Market Wraps

Evening Wrap: ASX 200 falls, tech stocks outperform, Appen reverses a 17% selloff

Wed 17 May 23, 4:30pm (AEST)

 The S&P/ASX 200 closed 35 points lower, down -0.36%. 

The local sharemarket falls for a second consecutive session, tech stocks continue to follow the Nasdaq and outperform, Resource stocks were heavy amid disappointing Chinese economic data, Japan's economy rebounds and Macquarie's take on copper.

Let's dive in.


Today in Review

Wed 17 May 23, 4:18pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,199.2 -0.49%
All Ords 7,389.3 -0.47%
Small Ords 2,866.9 -0.67%
All Tech 2,264.1 +0.32%
Emerging Companies 2,066.6 -0.22%
Currency
AUD/USD 0.6639 -0.25%
US Futures
S&P 500 4,126.75 +0.09%
Dow Jones 33,073.0 +0.04%
Nasdaq 13,503.75 +0.15%
Name Value % Chg
Sector
Information Technology 1,612.4 +0.93%
Utilities 8,536.9 +0.37%
Communication Services 1,554.9 +0.17%
Energy 10,679.7 +0.11%
Industrials 6,870.0 -0.09%
Health Care 44,422.6 -0.19%
Consumer Staples 13,242.7 -0.35%
Consumer Discretionary 3,063.4 -0.53%
Real Estate 3,165.2 -0.61%
Financials 6,052.4 -0.64%
Materials 17,841.6 -0.98%

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ASX 200 Session Chart

ASX 200 intraday
ASX 200 falls but off session lows (Source: Market Index)

Markets

Tuesday's downward momentum carried into today's session. The ASX 200 was red but bounced off session lows of -1.04% and its 200-day moving average. Technology stocks rallied, in-line with the Nasdaq's outperformance. Materials led to the downside amid a firmer US dollar, a slump in gold prices and weak Chinese economic data from Tuesday. The market was extremely calm last week and its first decisive move has so far been towards the downside. Let's see how the rest of the week plays out.

Economy

Japan’s GDP growth accelerated to 1.6% in the March quarter from -0.1% in the previous quarter.

  • Strongest growth since the June quarter 2022

  • Beat analyst expectations of 0.7%, driven by consumption, business investment and public capex offsetting a decline in net exports

  • Japan’s Nikkei 225 Index rises to above 30,000 for the first time since September 2021


Latest news


Interesting news and movers

Trading higher

  • +34.4% Serko (SKO) – Earnings

  • +19.1% Temple & Webster (TPW) – Earnings

  • +16.7% Patriot Battery Metals (PMT) - Drill results

  • +13.2% Cettire (CTT) – CEO denies selldown

  • +10.6% Immutep (IMM) – Phase II trial results

  • +5.1% PointsBet (PBH) – Upgraded by Ord Minnett

  • +0.4% Appen (APX) - Capital raising

Trading lower

  • -8.0% Incitec Pivot (IPL) – Earnings

  • -6.9% Weebit Nano (WBT) – Responds to ASX query

  • Copper sector move: 29Metals (-2.9%), Sandfire Resources (-4.9%)

  • Gold sector move: Bellevue Gold (-3.4%), Gold Road (-3.1%), Perseus (-2.8%), Evolution Mining (-2.3%), Newcrest Mining (-2.1)


Broker notes

Macquarie on copper:

  • “Virtually all the major producers have now reported their Q1 production numbers, with the results showing production was relatively weak.”

  • “On a country-basis, government data for top producers Chile and Peru shows mixed results. Chilean production was down 2.2% in Q1, with Codelco production down 10% as it continues to struggle with technical issues and delays at its projects.”

Macquarie notes:

Appen (APX): Underperform with $1.35 target price

  • “Positively, APX reaffirmed last week’s outlook comments to exit FY23 EBITDA positive on an annualised run-rate basis.”

  • “Time to execute on the new GTM strategy plus broader annotation/cyclically exposed tech headwinds will weigh on APX in the next 6-12 months in our view.”

  • “Weak Chinese data for April shows the pace of recovery has slowed sharply after most data surprised to the downside.”

Domino’s Pizza (DMP): Neutral with $53.00

  • “Softer franchisee sentiment post COVID result in our cautious outlook for the business.”

  • “We maintain our preference for Staples in the current macroeconomic environment.”

  • “We note the downside risk to our call is that if inflationary and interest rate pressures continue, and consumption out of the home slows.”

  • “To the upside, we note that government stimulus or the easing of monetary policy may spur consumer spending.”


Scans

Top Gainers

Code Company Last % Chg
RHY RHYTHM Bioscience... $0.655 +87.14%
NRX Noronex Ltd $0.021 +50.00%
SKO Serko Ltd $2.85 +34.43%
IG6 International Gra... $0.28 +27.27%
WML Woomera Mining Ltd $0.014 +27.27%
View all top gainers

Top Fallers

Code Company Last % Chg
SRJ SRJ Technologies ... $0.035 -39.66%
ALO Alloggio Group Ltd $0.17 -37.04%
AS2 Askari Metals Ltd $0.318 -21.61%
GCX GCX Metals Ltd $0.023 -20.69%
SMS Star Minerals Ltd $0.055 -19.12%
View all top fallers

52 Week Highs

Code Company Last % Chg
WC8 Wildcat Resources... $0.05 +25.00%
XAM Xanadu Mines Ltd $0.054 +12.50%
LRS Latin Resources Ltd $0.185 +8.82%
HPR High Peak Royalti... $0.08 +6.67%
TPC TPC Consolidated Ltd $4.70 +4.44%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
SRJ SRJ Technologies ... $0.035 -39.66%
GCX GCX Metals Ltd $0.023 -20.69%
SMS Star Minerals Ltd $0.055 -19.12%
VN8 VONEX Ltd $0.02 -16.67%
EGN Engenco Ltd $0.34 -15.00%
View all 52 week lows

Near Highs

Code Company Last % Chg
WTC Wisetech Global Ltd $71.01 +1.21%
NDIA Global X India Ni... $61.82 -0.34%
GOR Gold Road Resourc... $1.88 -3.09%
SMLL Betashares Aust S... $3.45 -1.43%
USD Betashares U.S. D... $14.81 +0.54%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
NXS Next Science Ltd $0.53 -3.64%
PNV Polynovo Ltd $1.335 -0.74%
EDV Endeavour Group Ltd $6.285 -0.40%
VMT Vmoto Ltd $0.245 0.00%
AMA AMA Group Ltd $0.135 0.00%
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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