Market Wraps

Evening Wrap: ASX 200 higher + Morgan Stanley expects the RBA to pause in June

Thu 01 Jun 23, 5:02pm (AEST)

 The S&P/ASX 200 closed 20 points higher, up 0.28%. 

The ASX managed to bounce and close near session highs, China's Caixin Manufacturing PMI unexpectedly bounces back into expansion territory, uranium stocks rally after the US House of Committee approved a bill to ban Russian uranium imports and a few broker notes of interest.

Let's dive in.


Today in Review

Thu 01 Jun 23, 4:32pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,110.8 +0.28%
All Ords 7,290.7 +0.24%
Small Ords 2,807.9 +0.23%
All Tech 2,390.6 +0.73%
Emerging Companies 2,021.2 +0.19%
Currency
AUD/USD 0.651 +0.13%
US Futures
S&P 500 $4,195.0 +0.11%
Dow Jones $32,964.0 -0.05%
Nasdaq $14,296.5 -0.03%
Name Value % Chg
Sector
Health Care 44,742.9 +1.16%
Information Technology 1,786.3 +1.05%
Consumer Staples 13,042.9 +0.93%
Communication Services 1,561.8 +0.58%
Energy 10,674.8 +0.41%
Real Estate 3,102.9 +0.40%
Consumer Discretionary 2,899.1 +0.26%
Materials 17,223.8 +0.05%
Financials 6,029.9 -0.01%
Utilities 8,573.6 -0.07%
Industrials 6,819.9 -0.22%

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ASX 200 Session Chart

ASX 200 intraday
ASX 200 closed higher and near best levels (Source: Market Index)

Markets

A bit of buying started to kick in around 11:00 am AEST. The session was led by Healthcare, Staples and Tech sectors, notably CSL (+1.3% and near a 4-month high), Xero (+1.9%) and Woolworths (+1.5%). The market trying to bounce from a rather oversold level. Let's see if the dust can settle around these levels and if we can have a strong finish to the week tomorrow.

Economy

China’s Caixin Manufacturing PMI advanced to 50.9 in May from 49.5 in the previous month.

  • The Caixin PMI covers small-to-medium enterprise while the NBS PMI on Wednesday covers large and state-owned companies

  • Beat consensus expectations of a stagnant 49.5 reading in May


Latest news


Interesting news and movers

Trading higher

  • +21.4% Yojee (YOJ) – 3-year logistics agreement

  • +20.8% Neometals (NMT) – Promobius JV update

  • +16.1% Lynch Group (LGL) – Market update

  • +14.9% Catalyst Metals (CYL) – Drilling result

  • +3.3% Link Administration (LNK) – Potential takeover target

  • Gold sector move: Perseus (+4.7%), Ramelius (+4.4%), Gold Road (+4.0%), Bellevue Gold (+3.1%), Northern Star (+3.1%), Newcrest (+2.4%)

  • Uranium sector bounce: Peninsula Energy (+17.2%), Bannerman (+13.9%), Paladin Energy (+11.0%), Lotus Resources (+9.1%), Deep Yellow (+8.6%)

Trading lower

  • -14.8% Aurelia Metals (AMI) – Institutional capital raise

  • -13.8% Hastings Tech (HAS) – Downgraded by Macquarie

  • -6.3% Argosy Minerals (AGY) – Operations update

  • -5.3% Champion Iron (CIA) – Earnings (Wed)

  • -4.8% PeopleIn (PPE) – Guidance and strategic review

  • -3.6% Mineral Resources (MIN) – Initiated underperform at CSLA


Broker notes

Macquarie notes of interest: 

Champion Iron (CIA) – Outperform with $7.80 target price

  • “CIA's FY23 financial result was softer than expected and the final dividend was below our forecasts.”

  • “Bloom Lake phase 2 continues to ramp up, driving CIA volumes to ~15mtpa which is a tailwind into FY24.”

  • “We note that there remains organic growth upside given the large resource base, and the recent DRPF study highlights the strategy to target higher-quality product.”

Hastings Technology Metals (HAS) – Neutral with $1.70 target price

  • “The development plan for the Yangibana rare earths project has been split into two stages.”

  • “The updated capital cost assumptions for Yangibana were broadly in line with our estimates, while stage 1 cash costs were 44% higher than we expected.”

  • “Higher cash costs for Stage 1 and removing Stage 2 translates to material cuts to our forecasts and TP, and we cut our rating to Neutral.”

Morgan Stanley’s take on Wednesday’s CPI:

  • “Almost the entirety of the acceleration in the month was driven by the fuel inflation increasing from -8.2%Y to +9.5%Y”

  • “Outside of this, most categories showed some marginal easing in inflation - with the notable exception of rents which continue to increase”

  • “We think the RBA has more tightening to do but will still favour a slower hiking path. We see the next hike in August, with Friday's minimum wage decision the last key catalyst ahead of next week's June meeting.”


Scans

Top Gainers

Code Company Last % Chg
TNY Tinybeans Group Ltd $0.23 +53.33%
RFX Redflow Ltd $0.26 +40.54%
IS3 I Synergy Group Ltd $0.014 +40.00%
SLM Solis Minerals Ltd $0.395 +38.60%
SRJ SRJ Technologies ... $0.11 +37.50%
View all top gainers

Top Fallers

Code Company Last % Chg
ZLD Zelira Therapeuti... $2.29 -24.92%
DC2 DC Two Ltd $0.019 -20.83%
PPY Papyrus Australia... $0.024 -20.00%
NIS Nickelsearch Ltd $0.057 -19.72%
FAL Falcon Metals Ltd $0.23 -19.30%
View all top fallers

52 Week Highs

Code Company Last % Chg
SLM Solis Minerals Ltd $0.395 +38.60%
MEI Meteoric Resource... $0.235 +14.63%
KNG Kingsland Mineral... $0.36 +10.77%
RBX Resource Base Ltd $0.19 +8.57%
WSI Weststar Industri... $0.24 +5.50%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
DC2 DC Two Ltd $0.019 -20.83%
NIS Nickelsearch Ltd $0.057 -19.72%
MEL Metgasco Ltd $0.015 -16.67%
AMI Aurelia Metals Ltd $0.099 -13.91%
MM8 Medallion Metals Ltd $0.075 -12.79%
View all 52 week lows

Near Highs

Code Company Last % Chg
PMGOLD Gold Corporation $30.10 -0.30%
VLUE Vaneck MSCI Inter... $23.35 -0.09%
ETPMPM Global X Metal Se... $207.73 -0.37%
SEMI Global X Semicond... $11.42 -1.55%
FLT Flight Centre Tra... $21.36 +1.09%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
MGX Mount Gibson Iron... $0.39 +2.63%
ALO Alloggio Group Ltd $0.175 -5.41%
WES Wesfarmers Ltd $48.02 +0.73%
TLG Talga Group Ltd $1.218 -1.42%
NVA Nova Minerals Ltd $0.28 -3.45%
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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