Market Wraps

Evening Wrap: ASX 200 shakes off January jitters as tech and health stocks lead gains

Tue 09 Jan 24, 5:48pm (AEDT)

The S&P/ASX 200 closed 69 points higher, up 0.93%.

The ASX 200 followed strong overseas leads to log a modest gain as all sectors but Energy prospered. Healthcare was the best sector, led by a resurgent Resmed (ASX: RMD) which jumped 5.9%, and Information Technology wasn't far behind. Both sectors made important progress in their technical pictures today, and each remains a key sector investors will want to watch closely as 2024 evolves.

Let's dive in.


Today in Review

Tue 09 Jan 24, 4:28pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,520.5 +0.93%
All Ords 7,749.5 +0.95%
Small Ords 2,868.2 +1.25%
All Tech 2,617.9 +1.73%
Emerging Companies 1,992.5 +0.43%
Currency
AUD/USD 0.6716 -0.06%
US Futures
S&P 500 $4,796.0 -0.11%
Dow Jones $37,876.0 -0.15%
Nasdaq $16,782.5 -0.13%
Name Value % Chg
Sector
Information Technology 1,761.8 +2.05%
Health Care 42,526.4 +1.51%
Industrials 6,895.8 +1.38%
Consumer Staples 12,308.9 +1.22%
Communication Services 1,565.3 +1.16%
Real Estate 3,254.7 +0.92%
Consumer Discretionary 3,199.9 +0.91%
Financials 6,747.1 +0.85%
Materials 18,901.6 +0.74%
Utilities 8,185.7 +0.13%
Energy 10,730.0 -0.10%

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Markets

ASX 200 Session Chart

S&P ASX 200 (XJO) Intraday Chart 9 Jan 2024
That's more like it, hopefully today is the start of a new year resolution for the ASX 200, i.e., not to be so lousy!

The S&P/ASX200 (XJO) finished 69 points higher at 7,520.5, 0.9% from its session low and 0.3% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 217 to 57. This is important because broad-based moves are more likely to be sustainable.

The S&P/ASX 200 Information Technology Sector (XIJ) +2% was the best performing sector today as local tech plays responded to a resounding rally in their US counterparts overnight.

Company

Last Price

Change $

Change %

1mo %

1yr %

Block Inc. (SQ2)

$103.17

+$3.67

+3.7%

+3.7%

+6.8%

Audinate Group (AD8)

$16.82

+$0.57

+3.5%

+12.1%

+117.9%

Xero (XRO)

$108.84

+$3.18

+3.0%

+4.9%

+49.1%

Life360 Inc (360)

$6.98

+$0.16

+2.3%

-0.6%

+40.4%

Wisetech Global (WTC)

$71.75

+$1.45

+2.1%

+5.2%

+44.4%

Nextdc (NXT)

$13.45

+$0.26

+2.0%

-0.2%

+50.8%

Megaport (MP1)

$8.67

+$0.16

+1.9%

-13.6%

+39.8%

Technology One (TNE)

$14.93

+$0.26

+1.8%

-2.5%

+14.5%

Altium (ALU)

$44.15

+$0.7

+1.6%

-3.0%

+26.9%

The best of the best in today's ASX recovery

From a sector perspective, the sector has had a shocking start to 2024 as investors unwound overly-optimistic bets about the timing of the first Fed rate cut. Long term interest rates have popped back up as result, and tech stocks are viewed as the sector with the most to lose from higher rates.

Information Tech sector chart XIJ 9 January
A crucial zone of support was held today

Today's rally is an important one in the context of the technical picture for the XIJ. The January correction put it at risk of breaking below my long term uptrend ribbon (dark green zone) and two key support points in the November 9 peak of 1736 and December 8 trough of 1716. Today's bounce, with it's long white candle gives me confidence this zone does represent excess demand, and further confirmation over the next few candles would do a great deal to set the Aussie tech sector up for a potential push towards the August highs.

Also doing well today was the S&P/ASX 200 Health Care Sector (XHJ) +1.9% which was powered by a resurgent Resmed (ASX: RMD). No news, and probably a response to a similar sized gain in its NYSE listing, but it does build upon what is increasingly looking like a promising rally from the 2023 sell-off.

Company

Last Price

Change $

Change %

1mo %

1yr %

Avita Medical Inc. (AVH)

$4.05

+$0.28

+7.4%

+8.9%

+105.6%

Clarity Pharmaceuticals (CU6)

$2.25

+$0.15

+7.1%

+57.3%

+130.8%

Resmed Inc (RMD)

$26.41

+$1.41

+5.6%

+5.9%

-14.5%

Australian Clinical Labs (ACL)

$2.91

+$0.09

+3.2%

+9.0%

-0.7%

Anteris Technologies (AVR)

$18.75

+$0.55

+3.0%

-5.3%

-19.5%

Clinuvel Pharmaceuticals (CUV)

$16.14

+$0.47

+3.0%

-7.8%

-31.9%

Telix Pharmaceuticals (TLX)

$9.41

+$0.24

+2.6%

-4.6%

+21.7%

Polynovo (PNV)

$1.575

+$0.04

+2.6%

+3.6%

-22.0%

Pro Medicus (PME)

$92.00

+$2.25

+2.5%

+2.9%

+66.2%

Healthcare stocks showed some, well, healthy gains today!

As you can see from the table above, there were plenty of other winners in the sector though. The sector itself appears to be going from strength to strength from a technical perspective with excellent short and long term trends, great price action, and a clear predominance of white candles. In short, the sector looks healthy!

Healthcare sector chart XHJ 9 January 2024

Economy

  • AU Building Approvals for November (forecast to decline 1.8%)

    • Actual +1.6% = Beat / stronger than expected

    • But underlying data not so rosy as shows a 1.7% decline in approvals for detached houses offset a 6.7% jump in approvals for apartments, townhouses, and terraced homes

  • AU Retails Sales for November (forecast to rise 1.2%)

    • Actual +2.0% = Beat / stronger than expected

    • Black Friday Sales splurge drove the gain, the biggest monthly jump in 2023

What to watch out for...

Tomorrow:

  • AU Consumer Price Index (CPI) Weds 10 Jan at 11:30am, forecast to rise 4.5% p.a. to end of December

Later this week:

  • 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

  • +7.7% Alumina (AWC) - Curtailment of Kwinana Alumina Refinery, continuation of short term uptrend

  • +7.7% Elders (ELD) - No news, continuation of short term uptrend, long term trend reversal

  • +7.4% Ainsworth Game Technology (AGI) - No news since 02-Jan Change in substantial holding, continuation of short and long term uptrends

  • +6.7% The Star Entertainment Group (SGR) - No news, rally off base pattern

  • +6.7% Latin Resources (LRS) - No news, rally after substantial pullback

  • +6.0% Johns Lyng Group (JLG) - Initiated overweight at Morgan Stanley; Price Target: $7.20

  • +5.6% Resmed Inc (RMD) - No news, followed similar pop in US listing

  • +5.3% Champion Iron (CIA) - No news, continuation of short and long term uptrends after two-day pullback

  • +4.6% Tyro Payments (TYR) - No news, bounce after recent sell-off

  • +4.3% Adairs (ADH) - No news, continuation of long term uptrend after recent pullback

  • +4.3% Collins Foods (CKF) - No news, continuation of long term uptrend after recent pullback

Trading lower

  • -6.1% Strike Energy (STX) - No news since 03-Jan Ceasing to be a substantial holder and Walyering Production Update

  • -4.4% Carnarvon Energy (CVN) - No news, pullback after recent rally

  • -4.1% Opthea (OPT) - No news, pullback after recent rally

  • -3.5% Syrah Resources (SYR) - No news, move is in line with prevailing short and long term trends

  • -3.1% Weebit Nano (WBT) - No news, move is in line with prevailing short and long term trends

  • -2.9% SRG Global (SRG) - No news

  • -2.8% Smartpay Holdings (SMP) - No news

  • -2.5% Tabcorp Holdings (TAH) - No news, move is in line with prevailing short and long term trends

  • -2.5% Vulcan Energy Resources (VUL) - No news, move is in line with prevailing short and long term trends

  • -2.5% Cromwell Property Group (CMW) - No news, move is in line with prevailing short and long term trends

  • -2.4% Terracom (TER) - No news, move is in line with prevailing short and long term trends

  • -2.3% Platinum Asset Management (PTM) - Funds Under Management - December 2023, move is in line with prevailing short and long term trends


Broker Notes

  • ASX (ASX) downgraded to neutral from outperform at Macquarie; Price Target: $63.00 from $60.00

  • Brickworks (BKW) retained at buy Citi; Price Target: $35.00 from $28.75

  • Bubs Australia (BUB) retained at hold Bell Potter; Price Target: $0.14 from $0.21

  • Computershare (CPU) retained at outperform Macquarie; Price Target: $28.00

  • Clarity Pharmaceuticals (CU6) retained at buy Bell Potter; Price Target: $3.00 from $1.70

  • Core Lithium (CXO) retained at sell Citi; Price Target: $0.13 from $0.29

  • Gold Road Resources (GOR) retained at buy Bell Potter; Price Target: $2.05 from $2.10

  • Johns Lyng Group (JLG) initiated overweight at Morgan Stanley; Price Target: $7.20

  • Platinum Asset Management (PTM) retained at sell Citi; Price Target: $1.00

  • Siteminder (SDR) retained at buy Citi; Price Target: $5.70

  • Silver Lake Resources (SLR) retained at outperform Macquarie; Price Target: $1.50

  • Santos (STO) retained at outperform Macquarie; Price Target: $9.60

  • Treasury Wine Estates (TWE) retained at neutral Citi; Price Target: $11.80

  • Whitehaven Coal (WHC) retained at buy Citi; Price Target: $9.40


Scans

Top Gainers

Code Company Last % Chg
WIN Widgie Nickel Ltd $0.115 +29.21%
RCR Rincon Resources Ltd $0.045 +28.57%
LV1 Live Verdure Ltd $0.48 +26.32%
KLI Killi Resources Ltd $0.063 +26.00%
RC1 Redcastle Resourc... $0.015 +25.00%
View all top gainers

Top Fallers

Code Company Last % Chg
M24 Mamba Exploration... $0.041 -34.92%
NME NEX Metals Explor... $0.019 -26.92%
VN8 VONEX Ltd $0.02 -22.00%
KNB Koonenberry Gold Ltd $0.043 -21.82%
IG6 International Gra... $0.12 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
LV1 Live Verdure Ltd $0.48 +26.32%
KM1 Kali Metals Ltd $0.53 +21.84%
PIL Peppermint Innova... $0.021 +16.67%
YRL Yandal Resources Ltd $0.13 +13.04%
AUE Aurum Resources Ltd $0.30 +11.11%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
IG6 International Gra... $0.12 -20.00%
SNT Syntara Ltd $0.017 -15.00%
OD6 OD6 Metals Ltd $0.125 -10.71%
OLY Olympio Metals Ltd $0.10 -9.09%
LIS Li-S Energy Ltd $0.155 -8.82%
View all 52 week lows

Near Highs

Code Company Last % Chg
GCI Gryphon Capital I... $2.06 +0.49%
IHD Ishares S&P/ASX D... $13.94 +0.94%
WSP Whispir Ltd $0.545 0.00%
HVN Harvey Norman Hol... $4.14 +1.72%
MVB Vaneck Australian... $30.62 +1.12%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
IR1 Iris Metals Ltd $0.86 +1.18%
TLG Talga Group Ltd $0.73 +4.29%
XARO Activex Ardea Rea... $23.77 +0.38%
DLI Delta Lithium Ltd $0.36 +2.86%
GL1 Global Lithium Re... $0.925 -1.07%
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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