Market Wraps

Evening Wrap: ASX 200 logs modest rebound, always believe in gold - the ASX gold rally is indestructible!

Mon 08 Apr 24, 6:10pm (AEST)

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The S&P/ASX 200 closed 15.8 points higher, up 0.20%.

Any gain is a good gain for the S&P/ASX200, but possibly investors will be a little disappointed with the magnitude of today's bounce. At 15-odd points, it's a long way from last week's 124 point loss.

In the 1980's, a group of philosophers named Spandau Ballet told us to always believe in gold, or your soul, or both depending on your interpretation of the song. Gold's rally appears indestructible at the moment, and ASX gold stocks were again top of the pops today.

There were several important stock specific moves of note, and for more on these and everything else which happened on the Aussie market today...

Let's dive in!


Today in Review

Mon 08 Apr 24, 4:48pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,789.1 +0.20%
All Ords 8,044.9 +0.24%
Small Ords 3,086.8 +0.55%
All Tech 3,011.7 +0.97%
Emerging Companies 2,208.0 +0.64%
Currency
AUD/USD 0.658 +0.02%
US Futures
S&P 500 5,246.75 -0.12%
Dow Jones 39,187.0 -0.09%
Nasdaq 18,291.25 -0.05%
Name Value % Chg
Sector
Information Technology 2,194.6 +1.19%
Utilities 8,464.7 +0.83%
Industrials 7,129.2 +0.66%
Health Care 42,433.1 +0.56%
Materials 17,958.9 +0.38%
Real Estate 3,692.8 +0.23%
Consumer Discretionary 3,517.0 +0.23%
Communication Services 1,546.4 +0.18%
Financials 7,363.3 +0.13%
Consumer Staples 12,009.7 -0.98%
Energy 10,781.6 -1.24%

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Markets

S&P ASX 200 (XJO) Intraday Chart 8 Apr 2024
ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 15.8 points higher at 7,789.1, 0.25% from its session low and 0.16% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by 168 to 106.

The Gold (XGD) (+2.7%) sub-index was again the best performing sector today, likely in response to yet another record high set over the weekend. It's a case of extending winning ways for most of the stocks in the sector best performers table below.

.

Company

Last Price

Change $

Change %

1mo %

1yr %

Silver Mines (SVL)

$0.200

+$0.015

+8.1%

+29.0%

+5.3%

Tietto Minerals (TIE)

$0.640

+$0.03

+4.9%

+4.9%

-5.2%

Genesis Minerals (GMD)

$1.945

+$0.09

+4.9%

+4.9%

+90.7%

Resolute Mining (RSG)

$0.485

+$0.02

+4.3%

+31.1%

+15.5%

De Grey Mining (DEG)

$1.340

+$0.055

+4.3%

-0.4%

-10.1%

Silver Lake Resources (SLR)

$1.320

+$0.045

+3.5%

+11.9%

+15.3%

Regis Resources (RRL)

$2.11

+$0.06

+2.9%

+3.9%

+1.4%

Gold Road Resources (GOR)

$1.715

+$0.045

+2.7%

+5.5%

+3.6%

West African Resources (WAF)

$1.350

+$0.035

+2.7%

+36.4%

+40.6%

Bellevue Gold (BGL)

$1.935

+$0.05

+2.7%

+27.3%

+58.6%

Capricorn Metals (CMM)

$5.32

+$0.13

+2.5%

+2.9%

+15.9%

SSR Mining (SSR)

$7.26

+$0.16

+2.3%

+14.7%

-67.3%

Northern Star Resources (NST)

$15.17

+$0.3

+2.0%

+8.0%

+24.7%

Perseus Mining (PRU)

$2.28

+$0.04

+1.8%

+16.6%

-0.9%

The gold rally appears to be indestructible!

Also doing well today was the Information Technology (XIJ) (+1.2%) sector, but this was partly due to a surge in Life360 (ASX: 360) (+16.8%) which provided a better than expected market update, and partly due to a rebound in US tech stocks on Friday. One could also argue it was due to the sector getting a bit belted last week, and therefore it was due for a bounce.

Doing it tough today was the Energy (XEJ) (-1.2%) sector. Mainly stock-specific moves here, although crude oil prices are trading a little lower in Asia. Beach Energy (ASX: BPT) solidified its longstanding position as a serial underperformer, reporting "quality issues" during pre-commissioning of systems at its Waitsia Gas Plant. Read this as: At least a 6-month delay to get underway at the plant, and a cost blowout of around $150 million.

CEO Brett Woods described the issues his company is encountering at Waitsia as "extremely disappointing". I guess, Brett, investors will have to Wait-sia a while to get their money back after today's 15% plunge in the share price...


ChartWatch

Iron Ore SGX

Iron Ore 62percent SGX 8 April
Massive white candle from historical point of demand could spell low for iron ore

The iron ore futures price surged today in Singapore delivering a long white candle with a close very near the high of the trading session. Importantly, the candle is occurring at an important historical point of demand between 94 and 99.20.

This is the third, and by far the strongest in terms of demand-side showing, attempt to rally from this zone. It's made even more emphatic by the fact the close has eclipsed a key historical point of supply at 104.

Generally, one would assume now that as long as the price does not close below 95.40, at least an intermediate low is in.

The demand-side is still going to have to contend with several other key points of supply to push the price back into a new short term uptrend. Here, I point out what will likely be a particularly tough zone of supply to breach between 109.25 and 111.95. Before we get there, though, I also note the potential for dynamic supply from the short term downtrend ribbon.

At best only cautious optimism is warranted from the bulls, at least until the price action and candles can demonstrate the demand-side has enough renewed power to close the price above the aforementioned key supply levels.


Economy

Today

  • There weren't any major data releases in our time zone today

Later this week

  • Tuesday

    • 10:30 Westpac Consumer Sentiment (-1.8% previous)

    • 11:20 NAB Business Confidence (0 previous)

  • Wednesday

    • 10:30 USA Core CPI March (+0.3% forecast vs +0.4% February)

  • Thursday

    • 04:00 USA Federal Reserve FOMC Meeting Minutes

    • 10:15pm EU ECB Main Financing Rate (4.5% no change forecast)

    • 10:30pm USA Core PPI March (+0.2% forecast vs +0.3% February)

  • Friday

    • 03:00 USA 30-year Government T-Bond Auction

    • 11:00 CHN Trade Balance

  • Saturday

    • 00:00 USA University of Michigan Consumer Sentiment (79.0 forecast vs 79.4 previous)


Latest News


Interesting Movers

Trading higher

  • +33.3% Qoria (QOR) - Qoria rejects unsolicited non-binding proposal from K1, rise is consistent with prevailing short term uptrend, long term uptrend is transitioning from down to up πŸ”ŽπŸ“ˆ

  • +16.8% Life360 (360) - Market Update, rise is consistent with prevailing short and long term uptrends πŸ”ŽπŸ“ˆ

  • +10.1% Alpha HPA (A4N) - No news, rise is consistent with prevailing short and long term uptrends, bouncing off long term uptrend ribbon πŸ”ŽπŸ“ˆ

  • +8.1% Silver Mines (SVL) - Investor Presentation - Gold Forum Europe, rising silver price

  • +6.9% Mesoblast (MSB) - Continued positive response to 26 March FDA Notifies Clinical Data Sufficient for Refiling aGVHD BLA, rise is consistent with prevailing short term uptrend, long term uptrend is transitioning from down to up πŸ”ŽπŸ“ˆ

  • +6.7% Paladin Energy (PDN) - No news, initiated at overweight at Morgan Stanley with a price target of $1.75, rise is consistent with prevailing short and long term uptrends πŸ”ŽπŸ“ˆ

  • +6.6% Newmont Corporation (NEM) - No news, continued rally in gold price to record highs is translating into broad ASX gold sector strength

  • +6.6% GQG Partners (GQG) - Continued positive response to 5 April FUM as at 31 March 2024, several brokers retained positive ratings and increased price targets (see Broker Moves), rise is consistent with prevailing short and long term uptrends πŸ”ŽπŸ“ˆ

Trading lower

  • -29.4% APM Human Services International (APM) - Non-Binding Acquisition Proposal and Business Update

  • -24.4% Elders (ELD) - FY24 Trading Update

  • -15.0% Beach Energy (BPT) - Waitsia Stage 2 update

  • -6.0% Strike Energy (STX) - No news, fall is consistent with prevailing short and long term downtrends πŸ”ŽπŸ“‰

  • -5.0% Redox (RDX) - No news πŸ€”

  • -5.0% Chalice Mining (CHN) - No news, fall is consistent with prevailing short and long term downtrends πŸ”ŽπŸ“‰

  • -4.3% Botanix Pharmaceuticals (BOT) - No news, minor pullback after strong rally πŸ”ŽπŸ“‰

  • -3.7% Infomedia (IFM) - No news, minor pullback after strong rally πŸ”ŽπŸ“‰

  • -3.6% Nufarm (NUF) - No news, suspect didn't like the Elders news πŸ€”, fall is consistent with prevailing short term downtrend, falling peaks and falling troughs, closed below long term downtrend ribbon πŸ”ŽπŸ“‰


Broker Notes

  • Life360 (360) retained at buy at Goldman Sachs; Price Target: $14.20

  • Adore Beauty Group (ABY) retained at buy at Citi; Price Target: $1.70

  • Ampol (ALD) retained at equal-weight at Morgan Stanley; Price Target: $40.00

  • Eagers Automotive (APE) retained at neutral at Macquarie; Price Target: $14.00

  • APM Human Services International (APM) retained at buy at Bell Potter; Price Target: $1.93

  • ARB Corporation (ARB) retained at underperform at Macquarie; Price Target: $32.30

  • Arafura Rare Earths (ARU) downgraded to underweight from neutral at JP Morgan; Price Target: $0.14 from $0.21

  • Autosports Group (ASG) retained at outperform at Macquarie; Price Target: $3.10

  • ASX (ASX) retained at neutral at Macquarie; Price Target: $63.00

  • Bapcor (BAP) retained at outperform at Macquarie; Price Target: $6.90

  • BHP Group (BHP) retained at hold at Ord Minnett; Price Target: $40.50 from $42.20

  • Boss Energy (BOE) initiated at equal-weight at Morgan Stanley; Price Target: $4.60

  • Beach Energy (BPT) downgraded to sell from hold at Canaccord Genuity; Price Target: $1.61 from $1.65

  • Cobram Estate Olives (CBO) retained at buy at Shaw and Partners; Price Target: $2.05 from $1.80

  • Charter Hall Group (CHC) retained at overweight at Morgan Stanley; Price Target: $13.35

  • Capricorn Metals (CMM) downgraded to underweight from neutral at Macquarie; Price Target: $4.80

  • CSL (CSL) retained at outperform at Macquarie; Price Target: $300.00 from $310.00

  • Deterra Royalties (DRR) retained at lighten at Ord Minnett; Price Target: $4.20 from $4.40

  • Dexus (DXS) retained at underweight at Morgan Stanley; Price Target: $7.75

  • Endeavour Group (EDV)

    • Initiated at neutral at Citi; Price Target: $5.94

    • Retained at equal-weight at Morgan Stanley; Price Target: $5.80

  • Fortescue (FMG) retained at lighten at Ord Minnett; Price Target: $16.20 from $17.20

  • Fleetpartners Group (FPR) retained at outperform at Macquarie; Price Target: $3.01

  • GQG Partners (GQG)

    • Retained at buy at Goldman Sachs; Price Target: $2.73 from $2.40

    • Retained at outperform at Macquarie; Price Target: $2.80 from $2.40

    • Retained at buy at Ord Minnett; Price Target: $2.80 from $2.60

  • G.U.D. Holdings (GUD) upgraded to positive from neutral at E&P; Price Target: $13.42 from $10.94

  • Gullewa (GUP) retained at outperform at Macquarie; Price Target: $12.85

  • Hub24 (HUB) upgraded to overweight from market-weight at Wilsons; Price Target: $45.32 from $42.63

  • IGO (IGO) retained at neutral at Macquarie; Price Target: $7.70 from 7.90.

  • Iluka Resources (ILU) retained at accumulate at Ord Minnett; Price Target: $9.50

  • Kogan.Com (KGN) retained at sell at Citi; Price Target: $5.50

  • Arcadium Lithium (LTM) retained at outperform at Macquarie; Price Target: $10.00

  • Lynas Rare Earths (LYC) downgraded to underweight from neutral at JP Morgan; Price Target: $5.00 from $6.90

  • Magellan Financial Group (MFG)

    • Retained at neutral at Goldman Sachs; Price Target: $9.10

    • Retained at underweight at Macquarie; Price Target: $8.40 from $8.00

  • Mineral Resources (MIN)

    • Downgraded to neutral from overweight at JP Morgan; Price Target: $74.00 from $70.00

    • Retained at outperform at Macquarie; Price Target: $79.00

  • McMillan Shakespeare (MMS) retained at outperform at Macquarie; Price Target: $22.63

  • Macquarie Group (MQG) downgraded to sell from neutral at Citi; Price Target: $161.00

  • Mesoblast (MSB) retained at buy at Bell Potter; Price Target: $1.40 from $0.58

  • Newmont Corporation (NEM) retained at accumulate at Ord Minnett; Price Target: $78.00 from $76.50

  • New Hope Corporation (NHC) retained at accumulate at Ord Minnett; Price Target: $4.90 from $4.70

  • Orica (ORI) retained at overweight at JP Morgan; Price Target: $19.00 from $17.00

  • Paladin Energy (PDN) initiated at overweight at Morgan Stanley; Price Target: $1.75

  • Pilbara Minerals (PLS) retained at neutral at Macquarie; Price Target: $4.20

  • Perseus Mining (PRU) retained at hold at Ord Minnett; Price Target: $2.05

  • Rio Tinto (RIO) retained at hold at Ord Minnett; Price Target: $112.00 from $115.50

  • Regis Resources (RRL)

    • Retained at sell at Citi; Price Target: $1.30

    • Retained at overweight at Morgan Stanley; Price Target: $2.45 from $2.40

  • South32 (S32) retained at hold at Ord Minnett; Price Target: $3.50

  • St Barbara (SBM) retained at neutral at Macquarie; Price Target: $0.21 from $0.17

  • SG Fleet Group (SGF) retained at outperform at Macquarie; Price Target: $3.21

  • Smartgroup Corporation (SIQ) retained at neutral at Macquarie; Price Target: $9.51

  • Temple & Webster Group (TPW) retained at buy at Citi; Price Target: $13.00

  • Viva Energy Group (VEA) retained at equal-weight at Morgan Stanley; Price Target: $3.34

  • West African Resources (WAF) retained at outperform at Macquarie; Price Target: $1.60 from $1.50


Scans

Top Gainers

Code Company Last % Chg
LEX Lefroy Exploratio... $0.14 +44.33%
BTC BTC Health Ltd $0.057 +42.50%
QOR QORIA Ltd $0.42 +33.33%
UBN Urbanise.com Ltd $0.325 +30.00%
EVG Evion Group NL $0.027 +28.57%
View all top gainers

Top Fallers

Code Company Last % Chg
APM APM Human Service... $1.15 -29.45%
ADO Anteotech Ltd $0.026 -25.71%
ELD Elders Ltd $7.43 -24.42%
PPY Papyrus Australia... $0.011 -21.43%
PEC Perpetual Resourc... $0.012 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
QOR QORIA Ltd $0.42 +33.33%
CDD Cardno Ltd $0.575 +17.35%
360 LIFE360 Inc $14.18 +16.80%
BTR Brightstar Resour... $0.02 +11.11%
GCX GCX Metals Ltd $0.065 +10.17%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
ZER ZETA Resources Ltd $0.21 -19.23%
WAK Wa Kaolin Ltd $0.05 -18.03%
WTL WT Financial Grou... $0.061 -12.86%
FSG Field Solutions H... $0.029 -12.12%
REC Recharge Metals Ltd $0.045 -10.00%
View all 52 week lows

Near Highs

Code Company Last % Chg
CDA Codan Ltd $10.76 +3.46%
WA1 WA1 Resources Ltd $14.89 +3.12%
FGX Future Generation... $1.17 -0.43%
CPU Computershare Ltd $25.88 -1.22%
MQGPD Macquarie Group Ltd $106.20 -0.49%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
SPK Spark New Zealand... $4.35 0.00%
NXD Nexted Group Ltd $0.29 0.00%
ORA Orora Ltd $2.22 +0.45%
IHCB Ishares Core Glob... $90.40 -0.45%
AZS AZURE Minerals Ltd $3.32 -7.00%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience, helping 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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