Market Wraps

Evening Wrap: ASX 200 higher, Tech index hits 12-month high + UBS' best stock ideas

Fri 19 May 23, 4:48pm (AEST)

 The S&P/ASX 200 closed 43 points higher, up 0.59%. 

The local sharemarket finished the week up 0.3%, the S&P/ASX 200 Tech Index rallies for a third consecutive session, Japan's inflation accelerates again to a four-decade high, Austal shares surge 25% after scoring a US$3bn contract with the US navy and UBS lists its best stock ideas, which combine company research with top-down thematics.

Let's dive in.


Today in Review

Fri 19 May 23, 4:18pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,279.5 +0.59%
All Ords 7,471.5 +0.60%
Small Ords 2,892.9 +0.55%
All Tech 2,339.0 +1.84%
Emerging Companies 2,097.3 +0.86%
Currency
AUD/USD 0.6634 +0.19%
US Futures
S&P 500 4,215.0 +0.07%
Dow Jones 33,617.0 0.00%
Nasdaq 13,911.5 +0.13%
Name Value % Chg
Sector
Information Technology 1,696.2 +2.22%
Financials 6,186.0 +1.54%
Communication Services 1,569.9 +1.25%
Real Estate 3,172.0 +0.59%
Health Care 44,486.9 +0.49%
Consumer Staples 13,317.3 +0.44%
Consumer Discretionary 3,065.8 +0.39%
Energy 10,785.3 +0.11%
Industrials 6,893.1 +0.02%
Materials 18,011.7 -0.24%
Utilities 8,541.5 -0.46%

Enjoying the Evening Wrap? Sign up to get it sent directly to your inbox after every trading day.

ASX 200 Session Chart

S&P ASX 200 (LIVE DATA) Share Prices & Charts - Market Index
ASX 200 higher and closes near session highs (Source: Market Index)

Markets

The week started a little wobbly but we finished strong. The ASX 200 continues to benefit from the strength taking place on Wall Street, driven by themes such as tech outperformance and the stabilisation of the banking crisis. The S&P/ASX 200 Tech Index is up 6.2% in the last three sessions and led by names like Xero (+5.2%) and Brainchip (+8.7%) on Friday.

Economy

UK consumer confidence rose to -27 in May from -30 in the previous month.

  • Fourth consecutive monthly increase amid easing inflation

  • Remains downbeat but bouncing from a record low of -49 last September

Japan’s inflation accelerated to 3.5% year-on-year in April from 3.2% in the previous month. 

  • Core inflation rose to 3.4% from 3.1% in March

  • Inflation is rising at its fastest pace since September 1981

  • Food prices jumped to 9.0% in April from 8.2% in March


Latest news


Market Insights: Technicals

A few technical and chart-related insights.

ASX 200: Tuesday and Wednesday flagged a break lower after five consecutive sessions of nothingness. The ASX 200 bounced sharply on Wednesday, which led to a strong two-day rally to close out the week. We're back to recent highs or rather, back to the inflection point. Next week will be interesting.

XJO
ASX 200 chart (Source: TradingView)

A phenomenal trender: XRF Scientific is a stock that seems to follow a pretty simple process. It breaks out, pulls back to the 50-day moving average, settles for a few days or weeks and breaks out again. The recent break out in April coincided with an upbeat March quarterly update.

XRF chart
XRF Scientific chart (Source: TradingView)

When the stock pulled back in late May, directors also started loading up.

Date

Director

Type

Amount

Price

Value

Notes

16/05/23

David Brown

Buy

+19,200

$1.13

$21,696

On-market trade

09/05/23

David Brown

Buy

+51,000

$1.18

$60,180

On-market trade

26/04/23

David Brown

Buy

+10,000

$1.25

$12,500

On-market trade


Interesting news and movers

Trading higher

  • +25.4% Austal (ASB) - US$3bn contract for US Navy

  • +22.8% Delta Lithium (DLI)

  • +5.9% AUB Group (AUB) – Placement

  • +5.1% PointsBet (PBH)

  • +4.6% Cettire (CTT) – Continuation rally, up 17% in previous three

  • +4.4% Imugene (IMU) – FDA clearance

  • +1.8% Core Lithium (CXO) – Approves funding for BP33

  • Tech sector move:

Trading lower

  • Coal sector move: Terracom (-4.7%), Whitehaven Coal (-4.3%), New Hope (-3.0%)

  • Gold sector move: Newcrest (-1.9%), Evolution Mining (-1.6%), Northern Star (-1.0%)


Broker notes

UBS’ best stock ideas: “Our best ideas list aims to bring together up to 30 stocks that represent our team’s most and least preferred ideas for the next 12 months. The focus is on marrying the company research from our stock analysts, with the sector preferences and top-down thematics that our macro team provides.”

Most preferred Resources:

Most preferred Financials: 

“Given we see the equity market tracking sideways over coming months, income generating equities can provide a meaningful boost to portfolio returns.” 

Most preferred Industrials:


Scans

Top Gainers

Code Company Last % Chg
APC Australian Potash... $0.012 +33.33%
BUR Burley Minerals Ltd $0.295 +28.26%
ASB Austal Ltd $2.005 +25.71%
ASR Asra Minerals Ltd $0.011 +22.22%
SW1 Swift Networks Gr... $0.017 +21.43%
View all top gainers

Top Fallers

Code Company Last % Chg
RPG Raptis Group Ltd $0.02 -39.39%
FFT Future First Tech... $0.02 -28.57%
TSI Top Shelf Interna... $0.265 -22.06%
MRI My Rewards Intern... $0.018 -21.74%
MTM MTM Critical Meta... $0.11 -21.43%
View all top fallers

52 Week Highs

Code Company Last % Chg
MEI Meteoric Resource... $0.21 +10.53%
VYS Vysarn Ltd $0.12 +9.09%
KNG Kingsland Mineral... $0.28 +7.69%
XRO Xero Ltd $107.75 +5.13%
PPC Peet Ltd $1.26 +5.00%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
RPG Raptis Group Ltd $0.02 -39.39%
TSI Top Shelf Interna... $0.265 -22.06%
MRI My Rewards Intern... $0.018 -21.74%
DSK Dusk Group Ltd $1.235 -18.48%
VAR Variscan Mines Ltd $0.015 -16.67%
View all 52 week lows

Near Highs

Code Company Last % Chg
USD Betashares U.S. D... $14.83 +0.20%
CSL CSL Ltd $304.58 +0.58%
KAU Kaiser Reef Ltd $0.215 0.00%
IKO Ishares MSCI Sout... $95.34 +1.83%
WVOL Ishares Edge MSCI... $36.47 +0.11%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
NXS Next Science Ltd $0.555 +4.72%
FOOD Betashares Global... $6.70 +0.60%
PNV Polynovo Ltd $1.403 +4.28%
EMD Emyria Ltd $0.125 +4.17%
URW Unibail-Rodamco-W... $3.58 -0.28%
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.

Get the latest news and insights direct to your inbox

Subscribe free

Get free post-market insights with our Evening Wrap

Create an account to receive our concise, data-driven post-market recap, sent directly to your inbox, every day.

Along with the Evening Wrap, you'll join 100k+ investors who receive our Morning Wrap and Weekend Newsletter.