Market Wraps

Evening Wrap: ASX 200 falls for a fourth straight session with all sectors in red

Thu 21 Sep 23, 5:04pm (AEDT)

The S&P/ASX 200 closed 98 points lower, down -1.37%. 

The Index is now down almost 3% in the last four sessions, every sector finished lower led by resources and banks, the Fed's higher-for-longer messaging sends bond yields even higher, UBS take on rare earths and Morgan Stanley shares its views on resource stocks.

Let's dive in.


Today in Review

Thu 21 Sep 23, 4:29pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,065.2 -1.37%
All Ords 7,266.6 -1.30%
Small Ords 2,727.1 -0.91%
All Tech 2,488.9 -0.50%
Emerging Companies 1,947.1 -0.83%
Currency
AUD/USD 0.6409 -0.60%
US Futures
S&P 500 $4,434.5 -0.28%
Dow Jones $34,664.0 -0.19%
Nasdaq $15,095.5 -0.37%
Name Value % Chg
Sector
Information Technology 1,758.5 -0.05%
Utilities 8,455.9 -0.23%
Communication Services 1,493.1 -0.33%
Consumer Staples 12,260.2 -0.79%
Consumer Discretionary 3,099.8 -0.92%
Real Estate 3,003.4 -1.10%
Materials 17,289.1 -1.25%
Industrials 6,540.3 -1.60%
Health Care 37,783.8 -1.70%
Financials 6,285.3 -1.76%
Energy 11,389.4 -1.96%

Enjoying the Evening Wrap? Sign up to get it sent directly to your inbox after every trading day.

ASX 200 Session Chart

XJO
ASX 200 tumbles to finish near worst levels (Source: Market Index)

Markets

Ouch. What an ugly day. The ASX 200 tumbled and finished at worst levels, now on a 4-day losing streak, down 2.9%. The weakness on Thursday was broad-based, with every sector closing in negative territory, led by resources and the big four banks. Things have gotten pretty ugly and we recap some key charts below.

Economy

No major economic announcements. 


Latest news


Charts of Interest

The past three sessions have flagged a lot of broad-based weakness. But instead of bouncing off the key trendline, we puked. This is where the Index becomes increasingly oversold and due for a bounce. But when will we get such reprieve? Does 7,000 come back into play?

XJO
ASX 200 daily chart (Source: TradingView)

The rise in bond yields has been a major pain point for markets. US bond yields have been ticking higher and climbing to levels not seen since 2006-07. The Fed's hawkish pause only reinforced the recent price action, with its median 2024 dot plot shifting to 5.125%, up from 4.62%.

Back at home, the Aussie 10-year is pushing recent highs and close to levels not seen since January 2014.

AU10Y
Aussie 10-year yield (Source: TradingView)

Interesting news and movers

Trading higher

  • +16.7% New Zealand King Salmon (NZK) – Earnings

  • +5.0% Rhythm Biosciences (RHY) – Breast cancer diagnostic test

  • +3.5% Anson Resource (ASN) – Review of Green River Lithium Project

  • +2.7% Thorn Group (TGA) – Enters scheme with Somers

  • +2.1% Deterra Royalties (DRR) – Upgraded by Morgan Stanley

  • +0.5% Ingenia Communities (INA) – Talks to sell WA assets  

Trading lower

  • -17.5% Invictus Energy (IVZ) – Placement at 15 cents

  • -5.6% Opthea  (OPT) – Completes entitle offer

  • -4.1% IGO (IGO) – Downgraded by Morgan Stanley

  • -4.0% Capricorn Metals (CMM) – Initiated neutral at BofA

  • -3.7% Transurban (TCL) – ACCC opposes acquisition of interest in Horizon Roads


Broker notes

UBS on rare earths:

  • “US$50-55/kg could be a support level for now based on producer buying not costs.”

  • “Myanmar imports back to 50% of its peak and Covid type levels but environmental interruptions to southern producers may only be rumours.”

  • “With improved but still relatively weak demand in the 2H only a modest improvement in prices is expected from here.”

  • “Our long term remains US$95/kg and we continue to forecast a steady 2-3 year recovery to this level.”

  • “We remain Neutral Rated on LYC (PT $8.00/sh) but are warming to it at current levels given the positive noise coming out of Malaysia. We remain Sell rated on ILU (PT$8.25/sh) with the expectation of minerals sands prices rolling over and ahead of Eneabba FEED update and project execution.”

Morgan Stanley on Australian materials:

  • “Ally and copper inventories remain far below historical averages. We are tactically bullish on base metals with Cu surpluses largely disappearing in 2023/2024.”

  • “Chinese policy support is improving demand outlook, with base metals in poll position (S32, RIO, 29M to Overweight).” 

  • “Iron ore benefits too but tactically overdone, selective opportunities (RIO, DRR to Overweight). 

  • “Analysts (Jack Lu/Tim Hsiao) currently see high battery inventories, and we think this could cause weaker battery materials demand into '24. We see pressure on lithium and nickel prices.” 


Scans 

Top Gainers

Code Company Last % Chg
PKD Parkd Ltd $0.028 +33.33%
PLG Pearl Gull Iron Ltd $0.033 +26.92%
OZM Ozaurum Resources... $0.145 +26.09%
TAR Taruga Minerals Ltd $0.011 +22.22%
PCK Painchek Ltd $0.04 +21.21%
View all top gainers

Top Fallers

Code Company Last % Chg
CYM Cyprium Metals Ltd $0.033 -70.46%
PHL Propell Holdings Ltd $0.016 -27.27%
KNO Knosys Ltd $0.032 -23.81%
KED Keypath Education... $0.32 -21.95%
PPY Papyrus Australia... $0.024 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
OZM Ozaurum Resources... $0.145 +26.09%
AGC Australian Gold a... $0.07 +22.81%
PCK Painchek Ltd $0.04 +21.21%
GDG Generation Develo... $1.54 +6.21%
DRR Deterra Royalties... $4.92 +2.08%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
CYM Cyprium Metals Ltd $0.032 -70.91%
PHL Propell Holdings Ltd $0.016 -27.27%
KNO Knosys Ltd $0.032 -23.81%
HAL Halo Technologies... $0.063 -19.23%
MTC Metalstech Ltd $0.15 -16.67%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.045 +1.46%
WVOL Ishares Edge MSCI... $36.91 +0.52%
PMGOLD Gold Corporation $30.05 +0.74%
GCI Gryphon Capital I... $2.03 +0.50%
VVLU Vanguard Global V... $65.43 -0.05%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
BGA Bega Cheese Ltd $2.73 -0.73%
GOZ Growthpoint Prope... $2.20 -0.90%
ACL Australian Clinic... $2.79 +2.20%
QAN Qantas Airways Ltd $5.31 -0.38%
CHN Chalice Mining Ltd $2.54 -1.55%
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.

Get the latest news and insights direct to your inbox

Subscribe free

Get free post-market insights with our Evening Wrap

Create an account to receive our concise, data-driven post-market recap, sent directly to your inbox, every day.

Along with the Evening Wrap, you'll join 100k+ investors who receive our Morning Wrap and Weekend Newsletter.