Market Wraps

Evening Wrap: ASX 200 rebounds on surging tech stocks, week's loss halved in one day

Fri 19 Jan 24, 5:42pm (AEDT)

The S&P/ASX 200 closed 74.7 points higher, up 1.02%.

Four days down, one day up. What a week! Well, who are we to complain about today's 75 point gain which erased roughly half of the week's losses prior to the start of the session? TGIF!

A massive move in the Information Technology Sector Index (XIJ) today, as local tech plays dutifully followed their NASDAQ counterparts. Xero (XRO) +4.8%, Weebit Nano (WBT) +4.5%, and Macquarie Technology Group (MAQ) +3.1% led the pack.

But there was plenty of love going around with all of the major sector indices except Utilities enjoying at least some gains.

Which brings us to the topic of resources stocks. They had a terrible week on the back of lower commodity prices and an ongoing slump in Chinese stocks. How did they go today? Just a 0.4% gain to trim weekly sector losses to an ugly 3.4%. Is that what you'd call that a dead cat bounce?

Let's dive in!


Today in Review

Fri 19 Jan 24, 4:31pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,421.2 +1.02%
All Ords 7,652.3 +1.01%
Small Ords 2,863.8 +0.77%
All Tech 2,684.6 +2.04%
Emerging Companies 1,933.9 -0.18%
Currency
AUD/USD 0.6576 +0.06%
US Futures
S&P 500 $4,814.75 +0.07%
Dow Jones $37,628.0 -0.08%
Nasdaq $17,165.5 +0.32%
Name Value % Chg
Sector
Information Technology 1,838.8 +3.01%
Health Care 42,419.6 +2.13%
Consumer Discretionary 3,276.0 +1.20%
Energy 10,715.9 +1.18%
Financials 6,798.8 +1.09%
Real Estate 3,203.7 +0.94%
Communication Services 1,578.9 +0.94%
Industrials 6,715.7 +0.83%
Consumer Staples 12,017.7 +0.65%
Materials 17,865.6 +0.42%
Utilities 7,763.3 -0.49%

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Markets

ASX 200 Session Chart

S&P ASX 200 (XJO) Intraday Chart 19 Jan 2024-
Fantastic Friday, erased over half of the week's losses

The S&P/ASX200 (XJO) finished 74.7 points higher at 7,421.2, 1.02% from its session high/low and just 0.34% from its high/low. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 193 to 75 – a major turnaround from the last couple of sessions.

Despite today's TGIF move, for the week, the XJO finished down 77.1 points or 1.04% lower.

The S&P/ASX 200 Information Technology Sector (XIJ), rising just over +3%. We've looked closely at the rebounding techincals in this index recently, so after today's performance it's worth another check.

S&P ASX 200 Information Technology Sector (XIJ) chart 19 Jan 2024
Investors scrambled to scoop up local tech stocks today

The XIJ continues its rally from the long term uptrend ribbon, which so often acts an an area of dynamic support. The short term uptrend ribbon is also providing dynamic support and is nicely reestablishing to the upside. All signs of excess demand.

Today's massive white candle, with its high close, is another excellent signal the sector is in a state of excess demand. If the XIJ can close above the 2 January peak at 1851.3, then there's little in the way of overhead resistance until the August 2023 high at 1946.2.

.

Company

Last Price

Change $

Change %

1mo %

1yr %

Xero (XRO)

$114.73

+$5.26

+4.8%

+4.2%

+58.0%

Weebit Nano (WBT)

$3.70

+$0.16

+4.5%

-16.7%

-1.6%

Macquarie Technology Group (MAQ)

$70.81

+$2.11

+3.1%

+5.2%

+19.8%

Wisetech Global (WTC)

$73.74

+$2.05

+2.9%

+0.2%

+38.0%

Technology One (TNE)

$15.42

+$0.42

+2.8%

+1.6%

+14.4%

Altium (ALU)

$48.22

+$1.31

+2.8%

+2.0%

+32.0%

Data#3 (DTL)

$9.12

+$0.24

+2.7%

+10.4%

+30.3%

Dicker Data (DDR)

$11.53

+$0.3

+2.7%

-4.2%

+6.5%

Audinate Group (AD8)

$17.43

+$0.38

+2.2%

+12.8%

+112.6%

Megaport (MP1)

$9.37

+$0.17

+1.8%

-1.9%

+30.1%

The best of the best: Aussie tech stocks today

Also doing well today was the Health Care Sector (XHJ) +2.13% and the Consumer Discretionary Sector (XDJ) +1.20%. Both sectors are showing very strong short term uptrends. I've shown you the chart of the XDJ several times over the last couple of weeks, so today let's focus on the XHJ, home to the likes of CSL, Cochlear (COH), and Resmed (RMD).

S&P ASX 200 Healthcare Sector (XHJ) chart 19 Jan 2024
The Healthcare sector is showing a strong short term uptrend

The Healthcare sector is showing a strong short term uptrend, but requires a little more work to confirm the long term trend has switched back to up. Ordinarily I could make an early call on this, that is, prior to the long term trend ribbon switching to green, if I see the formation of at least one trough above the long term trend ribbon.

This demonstrates the long term trend ribbon is likely transitioning back to providing dynamic support (as opposed to the dynamic resistance it provides in a long term downtrend). Today's large white candle with its high close is an excellent signal a new point of demand has formed (i.e., at yesterday's now trough low of 41469).

A close above the minor point of supply at 11 January's high of 42938 could facilitate a move back to the June 2023 highs at 45160.

.

Company

Last Price

Change $

Change %

1mo %

1yr %

Mesoblast (MSB)

$0.300

+$0.035

+13.2%

-3.2%

-64.2%

Clarity Pharmaceuticals (CU6)

$2.35

+$0.09

+4.0%

+42.4%

+165.5%

Nanosonics (NAN)

$4.27

+$0.15

+3.6%

-4.7%

-7.4%

Pro Medicus (PME)

$99.69

+$3.09

+3.2%

+8.6%

+65.4%

Cochlear (COH)

$298.73

+$9.17

+3.2%

+0.5%

+42.0%

Polynovo (PNV)

$1.585

+$0.045

+2.9%

-2.2%

-38.8%

Resmed Inc (RMD)

$26.39

+$0.58

+2.2%

+3.9%

-17.4%

CSL (CSL)

$289.00

+$6.19

+2.2%

+3.4%

-0.5%

Telix Pharmaceuticals (TLX)

$11.24

+$0.24

+2.2%

+17.6%

+72.7%

Australian Clinical Labs (ACL)

$2.99

+$0.05

+1.7%

+5.7%

-3.9%

Sonic Healthcare (SHL)

$31.13

+$0.51

+1.7%

-0.6%

-0.8%

Neuren Pharmaceuticals (NEU)

$23.33

+$0.28

+1.2%

+5.1%

+163.6%

Keep an eye on the charts of these top performing Healthcare sector stocks

Economy

  • No major economic data today!

What to watch out for...

Tonight:

  • 02:00am: US Prelim UoM Consumer Sentiment, forecast 69.8

  • 02:00am: US Existing Home Sales, forecast 3.83 million


Latest News


Interesting Movers

Trading higher

  • +13.2% Mesoblast (MSB) - FDA Grants Rare Pediatric Disease Designation for Revascor

  • +11.4% Zip Co (ZIP) - Upgraded to buy from hold at Ord Minnett; Price Target: $0.75 from $0.42

  • +9.9% EML Payments (EML) - No news since 18-Jan EML Payments to exit 'PCSIL' business

  • +7.7% Beacon Lighting Group (BLX) - No news, rally is consistent with strong Consumer Discretionary sector, and with prevailing short and long term uptrends

  • +7.0% Jumbo Interactive (JIN) - No news, rally is consistent with strong Consumer Discretionary and Information Technology sectors

  • +6.0% The Lottery Corporation (TLC) - No news, rally is consistent with strong Consumer Discretionary and Information Technology sectors

  • +4.9% Yancoal Australia (YAL) - Quarterly Activities Report

  • +4.8% Xero (XRO) - No news, rally is consistent with strong Informaion Technology sector, and with prevailing short and long term uptrends

  • +4.5% Weebit Nano (WBT) - No news, rally is consistent with strong Informaion Technology sector

  • +4.5% Pexa Group (PXA) - No news, rally is consistent with strong Informaion Technology sector

  • +4.5% Stanmore Resources (SMR) - No news since 18-Jan Change in substantial holding, rally is consistent with stronger Coal sector

  • +4.0% Coronado Global Resources Inc. (CRN) - Change in substantial holding, rally is consistent with stronger Coal sector

Trading lower

  • -6.1% Deep Yellow (DYL) - No news since 18-Jan December 2023 Quarterly Activities Report, speculation of an impending capital raise in the media, general weakness in the Uranium sector

  • -3.4% Australian Finance Group (AFG) - No news since 18-Jan AFG December 2023 Quarter Index

  • -3.3% Lycopodium (LYL) - No news πŸ€”

  • -3.2% Boss Energy (BOE) - No news, general weakness in the Uranium sector

  • -3.1% Emerald Resources (EMR) - No news πŸ€”

  • -2.9% KMD Brands (KMD) - No news, fall is consistent with prevailing short and long term downtrends

  • -2.7% Immutep (IMM) - No news since 15-Jan Change in substantial holding

  • -2.7% Perenti (PRN) - No news since 18-Jan Perenti secures A$420 million of contract extensions, fall is consistent with prevailing short and long term downtrends

  • -2.6% Select Harvests (SHV) - No news, fall is consistent with prevailing short and long term downtrends

  • -2.5% APM Human Services International (APM) - No news since 17-Jan First Half Trading Update, fall is consistent with prevailing short and long term downtrends


Broker Notes

  • The A2 Milk Company (A2M) retained at buy Citi; Price Target: $4.81

  • Australian Finance Group (AFG) retained at neutral Macquarie; Price Target: $1.54 from $1.46

  • Ampol (ALD)

    • Retained at outperform Macquarie; Price Target: $38.15

    • Retained at buy Goldman Sachs; Price Target: $37.10

  • APM Human Services International (APM) downgraded to speculative buy from buy at Euroz Hartleys; Price Target: $1.30 from $2.20

  • Alumina (AWC)

    • Retained at neutral Citi; Price Target: $1.15

    • Retained at buy Goldman Sachs; Price Target: $1.39

    • Retained at neutral Macquarie; Price Target: $1.10

  • Aurizon Holdings (AZJ) downgraded to neutral from overweight at JP Morgan; Price Target: $3.90

  • BHP Group (BHP)

    • Retained at buy Goldman Sachs; Price Target: $49.40

    • Retained at outperform Macquarie; Price Target: $49.00

    • Retained at neutral Citi; Price Target: $49.00

  • Deterra Royalties (DRR) retained at neutral Macquarie; Price Target: $4.80

  • Ingenia Communities (INA) initiated neutral at Barrenjoey; Price Target: $4.50

  • James Hardie Industries (JHX) retained at buy Citi; Price Target: $55.30

  • Mount Gibson Iron (MGX) retained at outperform Macquarie; Price Target: $0.55

  • NIB Holdings (NHF) retained at buy Citi; Price Target: $8.35

  • QBE Insurance Group (QBE) retained at buy Citi; Price Target: $18.00

  • Ramsay Health Care (RHC) initiated neutral at UBS; Price Target: $55.00

  • Suncorp Group (SUN)

    • Retained at buy Goldman Sachs; Price Target: $15.00

    • Retained at buy Citi; Price Target: $15.55

  • Transurban Group (TCL) downgraded to neutral from overweight at JP Morgan; Price Target: $14.00

  • The Lottery Corp. (TLC) upgraded to overweight from neutral at Barrenjoey; Price Target: $5.50 from $5.30

  • Zip Co (ZIP) upgraded to buy from hold at Ord Minnett; Price Target: $0.75 from $0.42


Scans

Top Gainers

Code Company Last % Chg
IPB IPB Petroleum Ltd $0.012 +50.00%
PXX Polarx Ltd $0.013 +44.44%
VBS Vectus Biosystems... $0.308 +23.00%
EME Energy Metals Ltd $0.195 +21.88%
CBY Canterbury Resour... $0.03 +20.00%
View all top gainers

Top Fallers

Code Company Last % Chg
CAZ Cazaly Resources Ltd $0.02 -25.93%
M2R Miramar Resources... $0.024 -20.00%
APS Allup Silica Ltd $0.035 -18.61%
LPE Locality Planning... $0.035 -18.61%
AHK Ark Mines Ltd $0.135 -18.18%
View all top fallers

52 Week Highs

Code Company Last % Chg
WCN White Cliff Miner... $0.019 +18.75%
FHS Freehill Mining Ltd $0.013 +18.18%
BGE Bridge Saas Ltd $0.08 +14.29%
CPV Clearvue Technolo... $0.725 +7.41%
PIL Peppermint Innova... $0.022 +4.76%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
CAZ Cazaly Resources Ltd $0.02 -25.93%
APS Allup Silica Ltd $0.035 -18.61%
AHK Ark Mines Ltd $0.135 -18.18%
S3N Sensore Ltd $0.079 -16.84%
AS2 Askari Metals Ltd $0.14 -12.50%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.095 0.00%
WVOL Ishares Edge MSCI... $37.11 -0.14%
IPX Iperionx Ltd $1.64 -3.53%
GCI Gryphon Capital I... $2.05 +0.49%
IHD Ishares S&P/ASX D... $13.77 +0.81%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
KAR Karoon Energy Ltd $1.84 +2.79%
OZR SPDR S&P/ASX 200 ... $13.20 +0.61%
LPM Lithium Plus Mine... $0.26 +6.12%
EVN Evolution Mining Ltd $3.155 +1.45%
WC8 Wildcat Resources... $0.50 +4.17%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience and has helped 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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