage that has been relatively elusive, we note the stock has rallied 15% over the last 12mth vs the market up 1% and the Brent down 31%.”


Scans

Top Gainers

Code Company Last % Chg
MGU Magnum Mining and... $0.024 +41.18%
MHI Merchant House In... $0.069 +25.46%
BXN Bioxyne Ltd $0.025 +25.00%
CPH Creso Pharma Ltd $0.02 +25.00%
SIX Sprintex Ltd $0.025 +25.00%
View all top gainers

Top Fallers

Code Company Last % Chg
APX Appen Ltd $2.30 -27.90%
FTC Fintech Chain Ltd $0.011 -26.67%
HVM Happy Valley Nutr... $0.016 -20.00%
APC Australian Potash... $0.019 -17.39%
ECG Ecargo Holdings Ltd $0.033 -15.39%
View all top fallers

52 Week Highs

Code Company Last % Chg
DYM Dynamic Metals Ltd $0.225 +18.42%
RXH Rewardle Holdings... $0.036 +16.13%
A4N Alpha Hpa Ltd $1.07 +7.00%
DSE Dropsuite Ltd $0.28 +5.66%
1TT Thrive Tribe Tech... $0.02 +5.26%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
FTC Fintech Chain Ltd $0.011 -26.67%
HVM Happy Valley Nutr... $0.016 -20.00%
BME Black Mountain En... $0.017 -15.00%
TZL TZ Ltd $0.023 -14.82%
NCL Netccentric Ltd $0.044 -12.00%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $0.98 -1.01%
WVOL Ishares Edge MSCI... $36.27 -0.44%
SWTZ Switzer Dividend ... $2.57 -0.39%
PMGOLD Gold Corporation $29.94 +0.40%
VLUE Vaneck MSCI Inter... $22.82 -0.18%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SM1 Synlait Milk Ltd $1.335 +0.38%
DGL DGL Group Ltd $1.315 0.00%
AEE Aura Energy Ltd $0.185 +2.78%
MGX Mount Gibson Iron... $0.44 0.00%
OML Ooh!Media Ltd $1.258 -0.20%
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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