Market Wraps

Evening Wrap: ASX 200 flat after a big two days, Woodside rallies on OPEC production cut

Thu 06 Oct 22, 4:43pm (AEST)

The S&P/ASX 200 closed 2 points higher, up 0.03%.

A pretty quiet day for the local sharemarket after a massive run up earlier this week, oil stocks topped the leaderboards after OPEC's historic production cut and Appen issues its third profit downgrade in four months.

Let's dive in.


ASX close summary
ASX 200, All Ords and All Tech intraday overview

Markets

The ASX 200 closed pretty much flat without many catalysts to go off. This follows a whack session on Wall Street where the S&P 500 rallied from session lows of -1.8% to closed -0.20%.

Overall, there's not much to see. The ASX 200 had that massive +5.5% two-day rally earlier this week and now its digesting that move/waiting for the next catalyst.

  • 5 out of 11 sectors higher

  • Energy rallied an outsized 2.2% after OPEC agreed to cut output by 2 million barrels a day, sending oil prices higher

  • Staples, Discretionary and Real Estate sectors led to the downside

  • 48% of the top 200 declined

Announcements

  • Polynovo (ASX: PNV) +23.2% posted September quarter sales of $12.5m, up 73.3% compared to a year ago. This included the company’s first ever $5m sales month

  • PointsBet (ASX: PBH) +6.4% said its subsidiary Premier Turf Club entered into an agreement with one of North America’s dominant Thoroughbred horse racing companies for Advanced-deposit Wagering services 

  • Lake Resources (ASX: LKE) +2% signed a conditional framework agreement with WMC Energy for an offtake of up to 25,000 tpa of battery grade lithium plus a 10% equity stake in Lake at $1.20 per share

  • Boss Energy (ASX: BOE) +0.75% received approval from the South Australian Department of Energy and Mining to progress the restart of its Honeymoon Uranium Project

  • De Grey Mining (ASX: DEG) -2.75% successfully raised $130m at $1.00 per share, an 8.3% discount to its last closing price 

  • Magellan Financial (ASX: MFG) -8.4% posted an -11.6% month-on-month decline in funds under management to $50.9bn 

  • Appen (ASX: APX) -11.7% issued its third profit downgrade since July. Management expect earnings to be in the range of US$13-18m, down 77-84% compared to last year

Notable broker updates 

Economy

  • Australia recorded an $8.3bn trade surplus in August from $8.97bn in July

    • Exports rose $1.4bn driven by coal and briquettes

    • Imports rose $2.1bn driven by fuels and lubricants 

Commodities 

  • Iron ore futures +0.5% to US$95.5 a tonne

  • Copper +1.96% to US$3.57/lb

    • Up 8.7% in the last eight sessions

  • Aluminium +1.55% to US$2.385 a tonne

    • Up 12.3% in the last seven sessions


Latest news


Post market brief

A rather quiet day after some fireworks earlier this week. We've seen a lot of these relief rallies fizzle this year. The ASX 200 held up relatively well on Thursday. It needs to avoid those big distribution days we saw in the last 1-2 months.

US inflation data is due next Thursday, 13 October and that'll probably inspire a big move for global equity markets.

The S&P 500 fell -4.3% after the hotter-than-expected August reading but rallied 2.15% for cooler-than-expected July reading.

Index charts

S&P/ASX 200: Nothing much to see here. Holding above the 50-day moving average. More data is needed.

xjo chart
XJO chart (Source: TradingView)

S&P/ASX 200 Energy: V-shaped rally, further fuelled by OPEC's production cuts. Goldman raised its Q4 oil price forecast by US$10 to US$110 a barrel. Do we see some resistance at September highs or does it just push through?

xej chart
XEJ chart (Source: TradingView)

S&P/ASX 200 Materials: Getting close to the 200-day and trendline. China is back from its 1-7 October national holiday next week.

xmj chart
XMJ chart (Source: TradingView)

Scans

Top Gainers

Code Company Last % Chg
WML Woomera Mining Ltd $0.023 +53.33%
BYI Beyond Internatio... $0.75 +50.00%
VAR Variscan Mines Ltd $0.028 +33.33%
KGD Kula Gold Ltd $0.035 +29.63%
ALY Alchemy Resources... $0.033 +26.92%
View all top gainers

Top Fallers

Code Company Last % Chg
BPM BPM Minerals Ltd $0.11 -18.52%
ENV Enova Mining Ltd $0.014 -17.65%
HPP Health and Plant ... $0.063 -16.00%
DLT Delta Drone Inter... $0.011 -15.39%
BXN Bioxyne Ltd $0.024 -14.29%
View all top fallers

52 Week Highs

Code Company Last % Chg
BYI Beyond Internatio... $0.75 +50.00%
XTE Xtek Ltd $0.51 +9.68%
DRM Demetallica Ltd $0.335 +8.07%
WHC Whitehaven Coal Ltd $10.46 +7.17%
PLS Pilbara Minerals Ltd $5.40 +5.68%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
ENV Enova Mining Ltd $0.014 -17.65%
HPP Health and Plant ... $0.063 -16.00%
MVL Marvel Gold Ltd $0.024 -14.29%
IAM Income Asset Mana... $0.13 -13.33%
BGE Bridge Saas Ltd $0.175 -12.50%
View all 52 week lows

Near Highs

Code Company Last % Chg
ETPMPM Global X Metal Se... $214.44 -0.69%
BILL Ishares Core Cash... $100.46 +0.04%
AMP AMP Ltd $1.165 0.00%
IIND Betashares India ... $10.46 -0.29%
IGB Ishares Treasury ETF $97.09 -0.71%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SXE Southern Cross El... $0.63 -0.79%
NC1 Nico Resources Ltd $0.63 +18.87%
MME Moneyme Ltd $0.35 -2.78%
AOF Australian Unity ... $1.27 -1.17%
ALX Atlas Arteria $6.31 +0.80%
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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