Evening Wrap: ASX 200 posts win as Sigma revels in Chemist Warehouse glow, Iron Ore & Steel stocks surge

Forty percent. That's how much Sigma Healthcare (ASX: SIG) shares spiked today as it resumed trading after announcing a reverse takeover of Chemist Warehouse Group. That helped the Health Care sector to grab today's Top Performer mantle, while the Gold sector slumped again on weaker gold prices. Iron ore and steel stocks get a special nod as they continued to add on growing expectations 2024 is going to be a good year for stocks exposed to the Chinese economy.

Let's dive in.

Markets

ASX 200 Session Chart

Here comes Santa Claus...

The S&P/ASX200 (XJO) finished 22.5 points higher at 7,257.8, 0.32% from its session low and 0.18% from its high. But dig below the surface, and it wasn't a convincingly up-day given in the broader-based S&P/ASX 300 (XKO), advancers lagged decliners by 129 to 143.

The S&P/ASX 200 Health Care Sector (XHJ) +1.1% was the best performing sector today, likely in response to the big pop in Sigma Healthcare (ASX: SIG) shares as the company returned to trading following its announced reverse takeover of Chemist Warehouse Group. There are some nice gains (and some very nice charts - see below) across the rest of the sector, though.

Healthy gains today among ASX health care stocks

Also doing well today was Real Estate Investment Trusts (XPJ) +0.7% and Financials (XFJ) +0.7%. But if I'm going to say one sub-group of the market stole the show, it would be iron ore and steel related stocks.

Iron ore prices pulled back slightly today, but have been on a steady rise since August

There's growing consensus Beijing will have to step up its efforts to reach it's much-vaunted 5% GDP growth target in 2024, and this is bolstering stocks which could benefit from higher steel production. Either way, we did give you plenty of notice this time of year is usually pretty good for the iron ore price!

Heavy metal gains for Aussie iron ore and steel related stocks

Doing it tough today were two serial disappointers Energy (XEJ) -0.8% and Gold (XGD) -2.1%. Energy has lost a little momentum after the big Woodside Energy (ASX: WDS)-Santos (ASX: STO) merger stir, and Gold is wilting under continued weakness in the gold price. I see support at US$1,960/oz, so let's hope we get a bounce from there. Watch for white candles and or downward pointing shadows to confirm.

Ah gold, you promised so much, and delivered so little? Again!

Gold stocks were again on the receiving end of some harsh treatment from investors

Economy

There weren't any major data releases today.

What to watch out for...

USA Core PPI for November at 12:30am AEDT. Economists are forecasting a 0.2% increase in core wholesale prices for the month, (core PPI strips out volatile components like food and energy). This would equate to an annualised wholesale inflation rate of 2.2%, down from October's 2.4%.

Then, the big one...The US Federal Reserve's FOMC meeting. Most analysts expect the Fed to keep the Federal Funds Rate on hold at 5.25% to 5.5%. If you wish you can get up early to catch the details on this one - it's slated for 6am AEDT.

Latest News

Interesting Movers

Trading higher

• +40.0% Sigma Healthcare (SIG) - Reinstatement to Official Quotation after Chemist Warehouse reverse takeover

• +8.1% Beacon Lighting Group (BLX) - No news, got back yesterday's losses and then some!

• +6.5% Neuren Pharmaceuticals (NEU) - No news, technical breakout & chart momentum

• +6.1% Silex Systems (SLX) - Release of Shares from Voluntary Escrow

• +5.5% Polynovo (PNV) - No news since 06-Dec First $A8M sales month and $A9M revenue month, also building technical base

• +5.5% Tuas (TUA) - No news, technical breakout & chart momentum

• +4.9% Audinate Group (AD8) - No news, technical breakout & chart momentum

• +4.3% The Star Entertainment Group (SGR) - No news, bounce after four solid down days

• +3.8% NIB Holdings (NHF) - Change of Director's Interest Notice Jill Watts

• +3.0% Regis Healthcare (REG) - No news, technical breakout & chart momentum

Trading lower

• -5.4% Chalice Mining (CHN) - No news, well-entrenched technical downtrend

• -5.3% Platinum Asset Management (PTM) - No news since 11-Dec Appointment of CEO and Board Restructure, technical pullback after five day rally

• -5.0% Clinuvel Pharmaceuticals (CUV) - No news, resumption of long term technical downtrend

• -4.4% IDP Education (IEL) - No news since 12-Dec Murray Walton to step down as CFO, resumption of long term technical downtrend

• -4.2% Weebit Nano (WBT) - No news, technical pullback after recent rally

• -3.8% Coronado Global Resources Inc. (CRN) - No news

• -3.7% Gold Road Resources (GOR) - General weakness in gold sector

• -3.6% Bellevue Gold (BGL) - General weakness in gold sector

• -3.5% Perseus Mining (PRU) - General weakness in gold sector

• -3.3% Cromwell Property Group (CMW) - No news since 12-Dec Appointment of Chief Financial Officer

Broker Notes

• Aristocrat Leisure (ALL) retained at buy Citi; Price Target: $44.70

• Bluescope Steel (BSL) upgraded to outperform from neutral at Macquarie; Price Target: $24.00 from $19.00

• Charter Hall Retail Reit (CQR)

  • Retained at buy Citi; Price Target: $4.10

  • Retained at neutral Macquarie; Price Target: $3.28

  • Retained at accumulate Ord Minnett; Price Target: $3.62

• GUD Holdings (GUD) initiated add at Morgans; Price Target: $14.25

• Johns Lyng Group (JLG) retained at buy Citi; Price Target: $7.00

• Monash IVF Group (MVF) initiated at accumulate Ord Minnett; Price Target: $1.40

• Pilbara Minerals (PLS) initiated hold at Bell Potter; Price Target: $3.90

• Polynovo (PNV) retained at buy at Bell Potter; Price Target: $1.80

• Sims Group (SGM) upgraded to outperform from neutral at Macquarie; Price Target: $17.30 from $13.20

• SRG Global (SRG) initiated at buy Ord Minnett; Price Target: $0.92

• Treasury Wine Estates (TWE)

  • Retained at neutral Citi; Price Target: $11.80

  • Retained at overweight Morgan Stanley; Price Target: $14.35

  • Retained at buy UBS; Price Target: $13.75

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