Market Wraps

Evening Wrap: ASX 200 reverses a strong open, consumer confidence near record lows

Tue 11 Oct 22, 4:47pm (AEST)

The S&P/ASX 200 closed 23 points lower, down -0.34%.


ASX close summary
ASX 200, All Ords and All Tech intraday overview

Markets

The ASX 200 mustered up a 0.67% rally in early trade, only to close at session lows of -0.34%.

  • 9 out of 11 sectors declined

  • Industrials and Utilities were the only green sectors

  • Staples also finished close to breakeven

  • Energy led to the downside, -1.59% following a decline in oil prices

  • Tech also underperformed, down -0.96%

  • 50% of the top 200 fell

Announcements

  • Superloop (ASX: SLC) +11.8% signed a mutual, preferred network partnership agreement with Uniti Group

  • Dalrymple Bay Infrastructure (ASX: DBI) +6.2% has reached a 10 year pricing and commercial terms agreement with all of its existing customers

  • Cettire (ASX: CCT) +1.2% posted 72% sales growth to $66.1m and $5.5m EBITDA for the first quarter of FY23  

  • Syrah Resources (ASX: SYR) +1.1% has restarted operations at the Balama Graphite Operation in Mozambique following illegal industrial action by a small contingent of local employees in late September

  • Telstra (ASX: TLS) +0.3% CEO Vicki Brady reaffirmed the company’s FY23 guidance of 7-10% earnings growth 

  • Mirvac (ASX: MGR) -2.04% announced the retirement of Chair John Mulcahy and CEO Susan Lloyd-Hurwitz. The company has commenced a process for their replacement

  • Incannex Healthcare (ASX: IHL) -8.6% completed a ‘constructive’ pre-Investigational New Drug Application with the FDA for its proprietary drug production IHL-216A for the treatment of traumatic brain injury and concussion 

  • Baby Bunting (ASX: BBN) -20.5% said first quarter FY23 margins fell 230 bps compared to a year ago due to competitive pricing, freight, foreign exchange and higher-than-expected loyalty redemptions 

Notable broker updates 

Economy

  • Westpac Consumer Confidence Index fell -0.9% to 83.7 in October from 84.4 in September

    • The Index remains in deeply pessimistic levels comparable only to the pandemic and Global Financial Crisis

    • "RBA's smaller-than-expected 25 bp rate rise averted a much bigger fall," the survey report said

    • "Attitudes towards major household purchases, which have shown a sensitivity to rising prices and interest rates, lifted modestly ... up 1.6%. A print of 85.4 is still extremely weak for this sub-index which has a long run average of 126."

    • "What may become clearer is that the tightening cycle still has significantly further to run. That is likely to keep the Consumer Sentiment Index firmly in deeply pessimistic territory in coming months."

  • NAB business confidence survey rose 3 points to 25 in September

    • "Business conditions strengthened further in September on the back of very high trading conditions and are now above their pre-COVID peak," said NAB Economics

    • September showed 'further easing in costs' but remain elevated and firms 'have continued to pass these pressures onto their customers'

    • NAB's inflation model suggests core CPI could run over 6.0% year-on-year for the September quarter compared to 6.1% in the June quarter

Commodities 

Nothing too exciting on the commodity front. Most energy and base metal prices were trading around breakeven after posting more sizeable declines overnight.

  • Iron ore futures on the Dalian Commodity Exchange fell -2.0%


Latest news


Post market brief

Yikes. The ASX 200 sold into close, down -0.34%. The only good thing was that the reversal wasn't too broad-based, with just under 99 of the top 200 closing lower.

US producer price index on Wednesday, US inflation on Thursday and US retail sales on Friday. Get ready for some fireworks.

Index

S&P/ASX 200: Tried to bounce but met with a discouraging reversal.

xjo chart
XJO chart (Source: TradingView, Annotations by Market Index)

S&P/ASX 200 Materials: Likewise reversal. Pulling into key 20-day and 50-day moving averages. Can we see some support?

xmj chart
XMJ chart (Source: TradingView, Annotations by Market Index)

Scans

Top Gainers

Code Company Last % Chg
SHH Shree Minerals Ltd $0.013 +44.44%
NET Netlinkz Ltd $0.025 +31.58%
BBX BBX Minerals Ltd $0.069 +25.46%
TTI Traffic Technolog... $0.016 +23.08%
DUN Dundas Minerals Ltd $0.86 +22.86%
View all top gainers

Top Fallers

Code Company Last % Chg
WML Woomera Mining Ltd $0.016 -30.44%
CAI Calidus Resources... $0.335 -29.47%
NWM Norwest Minerals Ltd $0.029 -29.27%
ECG Ecargo Holdings Ltd $0.014 -22.22%
BBN Baby Bunting Grou... $3.10 -20.51%
View all top fallers

52 Week Highs

Code Company Last % Chg
DUN Dundas Minerals Ltd $0.86 +22.86%
ATA Atturra Ltd $0.865 +10.90%
SKS SKS Technologies ... $0.275 +7.84%
DBI Dalrymple Bay Inf... $2.23 +6.19%
TMK TMK Energy Ltd $0.018 +5.88%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
CAI Calidus Resources... $0.335 -29.47%
BBN Baby Bunting Grou... $3.10 -20.51%
MEL Metgasco Ltd $0.02 -20.00%
TAM Tanami Gold NL $0.04 -13.04%
AUN Aurumin Ltd $0.084 -13.02%
View all 52 week lows

Near Highs

Code Company Last % Chg
MAET Munro Global Grow... $4.51 -1.10%
NEU Neuren Pharmaceut... $7.05 +1.29%
IJP Ishares MSCI Japa... $78.67 +0.65%
MXT Metrics Master In... $1.95 0.00%
TYR Tyro Payments Ltd $1.43 -5.30%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
MIR Mirrabooka Invest... $2.81 +1.81%
ASX ASX Ltd $67.64 +0.48%
RCAP Resolution Cap Gl... $1.435 -2.05%
EML EML Payments Ltd $0.675 -6.90%
APX Appen Ltd $2.68 -1.11%
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.

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