Evening Wrap: ASX 200 smashes to new record as big banks lead gold and tech stocks higher, energy slumps again

The S&P/ASX 200 closed 65.6 points higher, up 0.80%.

Any day where we make a new record high is a good day, but this one was particularly sweet given the high session close (indicates excess demand persisted right up to the closing bell) and the very broad nature of the move (advancers beat decliners by more than 3 to 1).

Broad based moves that close near the high of the session tend to have the highest probability of continuing in the next session. There are also signs that certain very important parts of the local market are starting to flex their muscles again.

Click/scroll through for the usual reporting of the major sector and stock-specific moves, the broker responses to them, as well as all of the key upcoming economic data in tonight's Evening Wrap.

Note there are broker rating downgrades for The A2 Milk Company (A2M), Hub24 (HUB), Arcadium Lithium (LTM), Mineral Resources (MIN), Sandfire Resources (SFR), and Webjet (WEB) in the Broker Moves section.

Let's dive in!

Markets

ASX 200 Session Chart

The S&P/ASX 200 (XJO) finished 65.6 points higher at 8,318.4, 0.79% from its session low and just 0.16% from its low. In the broader–based S&P/ASX 300 (XKO), advancers beat decliners by an convincing 218 to 66.

The Financials (XFJ) (+1.3%) sector enjoyed a welcome return to form today, shaking off the September rotation blues. Interestingly, for what it’s worth, I noted a certain ASX banking sector ETF appeared in my technical analysis long scan for the first time in a few weeks yesterday, and I also saw fit to include ANZ Group (ASX: ANZ) (+0.94%) in my ChartWatch Daily Scans Uptrends list.

Note: If the banks get going again, it could be a cakewalk into the mid-8,000’s for the XJO.

The Gold (XGD) (+1.1%) sub-index was also good again today, despite the fact gold prices really haven’t done all that much over the last 24-hours. It’s possibly also a case of the trend is your friend in this sector also.

Elsewhere, Johns Lyng Group (ASX: JLG)(+5.2%) and Qantas Airways (ASX: QAN) (+2.0%) helped Industrials (XNJ) (+1.1%) into third spot on the sector performance leaderboard. No news on either.

Information Technology (XIJ) (+1.0%) and its close cousin Communication Services (XTJ) (+1.0%) were also market beaters, as they tracked yet another strong close in the tech-heavy Nasdaq Composite on Monday.

Now that the short term trend in the XFJ has realigned with its long term uptrend, I can say that each of the outperforming sectors today are in solid short and long term uptrends. Winners are indeed grinners 😁.

The best stocks from the best ASX sectors today

You probably know where I’m going next. The worst two performing sectors are also the two sectors with the worst technical trends.

Consumer Staples (XSJ) (-0.31%), which continues to be dogged by ACCC-affected supermarket stock declines, and Energy (XEJ) (-1.2%) which is subject to the vagaries of energy commodity pricing (generally lower Monday and in Asian trade today), struggled again today.

The worst stocks from the worst ASX sectors today

Economy

Today

• CHN Various

  • New Loans: 1,590 billion vs +1,090 billion forecast and 900 billion previous

  • M2 Money Supply: +6.8% vs +6.4% p.a. forecast and +6.3% p.a. previous

  • Trade Balance: 81.7 billion vs 91.5 billion forecast and 91 billion previous

  • Note: Big jump in New loans and M2 shows a strong bounce back in liquidity within the Chinese economy, and is consistent with the recent stimulus theme. Both data points were significantly higher than forecast. Contrasting this, but to be fair – more backward looking than the other two in terms of growth indicators – was a big fall in Chinese exports. Basically, the Chinese economy continues to weaken, but we can see some early signs the cavalry may be arriving!

Later this week

Tuesday

• 17:00 CHN Foreign Direct Investment (-31.5% year to date vs previous corresponding period)

Wednesday

• No major data release scheduled for this day

Thursday

• 11:30 AUS Employment Change September (+25,200 forecast vs +47,500 August)

• 23:15 EUR ECB Main Financing Rate (-0.25% to 3.4% forecast)

• 11:30 USA Core Retail Sales September (+0.1% m/m forecast vs +0.1% m/m in August)

• 23:45 EUR ECB Press Conference

Friday

• 01:00 USA NAHB Housing Market Index October (43 forecast vs 41 September)

• 13:00 CHN "Data Dump"

  • GDP September (+4.6% p.a. vs +4.7% p.a. previous)

  • Industrial Production (+4.6% p.a. vs +4.5% p.a. previous)

  • Retail Sales (+2.3% p.a. vs +2.8% p.a. previous)

  • Fixed Asset Investment (+3.3% year to date vs previous corresponding period)

  • Unemployment Rate

• 23:30 USA Building Permits September (1.45 million forecast vs 1.48 million August) & Housing Starts September (1.35 million forecast vs 1.36 million August)

Latest News

Interesting Movers

Trading higher

• +11.1% Aurelia Metals (AMI) - No news, rise is consistent with prevailing short and long term uptrends, suspect it will earn itself a place in ChartWatch Daily Scans Uptrends list tomorrow! 🔎📈

• +11.1% Wildcat Resources (WC8) - Quarterly Activities/Appendix 5B Cash Flow Report, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up, close above the long term trend ribbon, ditto on earning spot in ChartWatch Uptrends list tomorrow! 🔎📈

• +10.0% Silver Mines (SVL) - Bowdens Silver Project Update

• +9.5% Adairs (ADH) - No news, rise is consistent with prevailing short and long term uptrends, with a long white candle like that = another ditto on making tomorrow's ChartWatch Uptrends list! 🔎📈

• +7.4% Lotus Resources (LOT) - No news, but was retained at buy at Bell Potter with a price target of $0.50 and retained at outperform at Macquarie with a price target of $0.42 (up from $0.40)

• +7.2% Healius (HLS) - No news, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up, has appeared a few times recently in ChartWatch Uptrends list, also likely back in tomorrow! 🔎📈

• +7.2% WA1 Resources (WA1) - Corporate Presentation - West Arunta ProjectN

• +7.0% Qoria (QOR) - Qoria Q1 FY25 Results Webinar, rise is consistent with prevailing short and long term uptrends, has appeared a few times recently in ChartWatch Uptrends list, also likely back in tomorrow! 🔎📈

• +6.7% Superloop (SLC) - 2024 Annual Report, rise is consistent with prevailing short and long term uptrends, has appeared a regularly in ChartWatch Uptrends list last few months, also likely back in tomorrow! 🔎📈

• +6.4% Alpha HPA (A4N) - No news, rise is consistent with prevailing short and long term uptrends, has appeared a few times recently in ChartWatch Uptrends list, also likely back in tomorrow! 🔎📈

• +5.9% Baby Bunting Group (BBN) - 2024 AGM Presentation, rise is consistent with prevailing short and long term uptrends, has appeared a regularly in ChartWatch Uptrends list last few months, also likely back in tomorrow! 🔎📈

• +5.7% Deep Yellow (DYL) - No news, rise is consistent with prevailing short and long term uptrends, has appeared a few times recently in ChartWatch Uptrends list, also likely back in tomorrow! 🔎📈

• +5.4% Universal Store (UNI) - No news, rise is consistent with prevailing short and long term uptrends, has appeared a regularly in ChartWatch Uptrends list last few months, also likely back in tomorrow! 🔎📈

• +5.3% Resolute Mining (RSG) - No news, rise is consistent with prevailing short and long term uptrends, has appeared a regularly in ChartWatch Uptrends list last few months, also likely back in tomorrow! 🔎📈

• +4.8% Regis Resources (RRL) - No news, but was retained at add at Morgans and price target increased to $3.22 from $2.01, rise is consistent with prevailing short and long term uptrends, has appeared a few times recently in ChartWatch Uptrends list, also likely back in tomorrow! 🔎📈

Trading lower

• -11.1% Tyro Payments (TYR) - Response to ASX Price Query Letter, fall is consistent with prevailing short and long term downtrends, has appeared a regularly in ChartWatch Downtrends list last few months, also likely back in tomorrow! 🔎📈

• -8.3% Brainchip (BRN) - No news, pullback after recent strong rally, will need to hold above long term trend ribbon

• -7.5% Imugene (IMU) - No news, fall is consistent with prevailing short and long term downtrends, has appeared a regularly in ChartWatch Downtrends list last few months, also likely back in tomorrow! 🔎📈

• -7.4% IDP Education (IEL) - 2024 AGM Chair and CEO Speech and presentation, fall is consistent with prevailing short and long term downtrends, has appeared a regularly in ChartWatch Downtrends list last few months, also likely back in tomorrow! 🔎📈

• -5.0% Latin Resources (LRS) - No news, tracking fall in PLS which is consistent with that stock's prevailing short and long term downtrends, PLS has appeared a regularly in ChartWatch Downtrends list last few months, also likely back in tomorrow! 🔎📈

• -4.9% Kogan.Com (KGN) - No news, closed back below the long term trend ribbon

Broker Notes

• The A2 Milk Company (A2M)

  • Downgraded to sell from hold at Bell Potter; Price Target: $6.10 from $6.20

• Australian Finance Group (AFG)

  • Retained at neutral at Citi; Price Target: $1.65

• Alkane Resources (ALK)

  • Retained at buy at Bell Potter; Price Target: $1.25 from $1.10

• Atlas Arteria (ALX)

  • Retained at hold at Morgans; Price Target: $4.76 from $4.97

• Atturra (ATA)

  • Retained at buy at Shaw and Partners; Price Target: $1.40

• Bega Cheese (BGA)

  • Retained at buy at Bell Potter; Price Target: $6.45 from $5.75

• Chalice Mining (CHN)

  • Retained at buy at Bell Potter; Price Target: $5.15

• Coronado Global Resources (CRN)

  • Retained at buy at Bell Potter; Price Target: $1.65 from $1.70

• Cedar Woods Properties (CWP)

  • Retained at buy at Shaw and Partners; Price Target: $7.00

• Genusplus Group (GNP)

  • Retained at buy at Bell Potter; Price Target: $3.00 from $2.90

• Helia Group (HLI)

  • Retained at neutral at Goldman Sachs; Price Target: $4.29

• HMC Capital (HMC)

  • Retained at buy at Goldman Sachs; Price Target: $8.94

• Hub24 (HUB)

  • Downgraded to underperform from hold at Jefferies; Price Target: $52.65 from $46.50

• IGO (IGO)

  • Retained at outperform at Macquarie; Price Target: $5.60 from $6.10

• Liberty Financial Group (LFG)

  • Retained at buy at Citi; Price Target: $4.15

• Latitude Group (LFS)

  • Retained at neutral at Citi; Price Target: $1.15

• Lotus Resources (LOT)

  • Retained at buy at Bell Potter; Price Target: $0.50

  • Retained at outperform at Macquarie; Price Target: $0.42 from $0.40

• Arcadium Lithium (LTM)

  • Downgraded to neutral from outperform at Macquarie; Price Target: $8.70 from $5.30

• Mirvac Group (MGR)

  • Retained at outperform at Macquarie; Price Target: $2.01

  • Retained at hold at Ord Minnett; Price Target: $2.15 from $2.20

• Mineral Resources (MIN)

  • Downgraded to neutral from outperform at Macquarie; Price Target: $47.00 from $40.00

• Monadelphous Group (MND)

  • Retained at buy at Citi; Price Target: $16.20

• Orica (ORI)

  • Retained at buy at Goldman Sachs; Price Target: $21.40

• Percheron Therapeutics (PER)

  • Retained at add at Morgans; Price Target: $0.24

• Pantoro (PNR)

  • Downgraded to hold from buy at Bell Potter; Price Target: $0.13 from $0.10

• Pepper Money (PPM)

  • Retained at neutral at Citi; Price Target: $1.55

  • Retained at buy at Goldman Sachs; Price Target: $1.55

• Resimac Group (RMC)

  • Retained at neutral at Citi; Price Target: $0.90

• Regis Resources (RRL)

  • Retained at add at Morgans; Price Target: $3.22 from $2.01

• South32 (S32)

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

• Siteminder (SDR)

  • Retained at buy at Citi; Price Target: $7.20

• Seek (SEK)

  • Retained at outperform at Macquarie; Price Target: $28.00 from $25.00

  • Retained at buy at UBS; Price Target: $25.40

• Sandfire Resources (SFR)

  • Downgraded to marketweight from overweight at Wilsons; Price Target: $9.90

• Santos (STO)

  • Retained at outperform at Macquarie; Price Target: $8.65 from $8.70

• Telstra Group (TLS)

  • Retained at buy at Goldman Sachs; Price Target: $4.35

• TPG Telecom (TPG)

  • Retained at outperform at CLSA; Price Target: $5.80 from $5.60

  • Retained at sell at Goldman Sachs; Price Target: $4.40

  • Retained at overweight at Jarden; Price Target: $5.25

  • Retained at hold at Jefferies; Price Target: $4.80 from $5.20

  • Retained at underweight at Morgan Stanley; Price Target: $4.40 from $4.50

  • Downgraded to accumulate from buy at Ord Minnett; Price Target: $5.25 from $5.50

• Webjet (WEB)

  • Downgraded to neutral from buy at Citi; Price Target: $5.55 from $8.25

  • Retained at hold at CLSA; Price Target: $4.80 from $7.15

  • Retained at buy at Goldman Sachs; Price Target: $6.70 from $8.20

  • Retained at overweight at Jarden; Price Target: $7.10 from $7.70

  • Retained at equal-weight at Morgan Stanley; Price Target: $7.00

  • Downgraded to hold from add at Morgans; Price Target: $5.25 from $8.60

  • Retained at outperform at RBC Capital Markets; Price Target: $7.50 from $8.50

  • Retained at buy at Shaw and Partners; Price Target: $6.10 from $9.80

• Whitehaven Coal (WHC)

  • Retained at buy at Bell Potter; Price Target: $9.00 from $9.30

Scans