Market Wraps

Evening Wrap: ASX 200 higher, Macquarie's take on Pilbara Minerals, Coles sees further disinflation

Fri 28 Apr 23, 5:01pm (AEST)

 The S&P/ASX 200 closed 17 points higher, up 0.23%. 

The local sharemarket finishes the week down 0.3%, Coles says it expects input cost inflation to continue to moderate in the June quarter, Australian producer prices ease to 5.2% in the March quarter, the Bank of Japan maintains monetary policy but plans a review and Macquarie's take on Pilbara Minerals' quarterly.

Let's dive in.


Today in Review

Fri 28 Apr 23, 4:36pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,309.2 +0.23%
All Ords 7,500.9 +0.25%
Small Ords 2,898.0 +0.59%
All Tech 2,282.9 +0.49%
Emerging Companies 2,154.7 +0.79%
Currency
AUD/USD 0.6613 -0.27%
US Futures
S&P 500 $4,150.25 -0.08%
Dow Jones $33,892.0 -0.11%
Nasdaq $13,216.5 -0.11%
Name Value % Chg
Sector
Real Estate 3,140.0 +1.12%
Financials 6,333.9 +0.62%
Communication Services 1,571.2 +0.59%
Materials 18,023.1 +0.52%
Information Technology 1,584.5 +0.48%
Consumer Discretionary 3,082.3 +0.20%
Industrials 6,887.1 -0.24%
Energy 10,611.4 -0.33%
Utilities 8,484.2 -0.76%
Consumer Staples 13,546.8 -0.77%
Health Care 44,203.1 -0.97%

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ASX 200 Session Chart

S&P ASX 200 (LIVE DATA) Share Prices & Charts - Market Index
ASX 200 breaks a 5-day losing streak (Source: Market Index)

Markets

The ASX 200 wasn't as enthusiastic as Wall Street, closing out the week in a rather choppy fashion. The market is trying to find a floor after falling for five straight days. So let's see if things continue to catch a bid next week. We've survived the bulk of US earning season, so stock and indexes can move a little more freely, without the 'megacap reports better-than-expected earnings after hours' that we've seen all week.

  • Healthcare stocks led to the downside. Most major names declined including CSL (-1.1%),Cochlear (-1.0%) and Sonic Healthcare (-0.7%)

  • Staples heavyweight fell after Coles (-1.4%) posted its March quarter quarter update where Group sales rose 6.5% to $9.4bn

Economy

Australia’s producer price index rose 1.0% quarter-on-quarter and 5.2% year-on-year in the March quarter.

  • The main drivers to quarterly growth was electricity and gas supply (+13.3%), building construction (+1.1%) and education (+3.7%)

  • Areas that demonstrated price falls included petroleum refining (-7.2%), furniture and other manufacturing (-5.8%) and computer and electronic equipment manufacturing (-3.5%)

The Bank of Japan kept interest rates unchanged at -0.1%.

  • "The Bank will continue to maintain stability of financing, mainly of firms, and financial markets, and will not hesitate to take additional easing measures if necessary."

  • Reiterated a dovish stance, tweaked its forward guidance and announced plans to conduct a policy review


Latest news


Interesting news and movers

Trading higher

  • +41.5% Megaport (MP1) – Earnings

  • +13.1% Mach7 Technologies (M7T) – Earnings

  • +7.1% Pilbara Minerals (PLS) – Earnings (Thu after close)

  • +6.9% Emerald Resources (EMR) – Drill results

  • +6.8% Volpara Health (VHT) – Earnings

  • +5.5% SiteMinder (SDR) – Earnings (Thu)

  • Lithium sector move: Winsome (+10.5%), Pilbara (+7.1%), Sayona (+5.3%), Core Lithium (+4.3%), Vulcan (+3.8%), Allkem (+3.8%)

Trading lower

  • -13.8% Splitit (SPT) – Earnings

  • -12.3% Tesserent (TNT) – Earnings

  • -12.2% Whispir (WSP) – Earnings

  • -6.1% PointsBet (PBH) – Earnings

  • -3.6% Brainchip (BRN) – Earnings

  • -2.5% Dubber Corp (DUB) – Earnings


Broker updates

Macquarie notes:

Pilbara Minerals (PLS): Outperform with $7.70 target price

  • “PLS has released its 3QFY23 with both shipments and realised spodumene prices largely in line with our estimates.”

  • “The reported realised price of US$4,840/dmt was within 6% of our expectation. However, PLS also sold 10,253dmt of middlings product with an average realised prices of US$360/dmt (CIF China) which was not in our base-case forecast.”

  • “PLS is generating strong cash flow, with free cash flow yields of 22% and 21% for FY23 and FY24 on our forecasts.” 

Telstra (TLS): Outperform with $4.68 target price

  • “Telstra prepaid mobile plans to increase from July 2024. Mobile market rationalising thesis unfolding – Telstra to be a beneficiary. Outperform.” 

  • “Incremental evidence of mobile markets rationalising. This is a key catalyst for the telcos to outperform, holding all else constant. We note upside risk to our/consensus earnings in FY25+ if inflation-linked pricing remains persistent.”


Scans

Top Gainers

Code Company Last % Chg
MP1 Megaport Ltd $5.64 +41.71%
HT8 Harris Technology... $0.02 +33.33%
ROO Roots Sustainable... $0.012 +33.33%
FFG Fatfish Group Ltd $0.019 +26.67%
MMC Mitre Mining Corp... $0.34 +25.93%
View all top gainers

Top Fallers

Code Company Last % Chg
LRL Labyrinth Resourc... $0.012 -20.00%
AN1 Anagenics Ltd $0.021 -19.23%
ATV Activeport Group Ltd $0.15 -16.67%
KNB Koonenberry Gold Ltd $0.042 -16.00%
SNX Sierra Nevada Gol... $0.21 -16.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
MMC Mitre Mining Corp... $0.34 +25.93%
NVU Nanoveu Ltd $0.035 +16.67%
RXH Rewardle Holdings... $0.028 +16.67%
MEZ Meridian Energy Ltd $5.09 +7.61%
OLH Oldfields Holding... $0.076 +7.04%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
KNB Koonenberry Gold Ltd $0.042 -16.00%
OPA Optima Technology... $0.017 -15.00%
PNT Panther Metals Ltd $0.09 -14.29%
ZEU ZEUS Resources Ltd $0.012 -14.29%
UCM Uscom Ltd $0.035 -12.50%
View all 52 week lows

Near Highs

Code Company Last % Chg
FLT Flight Centre Tra... $19.67 +2.56%
BILL Ishares Core Cash... $100.58 -0.01%
SLA Silk Laser Austra... $3.03 -0.33%
ORI Orica Ltd $16.20 +1.12%
CWP Cedar Woods Prope... $4.90 +2.73%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
GRR Grange Resources Ltd $0.615 +1.65%
NVX Novonix Ltd $0.985 +4.23%
EM2 Eagle Mountain Mi... $0.125 +8.70%
ARU Arafura Rare EART... $0.41 -3.53%
BOQ Bank of Queenslan... $5.80 +0.35%
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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