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Market Wraps
/Evening Wrap: ASX 200 higher as lower bond yields boost gold and property stocks
Market Wraps
Evening Wrap: ASX 200 higher as lower bond yields boost gold and property stocks
Tue 28 Nov 23, 5:41pm (AEDT)
The S&P/ASX 200 closed 27.6 points higher, up 0.40%.
It was a modest, but not totally convincing rally on the Aussie stock market today. There were clear winners in gold and property, and equally clear losers in energy and utilities. Elsewhere, iron ore stocks largely shrugged off a drop in the iron ore price.
Let's dive in.
Today in Review
Tue 28 Nov 23, 4:15pm (AEST)
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Markets
ASX 200 Session Chart
Not a totally convincing move higher on the S&P/ASX 200 today (Source: Market Index)
The S&P/ASX200 (XJO) finished 27.6 points higher at 7,015.2, 0.4% from its session low and 0.5% from its high. Hardly a decisive session. On a positive note, in the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 200 to 75.
Once again, the S&P/ASX All Ordinaries Gold Sub-Index (XGD) +2.0% was the best performing sector today. To be fair, I tipped it yesterday! Spot gold prices were firmer again overnight and are rising slightly in Asia at the time of writing.
Why? Same as yesterday, lower long term bond yields and a weaker US dollar.
Company | Last Price | Change $ | Change % | 1-month Perf % | 1-year Perf % |
|---|---|---|---|---|---|
Kingsgate Consolidated (KCN) | $1.375 | +$0.085 | +6.6% | +23.9% | -30.4% |
Regis Resources (RRL) | $1.885 | +$0.09 | +5.0% | +8.6% | -1.1% |
Emerald Resources (EMR) | $2.61 | +$0.12 | +4.8% | +0.8% | +128.9% |
West African Resources (WAF) | $0.870 | +$0.03 | +3.6% | +16.0% | -25.3% |
Northern Star Resources (NST) | $12.14 | +$0.41 | +3.5% | +0.4% | +14.7% |
Evolution Mining (EVN) | $3.86 | +$0.11 | +2.9% | +6.9% | +40.9% |
Perseus Mining (PRU) | $1.805 | +$0.05 | +2.8% | +4.0% | -19.1% |
Ramelius Resources (RMS) | $1.625 | +$0.04 | +2.5% | -3.0% | +87.9% |
Westgold Resources (WGX) | $2.08 | +$0.05 | +2.5% | -1.4% | +153.7% |
Silver Lake Resources (SLR) | $1.065 | +$0.025 | +2.4% | +1.4% | -14.8% |
Gold stocks: Either the market loves them or hates them...today...it was loves!
Also doing well was the S&P/ASX 200 A-REIT (XPJ) +1.4%. Lower long term bond yields were also to blame here, after all, Property Investing 101 clearly states: Property stocks love/hate lower/higher interest rates!
Company | Last Price | Change $ | Change % | 1-month Perf % | 1-year Perf % |
|---|---|---|---|---|---|
Cromwell Property Group (CMW) | $0.415 | +$0.015 | +3.8% | +29.7% | -41.1% |
Lendlease Group (LLC) | $6.56 | +$0.22 | +3.5% | +7.2% | -15.0% |
Centuria Capital Group (CNI) | $1.405 | +$0.045 | +3.3% | +20.6% | -23.6% |
National Storage Reit (NSR) | $2.13 | +$0.06 | +2.9% | +6.8% | -11.6% |
Growthpoint Properties Australia (GOZ) | $2.27 | +$0.05 | +2.3% | +13.8% | -28.6% |
Rural Funds Group (RFF) | $1.900 | +$0.04 | +2.2% | +6.7% | -23.4% |
Lifestyle Communities (LIC) | $16.76 | +$0.35 | +2.1% | +7.9% | -11.0% |
Arena Reit. (ARF) | $3.37 | +$0.07 | +2.1% | +7.0% | -13.8% |
Charter Hall Group (CHC) | $10.19 | +$0.21 | +2.1% | +17.7% | -24.0% |
Centuria Office Reit (COF) | $1.230 | +$0.025 | +2.1% | +16.0% | -23.1% |
Lower long term bond yields are helping property stocks
Doing it tough today was the S&P/ASX 200 Energy Sector (XEJ) -1.0% and the S&P/ASX 200 Utilities Sector (XUJ) -0.4%. As we've said before, there's plenty of overlap between these two sectors. Oil and natural gas prices continue to trend lower, dampening sentiment towards energy plays.
Company | Last Price | Change $ | Change % | 1-month Perf % | 1-year Perf % |
|---|---|---|---|---|---|
Woodside Energy Group (WDS) | $31.21 | -$0.5 | -1.6% | -9.0% | -18.4% |
New Hope Corporation (NHC) | $5.32 | -$0.06 | -1.1% | -8.6% | +1.5% |
Ampol (ALD) | $34.21 | -$0.27 | -0.8% | +8.4% | +22.3% |
Origin Energy (ORG) | $8.47 | -$0.06 | -0.7% | -7.6% | +7.2% |
Yancoal Australia (YAL) | $4.97 | -$0.03 | -0.6% | +0.2% | -4.4% |
Karoon Energy (KAR) | $2.08 | -$0.01 | -0.5% | -17.3% | -11.7% |
Santos (STO) | $7.00 | -$0.03 | -0.4% | -8.7% | -5.4% |
Beach Energy (BPT) | $1.485 | -$0.005 | -0.3% | -3.3% | -15.1% |
Energy and utilities stocks continue to market the losers' column
The price of iron ore continues to ebb lower in Asian trade at the time of writing. Beijing is on the warpath in the market, applying extra supervision measures in an attempt to dampen what they view as speculation.
Iron ore price for delivery next month in Singapore
According to TradingView, the price for iron ore for next month's delivery is US$128.55/t in Singapore, down around 3% from Monday's close. Iron ore companies shrugged off the move, however, with only small losses in BHP (ASX: BHP) and Rio Tinto (ASX: RIO), while the others like Grange Resources (ASX: GRR) and Fortescue (ASX: FMG) traded higher.
Company | Last Price | Change $ | Change % | 1-month Perf % | 1-year Perf % |
|---|---|---|---|---|---|
Grange Resources (GRR) | $0.440 | +$0.015 | +3.5% | +6.0% | -42.9% |
Fortescue Metals Group (FMG) | $24.88 | +$0.37 | +1.5% | +11.7% | +29.8% |
Mount Gibson Iron (MGX) | $0.530 | +$0.005 | +1.0% | +5.0% | +21.8% |
Champion Iron (CIA) | $7.70 | +$0.06 | +0.8% | +10.0% | +28.1% |
BHP Group (BHP) | $46.43 | -$0.09 | -0.2% | +2.9% | +4.2% |
Rio Tinto (RIO) | $124.88 | -$0.31 | -0.2% | +5.6% | +17.3% |
Aussie iron ore companies largely shrugged off the drop in the iron ore price
Economy
Data released by the ABS's today showed a surprise drop in activity at the nation's retailers in October. Retail sales dipped 0.2% in October, backing out a very strong 0.9% gain in September. Economists had forecast a 0.1% gain.
The data was widely viewed as a sign the RBA will remain on hold at its meeting next month, but economists also noted it would pale into comparison in the RBA's decision making process compared to tomorrow's Consumer Price Index (CPI).
What to watch out for...
As mentioned above, inflation week kicks off tomorrow with the release of month Australian CPI data. Economists are expecting a 5.2% p.a. increase in prices in October, down from the 5.6% p.a. pace in September. The data is due out at 11:30am AEDT.
Interesting news and movers
Trading higher
+20.0% Ioneer (INR) - Recovery in a select few lithium companies today
+14.3% Argosy Minerals (AGY) - Recovery in a select few lithium companies today
+12.8% Brainchip Holdings (BRN) - No news since 20-Nov Transition to New CTO
+9.9% Imugene (IMU) - FDA Fast Track Designation Granted for VAXINIA Trial Program
+9.0% Collins Foods (CKF) - HY2023 Results Presentation
+8.9% Opthea (OPT) - No news
+7.4% Renascor Resources (RNU) - Siviour Land Acquisition
+7.2% Boart Longyear Group (BLY) - No news
+6.6% Kingsgate Consolidated (KCN) - Stronger gold sector today
+6.6% Alpha HPA (A4N) - Presentation to Annual General Meeting
+6.4% Healius (HLS) - HLS 2023 AGM Presentation Slides
Trading lower
-11.7% Select Harvests (SHV) - Ceasing to be a substantial holder from WAM/WAX
-9.1% Bowen Coking Coal (BCB) - No news since 27-Nov Proposed issue of securities - BCB
-5.7% Regal Partners (RPL) - No news
-5.4% Latin Resources (LRS) - No news
-4.8% Piedmont Lithium (PLL) - Ceasing to be a substantial holder
-4.5% Core Lithium (CXO) - No news since 24-Nov 2023 AGM Presentation
-4.2% Clearview Wealth (CVW) - No news
Broker notes
Life360 Inc (360) initiated at buy Ord Minnett; Price Target: $8.84
Aeris Resources (AIS) retained at neutral Macquarie; Price Target: $0.15 from $0.28
Autosports Group (ASG) retained at buy UBS; Price Target: $3.10 from $3.20
Bendigo and Adelaide Bank (BEN) retained at neutral Goldman Sachs; Price Target: $9.35 from $9.69
Incitec Pivot (IPL) retained at buy UBS; Price Target: $3.30 from $3.50
Judo Capital Holdings (JDO) initiated at accumulate Ord Minnett; Price Target: $1.10
Metcash (MTS) retained at buy UBS; Price Target: $4.25 from $4.50
Nexted Group (NXD) retained at buy Bell Potter; Price Target: $1.05 from $1.10
Orora (ORA) upgraded from equalweight to overweight at Morgan Stanley; Price Target: $3.50 from $3.74
Peoplein (PPE)
Retained at buy Ord Minnett; Price Target: $2.09
Downgraded from marketweight to overweight at Wilsons; Price Target: $1.39
Perseus Mining (PRU) retained at neutral Citi; Price Target: $1.90
Peter Warren Automotive Holdings (PWR) retained at neutral UBS; Price Target: $10.00
QBE Insurance Group (QBE)
Retained at buy UBS; Price Target: $20.00
Retained at hold Ord Minnett; Price Target: $13.50
Retained at buy Goldman Sachs; Price Target: $18.34
Retained at overweight Morgan Stanley; Price Target: $18.30
Rio Tinto (RIO) retained at neutral UBS; Price Target: $115.00
Smartpay Holdings (SMP) retained at buy Bell Potter; Price Target: $1.75 from $1.93
Wisetech Global (WTC) retained at neutral Macquarie; Price Target: $58.00
Scans
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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