Market Wraps

Evening Wrap: ASX 200 higher as lithium, uranium stocks soar

Tue 21 Nov 23, 6:02pm (AEST)

The S&P/ASX 200 closed 19.8 points higher, up 0.28%.

Sometimes things which happen in the markets make perfect sense, for example, the surge in uranium stocks following another big move up in the spot uranium price. Other times, they don't make any sense at all, for example the rally in lithium stocks today as lithium minerals prices in tumbled in Asia. 🤔

On that note, let's dive in!


Today in Review

Tue 21 Nov 23, 4:20pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,078.2 +0.28%
All Ords 7,289.3 +0.28%
Small Ords 2,718.7 +0.40%
All Tech 2,468.0 -0.17%
Emerging Companies 1,916.6 +0.45%
Currency
AUD/USD 0.6581 +0.38%
US Futures
S&P 500 4,564.0 +0.04%
Dow Jones 35,228.0 +0.01%
Nasdaq 16,109.5 +0.14%
Name Value % Chg
Sector
Materials 18,121.2 +1.36%
Energy 10,491.4 +0.36%
Financials 6,262.6 +0.23%
Communication Services 1,485.9 +0.18%
Information Technology 1,698.7 -0.01%
Health Care 38,003.4 -0.11%
Industrials 6,476.4 -0.16%
Consumer Staples 11,662.3 -0.50%
Consumer Discretionary 3,059.3 -0.59%
Real Estate 3,035.2 -0.66%
Utilities 8,124.8 -1.76%

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Markets

ASX 200 Session Chart

s&P asx 200 xjo intraday chart 21 Nov
The S&P/ASX200 is making a habit of logging solid up days in November (Source: Market Index)

#Lithium. #Uranium. Got your attention, right?

The former was the hottest segment of the Australian stock market for the last couple of years, the latter is easily the hottest right now. I follow the charts of each group very closely, and given each enjoyed some very tidy gains, I thought I'd show you the charts of their respective minerals.

uranium spot price chart
Uranium prices are soaring on renewed demand amidst a potential supply squeeze

First, uranium. If you want to know why uranium prices are soaring to new 15-year highs, read this article I wrote on the demand-supply dynamics of the uranium market.

 

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Peninsula Energy Limited Ordinary (PEN)

0.09

+$0.008

9.8%

-21.7%

-48.6%

Aura Energy Limited Ordinary (AEE)

0.32

+$0.02

6.7%

3.2%

8.5%

Paladin Energy Ltd Ordinary (PDN)

1.04

+$0.04

4.0%

11.8%

30.0%

Devex Resources Limited Ordinary (DEV)

0.26

+$0.01

4.0%

2.0%

-7.1%

Terra Uranium Limited Ordinary (T92)

0.14

+$0.005

3.7%

7.7%

-51.1%

Bannerman Energy Ltd Ordinary (BMN)

2.81

+$0.1

3.7%

2.2%

32.5%

Boss Energy Ltd Ordinary (BOE)

4.34

+$0.14

3.3%

0.0%

78.6%

Deep Yellow Limited Ordinary (DYL)

1.22

+$0.035

3.0%

-4.7%

61.6%

Lotus Resources Limited Ordinary (LOT)

0.305

+$0.005

1.7%

45.2%

29.8%

ASX uranium stocks today

Lithium companies have been generally heading the opposite direction to uranium companies in 2023. If you're a trend follower like me, you'd have been out of ASX lithium plays and all over ASX uranium plays for many months now.

This is because lithium mineral prices have been plunging - and I don't use that word flippantly. Take a look at the charts below for Spodumene Concentrate 6% and Lithium Carbonate. The first is generally what you get from hard rock deposits of the likes of Pilbara Minerals (ASX: PLS) and Mineral Resources (ASX: MIN), and the second is comes from lithium brines which consistent with Allkem's (ASX: AKE) operations.

spodumene concentrate
Spodumene concentrate prices have been going only one way in 2023
lithium carbonate spot
Lithium carbonate prices have been volatile, but the recent trend is clearly down

Hey, it's possible lithium companies are ahead of the curve today. pricing some sort of imminent reversal in lithium minerals prices. Or today's rally could just be a dead cat bounce. My view is, stick with the overall trends which are so clearly up for uranium and down for lithium.

 

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Ioneer (INR)

0.16

+$0.015

10.3%

6.7%

-71.9%

Argosy Minerals (AGY)

0.165

+$0.015

10.0%

-2.9%

-75.7%

Galan Lithium (GLN)

0.72

+$0.045

6.7%

5.1%

-56.2%

Wildcat Resources (WC8)

0.895

+$0.05

5.9%

94.6%

2696.9%

Vulcan Energy Resources (VUL)

2.56

+$0.14

5.8%

9.4%

-66.7%

Delta Lithium (DLI)

0.5

+$0.025

5.3%

-23.4%

-19.8%

Piedmont Lithium Inc. CDI 100:1 (PLL)

0.445

+$0.02

4.7%

-6.3%

-50.3%

Liontown Resources (LTR)

1.52

+$0.06

4.1%

-15.6%

-26.2%

Allkem (AKE)

9.29

+$0.32

3.6%

-10.3%

-35.7%

Pilbara Minerals (PLS)

3.68

+$0.12

3.4%

2.8%

-24.9%

ASX lithium stocks today

Economy

Don't you love it when well-paid central bankers give us tips on how to run our households and finances? Speaking at the ASIC Annual Forum in Melbourne today, RBA governor Michele Bullock noted the higher rates set by her organisation were a potential boon for Aussies as it encouraged savings. Even those with a mortgage could benefit because they could put more in their offset accounts, she indicated.

Those comments came ahead of the release of the RBA minutes for its Cup Day hike which increased the official cash rate from 4.10% to 4.35%. The minutes blamed Aussie businesses for stoking inflation, and therefore for the rate hike, by passing on cost increases to consumers.

The RBA noted that whilst inflation expectations remained "broadly anchored", there remained risks that "sustained" price increases from businesses to consumer would contribute to higher inflation.

Indeed, inflation expectations are the focus going forward, according to the minutes: "A scenario prepared by the staff illustrated that even a modest further increase in inflation expectations would make it significantly more challenging and costly to return inflation back to target within a reasonable time".

RBA cash rate implied yield curve
RBA cash rate implied yield curve. Source: ASX

Despite the hawkish tone of the minutes, markets have all but written off the chance of a pre-Christmas hike when the bank meets in December. Instead, the February meeting is the most likely "live" meeting as it will have the benefit of the hindsight in next quarterly inflation data due at the end of January.

What to watch out for...

At 3am AEDT ECB President Lagarde Speaks, and at 6am AEDT we'll see the release of the FOMC Meeting Minutes from their November meeting.


Latest news


Interesting news and movers

Trading higher

Trading lower


Broker notes

  • Newmont (NEM) initiated outperform at Macquarie; Price Target: $71.00

  • Allkem (AKE) retained at outperform at Macquarie; Price Target: $17.00

  • Altium (ALU) upgraded from neutral to outperform at Macquarie; Price Target: $49.70 from $39.10

  • Accent Group (AX1) retained at buy at Bell Potter; Price Target: $2.35 from $2.50

  • Core Lithium (CXO) retained at outperform at Macquarie; Price Target: $0.60

  • Healius (HLS) retained at neutral at Macquarie; Price Target: $1.95 from $2.90

  • Karoon Energy (KAR):

    • Retained at buy at Citi; Price Target: $3.50 from $3.00

    • Retained at overweight at Morgan Stanley; Price Target: $2.68 from $2.80

  • Liontown Resources (LTR) retained at outperform at Macquarie; Price Target: $2.70

  • Mineral Resources (MIN) retained at outperform at Macquarie; Price Target: $83.00

  • New Hope Corp. (NHC) retained at underperform at Macquarie; Price Target: $4.20 from $4.30

  • Pilbara Minerals (PLS) retained at outperform at Macquarie; Price Target: $7.10

  • Steadfast Group (SDF) upgraded from neutral to outperform at Macquarie; Price Target: $5.90 from $6.40

  • Sayona Mining (SYA) retained at outperform at Macquarie; Price Target: $0.17

  • Universal Store Holdings (UNI):

    • Retained at neutral at Citi; Price Target: $3.56

    • Retained at neutral at Macquarie; Price Target: $4.00 from $3.70

  • Woodside Energy (WDS) retained at neutral at Macquarie; Price Target: $32.00

  • Whitehaven Coal (WHC) retained at sell at Bell Potter; Price Target: $6.50 from $7.00


Scans

Top Gainers

Code Company Last % Chg
CBE Cobre Ltd $0.057 +46.15%
AMM Armada Metals Ltd $0.04 +42.86%
PR1 Pure Resources Ltd $0.24 +41.18%
JRV Jervois Global Ltd $0.049 +32.43%
TG1 Techgen Metals Ltd $0.085 +28.79%
View all top gainers

Top Fallers

Code Company Last % Chg
RNE Renu Energy Ltd $0.017 -25.00%
BMR Ballymore Resourc... $0.10 -20.00%
CGR CGN Resources Ltd $0.16 -20.00%
PHO Phosco Ltd $0.049 -18.33%
AI1 Adisyn Ltd $0.019 -17.39%
View all top fallers

52 Week Highs

Code Company Last % Chg
TCG Turaco Gold Ltd $0.086 +22.86%
CC9 Chariot Corporati... $0.515 +22.62%
GHY Gold Hydrogen Ltd $0.815 +18.98%
AUE Aurum Resources Ltd $0.19 +11.77%
WML Woomera Mining Ltd $0.028 +7.69%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
RNE Renu Energy Ltd $0.017 -25.00%
CGR CGN Resources Ltd $0.16 -20.00%
PHO Phosco Ltd $0.049 -18.33%
MAT Matsa Resources Ltd $0.025 -16.67%
CBL Control Bionics Ltd $0.041 -14.58%
View all 52 week lows

Near Highs

Code Company Last % Chg
VLUE Vaneck MSCI Inter... $23.98 0.00%
SEMI Global X Semicond... $12.73 +1.52%
GMG Goodman Group $22.98 -0.78%
WHF Whitefield Indust... $5.12 -0.39%
IIND Betashares India ... $10.81 -0.37%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
AWC Alumina Ltd $0.715 +2.14%
AMP AMP Ltd $0.865 +0.58%
PAC Pacific Current G... $8.18 +0.12%
NXD Nexted Group Ltd $0.628 -1.18%
AVJ Avjennings Ltd $0.245 -2.00%
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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