Market Wraps

Evening Wrap: ASX 200 gains despite disturbing inflation report, gold and consumer stocks lead, uranium, lithium and coal stocks lag

Wed 27 Nov 24, 6:16pm (AEDT)

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Share article

The S&P/ASX 200 closed 47.3 points higher, up 0.57%.

Stocks go up and stocks go down. We know that bit. Generally, they tend to go up on good news and down on bad. So today was encouraging given Aussie stocks digested a rather nasty October inflation report – and still went up.

Having said that, there's plenty of news driving local stock prices at the moment, including the fallout from yesterday's announcement of the first round of President-elect Trump's new tariffs, as well as today's modest de-escalation of part of the conflict in the Middle East.

On the first point, US stocks largely shrugged off the tariff news, and on the second, lower crude oil prices and a smidge less uncertainty for markets generally meant we enjoyed a modest relief rally today.

Gold stocks bounced back, but consumer focussed, telecommunications and techonology, financial, and real estate stocks also prospered. Laggards? Not many, Energy stocks weren't great – particularly coal and uranium plays, and Healthcare ended with only a tiny gain.

Click/scroll through for the usual reporting of the major sector and stock-specific moves, the broker responses to them, as well as all of the key upcoming economic data in tonight's Evening Wrap.

Also, I have detailed technical analysis on the major ASX Sectors in today's ChartWatch.

Let's dive in!


Today in Review

Wed 27 Nov 24, 5:15pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 8,406.7 +0.57%
All Ords 8,659.6 +0.55%
Small Ords 3,179.8 +0.68%
All Tech 3,915.3 +0.60%
Emerging Companies 2,288.0 +0.16%
Currency
AUD/USD 0.6473 -0.03%
US Futures
S&P 500 6,036.25 -0.03%
Dow Jones 44,969.0 +0.04%
Nasdaq 20,962.25 -0.15%
Name Value % Chg
Sector
Consumer Discretionary 3,944.4 +1.03%
Communication Services 1,702.6 +0.87%
Financials 8,944.6 +0.84%
Information Technology 2,846.8 +0.75%
Real Estate 4,079.1 +0.74%
Utilities 9,056.8 +0.72%
Industrials 7,732.7 +0.39%
Consumer Staples 11,702.9 +0.39%
Energy 8,621.5 +0.25%
Materials 16,715.7 +0.17%
Health Care 45,197.7 +0.02%

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Markets

XJO Intraday Chart 27 November 2024
ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 47.3 points higher at 8,406.7, 0.57% from its session low and just 0.13% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by a tidy 184 to 90.

The Gold (XGD) (+2.0%) sub-index rebounded today on a modest rise in the gold price in Asia (but only a dead cat bounce in the US overnight versus Monday's big dip – see yesterday's ChartWatch for details).

A worse than expected October CPI report, that showed a worrying uptick in underlying inflation (to +3.5% p.a. from +3.2% p.a. in September), did little to sink consumer Consumer Discretionary (XDJ) (+1.0%), nor the rest of the market for that matter.

Interest rate sensitives / high-PE sectors like Communication Services (XTJ) (+0.87%) and Information Technology (XIJ) (+0.75%), and bond market proxies like Real Estate (XRE) (+0.75%) and Utilities (XUJ) (+0.72%), also did well. Financials (XFJ) (+0.84%) rebounded from yesterday's rout.

Most likely, investors are balancing that stronger than expected October inflation result against major external factors like Trump's tariffs, plus a welcome de-escalation of the conflict in the Middle East. The latter pushed the prices of key energy commodities lower on Tuesday, and this triggered weakness in several of our oil and gas, coal, and uranium stocks.

Materials (XMJ) (+0.17%) more generally also underperformed the benchmark S&P/ASX 200 today, as did the Health Care (XHJ) (+0.02%) sector, but both sectors (indeed all 11 major ASX sectors) still managed to scrape in with a gain.

I have a full wrap of strongest versus weakest sectors for you in ChartWatch below.

Company

Last Price

Change $

Change %

1mo %

1yr %

WEB Travel (WEB)

$4.80

+$0.57

+13.5%

+19.4%

-17.4%

Qoria (QOR)

$0.465

+$0.05

+12.0%

+10.7%

+106.7%

Brainchip (BRN)

$0.265

+$0.025

+10.4%

+15.2%

+43.2%

PYC Therapeutics (PYC)

$2.00

+$0.13

+7.0%

+14.3%

+162.8%

Life360 (360)

$24.70

+$1.45

+6.2%

+10.9%

+224.6%

Ora Banda Mining (OBM)

$0.700

+$0.035

+5.3%

-24.7%

+268.4%

Aussie Broadband (ABB)

$3.75

+$0.17

+4.7%

-0.3%

-0.3%

Chalice Mining (CHN)

$1.390

+$0.06

+4.5%

-25.1%

-10.3%

Ampol (ALD)

$29.64

+$1.24

+4.4%

+4.7%

-11.7%

Lendlease Group (LLC)

$7.11

+$0.27

+3.9%

+5.2%

+10.2%

Polynovo (PNV)

$2.14

+$0.08

+3.9%

+2.4%

+58.5%

Catapult Group International (CAT)

$3.51

+$0.13

+3.8%

+43.3%

+209.3%

Tabcorp (TAH)

$0.540

+$0.02

+3.8%

+12.5%

-27.0%

Domino's Pizza Enterprises (DMP)

$32.55

+$1.2

+3.8%

-9.1%

-37.4%

Genesis Minerals (GMD)

$2.52

+$0.09

+3.7%

+2.0%

+48.7%

Clarity Pharmaceuticals (CU6)

$5.95

+$0.2

+3.5%

-17.0%

+350.5%

TPG Telecom (TPG)

$4.50

+$0.15

+3.4%

-0.9%

-3.4%

Premier Investments (PMV)

$35.23

+$1.14

+3.3%

+3.8%

+49.2%

The A2 Milk Company (A2M)

$5.71

+$0.18

+3.3%

-2.1%

+45.3%

Mesoblast (MSB)

$1.760

+$0.055

+3.2%

+29.4%

+370.0%

AUB Group (AUB)

$32.08

+$1.

+3.2%

+0.6%

+15.8%

Spark New Zealand (SPK)

$2.68

+$0.08

+3.1%

-1.1%

-42.6%

Jumbo Interactive (JIN)

$14.13

+$0.41

+3.0%

+8.9%

+4.1%

Lovisa (LOV)

$28.47

+$0.79

+2.9%

-1.6%

+55.7%

Nuix (NXL)

$6.34

+$0.17

+2.8%

-12.2%

+296.3%

Today's strongest performing ASX stocks

Company

Last Price

Change $

Change %

1mo %

1yr %

Vulcan Energy Resources (VUL)

$7.40

-$0.74

-9.1%

+38.8%

+226.0%

WA1 Resources (WA1)

$16.05

-$0.94

-5.5%

+16.6%

+95.3%

Pinnacle Investment Management Group (PNI)

$23.16

-$1.24

-5.1%

+18.9%

+159.9%

Silex Systems (SLX)

$5.71

-$0.25

-4.2%

+15.1%

+70.4%

Weebit Nano (WBT)

$2.67

-$0.1

-3.6%

+38.7%

-23.9%

Yancoal Australia (YAL)

$6.19

-$0.21

-3.3%

-6.8%

+23.6%

Fleetpartners Group (FPR)

$3.15

-$0.1

-3.1%

+3.6%

+15.4%

Boss Energy (BOE)

$2.84

-$0.09

-3.1%

-17.0%

-34.3%

Bluescope Steel (BSL)

$21.76

-$0.67

-3.0%

+3.2%

+7.7%

MA Financial Group (MAF)

$6.26

-$0.19

-2.9%

-2.2%

+21.8%

Graincorp (GNC)

$7.69

-$0.22

-2.8%

-15.4%

+2.5%

Zip Co. (ZIP)

$3.26

-$0.09

-2.7%

+4.5%

+769.3%

Bravura Solutions (BVS)

$1.540

-$0.035

-2.2%

+2.0%

+106.7%

GQG Partners (GQG)

$2.24

-$0.05

-2.2%

-18.5%

+60.0%

Whitehaven Coal (WHC)

$6.56

-$0.14

-2.1%

-5.7%

-9.9%

James Hardie Industries (JHX)

$56.40

-$1.2

-2.1%

+10.0%

+20.5%

Nufarm (NUF)

$3.87

-$0.08

-2.0%

+1.8%

-17.0%

Gentrack Group (GTK)

$11.81

-$0.23

-1.9%

+29.2%

+154.5%

Rpmglobal (RUL)

$3.10

-$0.06

-1.9%

+5.1%

+102.6%

Sims (SGM)

$12.94

-$0.24

-1.8%

+0.5%

-5.6%

Credit Corp Group (CCP)

$17.77

-$0.31

-1.7%

+3.0%

+39.9%

Pilbara Minerals (PLS)

$2.43

-$0.04

-1.6%

-14.7%

-33.2%

Qantas Airways (QAN)

$8.80

-$0.14

-1.6%

+8.2%

+67.3%

Paladin Energy (PDN)

$8.17

-$0.13

-1.6%

-17.1%

-19.1%

Arcadium Lithium (LTM)

$8.04

-$0.11

-1.4%

-3.1%

0%

Today's weakest ASX stocks

ChartWatch

S&P/ASX 200 (XJO)

S&P-ASX 200 Sector Indices Relative Total Return last 12-months
S&P-ASX 200 Sector Indices Relative Total Return last 12-months (click here for full size image)

I ran this chart in my article on 4 of the ASX's most highflying tech stocks today. If you're interested in technical analysis, or just want a different view on how to interpret strong charts - then it's a must read.

What strikes me the most in the chart above, is it really does torpedo the investing concept of buy and hold. Or as I like to call it, buy, hold, hope and pray. That is, hope and pray that the stocks you're holding end up being the ones that don't tank over the next 12 months!

Within any stock market, especially our own, there are always going to be stocks and sectors that are outperforming in the present micro and macroeconomic environment – and those that aren't.

Your job as an investor, is to try and do your best to ensure that you hold as many of the winners as possible and dump or avoid as many of the losers as possible. Either you pay someone to do this for you, or you take on the responsibility yourself.

But for me, buying a bunch of stocks on Day 1 and holding on in hope that by Day 365 they're the best performers, is simply not an option.

With this in mind, let's do a super-quick run through the charts of the 11 major ASX sectors plus the Gold sub-index. I've put them into 3 groups: Demand-side Control, Equilibrium, and Supply-side Control.

Demand-side Control Group

S&P-ASX 200 Consumer Discretionary Sector Index Chart 27 November 2024S&P-ASX 200 Financials Sector Index Chart 27 November 2024S&P-ASX 200 Information Technology Sector Index Chart 27 November 2024S&P-ASX 200 Industrials Sector Index Chart 27 November 2024S&P-ASX 200 Communication Services Sector Index Chart 27 November 2024
Demand-side control group

5 very strong charts here. Perhaps financials and tech are showing a recent supply-side candle or two, but in neither case do I believe the well-established and strong short and long term uptrends shouldn't be trusted. As you peruse these groups, it will become clear to you the sectors the big fund managers are favouring and those that are being shunned.

You know me – I am a trend follower, not a prognosticator. I have no idea which sectors will fall into the demand-equilibrium-and-supply-side groups 365 days from now. Nor do I really care. I will follow the trends as they stand today, comforted by the fact that when the fingerprints of supply do eventually take a grip – I'll know exactly how to act.

Equilibrium Group

S&P-ASX All Ordinaries Gold SubInd Index Chart 27 November 2024S&P-ASX 200 Health Care Sector Index Chart 27 November 2024S&P-ASX 200 A-REIT Index Chart 27 November 2024S&P-ASX 200 Utilities Sector Index Chart 27 November 2024
Equilibrium group

Gold is a relatively new entrant to this group – and despite today's bounce – thoroughly deserves to be here. Property is the closest to making the leap up to the Demand-side Control cohort, whilst Health Care and Utilities look very much stuck in the middle.

Supply-side Control Group

S&P-ASX 200 Consumer Staples Sector Index Chart 27 November 2024S&P-ASX 200 Energy Sector Index Chart 27 November 2024S&P-ASX 200 Resources Index Chart 27 November 2024
Supply-side control group

For those of you who have kept the faith in Energy and Resources (remember the "pray" part of the buy, hold, hope and pray technique?), looking at the charts above – you've no doubt been disappointed. These charts have been in decline for some time now, so this means you've had plenty of heads-up to act!

Looking forward, I'll let you decide whether the trends, price action, and candles are pointing to greater or lesser supply-side control in these charts. If in doubt about how my technical model works, check the Primer.

Staples is showing some signs of life, and whilst a gargantuan effort is still required to neutralise the long term downtrend, it is the closest of the three to moving up into the Equilibrium group.


Economy

Today

  • AUS Consumer Price Index (CPI) October

    • Headline: +2.1% p.a. vs +2.1% p.a. in September

    • Trimmed Mean: +3.5% p.a. vs +3.2% in September

    • Ignore the headline, it was skewed by government electricity bill credits (-35.6% p.a. change)

    • Only the trimmed mean matters and it went substantially in the wrong direction / remains stubbornly above the RBA's 2-3% target range

    • Food and beverages +3.3% p.a. (steady but Fruit and Vegetables +8.5% p.a.), Rents +6.7% p.a. (up from 6.6% p.a.), and Insurance +6.3% p.a. (up from +6.1% p.a.) still places Aussies are getting gouged with price increases going to be firmly on RBA's radar

    • Market response will be to push further out timing for first rate cut, was slated as June 2025 prior to this data.

    • (FYI, our Kiwi cousins enjoyed a 0.50% cut today to take their RBNZ official cash rate to 4.25% - now below the RBA's 4.35%)

Later this week

Thursday

  • 00:30 USA Preliminary Gross Domestic Product (GDP) September Quarter (+2.8% p.a. forecast vs +2.8% p.a. previous)

  • 00:30 USA Core Durable Goods Orders October (+0.2% m/m forecast vs +0.5% m/m in September)

  • 02:00 USA Core Personal Consumption Expenditures (PCE) Price Index October (+0.3% m/m and +2.8% p.a. forecast vs +0.3% m/m and +2.7% p.a. in September)

  • 06:00 FOMC Minutes from its November meeting

  • 19:55 AUD RBA Gov Bullock Speaks

Friday

  • 00:00 JPN Tokyo Core CPI November (+2.0% p.a. forecast vs +1.8% p.a. in October)

  • All Day USA Thanksgiving Public Holiday

Saturday

  • 12:30 CHN Manufacturing and Non-Manufacturing (Services) Purchasing Managers Index (PMI) November (Manufacturing: 50.3 forecast vs 50.1 in October; Services: 50.2 forecast vs 50.2 in October)


Latest News


Interesting Movers

Trading higher

Trading lower

  • -21.8% Novonix (NVX) - The price finally went up, so that means a capital raise…at a near-40% discount. Insto's only mind you. Masterful. See Successful Completion of Institutional Placement.

  • -9.1% Vulcan Energy Resources (VUL) - Vulcan announces Board appointments and committee changes, pullback after recent strong rally.

  • -7.4% Galan Lithium (GLN) - No news, generally tough day (week, month, year?) for ASX lithium stocks, fall is consistent with prevailing short and long term downtrends 🔎📈

  • -5.5% WA1 Resources (WA1) - No news, consistent with recent share price volatility (has rallied strongly last few days)

  • -5.1% Pinnacle Investment Management Group (PNI) - Share Purchase Plan

  • -4.2% Silex Systems (SLX) - GLE Acquires Paducah, KY Property for the PLEF, but also generally tough day for ASX lithium stocks (could do the week and few months jibe here also)

  • -4.1% Lotus Resources (LOT) - No news, ditto uranium, fall is consistent with prevailing short and long term downtrends, a regular in ChartWatch ASX Daily Scans Downtrends list 🔎📈

  • -3.6% Weebit Nano (WBT) - 2024 AGM Chair Address and CEO Presentation

  • -3.3% Yancoal Australia (YAL) - No news, continued uncertainty over whether acquisition of Anglo American's QLD coal assets will proceed, but generally tough day for ASX coal stocks, likely due to falling coking and thermal coal prices

  • -3.1% Boss Energy (BOE) - No news, ditto uranium, fall is consistent with prevailing short and long term downtrends, a regular in ChartWatch ASX Daily Scans Downtrends list 🔎📈


Broker Notes

  • Australian Clinical Labs (ACL)

    • Retained at buy at Citi; Price Target: $3.60

  • Air New Zealand (AIZ)

    • Retained at outperform at Macquarie; Price Target: $0.79 from $0.69

  • ARB Corporation (ARB)

    • Retained at buy at Citi; Price Target: $50.00

  • Aroa Biosurgery (ARX)

    • Retained at buy at Bell Potter; Price Target: $0.90

    • Retained at add at Morgans; Price Target: $1.05

  • ASX (ASX)

    • Retained at neutral at Citi; Price Target: $62.30

    • Retained at hold at CLSA; Price Target: $61.90 from $61.50

    • Retained at neutral at Jarden; Price Target: $62.25

    • Retained at neutral at JP Morgan; Price Target: $60.00

    • Retained at equal-weight at Morgan Stanley; Price Target: $58.00

    • Retained at sell at UBS; Price Target: $64.15 from $57.00

  • Brickworks (BKW)

    • Retained at neutral at Macquarie; Price Target: $27.70 from $27.40

    • Retained at accumulate at Ord Minnett; Price Target: $31.00

  • Brazilian Rare Earths (BRE)

    • Retained at buy at Ord Minnett; Price Target: $5.50 from $7.00

  • Brightstar Resources (BTR)

    • Retained at buy at Canaccord Genuity; Price Target: $0.06

  • Capitol Health (CAJ)

    • Retained at hold at Bell Potter; Price Target: $0.33

  • Centuria Office Reit (COF)

    • Retained at hold at Bell Potter; Price Target: $1.25

  • Endeavour Group (EDV)

    • Retained at neutral at Citi; Price Target: $4.89

  • EML Payments (EML)

    • Upgraded to outperform from sector perform at RBC Capital Markets; Price Target: $1.20 from $0.90

  • Eroad (ERD)

    • Retained at buy at Shaw and Partners; Price Target: $1.40 from $1.50

  • Gentrack Group (GTK)

    • Retained at buy at Bell Potter; Price Target: $13.90 from $11.50

    • Retained at overweight at Morgan Stanley; Price Target: $13.50 from $18.20

    • Retained at buy at Shaw and Partners; Price Target: $11.80 from $10.00

  • Healius (HLS)

    • Retained at buy at Citi; Price Target: $1.05

  • Hub24 (HUB)

    • Retained at neutral at Citi; Price Target: $56.70

  • Harvey Norman (HVN)

    • Retained at buy at Citi; Price Target: $5.50

  • IVE Group (IGL)

    • Retained at buy at Bell Potter; Price Target: $2.70

  • Monash IVF Group (MVF)

    • Retained at buy at Bell Potter; Price Target: $1.85

  • Newmont Corporation (NEM)

    • Retained at outperform at Macquarie; Price Target: $82.00

  • Nobleoak Life (NOL)

    • Retained at buy at Shaw and Partners; Price Target: $2.85

  • Netwealth Group (NWL)

    • Retained at neutral at Citi; Price Target: $27.00

  • Qantas Airways (QAN)

    • Retained at overweight at Morgan Stanley; Price Target: $10.50

    • Downgraded to neutral from buy at UBS; Price Target: $9.00 from $8.60

  • QBE Insurance Group (QBE)

    • Retained at buy at Citi; Price Target: $19.30

    • Retained at outperform at Macquarie; Price Target: $20.80

    • Retained at buy at UBS; Price Target: $21.50 from $20.50

  • Regis Healthcare (REG)

    • Retained at outperform at Macquarie; Price Target: $7.25 from $6.50

  • Ramsay Health Care (RHC)

    • Retained at neutral at Citi; Price Target: $42.00

    • Retained at neutral at Macquarie; Price Target: $42.75 from $45.75

  • Scentre Group (SCG)

    • Retained at overweight at Morgan Stanley; Price Target: $4.35

  • Sonic Healthcare (SHL)

    • Retained at hold at Citi; Price Target: $27.00

  • Smartpay (SMP)

    • Retained at buy at Shaw and Partners; Price Target: $1.10 from $1.20

  • The Lottery Corporation (TLC)

    • Upgraded to buy from hold at Jefferies; Price Target: $5.80 from $5.09

  • WEB Travel Group (WEB)

    • Retained at neutral at Citi; Price Target: $5.55

    • Retained at buy at UBS; Price Target: $5.60

  • Webjet (WJL)

    • Retained at buy at Goldman Sachs; Price Target: $1.10 from $1.05

    • Upgraded to buy from hold at Jefferies; Price Target: $1.10 from $0.95

    • Retained at overweight at JP Morgan; Price Target: $1.10 from $1.20

    • Retained at add at Morgans; Price Target: $1.05 from $0.95

    • Initiated at buy at Ord Minnett; Price Target: $1.32

    • Retained at outperform at RBC Capital Markets; Price Target: $1.30


Scans

Top Gainers

Code Company Last % Chg
SOM Somnomed Ltd $0.395 +46.30%
G50 G50 Corp Ltd $0.20 +37.93%
NAG Nagambie Resource... $0.023 +35.29%
ILA Island Pharmaceut... $0.215 +30.30%
BXN Bioxyne Ltd $0.018 +28.57%
View all top gainers

Top Fallers

Code Company Last % Chg
AIV Activex Ltd $0.011 -31.25%
CCX City Chic Collect... $0.099 -26.67%
BDG Black Dragon Gold... $0.039 -22.00%
NVX Novonix Ltd $0.755 -21.76%
IVXDB Invion Ltd $0.12 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
ILA Island Pharmaceut... $0.215 +30.30%
OCC Orthocell Ltd $0.805 +25.78%
IGNDA Ignite Ltd $0.405 +22.73%
IMR Imricor Medical S... $1.07 +21.59%
PHO Phosco Ltd $0.079 +12.86%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
IVXDB Invion Ltd $0.12 -20.00%
BKT Black Rock Mining... $0.037 -19.57%
CSS Clean Seas Seafoo... $0.15 -18.92%
DM1 Desert Metals Ltd $0.018 -18.18%
NOR Norwood Systems Ltd $0.028 -15.15%
View all 52 week lows

Near Highs

Code Company Last % Chg
EP1 E&P Financial Gro... $0.51 +3.03%
NDIA Global X India Ni... $76.94 +0.05%
SMLL Betashares Aust S... $3.67 +0.27%
GLPR Ishares Ftse GBL ... $28.10 +0.25%
AN3PI Australia and New... $104.90 +0.50%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
MQGPF Macquarie Group Ltd $105.30 -0.17%
RSG Resolute Mining Ltd $0.395 +1.28%
SMP Smartpay Holdings... $0.535 -4.46%
IPG Ipd Group Ltd $3.91 +4.27%
EGL Environmental Gro... $0.275 +1.85%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience, helping investors navigate several bull and bear markets over this time. He is a well respected markets commentator who specialises in how the global macro impacts Australian and US equities. Carl has a passion for technical analysis and has taught his unique brand of price-action trend following to thousands of Aussie investors.

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