News | Market Wraps
Evening Wrap: ASX 200 sniffs record...surely this is it...8000 here we come! Plus gold, uranium and lithium stocks big day out
The S&P/ASX 200 closed 72.8 points higher, up 0.93%.
Mentioned
The S&P/ASX 200 closed 72.8 points higher, up 0.93%.
This is it!
Surely tomorrow is the day we meet our destiny.
Or at the very least make a new all time high on the S&P/ASX 200.
Definitely one of the two...
Let's dive in!
Today in Review
Thu 11 Jul 24, 4:26pm (AEST)
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
| ASX 200 | 7,889.6 | +0.93% |
| All Ords | 8,133.4 | +0.93% |
| Small Ords | 3,020.4 | +1.28% |
| All Tech | 3,144.1 | +1.11% |
| Emerging Companies | 2,178.9 | +0.97% |
Currency | ||
| AUD/USD | 0.6762 | +0.22% |
US Futures | ||
| S&P 500 | 5,684.25 | -0.07% |
| Dow Jones | 40,036.0 | -0.03% |
| Nasdaq | 20,871.75 | -0.13% |
Name | Value | % Chg |
|---|---|---|
Sector | ||
| Real Estate | 3,660.6 | +1.59% |
| Information Technology | 2,371.9 | +1.46% |
| Health Care | 44,585.2 | +1.32% |
| Materials | 17,217.5 | +1.18% |
| Energy | 10,350.6 | +1.11% |
| Industrials | 6,866.7 | +0.98% |
| Consumer Staples | 12,532.1 | +0.88% |
| Consumer Discretionary | 3,593.0 | +0.87% |
| Communication Services | 1,533.7 | +0.60% |
| Financials | 7,752.6 | +0.52% |
| Utilities | 9,075.1 | +0.25% |
Markets
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 72.8 points higher at 7,889.6, % from its session high/low and just % from its high/low. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an overwhelming 213 to 64.
Given a market breadth reading like that, it’s no surprise that all 11 of the major ASX sectors rose today. The best performing sector was the Gold (XGD) (+2.2%) sub-index. It likely benefited from rising gold and silver prices (see ChartWatch for silver analysis, the gold chart looks very similar).
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Ora Banda Mining (OBM) | $0.390 | +$0.035 | +9.9% | +16.4% | +200.0% |
Catalyst Metals (CYL) | $1.510 | +$0.1 | +7.1% | +53.3% | +93.6% |
Perseus Mining (PRU) | $2.64 | +$0.13 | +5.2% | +14.8% | +62.5% |
Genesis Minerals (GMD) | $1.955 | +$0.075 | +4.0% | +8.9% | +63.6% |
Newmont Corporation (NEM) | $67.58 | +$2.46 | +3.8% | +10.4% | 0% |
Emerald Resources (EMR) | $3.96 | +$0.11 | +2.9% | +8.2% | +76.0% |
Red 5 (RED) | $0.420 | +$0.01 | +2.4% | -3.4% | +121.1% |
Capricorn Metals (CMM) | $5.26 | +$0.11 | +2.1% | +18.2% | +29.6% |
Northern Star Resources (NST) | $13.29 | +$0.27 | +2.1% | -3.2% | +6.7% |
Ramelius Resources (RMS) | $1.950 | +$0.03 | +1.6% | +4.0% | +57.3% |
Bellevue Gold (BGL) | $2.00 | +$0.03 | +1.5% | +5.3% | +38.4% |
West African Resources (WAF) | $1.425 | +$0.02 | +1.4% | -7.2% | +64.7% |
Regis Resources (RRL) | $1.875 | +$0.025 | +1.4% | +5.9% | -3.6% |
ASX Gold stocks today
On the topic of charts, I note that many of the stocks in the list above have featured recently in my daily ChartWatch ASX Scans uptrends lists (OBM, CYL, PRU, EMR, RED, and CMM). There's a good chance GMD will get in tomorrow's list. Strong trends tend to breed strong performances in my experience.
Also doing well today was the Real Estate Investment Trusts (XPJ) (+1.6%) sector. Nothing specific going on here, market yields are roughly the same as they were at the start of the week. But I do note, much of this sector has been mauled over the last couple of months – again these tickers have all over my ChartWatch ASX Scans downtrends lists.
So, as much as I hate this term – possibly we saw some "bargain hunting" from the value-based funds today.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Mirvac Group (MGR) | $1.930 | +$0.08 | +4.3% | +1.8% | -13.1% |
Region Group (RGN) | $2.20 | +$0.07 | +3.3% | +1.9% | -1.3% |
Stockland (SGP) | $4.36 | +$0.12 | +2.8% | -2.2% | +10.9% |
Charter Hall Group (CHC) | $11.55 | +$0.29 | +2.6% | -5.9% | +7.6% |
Centuria Industrial Reit (CIP) | $3.11 | +$0.07 | +2.3% | -0.6% | +2.0% |
Lifestyle Communities (LIC) | $12.28 | +$0.25 | +2.1% | +0.6% | -20.7% |
Dexus (DXS) | $6.58 | +$0.12 | +1.9% | -0.6% | -15.5% |
Charter Hall Long Wale Reit (CLW) | $3.39 | +$0.06 | +1.8% | -0.3% | -14.0% |
Lendlease Group (LLC) | $5.85 | +$0.1 | +1.7% | +5.2% | -24.5% |
Scentre Group (SCG) | $3.21 | +$0.05 | +1.6% | +3.5% | +23.0% |
Vicinity Centres (VCX) | $1.935 | +$0.03 | +1.6% | +3.5% | +7.5% |
Charter Hall Retail Reit (CQR) | $3.25 | +$0.05 | +1.6% | -0.3% | -7.9% |
ASX Real Estate stocks today
It was good to see strength in the strongest sectors after that, with Information Technology (XIJ) (+1.5%) and Health Care (XHJ) (+1.3%) the next two best performers. Again, when I see strength where there should be strength – all is right with the world.
The usual laggards, Resources (XJR) (+1.16%) and Energy (XEJ) (+1.06%) also delivered above-average performances today. However, I note two respective subsets of extreme outperformance today!
Uranium, well that one’s obvious after news broke late yesterday afternoon that Kazatomprom is facing a potentially larger tax bill on increased production (see Kerry’s article for more details). I’ve also got detailed technical analysis on the uranium price for your in ChartWatch below.
The other big day out was in ASX lithium stocks. We did see a modest rally in several key US lithium stocks overnight, but lithium minerals are down again in China (and plumbing their 6-month lows). So, I’m going go figure on that one! 🤷♂️ ("bargain hunting"!?)
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Anson Resources (ASN) | $0.160 | +$0.035 | +28.0% | +52.4% | 0% |
Lotus Resources (LOT) | $0.370 | +$0.035 | +10.4% | -3.9% | +100.0% |
Latin Resources (LRS) | $0.170 | +$0.015 | +9.7% | -22.7% | -44.3% |
Deep Yellow (DYL) | $1.490 | +$0.125 | +9.2% | +3.5% | +101.4% |
Nexgen Energy (NXG) | $11.15 | +$0.89 | +8.7% | +11.9% | +55.9% |
Silex Systems (SLX) | $5.33 | +$0.39 | +7.9% | -1.3% | +46.4% |
Bannerman Energy (BMN) | $3.29 | +$0.24 | +7.9% | -20.7% | +102.5% |
Paladin Energy (PDN) | $13.98 | +$0.81 | +6.2% | -3.5% | +91.5% |
Boss Energy (BOE) | $3.98 | +$0.23 | +6.1% | -1.5% | +35.4% |
Peninsula Energy (PEN) | $0.110 | +$0.005 | +4.8% | +14.6% | -33.6% |
Develop Global (DVP) | $2.10 | +$0.09 | +4.5% | 0% | -37.5% |
Arcadium Lithium (LTM) | $5.06 | +$0.19 | +3.9% | -14.1% | 0% |
Liontown Resources (LTR) | $0.965 | +$0.035 | +3.8% | -15.4% | -65.7% |
Core Lithium (CXO) | $0.100 | +$0.003 | +3.1% | +5.3% | -89.2% |
IGO (IGO) | $5.92 | +$0.17 | +3.0% | -8.8% | -60.6% |
Pilbara Minerals (PLS) | $3.02 | +$0.08 | +2.7% | -11.4% | -38.6% |
Mineral Resources (MIN) | $56.90 | +$1.41 | +2.5% | -11.3% | -14.9% |
ASX uranium and lithium stocks today
ChartWatch
S&P/ASX 200 (XJO)
Surely this is it!?
The last time we covered the XJO was in ChartWatch in the Evening Wrap on 9 July.
In that update, we noted a similar white candle to today. The second strong demand-side showing in three trading sessions is reassuring that the demand-side is growing more aggressive.
This is particularly likely because demand-side showings like today’s are occurring so close to the all-time high. This suggest to me that high is no longer a pressure point for the demand-side – that it no longer carries with it any fear or trepidation – and there is no longer any reason to hold back upon approaching it.
It’s quite simple now. A close above 7911 sets us up for a push to the 8-handle…and fingers tightly crossed…for a push well beyond! 🤞
There are three things I don’t want to see from here:
A tickle of the high with long upward pointing shadow (i.e., we trade nicely above the high in the morning, but by the end of the session supply floods in to close the candle near the low with a long upward pointing shadow)
Long black candles…that one’s customary
A close below the most recent point of demand at 7759.
Uranium Futures (Front month, back-adjusted) COMEX
%20COMEX%20chart%2010%20July.png)
Good news has not yet translated to a price bump yet
The last time we covered uranium was in ChartWatch in the Evening Wrap on 25 June.
In that update, I noted substantial risks for the uranium uptrend. I said that if the uranium price were to close below the long term uptrend ribbon / below the 83.15 point of demand, it would confirm a transition to a long term downtrend.
Fortunately, that hasn’t occurred. We’ve actually seen a small rally followed by sideways price action. Anything that’s not a fall is good.
Yesterday’s news that the world’s largest producer Kazatomprom is facing higher taxes on its home-grown production has put the uranium market in a spin. Well, it has in terms of uranium stocks which bolted in the US last night and locally on the ASX today, not to mention getting among uranium bulls all in a tizzy on X/Twitter!
But so far, there’s very little response in the uranium futures price. It may be that the news is still filtering into pricing.
Either way, the key levels remain the same, as does my take on this chart: A close below 83.15 would be problematic, while (hopefully) a close above 86.75 would restart both short and long term uptrends.
Silver Futures (Front month, back-adjusted) COMEX
%20COMEX%20chart%2011%20July.png)
A lack of a supply-side response is a good thing
The last time we covered silver was in ChartWatch in the Evening Wrap on 4 July.
In that update, we noted the strong demand-side push in the 3 July candle. I suggested that a “higher trough above $30” would be the key to confirming the resumption of demand-side control.
We haven’t actually seen that higher trough yet, but I suggest the price action we are seeing is even better.
A higher trough occurs when the price action transitions from lower highs and lower lows on a candle-by-candle basis to higher highs and higher lows.
We didn’t get the lower highs and lower lows (i.e. not enough supply to trigger a pullback), and therefore we haven’t formed the higher trough. That lack of supply is a good thing.
Instead, the price moved higher (in the 5 July Candle) and then subsequent candles have formed inside their respective previous candles. These are called inside candles.
Long story short, the candles point to strong demand-side control, and therefore an increased likelihood of a continuation move that could tip the next point of supply at $32.
Demand is the short term trend ribbon. As long as silver continues to close above it, and assuming a lack of supply-side candles (i.e. black-bodies and or upward pointing shadows), I can’t see any reason why the prevailing short term uptrend can’t continue.
High Grade Copper Futures (Front month, back-adjusted) COMEX
%20COMEX%20chart%2011%20July.png)
Nearly ditto with silver
The last time we covered high grade copper was in ChartWatch in the Evening Wrap on 25 June.
In that update, I noted substantial risks for the uranium uptrend. I said that if the uranium price were to close below the long term uptrend ribbon / below the 83.15 point of demand, it would confirm a transition to a long term downtrend.
Fortunately, that hasn’t occurred. We’ve actually seen a small rally followed by sideways price action. Anything that’s not a fall is good.
Economy
Today
There weren't any major economic data releases in our time zone today
Later this week
Thursday
10:30 USA Core CPI June (forecast +0.2% m/m and +3.5% p.a. vs +0.2% m/m and +3.5% in May)
Friday
10:30 USA Core PPI June (forecast +0.1% m/m and +2.0% p.a. vs +0.0% m/m and +1.8% in May)
Saturday
00:00 USA Preliminary University of Michigan Consumer Sentiment July (67.0 forecast vs 68.2 in June)
Latest News
Interesting Movers
Trading higher
+28% Anson Resources (ASN) - Response to ASX Price Query, ASX lithium sector likely got a bump from similar gains in several US lithium stocks overnight, otherwise - lithium minerals prices are down again in China…so go figure! To be fair, this rise is consistent with prevailing short term uptrend and long term trend transitioning from down to up 🔎📈
+17.8% Cettire (CTT) - Appointment of Non-Executive Director
+11.5% Select Harvests (SHV) - No news, rise is consistent with prevailing short term uptrend, closed back above long term uptrend ribbon 🔎📈
+10.4% Telix Pharmaceuticals (TLX) - CMS proposes payment improvement for radiopharma diagnostics, rise is consistent with prevailing short and long term uptrends (ChartWatch ASX Scans uptrends list stalwart!) 🔎📈
+10.4% Lotus Resources (LOT) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+9.8% Ora Banda Mining (OBM) - Sand King Approval Lifts FY26 Production Outlook to 150koz, rise is consistent with prevailing short and long term uptrends 🔎📈
+9.6% Latin Resources (LRS) - Ditto on ASN, US counterparts' gains, if you can explain ASX lithium's big day out otherwise…please let me know 🤔
+9.4% Clarity Pharmaceuticals (CU6) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch ASX Scans uptrends list stalwart!) 🔎📈
+9.1% Deep Yellow (DYL) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+8.6% NexGen Energy (NXG) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+7.8% Silex Systems (SLX) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+7.8% Bannerman Energy (BMN) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+6.9% Catapult Group International (CAT) - No news, rise is consistent with prevailing short and long term uptrends (ChartWatch ASX Scans uptrends list stalwart!) 🔎📈
+6.1% Paladin Energy (PDN) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+6.1% Boss Energy (BOE) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+4.7% Peninsula Energy (PEN) - No news, broad ASX uranium sector bounce on Kazatomprom tax news
+4.4% Develop Global (DVP) - Ditto on ASN and LRS…
Trading lower
-9.4% WA1 Resources (WA1) - June 2024 Quarterly Activities and Cash Flow Report and Institutional Placement
-4.2% Netwealth Group (NWL) - June 2024 Quarterly Business Update
-2.4% Platinum Asset Management (PTM) - Funds Under Management - June 2024, fall is consistent with prevailing short and long term downtrends 🔎📉
-2.3% Strike Energy (STX) - No news, fall is consistent with prevailing short and long term downtrends 🔎📉
-2.3% Zip Co. (ZIP) - No news, modest pullback after very strong rally
-2.2% Hub24 (HUB) - No news, likely got tagged by NWL news…🤔
-2.2% Codan (CDA) - No news, modest pullback after very strong rally
Broker Notes
Australian Finance Group (AFG)
Retained at neutral at Macquarie; Price Target: $1.47
AGL Energy (AGL)
Retained at equal-weight at Morgan Stanley; Price Target: $10.00
Alkane Resources (ALK)
Retained at buy at Bell Potter; Price Target: $1.10
Aristocrat Leisure (ALL)
Retained at neutral at Goldman Sachs; Price Target: $55.30
Aurelia Metals (AMI)
Retained at outperform at Macquarie; Price Target: $0.28 from $0.27
Bellevue Gold (BGL)
Retained at buy at Goldman Sachs; Price Target: $2.20
Challenger (CGF)
Retained at neutral at Macquarie; Price Target: $7.30 from $7.20
Capricorn Metals (CMM)
Retained at neutral at Goldman Sachs; Price Target: $5.25
Core Lithium (CXO)
Upgraded to neutral from sell at Goldman Sachs; Price Target: $0.08
De Grey Mining (DEG)
Retained at buy at Goldman Sachs; Price Target: $1.35
Domino's Pizza Enterprises (DMP)
Retained at overweight at Morgan Stanley; Price Target: $47.00 from $52.00
Evolution Mining (EVN)
Retained at buy at Citi; Price Target: $4.40
Retained at buy at Goldman Sachs; Price Target: $4.15
Gold Road Resources (GOR)
Retained at buy at Goldman Sachs; Price Target: $2.10
Genetic Signatures (GSS)
Retained at buy at Bell Potter; Price Target: $1.10 from $0.75
Hub24 (HUB)
Downgraded to neutral from buy at Citi; Price Target: $46.40 from $42.80
Insurance Australia Group (IAG)
Retained at outperform at Macquarie; Price Target: $8.00
IGO (IGO)
Retained at buy at Goldman Sachs; Price Target: $7.15
Retained at underweight at Morgan Stanley; Price Target: $2.75
Incitec Pivot (IPL)
Retained at equal-weight at Morgan Stanley; Price Target: $3.00
Retained at buy at UBS; Price Target: $3.40
James Hardie Industries (JHX)
Initiated at add at Morgans; Price Target: $55.65
Light & Wonder (LNW)
Initiated at buy at Goldman Sachs; Price Target: $190.00
Arcadium Lithium (LTM)
Retained at neutral at Goldman Sachs; Price Target: $6.35
Liontown Resources (LTR)
Retained at neutral at Goldman Sachs; Price Target: $1.15
Mineral Resources (MIN)
Retained at sell at Goldman Sachs; Price Target: $47.00
Retained at overweight at Morgan Stanley; Price Target: $79.00
Northern Star Resources (NST)
Upgraded to buy from neutral at Citi; Price Target: $15.90 from $15.20
Retained at neutral at Goldman Sachs; Price Target: $14.40
Netwealth Group (NWL)
Retained at sell at Citi; Price Target: $18.90
Nextdc (NXT)
Retained at outperform at Macquarie; Price Target: $20.00
Origin Energy (ORG)
Retained at equal-weight at Morgan Stanley; Price Target: $10.00
Pilbara Minerals (PLS)
Retained at sell at Goldman Sachs; Price Target: $2.60
Retained at underweight at Morgan Stanley; Price Target: $5.05
Perseus Mining (PRU)
Retained at neutral at Citi; Price Target: $2.80 from $2.30
Regis Resources (RRL)
Retained at neutral at Citi; Price Target: $1.90
Retained at neutral at Goldman Sachs; Price Target: $2.10
Suncorp Group (SUN)
Retained at neutral at Macquarie; Price Target: $15.80
The Lottery Corporation (TLC)
Retained at neutral at Goldman Sachs; Price Target: $5.60
Westgold Resources (WGX)
Retained at outperform at Macquarie; Price Target: $2.90
Xero (XRO)
Retained at outperform at Morgan Stanley; Price Target: $170.00 from $140.00
Scans
Top Gainers
Code | Company | Last | % Chg |
|---|---|---|---|
| AUG | Augustus Minerals Ltd | $0.093 | +144.74% |
| SVG | Savannah Goldfields Ltd | $0.036 | +56.52% |
| C7A | Clara Resources Australia Ltd | $0.017 | +54.55% |
| SM1 | Synlait Milk Ltd | $0.34 | +47.83% |
| LSA | Lachlan Star Ltd | $0.067 | +36.74% |
Top Fallers
Code | Company | Last | % Chg |
|---|---|---|---|
| OLH | Oldfields Holdings Ltd | $0.05 | -43.82% |
| MAY | Melbana Energy Ltd | $0.023 | -28.13% |
| KLI | Killi Resources Ltd | $0.087 | -27.50% |
| IAM | Income Asset Management Group Ltd | $0.067 | -19.28% |
| JNO | Juno Minerals Ltd | $0.023 | -17.86% |
52 Week Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| NUC | Nuchev Ltd | $0.27 | +25.58% |
| TM1 | Terra Metals Ltd | $0.105 | +20.69% |
| AIM | Ai-Media Technologies Ltd | $0.44 | +14.29% |
| SEG | Sports Entertainment Group Ltd | $0.295 | +13.46% |
| AHC | Austco Healthcare Ltd | $0.22 | +12.82% |
52 Week Lows
Code | Company | Last | % Chg |
|---|---|---|---|
| MAY | Melbana Energy Ltd | $0.023 | -28.13% |
| JNO | Juno Minerals Ltd | $0.023 | -17.86% |
| LEX | Lefroy Exploration Ltd | $0.085 | -13.27% |
| IBX | Imagion Biosystems Ltd | $0.07 | -12.50% |
| LMS | Litchfield Minerals Ltd | $0.11 | -12.00% |
Near Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| MQGPD | Macquarie Group Ltd | $105.75 | +0.05% |
| IIGF | Intelligent Investor Aus Equity Growth Fund (Managed Fund) | $2.95 | 0.00% |
| MEZ | Meridian Energy Ltd | $6.05 | +0.83% |
| EVO | Embark Early Education Ltd | $0.725 | 0.00% |
| LOV | Lovisa Holdings Ltd | $32.35 | +0.50% |
Relative Strength Index (RSI) Oversold
Code | Company | Last | % Chg |
|---|---|---|---|
| VLUE | Vaneck MSCI International Value ETF | $24.87 | -0.60% |
| CNEW | Vaneck China New Economy ETF | $5.54 | +0.18% |
| CCX | City Chic Collective Ltd | $0.12 | -4.00% |
| WC8 | Wildcat Resources Ltd | $0.28 | 0.00% |
| GLN | Galan Lithium Ltd | $0.16 | -3.03% |
