Market Wraps

Evening Wrap: ASX 200 stalls around nine month highs, uranium and BNPL stocks surge

Mon 23 Jan 23, 4:58pm (AEST)

The S&P/ASX 200 closed 5 points higher, up 0.07%.

Welcome back to the first Evening Wrap for 2023! Today will be rather short and sweet as the market begins to stall after a massive rally from recent lows. Some sectors to note include lithium, uranium and junky tech.

Let's dive in.


Today in Review

Mon 23 Jan 23, 7:39pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,457.3 +0.07%
All Ords 7,674.2 +0.10%
Small Ords 3,002.9 +0.58%
All Tech 2,167.6 +1.29%
Emerging Companies 2,285.2 +0.57%
Currency
AUD/USD 0.699 +0.40%
US Futures
S&P 500 $3,986.5 -0.05%
Dow Jones $33,475.0 +0.00%
Nasdaq $11,672.75 -0.04%
Name Value % Chg
Sector
Information Technology 1,451.9 +1.31%
Energy 11,586.6 +0.86%
Consumer Staples 12,972.0 +0.34%
Financials 6,660.6 +0.07%
Communication Services 1,483.3 +0.07%
Real Estate 3,186.9 +0.00%
Industrials 6,501.9 -0.02%
Consumer Discretionary 2,952.4 -0.05%
Materials 19,216.9 -0.12%
Health Care 43,158.4 -0.17%
Utilities 7,950.8 -0.50%

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Markets

The ASX 200 closed around breakeven after a brief 0.28% rally at the open. Is the market beginning to stall after an outsized 7.4% rally since the 3 January low?

  • Tech stocks led thanks to an outsized 2.66% move by the Nasdaq. Some notable movers include Xero (+1.4%), Altium (+1.4%) and Block (+6.1%)

  • Energy outperformed with Woodside Energy shares up 1.7% to a two month high. This follows a 1.1% increase in crude oil prices last Friday, to a likewise two month high

  • Utilities was the worst performing sector following declines from names like Origin Energy (-0.55%), Meridian Energy (-1.8%) and AGL (-1.9%)

  • 107 of the top 200 advanced (54%)

Economy

The Bank of Japan was scheduled to meet at 10:50 am AEDT. The meeting was suspended at the government's request, the first since June 2021.


Latest news


Post market brief

The ASX 200 has staged a V-shaped rally into 9 month highs. I'm sure investors can't help but to feel a pullback of some sort is brewing after such an outsized rally.

XJO 2023-01-23 16-44-38
XJO chart (Source: TradingView)

The rest of the post market brief will be short but hopefully sweet. A few sectors to note:

Lithium: We're beginning to see some life come back into lithium stocks after a rather sharp selloff last December. Pilbara Minerals has now rallied 20.2% in the last two sessions. As the stock gets more extended (given its vertical bounce), it would be healthy to see a pullback, which would also give us feedback about the underlying health of the lithium heavyweight.

Junk names: BNPL names staged a wild rally, with Zip up 22.8% and Sezzle up 38.9%. Of note, Zip experienced a 30.9m volume versus its 20-day average of just 8m. Is this what a turnaround looks like? Or just a dead cat bounce for a name that's down more than 90% from all-time highs?

Uranium: Uranium stocks, more broadly speaking, went nowhere in 2022. Spot prices were rather stubborn despite bullish headlines like the energy crisis, Japan's turnaround for nuclear energy, China ramping up nuclear reactors etc. Monday witnessed a broad-based rally for the uranium sector, with notable movers like Aura Energy (+11.7%), Boss Energy (+7.9%) and Deep Yellow (+7.3%). Will 2023 be the year that uranium stocks move? Or just another sideways chop?


Interesting news and movers

We will be swapping out the coverage of most major announcements to more interesting news and movers.

Trading higher

Trading lower 

Trading halts


Broker updates 

Ticker

Company

Broker

Action

Rating

Target price

ANZ

ANZ Bank

Macquarie

Upgrade

Outperform from Neutral

$26.00

ARB

ARB Corp

Morgan Stanley

Downgrade

Equal-weight from Overweight

$31.00

AWC

Alumina

Ord Minnett

Upgrade

Lighten from Sell

$1.20

BOQ

Bank of Queensland

Macquarie

Downgrade

Underperform from Neutral

$6.75 from $7.50

CBA

Commonwealth Bank

Macquarie

Downgrade

Underperform from Neutral

$94 from $95

CCX

City Chic Collective

UBS

Retain

Neutral

$0.70 from $0.45

FPH

Fisher & Paykel

Citi

Downgrade

Neutral from Buy

NZ$28.75 from NZ$27

WBC

Westpac

Macquarie

Downgrade

Underperform from Neutral

$23.50 from $24.00


Scans

Top Gainers

Code Company Last % Chg
CNJ Conico Ltd $0.018 +100.00%
ICN Icon Energy Ltd $0.014 +75.00%
SZL Sezzle Inc $0.75 +38.89%
HT8 Harris Technology... $0.022 +37.50%
BKG Booktopia Group Ltd $0.275 +34.15%
View all top gainers

Top Fallers

Code Company Last % Chg
GLE GLG Corp Ltd $0.33 -35.29%
ERG Eneco Refresh Ltd $0.012 -33.33%
ADG Adelong Gold Ltd $0.013 -27.78%
IS3 I Synergy Group Ltd $0.016 -20.00%
DMG Dragon Mountain G... $0.011 -15.39%
View all top fallers

52 Week Highs

Code Company Last % Chg
MEI Meteoric Resource... $0.092 +31.43%
LMLND Lincoln Minerals Ltd $0.017 +21.43%
C1X Cosmos Exploratio... $0.465 +19.23%
LML Lincoln Minerals Ltd $0.021 +16.67%
DUG DUG Technology Ltd $0.75 +13.64%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
ERG Eneco Refresh Ltd $0.012 -33.33%
IS3 I Synergy Group Ltd $0.016 -20.00%
BGP Briscoe Group Aus... $4.20 -15.15%
TSN The Sustainable N... $0.019 -13.64%
KYP Kinatico Ltd $0.085 -13.27%
View all 52 week lows

Near Highs

Code Company Last % Chg
SMLL Betashares Aust S... $3.59 -0.28%
OZBD Betashares Austra... $44.86 -0.25%
PCI Perpetual Credit ... $0.99 0.00%
WVOL Ishares Edge MSCI... $34.39 -0.12%
WBCPI Westpac Banking C... $104.12 +0.25%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
LNK Link Administrati... $1.955 +1.30%
XARO Activex Ardea Rea... $23.18 -0.30%
BBOZ Betashares Austra... $3.27 0.00%
AMC Amcor Plc $17.09 +0.53%
NEW NEW Energy Solar Ltd $0.20 0.00%
View all RSI oversold

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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