Market Wraps

Evening Wrap: ASX 200 finishes the week down 2.1%, stocks whipsaw on rebalancing, Woodside bounces

Fri 17 Mar 23, 4:56pm (AEST)

 The S&P/ASX 200 closed 29 points higher, up 0.42%.

The local sharemarket finishes the week down 2.1%, Woodside shares bounce after falling 5.4% to a six month low on Thursday, CBA shares surprisingly finish the week 1.0% higher, the last day of index rebalancing drives some crazy price action and a few reasons why the bear market might be over.

Let's dive in.


Today in Review

Fri 17 Mar 23, 4:23pm (AEST)

Name Value % Chg
Major Indices
ASX 200 6,994.8 +0.42%
All Ords 7,188.3 +0.50%
Small Ords 2,737.3 +0.57%
All Tech 2,179.1 +0.85%
Emerging Companies 2,059.2 +1.58%
Currency
AUD/USD 0.671 +0.81%
US Futures
S&P 500 3,964.5 +0.10%
Dow Jones 32,246.0 -0.01%
Nasdaq 12,614.25 +0.25%
Name Value % Chg
Sector
Energy 10,122.5 +2.30%
Information Technology 1,484.3 +1.12%
Financials 6,096.6 +0.92%
Consumer Discretionary 2,923.3 +0.82%
Consumer Staples 13,087.3 +0.70%
Communication Services 1,472.3 +0.37%
Materials 17,273.9 +0.35%
Utilities 8,126.0 +0.11%
Industrials 6,518.3 -0.36%
Health Care 42,189.8 -0.66%
Real Estate 3,042.3 -1.52%

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ASX 200 Session Chart

S&P ASX 200 (LIVE DATA) Share Prices & Charts - Market Index
ASX 200 briefly dips into negative territory around noon before trending higher into close (Source: Market Index)

Markets

A much needed positive close after falling 5.5% in the last seven sessions. The ASX 200 is somewhat in 'no mans land' - oversold but far from any key moving averages and trendlines.

  • Energy stocks bounced after Woodside tumbled 5.4% on Thursday

  • Technology higher thanks to a 2.5% rally by the Nasdaq overnight

  • Financials are trying to settle after the whole SVB and Credit Suisse fiasco, CBA shares finish the week 1.0% higher

  • Real estate stocks led to the downside, with notable weakness from office REITs like GPT (-3.3%)

Economy

No major economic announcements. Next week is going to be huge with:

  • Tuesday: RBA minutes, Canada inflation

  • Wednesday: UK inflation

  • Thursday: Fed rate decision, economic projections and press conference as well as Bank of England rate decision 


Latest news


Market Insights

Index rebalancing: Last minute buying

The ASX rebalancing is effective next Monday, 20 March. This means that funds that did not get their fill during the week are forced to buy or sell certain stocks to meet weighting requirements. This results in some pretty funky price action including:

Flops and fades:

Gains and rips:

You'll notice that these stocks are all making rather abrupt moves on the back of massive volumes. For next week, will mean reversion be on the cards for these stocks now that fund buying/selling is over?

Is the bear market over?

There's been a substantial macro turn in the past week or so:

  • From peak to trough, bond yields crashed 25%

  • US producer prices ease to 4.6% in February (-0.1% MoM) from 5.4% in January

  • Fed and US Government steps in to provide liquidity for banks

  • Fed balance sheet grows US$300bn last week

  • Peak Fed funds rate and bond yields pull a 180 in the past week

  • CNN's Fear & Green Index hits extreme fear

Is this enough to mark a turning point for markets?

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Interesting news and movers

Trading higher

  • +13.3% Kingsgate (KCN) – Chatree Gold Mine update

  • +8.9% Talga Group (TLG) – Earnings & Rebal

  • +6.5% Neuren Pharma (NEU) – Continuation rally, up 37% in last three

  • +2.95% Worley (WOR) – Upgraded by Credit Suisse

Trading lower

  • -8.7% Kelsian (KLS) – Capital raising

  • -7.9% Synlait Milk (SM1) – Guidance update

  • -1.1% IPH (IPH) – Cyber incident (Thurs)

  • Gold sector move: Evolution Energy (-5.2%), Northern Star (-2.3%), Newcrest Mining (-2.2%)

  • REITs sector move: GPT (-3.3%), Abacus Property (-2.3%), Charter Hall (-2.3%), Scentre Group (-1.9%)


Broker updates

A few Macquarie notes:

BHP (BHP): Outperform with $52.00 target price

  • “BHP has commented on the recent media reports regarding the UK class action in relation to the Fundão Dam collapse at Samarco.”

  • “Despite ongoing legal disputes, we believe the market should focus on BHP’s solid free cash flow generation. The rebound of iron- ore and coking coal prices underpins strong upgrade momentum for BHP with a spot price scenario generating 13% and 45% higher earnings than our base case for FY23 and FY24.”

Panoramic Resources (PAN): Outperform with $0.20 target price

  • “The new mine plan is incrementally positive for PAN, with an additional one year of mine life compared to our prior assumptions.”

  • “Positively, the ramp up at Savannah North appears largely complete with 72.3kt of ore mined in December.”

Patriot Battery Metals (PMT): Outperform with $1.75 target price

  • “The equity raising is a positive which enables PMT to accelerate its exploration programs along the CV lithium trend.” 

  • “The recent metallurgical test work has confirmed that Dense Media Separation (DMS) is the most likely process route for Corvette.” 

  • “The release of the maiden resource estimate for Corvette by the end of June presents a key near-term catalyst for PMT.”


Scans

Top Gainers

Code Company Last % Chg
XSTDA Xstate Resources Ltd $0.012 +33.33%
EMN Euro Manganese Inc $0.275 +25.00%
IHR Intellihr Ltd $0.21 +23.53%
CLG Close the Loop Ltd $0.40 +21.21%
4DS 4DS Memory Ltd $0.052 +20.93%
View all top gainers

Top Fallers

Code Company Last % Chg
OSL Oncosil Medical Ltd $0.015 -51.61%
KLI Killi Resources Ltd $0.075 -25.00%
TNY Tinybeans Group Ltd $0.22 -24.14%
ENX Enegex Ltd $0.019 -24.00%
FIN FIN Resources Ltd $0.011 -21.43%
View all top fallers

52 Week Highs

Code Company Last % Chg
XSTDA Xstate Resources Ltd $0.012 +33.33%
IHR Intellihr Ltd $0.21 +23.53%
MDX Mindax Ltd $0.10 +11.11%
LAU Lindsay Australia... $0.89 +10.56%
NEU Neuren Pharmaceut... $13.145 +5.84%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
OSL Oncosil Medical Ltd $0.015 -51.61%
KLI Killi Resources Ltd $0.075 -25.00%
ENX Enegex Ltd $0.019 -24.00%
FIN FIN Resources Ltd $0.011 -21.43%
KAL Kalgoorlie Gold M... $0.05 -19.36%
View all 52 week lows

Near Highs

Code Company Last % Chg
CNEW Vaneck China New ... $7.58 0.00%
SEMI Global X Semicond... $9.78 +2.41%
RSG Resolute Mining Ltd $0.33 +4.76%
BILL Ishares Core Cash... $100.46 +0.01%
IGB Ishares Treasury ETF $99.88 -0.54%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
INIF Intelligent Inves... $2.78 -0.36%
AN3PI Australia and New... $100.43 +0.03%
OD6 OD6 Metals Ltd $0.205 +2.50%
MTS Metcash Ltd $3.79 +0.53%
IPX Iperionx Ltd $0.71 +1.43%
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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