Market Wraps

Evening Wrap: ASX 200 flat, IGO's surprise dividend, China's manufacturing PMI edges higher

Thu 31 Aug 23, 5:45pm (AEDT)

The S&P/ASX 200 closed 8 points higher, up 0.10%. 

The Index finishes the month of August down 1.3%, China's manufacturing PMI improves to 49.7 in August but remains in contraction, shares in IGO rally after the Board declare an unexpected surprise dividend and Citi's take on recent results.

Let's dive in.


Today in Review

Thu 31 Aug 23, 5:28pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,305.3 +0.10%
All Ords 7,517.8 +0.15%
Small Ords 2,847.0 -0.05%
All Tech 2,598.6 +0.74%
Emerging Companies 2,057.1 +0.97%
Currency
AUD/USD 0.6479 +0.07%
US Futures
S&P 500 $4,527.5 +0.07%
Dow Jones $35,044.0 +0.25%
Nasdaq $15,499.0 -0.01%
Name Value % Chg
Sector
Communication Services 1,548.6 +0.98%
Information Technology 1,871.4 +0.77%
Financials 6,414.3 +0.62%
Utilities 8,697.3 +0.38%
Materials 17,873.4 +0.37%
Consumer Discretionary 3,184.5 +0.34%
Real Estate 3,201.4 +0.29%
Health Care 40,228.3 +0.15%
Industrials 6,788.5 -0.82%
Consumer Staples 12,599.7 -1.44%
Energy 11,546.4 -2.67%

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

ASX 200 Session Chart

2023-08-31 17 29 42-S&P ASX 200 (LIVE DATA) Share Prices & Charts - Market Index
ASX 200 inches higher on Thursday (Source: Market Index)

Markets

A relatively short one today: The ASX 200 edged higher, extending its win streak to four. The rally is getting a little fatigued today, although several stocks were deceptively weak as the traded ex-dividend. This included heavyweight names like Woolworths, Tabcorp, Whitehaven Coal and Woodside.

The Index finished the tumultuous month down 1.3% versus historic averages of a 0.2% gain. We're heading into the seasonally weak month of September, where the ASX 200 has historically returned -1.20%. That said, we're heading into the month with China's issues in the rear view mirror (at least for now), positive macro data (cooler-than-expected Aussie inflation, softening US jobs data) and a recent reset in sentiment (CNN Fear & Greed Index at Neutral (51) from Extreme Greed (77) a month ago). Is a not-so-terrible September too much to ask for?

Economy

China’s Manufacturing PMI improved to 49.7 in August from 49.3 in the previous month.

  • Above consensus expectations of a rise to 49.4

  • The 50 point market separates expansion from contraction

  • “The survey results show that insufficient market demand is still the main problem that enterprises are facing, and the foundation for the recovery and development of the manufacturing industry needs to be further consolidated.” – Senior NBS Official Zhao Qinghe

China’s services PMI eased to 51 in August from 51.5 in the previous month.


Latest news


Interesting news and movers

Trading higher

  • +79.0% Healthia (HLA) – Takeover offer

  • +41.5% Dreadnought Resources (DRE) – Drill results

  • +17.3% 29Metals (29M) – Placement

  • +12.1% Mesoblast (MSB) – Earnings

  • +11.2% Dicker Data (DDR) – Upgraded by multiple brokers

  • +5.5% IGO (IGO) – Earnings, unexpected surprise dividend

  • +5.3% Temple & Webster (TPW)

  • +5.2% Harvey Norman (HVN) – Earnings

  • +5.1% EML Payments (EML) – Continuation rally, up 38% in last three

  • +2.4% Austal (ASB) – Earnings

  • +1.1% Tyro Payments (TYR) – Continuation rally, up 21% in last three

Trading lower

  • -24.2% Peninsula Energy (PEN) – Lance project revision

  • -22.7% Mayne Pharma (MYX) – Earnings

  • -21.1% Legend Mining (LEG) – Drilling update

  • -20.0% Next Science (NXS) – Earnings

  • -9.4% Whitehaven Coal (WHC) – Ex-dividend

  • -9.1% City Chic Collective (CCX) – Downgraded by multiple brokers

  • -8.2% Bigtincan (BTH) – Earnings

  • -6.1% Webjet (WEB) – Trading update

  • -5.3% Chalice Mining (CHN) – Continuation selloff

  • -2.0% Qantas (QAN) – ACCC launches legal action


Broker notes

Citi’s take on Brambles (BXB)

  • Downgraded to Neutral from Buy with $16.00 target ($15.15 at 30 Aug close)

  • “Year to date, BXB has outperformed circa ~30% as the combination of elevated issue fees, increasing pallet velocity and lower pooling capex has seen the company in the sweet spot of macro conditions.”

  • “Given limited traction in either net new wins or shape of the future benefits in 4Q23, a fair valuation and a high double digit earnings hurdle, we see the risk reward as more balanced and downgrade to Neutral.”

Citi’s take on NextDC (NXT)

  • Buy with $15.45 target ($13.33 at 30 Aug close)

  • “We lower our EBITDA forecasts by -5% to -13% to reflect i) slower than expected billing ramp; ii) lower gross margins due to power prices; and iii) higher opex driven by increased hiring as well as overheads from new sites.”

  • “However, with bookings stronger than expected we upgrade our medium to long-term earnings forecast and upgrade our target price by +4% to $15.45.”

  • “Reiterate Buy as we see the current demand cycle being driven by customers accelerating the move to the cloud, with AI demand-cycle yet to come.”


Scans 

Top Gainers

Code Company Last % Chg
HLA Healthia Ltd $1.745 +78.97%
DRE Dreadnought Resou... $0.058 +41.46%
NTM NT Minerals Ltd $0.011 +37.50%
NXD Nexted Group Ltd $1.06 +35.03%
CPM Cooper Metals Ltd $0.15 +25.00%
View all top gainers

Top Fallers

Code Company Last % Chg
CGO CPT Global Ltd $0.13 -39.54%
MPP Metro Performance... $0.096 -28.89%
ANO Advance Zinctek Ltd $0.815 -25.91%
PEN Peninsula Energy Ltd $0.091 -24.17%
MYX Mayne Pharma Grou... $3.67 -22.74%
View all top fallers

52 Week Highs

Code Company Last % Chg
ATP Atlas Pearls Ltd $0.053 +20.46%
ACM Australian Critic... $0.325 +14.04%
EGL Environmental Gro... $0.265 +10.42%
STP Step One Clothing... $0.59 +7.27%
COY Coppermoly Ltd $0.015 +7.14%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
CGO CPT Global Ltd $0.13 -39.54%
MPP Metro Performance... $0.096 -28.89%
ANO Advance Zinctek Ltd $0.815 -25.91%
PEN Peninsula Energy Ltd $0.091 -24.17%
LEG Legend Mining Ltd $0.03 -21.05%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.03 -0.48%
WVOL Ishares Edge MSCI... $36.81 -0.08%
WBCPI Westpac Banking C... $103.24 +0.03%
GCI Gryphon Capital I... $1.98 -0.50%
VVLU Vanguard Global V... $65.64 +0.21%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
AWC Alumina Ltd $1.08 +2.86%
RAC Race Oncology Ltd $0.795 -2.45%
PGC Paragon Care Ltd $0.19 -9.52%
OBL Omni Bridgeway Ltd $2.10 -3.23%
IRE Iress Ltd $6.40 -1.84%
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.