Evening Wrap: ASX 200 slips, Healthcare stocks dip as CSL hits fresh 6-year low, Gold stocks soar

The S&P/ASX 200 closed 25 points lower, down -0.29%. 

In a nutshell:

• The market gave back yesterday's gains and continues to trade in a relatively narrow range

• Healthcare stocks continue to struggle, with the S&P/ASX 200 Healthcare Index at the lowest since November 2023 while CSL hits a fresh multi-year low

• All eyes on US inflation, as a hot print could undermine Fed rate cut expectations, though markets believe focus has shifted from inflation to employment

• Carl is currently traveling and will be back tomorrow

Let's dive in.

ASX 200 Session Chart

ASX 200 lower in a relatively rangebound session (Source: Market Index)

Markets

• A relatively uneventful session, with the ASX 200 slightly lower and erasing Wednesday's 0.31% gain.

• Mixed breadth, with 113 S&P/ASX 200 constituents lower (57%)

• Real estate (+0.68%) nears a two week high as the Aussie 10-year yield slipped to a one-month low

• Energy stocks (+0.65%) higher as oil prices are on a three-day win streak, up 2.9%. Though prices are just bouncing off a three-month low last Friday

• Healthcare (-1.76%) led to the downside, weakness was relatively broad based, with notable decliners including Neuren (-7.4%), Telix (-4.4%), ResMed (-2.7%) and CSL (-2.4%)

• CSL is now trading at the lowest level since May 2019 and down a further 8.7% since its FY25 result. This serves as a reminder about how stocks that report shocking earnings tend to drift lower (and vice versa)

• Overall, the market lacks momentum following that four-day skid that wiped 2.7% between 28 August and 3 September. The ASX is now caught between its 20-day and 50-day moving averages, with no clear trend, just consolidation. This sideways action coincides with weak seasonality and plenty of concerns around fiscal/government debt and recent tariff volatility. Let's see how the dust settles after tonight's CPI print.

Economy

No major economic announcements but US inflation data at 10:30 pm tonight.

• August core CPI forecast to rise 0.3% m/m and up 3.1% y/y, unchanged from July readings

• Headline CPI to accelerate 0.3% m/m from 0.2% in July

• Headline CPI to accelerate to 2.9% y/y from 2.7% in July

• JPMorgan sees S&P 500 reacting from +1.5% (soft print) to -2% (hot print >0.4%).

Latest news

Interesting Movers

Trading higher

• +18.8% 4DMedical (4DX) – no news, bouncing after 30% dip in last to two sessions

• +17.3% Sunrise Energy Metals (SRL) – no news, stock has 10x since April

• +16.0% Service Stream (SSM) – DoD contract award

• +8.0% PolyMetals (POL) – No news, up 24% in last three sessions, recently entered into production and ramping up silver-zinc production

• +4.5% Orora (ORA) – No news

• +4.1% Perenti (PRN) – contract award for Ramelius mine

• Gold sector move: Resolute Mining (+8.2%), Evolution Mining (+6.2%), Regis Resources (+6.2%), Pantoro (+5.3%), Capricorn Metals (+4.5%), St Barbara (+4.0%)

Trading lower

• -35.8% Nine Entertainment (NEC) – ex-dividend

• -12.1% Boss Energy (BOE) – Honeymoon update

• -7.4% Neuren Pharma (NEU) – No news

• -2.3% CSL (CSL) – No news

Broker notes

AGL Energy (AGL)

• Retained at outperform at Macquarie; Price Target: $11.00

Alkane Resources (ALK)

• Downgraded to hold from buy at Moelis Australia; Price Target: $1.20 from $1.40

Amcor Plc (AMC)

• Initiated at buy at Goldman Sachs; Price Target: $16.50

ANZ Group Holdings (ANZ)

• Retained at outperform at CLSA; Price Target: $36.70

• Retained at hold at Jefferies; Price Target: $27.41 from $26.39

• Retained at neutral at JPMorgan; Price Target: $31.00

Brightstar Resources (BTR)

• Retained at buy at Shaw and Partners; Price Target: $1.21

Centuria Industrial REIT (CIP)

• Retained at equal-weight at Morgan Stanley; Price Target: $3.63 from $3.62

Centuria Office REIT (COF)

• Retained at underweight at Morgan Stanley; Price Target: $1.25

Coles Group (COL)

• Retained at overweight at Morgan Stanley; Price Target: $26.80 from $23.80

Catalyst Metals (CYL)

• Retained at buy at Canaccord Genuity; Price Target: $10.45 from $8.75

Dalrymple Bay Infrastructure (DBI)

• Upgraded to outperform from sector perform at RBC Capital Markets; Price Target: $4.70

GPT Group (GPT)

• Retained at overweight at Morgan Stanley; Price Target: $6.00

HomeCo Daily Needs REIT (HDN)

• Retained at equal-weight at Morgan Stanley; Price Target: $1.34

Insurance Australia Group (IAG)

• Retained at equal-weight at Morgan Stanley; Price Target: $8.80 from $8.45

Iluka Resources (ILU)

• Retained at overweight at Barrenjoey; Price Target: $7.50 from $8.00

• Retained at buy at Canaccord Genuity; Price Target: $6.15 from $6.80

• Retained at neutral at Citi; Price Target: $5.30

• Retained at overweight at Morgan Stanley; Price Target: $6.40

• Retained at hold at Ord Minnett; Price Target: $5.50 from $6.00

• Retained at neutral at UBS; Price Target: $5.45

Minerals 260 (MI6)

• Initiated at buy at Ord Minnett; Price Target: $0.30

Metcash (MTS)

• Retained at neutral at Citi; Price Target: $3.90

• Retained at equal-weight at Morgan Stanley; Price Target: $3.75

• Retained at buy at Ord Minnett; Price Target: $4.60

• Retained at buy at UBS; Price Target: $4.35

Newmont Corporation (NEM)

• Upgraded to outperform from sector perform at RBC Capital Markets; Price Target: $95.00 from $66.00

Nufarm (NUF)

• Retained at buy at Bell Potter; Price Target: $3.55

Ora Banda Mining (OBM)

• Initiated at accumulate at Ord Minnett; Price Target: $1.20

Qoria (QOR)

• Initiated at buy at Goldman Sachs; Price Target: $0.72

Suncorp Group (SUN)

• Retained at overweight at Morgan Stanley; Price Target: $25.00

Woolworths Group (WOW)

• Retained at equal-weight at Morgan Stanley; Price Target: $29.30 from $30.50

Scans