Market Wraps

Evening Wrap: ASX 200 notches important win as tech, consumer discretionary gain

Thu 11 Jan 24, 5:40pm (AEDT)

The S&P/ASX 200 closed 37.5 points higher, up 0.50%.

A fairly subdued holiday-style session today where not a great deal happened. In fact, the approval of several Bitcoin ETFs was probably the biggest news in local finance. But the gain logged by the S&P/ASX 200, albeit a modest +0.5%, was an important one in terms of the recent uptrend and with respect to how it was earned.

By this, I mean market breadth was good, and the growthier, risk-on sectors of Information Technology and Consumer Discretionary led the way. This indicates the bullish sentiment enjoyed towards the end of 2023 appears to be intact in the New Year, at least for now!

Let's dive in.


Today in Review

Thu 11 Jan 24, 4:35pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,506.0 +0.50%
All Ords 7,737.0 +0.45%
Small Ords 2,886.4 +0.49%
All Tech 2,658.9 +1.13%
Emerging Companies 1,993.0 -0.16%
Currency
AUD/USD 0.6723 +0.34%
US Futures
S&P 500 4,827.5 +0.15%
Dow Jones 37,982.0 +0.12%
Nasdaq 16,992.25 +0.28%
Name Value % Chg
Sector
Information Technology 1,793.1 +1.20%
Financials 6,777.4 +1.05%
Consumer Discretionary 3,239.3 +0.93%
Communication Services 1,574.9 +0.67%
Real Estate 3,293.8 +0.60%
Industrials 6,868.5 +0.27%
Consumer Staples 12,226.5 +0.18%
Materials 18,519.3 +0.08%
Energy 10,708.9 +0.03%
Health Care 42,706.7 +0.01%
Utilities 8,075.6 -0.24%

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Markets

ASX 200 Session Chart

S&P ASX 200 (XJO) Intraday Chart 11 Jan 2024
Steady as she goes, a modest but robust performance on the Aussie market today

The S&P/ASX200 (XJO) finished 37.5 points higher at 7,506, 0.52% from its session low and just 0.15% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 175 to 96. This is important because broad-based moves are more likely to be sustainable.

The S&P/ASX 200 Information Technology Sector (XIJ) +1.2% was the best performing sector today, likely in response to a similar gain on the tech-laden Nasdaq index in the USA on Wednesday. It's worth taking a look at that chart, which resembles the proverbial stairway to heaven!

Nasdaq Composite Index chart 10 January 2024
Tech investors are buying a stairway to heaven...

Three white candles stemming from the old resistance zone around 14447 are important. In any uptrend, it's reassuring to see old resistance zones act as future support zones as it smacks of buy the dip activity. White candles are a reliable indicator of short term excess demand.

The next key zone of support is an important one, beginning at the 28 December minor peak of 15150, and up to the major peak set way back in January 2021 at 15319. It will be crucial to see how the Nasdaq performs there.

If we see white candles and or lower shadows, it would indicate demand remains fearless in the face of the potential supply usually associated with major supply points. Black candles and or upper shadows on the other hand, would indicate distribution, profit taking, and something fare more sinister is going on!

I pointed out the improving technicals for our own tech sector in Tuesday's Evening Wrap. Good news, it continues to perform well as it pushes off the key support zone between 1716-1736. It too looks well placed to tackle overhead resistance.

S&P ASX 200 Information Technology Sector chart 11 Jan 2024
The local Information Technology sector appears to have held an important technical support level

Company

Last Price

Change $

Change %

1mo %

1yr %

Fineos Corporation Holdings (FCL)

$2.07

+$0.225

+12.2%

+22.5%

+25.8%

Silex Systems (SLX)

$4.90

+$0.3

+6.5%

+45.4%

+36.9%

Bravura Solutions (BVS)

$0.850

+$0.045

+5.6%

+6.3%

+25.5%

Rpmglobal Holdings (RUL)

$1.800

+$0.08

+4.7%

+16.1%

+5.6%

Megaport (MP1)

$8.99

+$0.27

+3.1%

-11.7%

+38.7%

Catapult Group International (CAT)

$1.310

+$0.03

+2.3%

-3.0%

+72.4%

Altium (ALU)

$46.06

+$0.94

+2.1%

+0.9%

+30.3%

Nextdc (NXT)

$13.89

+$0.28

+2.1%

+5.2%

+52.9%

Audinate Group (AD8)

$17.45

+$0.35

+2.0%

+22.9%

+119.2%

Nuix (NXL)

$2.10

+$0.04

+1.9%

+17.6%

+206.6%

Technology One (TNE)

$15.36

+$0.26

+1.7%

+3.5%

+16.3%

Aussie tech stocks saw solid gains today

Also doing well today was the S&P/ASX 200 Consumer Discretionary Sector (XDJ) +0.9%, possibly still basking in the warm afterglow of the substantial Retail Sales beat which you can also read about in Tuesday's Evening Wrap.

A pretty decent sector chart here, also. Short, and long term uptrends, and predominantly demand side candles (i.e., those with white bodies and or lower shadows). The price action could be better, though, as I note lower troughs, but the test and hold of the short term trend ribbon is impressive. A break of the minor high of 3262 would further confirm the prevailing state of excess demand.

S&P ASX 200 Consumer Discretionary Sector chart 11 Jan 2024
Aussie consumer stocks are still basking in the warm afterglow of bumper Black Friday sales

Company

Last Price

Change $

Change %

1mo %

1yr %

Michael Hill International (MHJ)

$0.900

+$0.04

+4.7%

+11.1%

-14.7%

Accent Group (AX1)

$2.14

+$0.08

+3.9%

+16.6%

+19.6%

JB HI-FI (JBH)

$56.74

+$2.06

+3.8%

+15.7%

+26.9%

Beacon Lighting Group (BLX)

$2.39

+$0.08

+3.5%

-0.4%

+6.7%

KMD Brands (KMD)

$0.700

+$0.02

+2.9%

-1.4%

-26.3%

Eagers Automotive (APE)

$14.51

+$0.28

+2.0%

+5.9%

+28.9%

Domain Holdings Australia (DHG)

$3.46

+$0.05

+1.5%

+2.4%

+26.7%

Breville Group (BRG)

$26.99

+$0.38

+1.4%

+9.1%

+36.1%

Solid performances from consumer discretionary stocks today

Economy

  • No major economic data releases today

What to watch out for...

Tomorrow:

  • USA Consumer Price Index (CPI) Friday 12 Jan at 12:30am, forecast to rise 3.2% p.a. to end of December.


Latest News


Interesting Movers

Trading higher

  • +12.2% Fineos Corporation Holdings (FCL) - No news since 05-Jan Becoming a substantial holder from AMP, move confirms long term trend reversal (back to up)

  • +6.5% Silex Systems (SLX) - No news since 10-Jan U.S. DOE Releases HALEU Enrichment Request for Proposal, move is consistent with prevailing short and long term uptrends

  • +5.6% Bravura Solutions (BVS) - Change in substantial holding

  • +5.0% South32 (S32) - Upgraded to buy from neutral at Goldman Sachs; Price Target: raised from $3.80 from $3.20

  • +4.7% Michael Hill International (MHJ) - No news, stronger consumer discretionary sector

  • +4.7% Rpmglobal Holdings (RUL) - No news, stronger information technology sector, move is consistent with prevailing short and long term uptrends

  • +4.5% Iluka Resources (ILU) - No news since 10-Jan Becoming a substantial holder

  • +3.9% Telix Pharmaceuticals (TLX) - No news since 08-Jan JP Morgan Healthcare Conference and Trading Update

  • +3.9% Accent Group (AX1) - No news day 2! 🤔 Stronger consumer discretionary sector

  • +3.8% JB HI-FI (JBH) - No news, stronger consumer discretionary sector, move is consistent with prevailing short and long term uptrends

  • +3.5% Beacon Lighting Group (BLX) - No news, stronger consumer discretionary sector, move is consistent with prevailing short and long term uptrends

Trading lower

-12.1% 29METALS (29M) - No news, which is the main issue, was yesterday's biggest gainer…buy the rumour, sell the fact!? See: Response to ASX Price Query

-4.6% Lotus Resources (LOT) - No news, some uranium stocks pulling back after yesterday's strong gains

-4.4% Insignia Financial (IFL) - Final distribution for December 2023 updated; Downgraded to underweight from equalweight at Morgan Stanley with Price Target lowered to $2.15 from $2.85

-4.1% Infomedia (IFM) - No news, move is consistent with short and long term downtrend

-3.6% Ainsworth Game Technology (AGI) - No news, pullback from recent strong performance

-3.3% Chrysos Corporation (C79) - Pullback from recent strong performance, record highs


Broker Notes

  • Aussie Broadband (ABB) retained at underperforrm JP Morgan; Price Target: $3.60 from $3.45

  • AGL Energy (AGL) retained at overweight JP Morgan; Price Target: $13.40 from $14.00

  • Ampol (ALD)

    • Downgraded to neutral from overweight at JP Morgan; Price Target: $38.10

    • Downgraded to hold from buy at Jefferies; Price Target: $38.00

  • APA Group (APA) retained at overweight JP Morgan; Price Target: $9.85 from 9..80

  • Alumina (AWC) downgraded to neutral from buy at Citi; Price Target: $1.15 from $1.10

  • Bellevue Gold (BGL) initiated at hold Argonaut Securities; Price Target: $1.50

  • Beach Energy (BPT) retained at overweight JP Morgan; Price Target: $1.75

  • Capricorn Metals (CMM) initiated at buy Argonaut Securities; Price Target: $6.00

  • Cooper Energy (COE) retained at overweight JP Morgan; Price Target: $0.17

  • Carnarvon Energy (CVN) downgraded to neutral from overweight at JP Morgan; Price Target: $0.19 from $0.20

  • Delta Lithium (DLI) retained at buy Bell Potter; Price Target: $0.75 from $1.35

  • Genesis Minerals (GMD) initiated at buy Argonaut Securities; Price Target: $2.40

  • Genetic Signatures (GSS) retained at buy Bell Potter; Price Target: $0.80 from $0.83

  • Hub24 (HUB) initiated at overweight Morgan Stanley; Price Target: $41.00

  • Insignia Financial (IFL) downgraded to underweight from equalweight at Morgan Stanley; Price Target: $2.15 from $2.85

  • Karoon Energy (KAR) retained at overweight JP Morgan; Price Target: $2.80 from $2.75

  • Lynas Rare Earths (LYC) retained at buy Bell Potter; Price Target: $8.50 from $8.80

  • Northern Star Resources (NST) initiated at buy Argonaut Securities; Price Target: $16.50

  • Netwealth Group (NWL) initiated at overweight Morgan Stanley; Price Target: $17.50

  • Origin Energy (ORG) retained at buy Bank of America; Price Target: $9.60

  • Platinum Asset Management (PTM) retained at sell Bell Potter; Price Target: $0.84

  • Ramelius Resources (RMS) initiated at hold Argonaut Securities; Price Target: $1.70

  • Regis Resources (RRL) initiated at hold Argonaut Securities; Price Target: $2.30

  • South32 (S32) upgraded to buy from neutral at Goldman Sachs; Price Target: $3.80 from $3.20

  • Sandfire Resources (SFR) upgraded to neutral from sell at Goldman Sachs; Price Target: $6.70 from $5.40

  • Sims (SGM) downgraded to neutral from buy at Goldman Sachs; Price Target: $16.20 from $15.30

  • Silver Lake Resources (SLR) initiated at hold Argonaut Securities; Price Target: $1.15

  • Santos (STO) retained at overweight JP Morgan; Price Target: $9.40 from $8.05

  • Transurban Group (TCL) downgraded to neutral from buy at Bank of America; Price Target: $13.89 from $13.22

  • Telstra Group (TLS) retained at overweight JP Morgan; Price Target: $4.80 from $4.75

  • TPG Telecom (TPG) retained at neutral JP Morgan; Price Target: $5.25

  • Viva Energy Group (VEA) downgraded to underperforrm from neutral at JP Morgan; Price Target: $3.30 from $3.15

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

  • Woodside Energy Group (WDS) upgraded to neutral from overweight at JP Morgan; Price Target: $34.80 from $34.20

  • Worley (WOR) retained at underperforrm JP Morgan; Price Target: $13.50 from $13.00


Scans

Top Gainers

Code Company Last % Chg
CZR CZR Resources Ltd $0.30 +42.86%
CMP Compumedics Ltd $0.375 +38.89%
JPR Jupiter Energy Ltd $0.025 +38.89%
LDX Lumos Diagnostics... $0.105 +28.05%
CZN Corazon Mining Ltd $0.016 +23.08%
View all top gainers

Top Fallers

Code Company Last % Chg
REY REY Resources Ltd $0.105 -41.67%
MKT The Market Ltd $0.21 -25.00%
CPO Culpeo Minerals Ltd $0.098 -24.62%
TSL Titanium Sands Ltd $0.011 -21.43%
DGR DGR Global Ltd $0.021 -19.23%
View all top fallers

52 Week Highs

Code Company Last % Chg
CZR CZR Resources Ltd $0.30 +42.86%
CMP Compumedics Ltd $0.375 +38.89%
PCL Pancontinental En... $0.023 +21.05%
SIO Simonds Group Ltd $0.23 +15.00%
LAM Laramide Resource... $0.86 +13.16%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
NWM Norwest Minerals Ltd $0.026 -18.75%
PHL Propell Holdings Ltd $0.011 -15.39%
AHF Australian Dairy ... $0.012 -11.11%
PAT Patriot Lithium Ltd $0.16 -11.11%
WR1 Winsome Resources... $0.76 -10.59%
View all 52 week lows

Near Highs

Code Company Last % Chg
GCI Gryphon Capital I... $2.05 -0.49%
IHD Ishares S&P/ASX D... $13.88 +0.58%
MGX Mount Gibson Iron... $0.54 -1.82%
WSP Whispir Ltd $0.545 +0.93%
HVN Harvey Norman Hol... $4.23 +0.96%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
IR1 Iris Metals Ltd $0.86 +3.61%
DLI Delta Lithium Ltd $0.33 -2.94%
GL1 Global Lithium Re... $0.80 -9.09%
-
-
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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