Market Wraps

Evening Wrap: ASX 200 flat, lithium stocks rally on Allkem merger, China has a deflation problem

Thu 11 May 23, 5:08pm (AEST)

 The S&P/ASX 200 closed 4 points lower, down -0.05%. 

Another uneventful and choppy session for the ASX 200, the tech index rallies to levels not seen since August 2022, lithium stocks experience a broad-based rally following Allkem's merger announcement with Livent, China's inflation comes in at just 0.1% year-on-year in April while producer prices were negative.

Let's dive in.


Today in Review

Thu 11 May 23, 4:35pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,251.9 -0.05%
All Ords 7,449.7 -0.04%
Small Ords 2,915.2 +0.19%
All Tech 2,273.5 +0.99%
Emerging Companies 2,125.9 +0.33%
Currency
AUD/USD 0.6768 -0.18%
US Futures
S&P 500 $4,161.0 +0.22%
Dow Jones $33,622.0 +0.06%
Nasdaq $13,434.25 +0.18%
Name Value % Chg
Sector
Information Technology 1,596.8 +1.44%
Communication Services 1,555.4 +0.75%
Consumer Discretionary 3,071.5 +0.27%
Real Estate 3,168.9 +0.25%
Consumer Staples 13,383.7 +0.12%
Energy 10,673.1 +0.11%
Financials 6,158.1 -0.02%
Industrials 6,880.2 -0.11%
Health Care 44,252.3 -0.19%
Materials 18,013.1 -0.45%
Utilities 8,559.9 -1.10%

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ASX 200 Session Chart

ASX 200 intraday chart
Another choppy day with the ASX 200 closing slightly lower (Source: Market Index)

Markets

Another choppy day for the ASX 200, closing slightly lower for a third straight session. Technology stocks continue to catch a bid, in-line with the strength we're seeing with the Nasdaq. Lithium was a major highlight for the day, with most names up at least 5% after the Allkem-Livent merger announcement. This was offset by weakness across major iron ore miners BHP (-1.0%), Rio Tinto (-1.7%) and Fortescue (-2.0%) as well as broad-based weakness across Utilities names like Origin Energy (-0.7%) and AGL (-0.9%).

Economy

China’s inflation rate fell to 0.1% year-on-year in April from 0.7% in March.

  • Well below analyst expectations of 0.4%

  • Declines in food inflation pushed the index below 1.0% for the first time in more than a year and raises concerns about deflation 

  • Core inflation, which excludes food and energy, remained steady at 0.7% year-on-year

China’s producer price index fell 3.6% year-on-year in April after dropping 2.5% in March.

  • Below analyst expectations of a 3.2% decline

  • Marks the seventh consecutive decline

  • Producer prices are falling at the fastest rate since May 2020


Latest news


Market Insights: Oh lithium

What a crazy day and time it is for the lithium sector.

When spot prices were under pressure, Albemarle lobbed a few low ball offers at Liontown. When spot prices started to recover ... well ... lithium stocks also started to recover.

Allkem experienced its highest turnover ever, with 17.9 million shares traded. It closed 15.7% higher, which was a little off session highs of 18.6%.

In terms of other lithium stocks that performed well:

  • Brine players in Argentina: Lake Resource s (+12.8%), Galan Lithium (+21.9%)

  • Hardrock players in Aus: Global Lithium (+12.0%), Core Lithium (+8.8%), Pilbara (+5.1%)

  • Hardrock players in Canada: Patriot Battery (+12.0%), Winsome (+7.5%)

And things that didn't perform well:

  • Leo Lithium (-1.6%) which has a hardrock project in Mali

  • Arizona Lithium (-2.2%) which has been on a massive slide since February

  • Vulcan Energy (-3.5%) which completed a capital raise last Friday


Interesting news and movers

Trading higher

  • +6.7% Frontier Digital (FDV) – Completes SPP

  • +10.0% Graincorp (GNC) – Earnings

  • +6.7% Pointsbet (PBH)

  • +1.8% Alpha HPA (A4N) – Continuation rally, up 11% in previous three

  • Lithium sector move: Galan Lithium (+21.9%), Allkem (+15.7%), Lake Resources (+12.8%), Global Lithium (+12.0%), Patriot Battery Metals (+12.0%), Core Lithium (+8.8%)

Trading lower

  • -5.4% Genesis Minerals (GMD) – SLR revised bid for SBM assets

  • -3.9% Block (SQ2)

  • -3.8% Novonix (NVX)

  • -2.8% CSR (CSR) – Downgraded by multiple brokers


Broker notes

Broker notes are not available today.


Scans

Top Gainers

Code Company Last % Chg
BMO Bastion Minerals Ltd $0.03 +42.86%
8VI 8VI Holdings Ltd $0.70 +41.41%
FTC Fintech Chain Ltd $0.015 +36.36%
HMG Hamelin Gold Ltd $0.15 +36.36%
HCT Holista Colltech Ltd $0.017 +30.77%
View all top gainers

Top Fallers

Code Company Last % Chg
APC Australian Potash... $0.012 -36.11%
AHF Australian Dairy ... $0.02 -20.00%
PEC Perpetual Resourc... $0.012 -20.00%
DAF Discovery Alaska Ltd $0.043 -18.87%
CMO Cosmo Metals Ltd $0.10 -16.67%
View all top fallers

52 Week Highs

Code Company Last % Chg
1TT Thrive Tribe Tech... $0.023 +15.00%
AFA Asf Group Ltd $0.053 +12.77%
AZS AZURE Minerals Ltd $0.50 +12.36%
MXI Maxiparts Ltd $2.45 +3.81%
TLX TELIX Pharmaceuti... $11.285 +3.06%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
APC Australian Potash... $0.012 -36.11%
AHF Australian Dairy ... $0.02 -20.00%
PEC Perpetual Resourc... $0.012 -20.00%
CMO Cosmo Metals Ltd $0.10 -16.67%
YOJ Yojee Ltd $0.015 -16.67%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.00 +2.04%
WVOL Ishares Edge MSCI... $36.28 +0.03%
SWTZ Switzer Dividend ... $2.57 0.00%
PMGOLD Gold Corporation $29.93 -0.03%
VLUE Vaneck MSCI Inter... $22.76 -0.26%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SM1 Synlait Milk Ltd $1.35 +0.37%
DGL DGL Group Ltd $1.29 -2.27%
AEE Aura Energy Ltd $0.19 +2.70%
CNEW Vaneck China New ... $7.26 +0.28%
OML Ooh!Media Ltd $1.26 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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