Market Wraps

Evening Wrap: ASX 200 higher on CPI beat, gold stocks shine as spot nears record

Wed 29 Nov 23, 5:18pm (AEDT)

The S&P/ASX 200 closed 20.1 points higher, up 0.29%.

A gain is a gain, and Aussie investors will take anything they can get these days. But given the magnitude of the CPI beat, today's only modest gain is conspicuous. Gold stocks, however, sky rocketed as the spot gold price takes aim at record highs.

Let's dive in.


Today in Review

Wed 29 Nov 23, 4:34pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,035.3 +0.29%
All Ords 7,245.8 +0.31%
Small Ords 2,725.3 +1.06%
All Tech 2,463.0 +1.48%
Emerging Companies 1,897.8 +0.09%
Currency
AUD/USD 0.6647 -0.04%
US Futures
S&P 500 $4,569.0 +0.13%
Dow Jones $35,491.0 +0.13%
Nasdaq $16,072.0 +0.15%
Name Value % Chg
Sector
Information Technology 1,685.4 +2.08%
Health Care 38,624.1 +1.82%
Consumer Discretionary 3,039.0 +1.62%
Real Estate 3,041.5 +0.98%
Communication Services 1,472.2 +0.57%
Materials 17,819.6 +0.27%
Industrials 6,420.2 -0.06%
Consumer Staples 11,588.7 -0.24%
Financials 6,248.0 -0.44%
Utilities 8,144.6 -0.60%
Energy 10,297.7 -0.76%

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Markets

ASX 200 Session Chart

s&P asx 200 xjo intraday chart 28 Nov 2023
Stuck in the middle, lackluster S&P/ASX 200 price action today (Source: Market Index)

The S&P/ASX200 (XJO) finished 20.1 points higher at 7,035.3, smack-bang at the mid-point of the session's range. Possibly an unconvincing performance in light of today's good news on inflation (see Economy).

Beneath the surface, there did permeate a bullish tone, however. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 187 to 95.

Several sectors did well today. The S&P/ASX All Ordinaries Gold Sub-Index (XGD) piled on another 4.8% making it the clear standout, but Information Technology (XIJ) +2.1%, Health Care Sector (XHJ) +1.8%, Consumer Discretionary (XDJ) +1.6%, and Real Estate Investment Trusts (XPJ) +1.0% also logged solid gains today.

The gold price keeps chugging along, pushing through the key US$2,010/oz resistance level we identified in Monday's evening update. It now looks on track to test all-time highs around US$2,073 set originally back in August 2022.

gold spot price 28 nov
Just golden, spot gold prices on track for a test of the all-time high

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Resolute Mining (RSG)

$0.425

+$0.035

+9.0%

+18.1%

+129.7%

Perseus Mining (PRU)

$1.925

+$0.12

+6.6%

+12.9%

-12.1%

Alkane Resources (ALK)

$0.685

+$0.04

+6.2%

+15.1%

+6.2%

Emerald Resources (EMR)

$2.77

+$0.16

+6.1%

+7.0%

+140.9%

Bellevue Gold (BGL)

$1.685

+$0.09

+5.6%

+16.6%

+72.8%

Evolution Mining (EVN)

$4.07

+$0.21

+5.4%

+14.0%

+49.1%

West African Resources (WAF)

$0.915

+$0.045

+5.2%

+23.6%

-21.8%

Gold Road Resources (GOR)

$1.935

+$0.085

+4.6%

+2.1%

+9.0%

Northern Star Resources (NST)

$12.67

+$0.53

+4.4%

+8.4%

+19.4%

Genesis Minerals (GMD)

$1.845

+$0.075

+4.2%

+26.4%

+39.8%

Ramelius Resources (RMS)

$1.690

+$0.065

+4.0%

+2.1%

+82.7%

Gold stocks were market beaters again today

Do I even need to mention it? Energy (XEJ) -0.8% and Utilities (XUJ) -0.6% were again shunned by investors. It wasn't due to crude oil prices, though, which rallied a touch.

west texas crude oil chart
West Texas Intermediate crude oil prices are at a crucial juncture from a technical perspective

Looking at the chart of West Texas Intermediate crude oil, I see US$80/barrel as the key level which must be reclaimed to give Woodside & Co. a boost. Alternatively, a close below US$72/barrel would likely spark another sell off.

Having said this, it was uranium and coal names in the worst of the sector list today. No major moves in either of those commodities in the last 24-hours, though...

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Deep Yellow (DYL)

$1.045

-$0.055

-5.0%

-16.7%

+54.8%

Karoon Energy (KAR)

$2.03

-$0.05

-2.4%

-19.0%

-10.9%

Yancoal Australia (YAL)

$4.87

-$0.1

-2.0%

+0.8%

-7.9%

Nexgen Energy (Canada) (NXG)

$10.00

-$0.2

-2.0%

+10.5%

+83.2%

Paladin Energy (PDN)

$1.005

-$0.02

-2.0%

+6.3%

+28.8%

Worley (WOR)

$16.78

-$0.31

-1.8%

+2.4%

+14.9%

MMA Offshore (MRM)

$1.540

-$0.02

-1.3%

+21.7%

+118.4%

Strike Energy (STX)

$0.405

-$0.005

-1.2%

+3.8%

+55.8%

Whitehaven Coal (WHC)

$7.24

-$0.08

-1.1%

-2.2%

-20.2%

Energy and utilities stocks can't take a trick at the moment

Economy

Great news for all Aussies today, but particularly for mortgage holders. Inflation is on the way down, CPI data released by the ABS today showed consumer prices increased 4.9% p.a. in October. This was down from September's 5.6% p.a. rate, and nicely below economists' expectations for a 5.2% p.a. increase.

All groups monthly CPI indicator, annual movement (-)
Hey RBA! The trend is your friend!

Importantly for the RBA, it puts to an end a mini-surge in the CPI from July's 4.9% p.a. to September's 5.6% p.a. If the broader downtrend which started after December 2022's peak of 8.4% continues at the same pace it did prior to July, I estimate we could see the CPI back within the RBA's 2-3% target range in four months – so give or take March next year.

Along with yesterday's weaker than expected retail sales data, today's good new on inflation effectively rules out a hike at the RBA's meeting next month, and for me…I'm going to say there's a very good chance they're done!

What to watch out for...

Inflation week continues this evening with the release of European CPI data at 7pm AEDT, and then at 12:30am AEDT, we'll get a reader on US economic growth with the release of Preliminary GDP data. Economists are expecting the US economy expanded at 5% p.a. in the September quarter.



Interesting news and movers

Trading higher

  • +14.6% Pantoro (PNR) - Surging gold sector

  • +14.4% Temple & Webster Group (TPW) - 2023 AGM Presentation

  • +12.5% Arafura Rare Earths (ARU) - No news since 27-Nov Indigenous Land Use Agreement Registered

  • +10.0% Bowen Coking Coal (BCB) - Change in substantial holding

  • +9.0% Resolute Mining (RSG) - Surging gold sector

  • +8.6% Latin Resources (LRS) - No news

  • +8.5% Kogan.Com (KGN) - No news

  • +8.5% Link Administration Holdings (LNK) - 2023 AGM - Presentation

  • +8.5% Vulcan Energy Resources (VUL) - No news

  • +8.1% Judo Capital Holdings (JDO) - No news

  • +7.9% Fisher & Paykel Healthcare Corporation (FPH) - Half Yearly Report and Accounts

  • +7.3% Platinum Asset Management (PTM) - No news

  • +7.1% Lotus Resources (LOT) - No news since 28-Nov Results of AGM

  • +6.6% Perseus Mining (PRU) - Surging gold sector

  • +6.2% Alkane Resources (ALK) - Surging gold sector

  • +6.1% Emerald Resources (EMR) - Surging gold sector

Trading lower


Broker notes

  • Adore Beauty Group (ABY) retained at buy Citi; Price Target: $1.25

  • Aroa Biosurgery (ARX) retained at buy Bell Potter; Price Target: $1.15 from $1.45

  • Collins Foods (CKF)

    • Retained at neutral Citi; Price Target: $11.10

    • Retained at neutral UBS; Price Target: $10.95

    • Retained at accumulate Ord Minnett; Price Target: $14.40

    • Downgraded to outperform from buy at CLSA; Price Target: $12.50

  • Chorus (CNU) retained at hold Ord Minnett; Price Target: $7.20

  • CSL (CSL) retained at overweight Morgan Stanley; Price Target: $334.00

  • IDP Education (IEL) upgraded from hold to buy at Bell Potter; Price Target: $27.00 from $26.70

  • Infomedia (IFM) retained at buy UBS; Price Target: $2.00

  • Link Administration Holdings (LNK) retained at neutral Citi; Price Target: $1.40

  • Nickel Industries (NIC) retained at neutral Citi; Price Target: $0.90 from $0.95

  • PointsBet Holdings (PBH) upgraded to buy from hold at Jefferies; Price Target: $0.91 from $0.80

  • PeopleIn (PPE) downgraded to outperform from buy at CLSA; Price Target: $1.65 from $3.00

  • Ramsay Health Care (RHC)

    • Retained at neutral Citi; Price Target: $50.00

    • Retained at equalweight Morgan Stanley; Price Target: $51.60

  • Zip Co (ZIP) initiated buy at Unified Capital Partners; Price Target: $1.05


Scans

Top Gainers

Code Company Last % Chg
LBT LBT Innovations Ltd $0.018 +125.00%
EMN Euro Manganese Inc $0.14 +40.00%
HTG Harvest Technolog... $0.024 +33.33%
SHN Sunshine Metals Ltd $0.037 +32.14%
BMR Ballymore Resourc... $0.145 +31.82%
View all top gainers

Top Fallers

Code Company Last % Chg
REM Remsense Technolo... $0.019 -45.71%
EML EML Payments Ltd $0.77 -29.68%
HFY Hubify Ltd $0.015 -28.57%
AIS Aeris Resources Ltd $0.12 -20.00%
RNE Renu Energy Ltd $0.012 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
SHN Sunshine Metals Ltd $0.037 +32.14%
TPW Temple & Webster ... $7.39 +14.40%
OBM Ora Banda Mining Ltd $0.24 +14.29%
TCG Turaco Gold Ltd $0.12 +14.29%
BPH BPH Energy Ltd $0.034 +13.33%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
REM Remsense Technolo... $0.019 -45.71%
AIS Aeris Resources Ltd $0.12 -20.00%
RNE Renu Energy Ltd $0.012 -20.00%
LM1 Leeuwin Metals Ltd $0.19 -15.56%
8CO 8COMMON Ltd $0.06 -15.49%
View all 52 week lows

Near Highs

Code Company Last % Chg
VLUE Vaneck MSCI Inter... $23.72 -0.34%
SEMI Global X Semicond... $12.34 -0.24%
GMG Goodman Group $23.32 +0.09%
BILL Ishares Core Cash... $100.68 +0.03%
IIND Betashares India ... $10.80 +0.75%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
PSQ Pacific Smiles Gr... $1.075 +17.49%
FAR FAR Ltd $0.36 -2.70%
IGO IGO Ltd $8.53 +1.31%
APX Appen Ltd $0.645 +2.38%
SHV Select Harvests Ltd $3.45 +5.83%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience and has helped 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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