News | Market Wraps
Evening Wrap: ASX 200 rises, Chinese iron ore futures rally, coal miners surge
The S&P/ASX 200 closed 24 points higher, up 0.34%.
Mentioned
The S&P/ASX 200 closed 24 points higher, up 0.34%.
The local sharemarket bounces but remains in no man's land. We take a look at the September quarterly rebalance, Chinese iron ore futures and the RBA rate hike on Tuesday.
Let's dive in.
ASX 200, All Ords and All Tech intraday overview
Markets
4 out of 11 sectors advanced
Energy and Material sectors led as commodity prices bounced back
Staples and Utilities were also relative outperformers
All other sectors fell between 0.5% and 1.0%
51% of the top 200 companies declined
Stocks
S&P/ASX Indices September quarterly rebalance, effective prior to the open of trading on Monday, September 19, 2022.
ASX 200 additions:
Company | Ticker | Industry | 1-yr return (%) |
|---|---|---|---|
Capricorn Metals | CMM | Gold exploration | 47 |
Charter Hall Social Infrastructure | CQE | Real Estate | -7.6 |
John Lyng Group | JLG | Building insurance and construction | 17 |
Karoon Energy | KAR | Energy | 71.6 |
Lovisa Holdings | LOV | Retail | 18.1 |
Smartgroup Corporation | SIQ | Commercial services | -24.7 |
Spark New Zealand | SPK | Telecommunication Services | 3.9 |
Sayona Mining | SYA | Lithium exploration | 61.6 |
ASX 200 removals:
Company | Ticker | Industry | 1-yr return (%) |
|---|---|---|---|
Life360 | 360 | Technology | -48.9 |
City Chic Collective | CCX | Retail | -75 |
Clinuvel Pharmaceuticals | CUV | Biotech | -51.7 |
EML Payments | EML | Fintech | -78.4 |
Janus Henderson | JHG | Funds management | -42.6 |
Pointsbet | PBH | Sports betting | -79.5 |
Zip Co | ZIP | BNPL | -87.7 |
AVZ Minerals | AVZ | Lithium exploration | Shares suspended since May |
Economy
Australian retail sales rose 1.3% in July from 0.2% in June
No revisions compared to 29 August release
"After slowing growth in recent months, the 1.3 per cent rise in July was the largest since the 1.6 per cent rise in March 2022,' said Ben Drober, head of retail statistics at the ABS
Australian company gross operating profits rose 7.6% in the June quarter, from 9.8% in the March quarter
Australian wages and salaries rose 3.3% in the June quarter
China Caixin Services PMI eased to 55.0 in August from 55.5 in July
Consensus expected a decline to 51
"The service sector's recovery from a widespread outbreak of Covid-19 earlier in the year continued in spite of new flare-ups," said Wang Zhe, senior economist at Caixin
Commodities
Iron ore futures on China’s Dalian Commodity Exchange rose 4.4%
Blast furnace capacity utilisation among Chinese steel mills increased for a 5th straight week, up 1.6 percentage points to 86.8%, according to Mysteel
Brent crude oil bounces 1.8% to US$94.9 a barrel
Uranium futures fell -3.5% to US$50.6
Newcastle coal futures rose 1.8% to US$435 a tonne
Scans
Top Gainers
Code | Company | Last | % Chg |
|---|---|---|---|
| FMS | Flinders Mines Ltd | $0.75 | +41.51% |
| AJL | AJ Lucas Group Ltd | $0.133 | +35.20% |
| FRS | Forrestania Resources Ltd | $0.195 | +30.00% |
| CXU | Cauldron Energy Ltd | $0.013 | +25.00% |
| CMD | Cassius Mining Ltd | $0.038 | +22.58% |
Top Fallers
Code | Company | Last | % Chg |
|---|---|---|---|
| IVZ | Invictus Energy Ltd | $0.203 | -20.59% |
| KRR | King River Resources Ltd | $0.014 | -15.63% |
| ATP | Atlas Pearls Ltd | $0.033 | -15.39% |
| GIB | Gibb River Diamonds Ltd | $0.05 | -15.25% |
| AUQ | Alara Resources Ltd | $0.052 | -14.75% |
52 Week Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| AJL | AJ Lucas Group Ltd | $0.133 | +35.20% |
| CMD | Cassius Mining Ltd | $0.038 | +22.58% |
| LCT | Living Cell Technologies Ltd | $0.013 | +18.18% |
| SPD | Southern Palladium Ltd | $1.10 | +15.79% |
| BBL | Brisbane Broncos Ltd | $1.29 | +14.67% |
52 Week Lows
Code | Company | Last | % Chg |
|---|---|---|---|
| KRR | King River Resources Ltd | $0.014 | -15.63% |
| SMN | Structural Monitoring Systems Plc | $0.35 | -12.50% |
| EMS | Eastern Metals Ltd | $0.11 | -12.00% |
| RVS | Revasum Inc | $0.155 | -11.43% |
| BTR | Brightstar Resources Ltd | $0.016 | -11.11% |
Near Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| NEA | Nearmap Ltd | $2.08 | -0.48% |
| RAP | Resapp Health Ltd | $0.20 | 0.00% |
| BILL | Ishares Core Cash ETF | $100.43 | +0.03% |
| IIND | Betashares India Quality ETF | $10.41 | +0.58% |
| SNL | Supply Network Ltd | $10.65 | -0.37% |
Relative Strength Index (RSI) Oversold
Code | Company | Last | % Chg |
|---|---|---|---|
| VBND | Vanguard Global Aggregate Bond INDEX (Hedged) ETF | $42.32 | +0.33% |
| PPK | PPK Group Ltd | $1.55 | +2.99% |
| ABB | Aussie Broadband Ltd | $2.56 | +1.99% |
| DDR | Dicker Data Ltd | $10.35 | -0.96% |
| GRR | Grange Resources Ltd | $0.755 | +2.03% |
Latest news
Post market charts
The market feels like its in a coin flip state. It needs to show some strength around these key levels otherwise the likelihood of revisiting June lows will continue to grow.
S&P/ASX 200: Solid day given the weak lead from Wall Street. A nice little bounce but so what? The ASX 200 is still clinging onto dear life.
ASX 200 daily chart (Source: TradingView, Annotations by Market Index)
S&P/ASX 200 Energy: Bouncing off the 20-day moving average.
ASX 200 Energy index (Source: TradingView)
Stocks and sectors
Lithium gets a bid: Lithium names powered ahead on Monday, led by large cap names like Allkem (ASX: AKE), Pilbara Minerals (ASX: PLS) and Core Lithium (ASX: CXO). It's good to see the sub-sector that led the July/August rally hold up pretty well. Other names like Liontown Resources (ASX: LTR), Essential Metals (ASX: ESS) and Lithium Power (ASX: LPI) starting to consolidate around key areas like the 20-day.
Lithium Power chart (Source: TradingView, Annotations by Market Index)
Uranium not falling apart: Uranium has been notorious for rallying off news and then going back to square one. Most uranium names rose 3-6% on Monday. A few like Paladin Energy (ASX: PDN) are close to recent highs.
Paladin Energy chart (Source: TradingView)
A few names pushing: Myer (ASX: MYR), Arafura (ASX: ARU), Neuren Pharma (ASX: NEU) all moved out of recent trading ranges
Myer chart (Source: TradingView, Annotations by Market Index)
Food for thought
RBA interest rate decision: The RBA is expected to hike rates by another 50-basis points on Tuesday at 2:30 pm AEST. In terms of intraday performance for the ASX 200 on rate decision days (rate hike vs. expectations):
3 May -0.42% (larger-than-expected)
7 June -1.53% (larger-than-expected)
5 Jul +0.25% (in-line)
2 Aug +0.07% (in-line)
European central bank also poised to hike: The ECB is expected to lay down a 50 or 75 basis point hike on Thursday night. ING noted a broader paradigm shift among global central banks post Jackson Hole symposium, "characterised by central banks trying to break inflation, accepting the potential costs of pushing economies further into recession."
Rate history lesson with ING: "This is similar to what we had in the early 1980s. Back then, higher inflation was also mainly a supply-side phenomenon but eventually led to price-wage spirals and central banks had to hike policy rates to double-digit levels in order to bring inflation down. With the current paradigm shift, central banks are trying to get ahead of the curve – at least ahead of the curve of the 1970s and 1980s," said ING's Carsten Brzeski
