Market Wraps

Evening Wrap: ASX 200 gains on rebound in mining and energy shares, takeovers, upcoming China stimulus in focus

Thu 10 Oct 24, 5:53pm (AEDT)

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Share article

The S&P/ASX 200 closed 35.6 points higher, up 0.44%.

A massive pop in Arcadium Lithium (ASX: LTM) shares helped inspire Aussie resources companies to a strong day of gains, but a modest rebound in the iron ore price in Singapore also helped.

Energy names were pretty good also, as investors begin to edge back into China stimulus names ahead of a key Ministry of Finance meeting this weekend.

Otherwise, it was a relatively quiet day, but if something did move - you can be sure it made our Evening Wrap! 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.

Also, I have detailed technical analysis on the S&P/ASX 200 in today's ChartWatch.

Let's dive in!


Today in Review

Thu 10 Oct 24, 4:58pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 8,223.0 +0.44%
All Ords 8,498.7 +0.50%
Small Ords 3,164.0 +1.06%
All Tech 3,555.3 +0.27%
Emerging Companies 2,322.1 +1.34%
Currency
AUD/USD 0.6734 +0.22%
US Futures
S&P 500 5,839.75 -0.03%
Dow Jones 42,813.0 -
Nasdaq 20,464.5 +0.00%
Name Value % Chg
Sector
Materials 17,585.7 +1.62%
Energy 9,283.8 +0.98%
Real Estate 4,034.4 +0.49%
Consumer Discretionary 3,818.4 +0.28%
Information Technology 2,717.9 +0.24%
Financials 8,225.9 +0.20%
Consumer Staples 12,450.4 -0.06%
Industrials 7,430.0 -0.14%
Communication Services 1,610.8 -0.19%
Health Care 45,168.9 -0.28%
Utilities 9,002.0 -0.86%

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Markets

XJO Intraday Chart 10 October 2024
ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished points higher at 8,223.0, 0.43% from its session low and 0.24% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by 166 to 107.

The main feature of today’s trade was definitely the welcome to return to recent form by the Resources (XJR) (+1.6%) and Energy (XEJ) (+1.0%) sectors. Everything pretty much paled into comparison compared to the 38.8% pop in Arcadium Lithium (ASX: LTM), after the final details of its acquisition by Rio Tinto (ASX: RIO) was made public yesterday evening after market close.

This boosted the prices of most other lithium stocks, but in many cases today's gains only recouped yesterday's losses...on some cases not even. These certainly are interesting times we live in for ASX resources companies, and it's worth checking out this article to better understand some of the key pressure points going forward.

Elsewhere in resources, a modest rebound in the iron ore price in Singapore also kick along the likes of BHP Group (ASX: BHP) (+0.62%), Fortescue (ASX: FMG) (+4.0%), and Champion Iron (ASX: CIA) (+3.4%).

Company

Last Price

Change $

Change %

1mo %

1yr %

Mineral Resources (MIN)

$51.18

+$3.24

+6.8%

+45.7%

-13.9%

Bellevue Gold (BGL)

$1.345

+$0.08

+6.3%

+17.5%

-2.2%

Liontown Resources (LTR)

$0.835

+$0.045

+5.7%

+21.0%

-71.7%

Macmahon (MAH)

$0.340

+$0.015

+4.6%

+3.0%

+119.4%

Firefly Metals (FFM)

$1.040

+$0.045

+4.5%

+25.3%

+131.1%

Resolute Mining (RSG)

$0.715

+$0.03

+4.4%

+11.7%

+98.6%

Stanmore Resources (SMR)

$3.13

+$0.13

+4.3%

+19.5%

-9.9%

Lynas Rare Earths (LYC)

$7.72

+$0.31

+4.2%

+12.4%

+20.8%

Regis Resources (RRL)

$2.07

+$0.08

+4.0%

+18.6%

+36.6%

Fortescue (FMG)

$19.73

+$0.76

+4.0%

+21.0%

-4.5%

Champion Iron (CIA)

$6.74

+$0.22

+3.4%

+23.9%

+12.7%

Coronado Global Resources (CRN)

$1.145

+$0.035

+3.2%

+26.5%

-33.0%

Boss Energy (BOE)

$3.42

+$0.1

+3.0%

+31.0%

-26.5%

Deterra Royalties (DRR)

$3.88

+$0.1

+2.6%

+10.5%

-17.4%

Emerald Resources (EMR)

$3.89

+$0.1

+2.6%

+1.6%

+55.6%

Yancoal Australia (YAL)

$6.24

+$0.16

+2.6%

+18.9%

+22.8%

Latin Resources (LRS)

$0.200

+$0.005

+2.6%

+11.1%

-23.1%

Cooper Energy (COE)

$0.200

+$0.005

+2.6%

+11.1%

+66.7%

Pilbara Minerals (PLS)

$2.92

+$0.07

+2.5%

+9.4%

-21.7%

Whitehaven Coal (WHC)

$7.18

+$0.17

+2.4%

+30.3%

+8.6%

Today's best stocks from today's strongest performing sectors

Real Estate Investment Trusts (XPJ) (+0.50%) bounced back, and was the only other major sector index to outperform the benchmark XJO.

At the other end of the spectrum, the Utilities (XUJ) (-0.86%) sector was really the only one you could really say did it tough today, but Health Care (XHJ) (-0.28%) wasn’t great either. .


ChartWatch

S&P/ASX 200 (XJO)

S&P-ASX 200 (XJO) chart 10 October 2024
Chipping away at overhead supply...

The last time we covered the XJO was in ChartWatch in the Evening Wrap on 7 October.

In that update, we noted the price was bouncing off the dynamic demand of the short term uptrend ribbon. I said “I see no reason to doubt the prevailing short and long term uptrend at this stage”.

Here we are with another three trading sessions under our belt and I see no reason to change this view. If the trend aint broke…something like that!

I’m still watching for signs of excess supply above here and into 8286. We don’t want to see the telltale signs of black-bodied candles and or long upward pointing shadows into that peak. Bigger picture, neither would we want to seek a lower peak to 8286 set, nor a close below the short term uptrend ribbon – the latter would kill the prevailing short term uptrend.


Economy

Today

  • There weren't any major data releases in our time zone today

Later this week

Thursday

  • 23:30 USA Core CPI September (+0.2% m/m for 3.1% p.a. forecast vs +0.3% m/m for 3.2% p.a. in August)

Friday

  • 23:30 USA Core PPI September (+0.2% m/m for 2.5% p.a. forecast vs +0.3% m/m for 2.5% p.a. in August)

Saturday

  • 01:00 USA Prelim UoM Consumer Sentiment September (70.5 forecast vs 70.1 August)


Latest News


Interesting Movers

Trading higher

  • +38.7% Arcadium Lithium (LTM) - RIO acquisition of Arcadium Lithium

  • +17.0% Brainchip (BRN) - No news, rise is consistent with prevailing short term trend, long term trend is transitioning from down to up (snagged an appearance for the first time in this cycle in ChartWatch Scans Uptrends list on Tuesday) 🔎📈

  • +6.8% Mineral Resources (MIN) - No news, generally stronger lithium sector today on RIO vs LTM news, but iron ore sector also generally stronger on rebound in commodity price in Singapore today

  • +6.3% Bellevue Gold (BGL) - No news.

  • +5.7% Liontown Resources (LTR) - Ditto general lithium sector strength today

  • +5.3% Hansen Technologies (HSN) - No news.

  • +5.2% Johns Lyng Group (JLG) - No news.

  • +4.6% Macmahon (MAH) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch Scans Uptrends list regular) 🔎📈

  • +4.5% Firefly Metals (FFM) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch Scans Uptrends list regular) 🔎📈

  • +4.4% Resolute Mining (RSG) - No news (ChartWatch Scans Uptrends list regular).

  • +4.2% Capstone Copper Corp. (CSC) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch Scans Uptrends list regular) 🔎📈

  • +4.2% Lynas Rare Earths (LYC) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch Scans Uptrends list regular) 🔎📈

  • +4.1% Botanix Pharmaceuticals (BOT) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch Scans Uptrends list regular) 🔎📈

  • +4.0% Regis Resources (RRL) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈

  • +4.0% Fortescue (FMG) - Ditto general iron ore sector strength today

Trading lower

  • -11.1% Metals Acquisition (MAC) - MAC Raises A$150 Million

  • -4.3% Clarity Pharmaceuticals (CU6) - No news, closed below short term uptrend ribbon ⚠️

  • -4.2% Droneshield (DRO) - No news, price action back to falling peaks and falling troughs ⚠️

  • -3.5% Spartan Resources (SPR) - No news, closed below short term uptrend ribbon and price action back to falling peaks and falling troughs ⚠️

  • -3.1% Tuas (TUA) - Change of Director's Interest Notice (on market sale)

  • -2.4% Fletcher Building (FBU) - No news, fall is consistent with prevailing long term downtrend, declining from long term downtrend ribbon


Broker Notes

  • Life360 (360)

    • Retained at overweight at Morgan Stanley; Price Target: $20.50

  • Ampol (ALD)

    • Retained at equal-weight at Morgan Stanley; Price Target: $33.00 from $34.00

  • Aristocrat Leisure (ALL)

    • Retained at neutral at Goldman Sachs; Price Target: $58.30 from $55.30

  • Austin Engineering (ANG)

    • Retained at buy at Shaw and Partners; Price Target: $0.70

  • ANZ Group (ANZ)

    • Retained at hold at Morgans; Price Target: $25.95 from $25.73

  • APA Group (APA)

    • Retained at equal-weight at Morgan Stanley; Price Target: $8.58

    • Retained at hold at Morgans; Price Target: $7.66 from $7.40

    • Downgraded to sell from neutral at UBS; Price Target: $6.60 from $8.05

  • Bellevue Gold (BGL)

    • Retained at buy at Goldman Sachs; Price Target: $1.80

  • BHP Group (BHP)

    • Retained at outperform at Macquarie; Price Target: $44.00

  • Beacon Lighting Group (BLX)

    • Retained at buy at Citi; Price Target: $3.12

  • Bank of Queensland (BOQ)

    • Retained at sell at Citi; Price Target: $5.05

    • Retained at hold at Morgans; Price Target: $6.01 from $6.18

  • Beach Energy (BPT)

    • Retained at underweight at Morgan Stanley; Price Target: $1.23 from $1.18

  • Commonwealth Bank of Australia (CBA)

    • Retained at reduce at Morgans; Price Target: $96.13 from $97.38

  • Collins Foods (CKF)

    • Initiated at sector perform at RBC Capital Markets; Price Target: $9.00

  • Close The Loop (CLG)

    • Retained at buy at Shaw and Partners; Price Target: $0.60

  • Capricorn Metals (CMM)

    • Retained at neutral at Goldman Sachs; Price Target: $6.15

  • Core Lithium (CXO)

    • Retained at neutral at Goldman Sachs; Price Target: $0.09 from $0.08

  • De Grey Mining (DEG)

    • Retained at buy at Goldman Sachs; Price Target: $1.65

  • Domino's Pizza Enterprises (DMP)

    • Initiated at outperform at RBC Capital Markets; Price Target: $42.00

  • Droneshield (DRO)

    • Downgraded to hold from buy at Bell Potter; Price Target: $1.35

  • Eureka Group (EGH)

    • Initiated at add at Morgans; Price Target: $0.76

  • Evolution Mining (EVN)

    • Retained at neutral at Goldman Sachs; Price Target: $4.55

  • Fortescue (FMG)

    • Retained at underperform at Macquarie; Price Target: $14.25

  • Graincorp (GNC)

    • Downgraded to hold from buy at Bell Potter; Price Target: $9.80 from $10.20

  • Gold Road Resources (GOR)

    • Retained at buy at Goldman Sachs; Price Target: $2.25

  • Guzman y Gomez (GYG)

    • Initiated at underperform at RBC Capital Markets; Price Target: $32.00

  • IGO (IGO)

    • Retained at buy at Goldman Sachs; Price Target: $6.40 from $6.35

  • Inghams Group (ING)

    • Initiated at sector perform at RBC Capital Markets; Price Target: $3.00

  • Judo Capital (JDO)

    • Retained at add at Morgans; Price Target: $1.92 from $1.65

  • Karoon Energy (KAR)

    • Retained at equal-weight at Morgan Stanley; Price Target: $1.99 from $1.98

  • Lendlease Group (LLC)

    • Retained at buy at Citi; Price Target: $8.00 from $7.10

  • Light & Wonder (LNW)

    • Retained at buy at Goldman Sachs; Price Target: $172.20 from $190.00

  • Arcadium Lithium (LTM)

    • Retained at buy at Citi; Price Target: $8.60 from $6.50

  • Liontown Resources (LTR)

    • Retained at neutral at Goldman Sachs; Price Target: $0.95 from $1.15

  • Mineral Resources (MIN)

    • Retained at neutral at Goldman Sachs; Price Target: $45.00

  • National Australia Bank (NAB)

    • Downgraded to reduce from hold at Morgans; Price Target: $31.61 from $32.61

  • Nick Scali (NCK)

    • Retained at buy at Citi; Price Target: $16.53

  • Newmont Corporation (NEM)

    • Retained at outperform at Macquarie; Price Target: $90.00

    • Retained at accumulate at Ord Minnett; Price Target: $80.00

  • Northern Star Resources (NST)

    • Retained at neutral at Goldman Sachs; Price Target: $16.30

  • Netwealth Group (NWL)

    • Retained at neutral at Citi; Price Target: $20.45

    • Downgraded to hold from accumulate at Ord Minnett; Price Target: $27.00 from $22.00

  • Origin Energy (ORG)

    • Retained at underweight at Morgan Stanley; Price Target: $8.86

  • Platinum Asset Management (PTM)

    • Retained at sell at Goldman Sachs; Price Target: $0.95

  • Qoria (QOR)

    • Retained at buy at Shaw and Partners; Price Target: $0.52

  • REA Group (REA)

    • Retained at buy at Bell Potter; Price Target: $239.00 from $226.00

    • Retained at buy at Citi; Price Target: $230.00

  • Rio Tinto (RIO)

    • Retained at neutral at Citi; Price Target: $123.00

    • Retained at buy at Goldman Sachs; Price Target: $137.90

    • Retained at outperform at Macquarie; Price Target: $120.00

    • Retained at overweight at Morgan Stanley; Price Target: $135.50

    • Retained at neutral at UBS; Price Target: $125.00

  • Regis Resources (RRL)

    • Retained at sell at Goldman Sachs; Price Target: $1.95

  • South32 (S32)

    • Retained at outperform at Macquarie; Price Target: $4.15

  • Santos (STO)

    • Retained at overweight at Morgan Stanley; Price Target: $8.08

  • The Lottery Corporation (TLC)

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

  • Treasury Wine Estates (TWE)

    • Retained at buy at Goldman Sachs; Price Target: $15.20

  • Viva Energy Group (VEA)

    • Retained at equal-weight at Morgan Stanley; Price Target: $3.33 from $3.42

  • Westpac Banking Corporation (WBC)

    • Retained at hold at Morgans; Price Target: $27.05 from $26.11

  • Woodside Energy Group (WDS)

    • Retained at equal-weight at Morgan Stanley; Price Target: $29.00 from $30.00


Scans

Top Gainers

Code Company Last % Chg
DBO Diablo Resources Ltd $0.025 +38.89%
LTM Arcadium Lithium Plc $8.20 +38.75%
VKA Viking Mines Ltd $0.011 +37.50%
ARC ARC Funds Ltd $0.115 +30.68%
SOR Strategic Element... $0.047 +30.56%
View all top gainers

Top Fallers

Code Company Last % Chg
ATV Activeport Group Ltd $0.02 -59.18%
ION Iondrive Ltd $0.011 -21.43%
PR1 Pure Resources Ltd $0.12 -20.00%
PLN Pioneer Lithium Ltd $0.135 -18.18%
AVC Auctus Investment... $0.505 -15.83%
View all top fallers

52 Week Highs

Code Company Last % Chg
RSH Respiri Ltd $0.056 +24.44%
AGR Aguia Resources Ltd $0.052 +20.93%
OCC Orthocell Ltd $0.665 +20.91%
PER Percheron Therape... $0.115 +15.00%
ILA Island Pharmaceut... $0.185 +12.12%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
ATV Activeport Group Ltd $0.02 -59.18%
AW1 American West Met... $0.095 -13.64%
CDR Codrus Minerals Ltd $0.02 -13.04%
D3E D3 Energy Ltd $0.125 -10.71%
E79 E79 Gold Mines Ltd $0.025 -10.71%
View all 52 week lows

Near Highs

Code Company Last % Chg
IHD Ishares S&P/ASX D... $14.19 -1.66%
PGC Paragon Care Ltd $0.48 -1.03%
HVN Harvey Norman Hol... $4.88 -0.61%
GLDN Ishares Physical ... $30.96 -0.26%
AMP AMP Ltd $1.315 -1.87%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SPK Spark New Zealand... $2.76 -2.13%
SMP Smartpay Holdings... $0.87 -2.25%
FAL Falcon Metals Ltd $0.155 -3.13%
NWSLV News Corporation $38.30 +0.08%
IAF Ishares Core Comp... $101.11 -0.97%
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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