Market Wraps

Evening Wrap: ASX 200 higher, resources underperform, unemployment rate falls to 3.4%

Thu 17 Nov 22, 4:43pm (AEST)

The S&P/ASX 200 closed 14 points higher, up 0.19%.

The local sharemarket inches higher but held back by weakness across mining and oil stocks, Australia's unemployment falls back to a near 50-year low and Webjet shares surge as bookings return to pre-pandemic levels.

Let's dive in.


Today in Review

Thu 17 Nov 22, 4:19pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,135.7 +0.19%
All Ords 7,339.0 +0.16%
Small Ords 2,881.3 +0.20%
All Tech 2,119.9 +1.15%
Emerging Companies 2,208.1 -0.14%
Currency
AUD/USD 0.6706 -0.51%
US Futures
S&P 500 $3,972.5 +0.10%
Dow Jones $33,608.0 +0.05%
Nasdaq $11,759.75 +0.17%
Name Value % Chg
Sector
Consumer Staples 12,714.7 +1.91%
Health Care 42,368.4 +1.31%
Consumer Discretionary 2,925.5 +1.26%
Information Technology 1,469.0 +1.21%
Utilities 8,156.1 +1.17%
Communication Services 1,415.2 +0.94%
Real Estate 3,067.4 +0.89%
Industrials 6,339.7 +0.86%
Financials 6,462.2 +0.43%
Materials 17,272.6 -1.17%
Energy 11,434.7 -2.06%

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Markets

The ASX 200 managed to snap a three day losing streak as 9 sectors worked hard to offset the losses from Materials and Energy.

  • A mix of defensive and growth sectors outperformed

  • Staples headlines gains, with Woolworths and Coles both gaining almost 2% and trading near a 2-month high

  • Energy led to the downside as oil prices eased after geopolitical tensions somewhat eased between Russia and NATO. Woodside finished the session down -2.1%

  • Materials also sold off after a weak overnight session for commodity markets, weighed by hawkish Fed speeches and a stronger US dollar. Heavyweights BHP, Rio Tinto and Fortescue fell between 1-2%

  • 118 of the top 200 advanced (59%)

Economy

Japan’s trade deficit widened to 2.16 trillion yen in October from 2.09 trillion yen in September. 

  • Well above analyst expectations of a 1.61 trillion yen deficit

  • The trade gap continues to widen amid a weak yen and elevated commodity prices

Australia’s unemployment rate fell to 3.4% in October from 3.5% in September.

  • Beat analyst expectations of a rise to 3.6% 

  • “It was a strong update even though holidays, sickness and floods continue to hold back the recovery. Unemployment is now the lowest level since November 1974.” - Westpac Economics 

  • “... a pickup in immigration with annual growth in the working age population lifting from 0.6% yr last December to 1.2% yr in October. Prior to COVID annual growth in the working age population peaked at 1.7%yr in 2018-19."

Commodities 

"Strong economic data saw rate hike rhetoric and a hawkish Fed weigh on sentiment. Commodities struggled amid the risk-off tone, with a stronger USD also creating headwinds for the sector," said ANZ senior commodity analyst, Daniel Hynes.

  • Iron ore futures fell -0.9% to US$91.9 a tonne

  • Copper -1.5% to US$3.71/lb

  • Newcastle coal futures -4.2% to $316 a tonne


Latest news


Post market brief

Nothing too exciting at the index level. Recently, we've seen a lot of days where resources rally but all others sectors are red and vice versa. Still, there's nothing wrong with these small moves at a rather extended level, relative to key moving averages.

Index

S&P/ASX 200: Nothing much to see here.

XJO chart
XJO chart (Source: TradingView)

S&P/ASX 200 Energy: A close on the 20-day moving average. 

XEJ chart
XEJ chart (Source: TradingView)

S&P/ASX 200 Tech: Closes at a six week high. A lot of base-y tech names holding up surprisingly well, relative to the Nasdaq. Names like WiseTech, Altium and Tyro have all managed to move relatively sideways in the last few weeks. Could a breakout be on the cards?

XIJ chart
XIJ chart (Source: TradingView)

Major announcements

Large caps (>$1bn)

  • Pendal (PDL) +10.5% the Supreme Court of NSW said Perpetual would potentially be liable to more than the ‘break fee’ of $23m

  • Webjet (WEB) +10.1% said 1H23 Group bookings are back at pre-pandemic levels, with total transaction volumes at 90% of pre-pandemic levels at a cost base thats -16% lower 

  • Seek (SEK) +1.7% reaffirmed its FY23 guidance, noting low unemployment and high candidate engagement continue to provide generally positive market conditions

  • John Lyng Group (JLG) +0.9% reaffirmed its FY23 guidance of 15% revenue growth and 26% EBITDA growth  

  • Seven Group (SVW) +0.6% reaffirmed its existing guidance of high single-digit to low double-digit underlying EBIT growth for FY23 

  • ASX (ASX) -0.2% expects a $245-255m write up to reflect its failed CHESS replacement project 

  • Sayona Mining (SYA) -4.3% acquired 985 sq km near its Moblan Lithium Project in Quebec, Canada for C$40m worth of company stock 

  • Australian Agricultural Co (AAC) -4.96% 1H21 profits fell -38% to $51.6m as a result of fair value adjustments as cattle prices normalise 

Mid-to-small caps

  • TerraCom (TER) +8.9% declared a final dividend of 10 cents per share. The company has paid out a dividend yield of more than 25% since July 

  • Alpha HPA (A4N) +6.8% said its HPA First Project is now being commissioned and the company is now assessing a full-scale final investment decision, with a focus on sales, offtake and project financing 

  • Cettire (CTT) +0.6% reported 71% revenue growth for the month of October, to $45.9m. The company said its operated to maximise profitable revenue growth, with $40m cash as at 31 October 

  • Whitefield Industrials (WHF) +0.6% reported 6.7% net profit growth in FY22 to $8.5m

  • Neometals (NMT) -0.9% completed a pre-feasibility study for the production of titanium and iron-vanadium from its Barrambie Project. Results confirm a supply in excess of 500,000tpa in the first 10 years of the project 

  • Emeco (EHL) -2.0% expects FY23 EBITDA to be between $245-260m from $250m in FY22  


Broker updates 

Ticker

Company

Broker

Rating

Target price

ABP

Abacus Property

Ord Minnett

Accumulate from Hold

$3.10 from $3.30

AWC

Alumina

Ord Minnett

Hold from Buy

$1.50

BWP

BWP Trust

Ord Minnett

Lighten from Hold

$4.00 from $4.20

HMC

Home Consortium

Ord Minnett

Hold from Buy

$5.60 from $6.60

NSR

National Storage REIT

Ord Minnett

Hold from Buy

$2.60 from $2.70

NUF

Nufarm

Ord Minnett

Accumulate from Hold

$6.40 from $6.10

S32

South 32

Macquarie

Neutral from Outperform

$4.40


Scans

Top Gainers

Code Company Last % Chg
CAQ CAQ Holdings Ltd $0.028 +75.00%
BUR Burley Minerals Ltd $0.32 +33.33%
WR1 Winsome Resources... $1.16 +32.57%
RCL Readcloud Ltd $0.145 +26.09%
1VG Victory Goldfield... $0.27 +25.58%
View all top gainers

Top Fallers

Code Company Last % Chg
BBX BBX Minerals Ltd $0.068 -21.84%
GLH Global Health Ltd $0.24 -20.00%
ABE Australian Bond E... $0.25 -19.36%
WC1 West Cobar Metals... $0.19 -17.39%
E25 Element 25 Ltd $1.19 -17.07%
View all top fallers

52 Week Highs

Code Company Last % Chg
CAQ CAQ Holdings Ltd $0.028 +75.00%
BUR Burley Minerals Ltd $0.32 +33.33%
WR1 Winsome Resources... $1.16 +32.57%
POL Polymetals Resour... $0.24 +20.00%
ATA Atturra Ltd $1.015 +10.33%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
AAU Antilles Gold Ltd $0.035 -18.61%
SAN Sagalio Energy Ltd $0.014 -12.50%
KTG K-Tig Ltd $0.10 -9.09%
RNO Rhinomed Ltd $0.10 -9.09%
ZNO ZOONO Group Ltd $0.10 -9.09%
View all 52 week lows

Near Highs

Code Company Last % Chg
OZBD Betashares Austra... $44.07 +0.62%
OD6 OD6 Metals Ltd $0.485 -4.90%
WVOL Ishares Edge MSCI... $34.85 +0.58%
NUF Nufarm Ltd $5.80 -1.70%
WBCPI Westpac Banking C... $103.459 +0.11%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
BUB Bubs Australia Ltd $0.36 0.00%
EZL EUROZ Hartleys Gr... $1.17 +3.08%
HLO Helloworld Travel... $1.64 -0.61%
ELD Elders Ltd $10.47 +1.55%
MPL Medibank Private Ltd $2.84 +1.79%
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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