News | Market Wraps
Evening Wrap: ASX 200 surges to record on gold, property, tech, as mining stocks falter, Droneshield blitzed again
The S&P/ASX 200 closed 58.6 points higher, up 0.73%.
Mentioned
The S&P/ASX 200 closed 58.6 points higher, up 0.73%.
Gold stocks were the best performing stocks today, as gold prices tipped new highs, but there were also very strong performances from Property, Technology, and Financials stocks.
Worryingly, key mining stocks sold off on sharp losses in base metals and other key commodity prices.
Hot stock Droneshield (DRO) came under fire from investors again today as yesterday's sharp sell off continued. It did manage to steady the ship (drone?) by the close, however, paring its losses to just 10%.
Elsewhere, brokers responded to BHP Group's and Rio Tinto's quarterly reports, but they were busy elsewhere too (upgrades and downgrades).
I've got all the details on all the above in tonight's Wrap, plus plenty more, so....
Let's dive in!
Today in Review
Wed 17 Jul 24, 4:22pm (AEST)
Name | Value | % Chg |
|---|---|---|
Major Indices | ||
| ASX 200 | 8,057.9 | +0.73% |
| All Ords | 8,303.5 | +0.73% |
| Small Ords | 3,087.6 | +1.06% |
| All Tech | 3,184.8 | +0.79% |
| Emerging Companies | 2,189.1 | -0.34% |
Currency | ||
| AUD/USD | 0.6733 | -0.02% |
US Futures | ||
| S&P 500 | 5,701.25 | -0.28% |
| Dow Jones | 41,240.0 | -0.04% |
| Nasdaq | 20,493.0 | -0.51% |
Name | Value | % Chg |
|---|---|---|
Sector | ||
| Real Estate | 3,852.3 | +1.49% |
| Information Technology | 2,384.6 | +1.24% |
| Consumer Staples | 12,749.8 | +1.23% |
| Industrials | 7,012.2 | +1.17% |
| Communication Services | 1,568.7 | +1.03% |
| Financials | 7,964.0 | +0.96% |
| Consumer Discretionary | 3,694.4 | +0.58% |
| Utilities | 9,132.5 | +0.55% |
| Health Care | 45,775.6 | +0.51% |
| Energy | 10,465.7 | +0.17% |
| Materials | 17,284.9 | +0.08% |
Markets
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 58.6 points higher at 8,057.9, 0.73% from its session low and just 0.32% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 218 to 60.
The Gold (XGD) (+1.8%) sub-index was the best performing sector today, likely in response to a very nice rise in the gold price to touch new all-time highs. I’ve got technical analysis on gold futures for you in today’s ChartWatch section.
Also doing well today was the Real Estate Investment Trusts (XPJ) (+1.5%) sector. It’s still basking in the warm afterglow of continued falls in key global benchmark yields – see the chart of the US 10-Year T-Note Yield below. REITs are essentially big balls of debt, so anytime debt gets cheaper it's usually a good thing.
US 10-Year T-Note Yield % chart
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Abacus Storage King (ASK) | $1.260 | +$0.07 | +5.9% | +8.2% | 0% |
Charter Hall Retail Reit (CQR) | $3.48 | +$0.1 | +3.0% | +5.5% | -6.7% |
Dexus (DXS) | $7.09 | +$0.19 | +2.8% | +9.9% | -13.4% |
Pexa Group (PXA) | $14.14 | +$0.35 | +2.5% | -0.6% | +5.1% |
Charter Hall Long Wale Reit (CLW) | $3.66 | +$0.09 | +2.5% | +5.8% | -11.6% |
Stockland (SGP) | $4.66 | +$0.11 | +2.4% | +5.7% | +11.0% |
HMC Capital (HMC) | $7.84 | +$0.16 | +2.1% | +5.7% | +57.1% |
Waypoint Reit (WPR) | $2.51 | +$0.05 | +2.0% | +8.7% | -2.3% |
Homeco Daily Needs Reit (HDN) | $1.265 | +$0.025 | +2.0% | +4.1% | +6.8% |
Charter Hall Social Infrastructure Reit (CQE) | $2.55 | +$0.05 | +2.0% | +5.8% | -13.9% |
Vicinity Centres (VCX) | $2.05 | +$0.04 | +2.0% | +10.5% | +7.1% |
ASX Property stocks today
Other interest rate sensitive sectors like Information Technology (XIJ) (+1.2%), Communication Services (XTJ) (+1.0%), and Financials (XFJ) (+1.0%) also did well today.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Catapult Group International (CAT) | $2.04 | +$0.15 | +7.9% | +11.5% | +111.4% |
Credit Corp Group (CCP) | $15.45 | +$0.85 | +5.8% | +7.4% | -26.0% |
Iress (IRE) | $9.25 | +$0.36 | +4.0% | +17.1% | -14.7% |
Siteminder (SDR) | $5.22 | +$0.17 | +3.4% | +4.6% | +46.2% |
Pinnacle Investment Management (PNI) | $16.13 | +$0.52 | +3.3% | +20.4% | +63.4% |
Wisetech Global (WTC) | $99.69 | +$3.21 | +3.3% | +8.0% | +26.2% |
DUG Technology (DUG) | $2.82 | +$0.09 | +3.3% | +10.2% | +116.9% |
News Corporation (NWS) | $43.68 | +$1.27 | +3.0% | +5.1% | +46.1% |
Codan (CDA) | $12.19 | +$0.31 | +2.6% | +7.8% | +53.9% |
Data#3 (DTL) | $8.49 | +$0.21 | +2.5% | +5.9% | +14.6% |
Macquarie Group (MQG) | $209.71 | +$5.03 | +2.5% | +7.2% | +14.8% |
Helia Group (HLI) | $4.03 | +$0.09 | +2.3% | -4.5% | +23.9% |
Domain Australia (DHG) | $3.32 | +$0.07 | +2.2% | +14.9% | -11.2% |
Macquarie Technology (MAQ) | $96.53 | +$2.03 | +2.1% | +7.2% | +49.5% |
ASX Tech, Communications Services, and Financial stocks today
Doing it tough today was the Resources (XJR) (-0.24%). It’s loss today is particularly conspicuous given the strength in the broader market.
Base metals prices (apart from nickel) tanked overnight and falls in uranium and iron ore prices also didn’t help – nor did muted responses to BHP Group (ASX: BHP) and Rio Tinto (ASX: RIO) quarterly production reports. I’ve got all the key broker updates for you on BHP and RIO in today’s Broker Notes section.
Within the sector, it was generally tough day for ASX uranium stocks as uranium futures dipped Monday. I’ve got technical analysis on uranium futures for you in today’s ChartWatch section.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Aluminium - LME Official Cash | $2377 | -$27 | -1.1% | -1.8% | +6.3% |
Copper - LME Official Cash | $9565.50 | -$114 | -1.2% | +0.9% | +11.4% |
Iron Ore CFR China 62pct Fe Spot | $109.39 | -$0.28 | -0.3% | +2.1% | +0.0% |
Nickel - LME Official Cash | $16435 | +$15 | +0.1% | -3.8% | -22.3% |
Lead - LME Official Cash | $2134 | -$4 | -0.2% | +1.4% | +0.9% |
Tin - LME Official Cash | $32950 | -$65 | -1.9% | +3.6% | +11.9% |
Zinc - LME Official Cash | $2861 | -$43 | -1.5% | +3.8% | +16.2% |
Lithium Carbonate (China) RMB/mt | $87950 | -$1500 | -1.7% | -9.9% | -71.4% |
Spodumene Concentrate Index ($US-mt) | $995 | -$9 | -0.9% | -9.5% | -75.3% |
Silver/U.S. Dollar Spot Rate | $31.25 | +$0.61 | +2.0% | +6.1% | +26.8% |
Gold/U.S. Dollar Spot Rate | $2468.40 | +$46.71 | +1.9% | +6.5% | +25.7% |
LME base metals, iron ore, gold, silver, and lithium price moves Monday
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
AIC Mines (A1M) | $0.400 | -$0.055 | -12.1% | -7.0% | +2.6% |
Mount Gibson Iron (MGX) | $0.385 | -$0.045 | -10.5% | -7.2% | -16.3% |
Sovereign Metals (SVM) | $0.690 | -$0.055 | -7.4% | +17.9% | +39.4% |
Metals X (MLX) | $0.470 | -$0.03 | -6.0% | +20.5% | +51.6% |
Lotus Resources (LOT) | $0.325 | -$0.02 | -5.8% | -11.0% | +80.6% |
Metro Mining (MMI) | $0.049 | -$0.003 | -5.8% | +8.9% | +113.0% |
Vulcan Energy Resources (VUL) | $4.22 | -$0.24 | -5.4% | +1.2% | -12.3% |
Firefly Metals (FFM) | $0.825 | -$0.045 | -5.2% | +18.7% | +103.7% |
Fenix Resources (FEX) | $0.385 | -$0.02 | -4.9% | +18.5% | +24.2% |
Deep Yellow (DYL) | $1.375 | -$0.05 | -3.5% | -3.5% | +102.2% |
Bannerman Energy (BMN) | $3.07 | -$0.08 | -2.5% | -23.6% | +99.4% |
Boss Energy (BOE) | $3.91 | -$0.1 | -2.5% | -4.6% | +27.4% |
Iluka Resources (ILU) | $6.62 | -$0.15 | -2.2% | +3.9% | -41.3% |
IGO (IGO) | $5.83 | -$0.13 | -2.2% | -3.6% | -63.4% |
Sandfire Resources (SFR) | $8.75 | -$0.18 | -2.0% | +3.1% | +36.5% |
ASX Resources stocks today
ChartWatch
Gold Futures (Front month, back-adjusted) COMEX
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I admit, I was a doubter...but...
The last time we covered gold was in ChartWatch in the Evening Wrap on 12 July.
In that last update, we talked about the key drivers impacting the gold price – its worth catching if you didn’t read it.
I also noted trends, price action, and candles each looked “pretty good”. As we sit at the top of the 2456-2477 supply zone – they still do.
I tell you in each ChartWatch to “watch the candles at major supply zones because they’ll tell you everything you need to know about just how much supply is actually there”.
I usually go on to say something along the lines of: If you see supply-side candles in the zone (i.e. black candles and or upward pointing shadows), then it is indeed supply. Caution is required, perhaps even lightening the load….and…
On the other hand, if you see demand-side candles in the supply zone (i.e., white-bodied and or downward pointing shadows), then there isn’t actually any supply there. They too are on the bullish bandwagon. No lightening the load in this situation (beep…beep…beep…🛻)
Today’s candle does have an upper shadow, but it is still live, and therefore I must discount it. We will continue to watch intently!
2407 should now be demand. There’s no supply past 2477 because it’s all blue sky from here.
Uranium Futures (Front month, back-adjusted) COMEX
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"Failed to move the dial in a positive way"
The last time we covered uranium was in ChartWatch in the Evening Wrap on 11 July.
In that last update, we had just learned the world’s largest producer Kazatomprom (KAP) is facing higher taxes. The development could lead to lower production by KAP, and or increase the uranium cost curve in general.
I pondered that this seemingly good news had yet to have any impact on the uranium price. In my experience, when good news fails to move the dial in a positive way, it’s either already completely factored into prices, or the supply side soaked up any resultant influx in demand.
It could be the former, but if it’s the latter, then it’s a major negative for the uranium price. Supply is looking for any liquidity to offload.
The uranium price action hints at this possibility, with a very modest downturn in the price over the last couple of sessions. Instead of closing above the 86.75 point of supply on the good news and restarting the short term uptrend, the probability of a rollover to commence a new long term downtrend is growing.
A close below the 83.15 point of demand would seal the deal, and it’s pretty fluid from there. I peg the next point of demand at the 76.40 peak from 30 October 2023.
Economy
Today
There weren't any major economic data releases in our time zone today
Later this week
Wednesday
22:30 USA Building Permits June (1.4m forecast vs 1.4m in May)
23:15 USA Industrial Production June (+0.4% forecast vs +0.9% in May)
Thursday
11:30 AUS Employment Change & Unemployment Rate June
Jobs +20.2k forecast vs +39.7k in May
UR 4.1% forecast vs 4.0% in May
22:15 EUR ECB Main Financing Rate (forecast no change at 4.25%)
Friday
00:00 CB Leading Index June (-0.3% forecast vs -0.5% in May)
Latest News
Interesting Movers
Trading higher
+9.3% Polynovo (PNV) - No news, rise is consistent with prevailing short and long term uptrends (regular in ChartWatch ASX scans uptrends list) 🔎📈
+8.9% 4DS Memory (4DS) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈
+8.8% Piedmont Lithium (PLL) - No news, possibly some short covering / spec buying in response to 2-day rally in US lithium stocks, lithium price in China continued recent sharp falls today…
+7.9% Catapult Group International (CAT) - No news, rise is consistent with prevailing short and long term uptrends (regular in ChartWatch ASX scans uptrends list) 🔎📈
+6.7% Electro Optic Systems (EOS) - Continued positive response to yesterday's EOS announces 92% increase in 1H 2024 revenue, rise is consistent with prevailing short and long term uptrends (regular in ChartWatch ASX scans uptrends list) 🔎📈
+6.3% Latin Resources (LRS) - Ditto for PLL
+5.9% Abacus Storage King (ASK) - No news, generally stronger ASX Real Estate sector today
+5.6% Adriatic Metals (ADT) - No news, bounced back after yesterday's sharp decline following Constitutional Court Release Update
+5.5% Neuren Pharmaceuticals (NEU) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈
+4.7% Reece (REH) - No news, bouncing off long term uptrend ribbon 🔎📈
+4.6% Arcadium Lithium (LTM) - Ditto for PLL, LRS
+4.0% Iress (IRE) - No news, media report: Iress back in the takeover spotlight for private equity, The Australian (paywall), rise is consistent with prevailing short and long term uptrends (ran it yesterday in ChartWatch ASX scans uptrends list) 🔎📈
Trading lower
-10.5% Mount Gibson Iron (MGX) - Quarterly Activities Report, fall is consistent with prevailing short and long term downtrends 🔎📈
-9.4% Droneshield (DRO) - continued fallout from yesterday's Response to ASX Price Query
-7.4% Sovereign Metals (SVM) - No news, sharply weaker base metals prices took the steam out of several mining stocks today
-6.0% Metals X (MLX) - Ditto with SVM
-5.8% Lotus Resources (LOT) - No news, generally tough day for ASX uranium stocks today as uranium futures dipped Monday, fall is consistent with prevailing short and long term downtrends 🔎📈
-5.4% Vulcan Energy Resources (VUL) - No news, lithium prices keep falling in China, didn't catch the break a few of the others did
-5.2% Firefly Metals (FFM) - Ditto with SVM, MLX
-4.9% Fenix Resources (FEX) - Ditto with SVM, MLX
-4.7% Mesoblast (MSB) - No news, downgraded to hold from buy at Jefferies, but price target raised to $1.10 from $0.80
-4.0% Cettire (CTT) - Additional FY24 metrics, fall is consistent with prevailing short and long term downtrends 🔎📈
-3.5% Deep Yellow (DYL) - No news, generally tough day for ASX uranium stocks today as uranium futures dipped Monday
Broker Notes
AIC Mines (A1M)
Retained at buy at Shaw and Partners; Price Target: $1.10 from $1.20
Ampol (ALD)
Retained at equal-weight at Morgan Stanley; Price Target: $37.00 from $36.00
Retained at neutral at UBS; Price Target: $34.25 from $34.40
AUB Group (AUB)
Retained at overweight at Morgan Stanley; Price Target: $37.00
BHP Group (BHP)
Retained at neutral at Macquarie; Price Target: $43.00
Retained at neutral at UBS; Price Target: $44.00
Beach Energy (BPT)
Retained at equal-weight at Morgan Stanley; Price Target: $1.45 from $1.49
Bluescope Steel (BSL)
Upgraded to buy from neutral at Citi; Price Target: $23.70 from $24.00
Car Group (CAR)
Upgraded to buy from neutral at Citi; Price Target: $39.80 from $34.70
Retained at buy at UBS; Price Target: $40.50 from $38.50
Cooper Energy (COE)
Retained at hold at Bell Potter; Price Target: $0.22 from $0.21
Retained at overweight at Jarden; Price Target: $0.24
Retained at neutral at JP Morgan; Price Target: $0.22
Retained at outperform at Macquarie; Price Target: $0.30
Retained at sector perform at RBC Capital Markets; Price Target: $0.23
Computershare (CPU)
Retained at overweight at Morgan Stanley; Price Target: $29.40
Domain Australia (DHG)
Retained at neutral at UBS; Price Target: $3.60 from $3.55
Electro Optic Systems (EOS)
Retained at buy at Bell Potter; Price Target: $2.20 from $2.10
GQG Partners (GQG)
Retained at overweight at Morgan Stanley; Price Target: $2.50
Healius (HLS)
Upgraded to hold from underperform at Jefferies; Price Target: $1.50 from $1.30
Hub24 (HUB)
Retained at buy at Bell Potter; Price Target: $53.20
Retained at neutral at Citi; Price Target: $47.00 from $46.40
Retained at overweight at Morgan Stanley; Price Target: $44.50
Retained at neutral at UBS; Price Target: $41.00
Downgraded to marketweight from overweight at Wilsons; Price Target: $49.00 from $44.69
IGO (IGO)
Retained at neutral at Citi; Price Target: $6.80 from $7.60
Retained at underweight at Morgan Stanley; Price Target: $5.05
Integrated Research (IRI)
Retained at buy at Bell Potter; Price Target: $1.05 from $0.95
Judo Capital (JDO)
Retained at sell at Citi; Price Target: $1.26 from $1.04
Karoon Energy (KAR)
Retained at equal-weight at Morgan Stanley; Price Target: $2.00
Macquarie Group (MQG)
Retained at overweight at Morgan Stanley; Price Target: $215.00
Mesoblast (MSB)
Downgraded to hold from buy at Jefferies; Price Target: $1.10 from $0.80
Monash IVF Group (MVF)
Retained at outperform at Macquarie; Price Target: $1.55
Nickel Industries (NIC)
Upgraded to buy from neutral at Citi; Price Target: $1.05 from $1.10
Perpetual (PPT)
Retained at overweight at Morgan Stanley; Price Target: $24.40
PSC Insurance Group (PSI)
Retained at overweight at Morgan Stanley; Price Target: $5.85
QBE Insurance Group (QBE)
Retained at overweight at Morgan Stanley; Price Target: $19.85
REA Group (REA)
Downgraded to hold from outperform at CLSA; Price Target: $208.00 from $204.00
Retained at buy at UBS; Price Target: $233.60 from $214.00
Rio Tinto (RIO)
Retained at neutral at Citi; Price Target: $137.00
Retained at buy at Goldman Sachs; Price Target: $136.10 from $137.50
Retained at buy at Jefferies; Price Target: $147.00
Retained at overweight at JP Morgan; Price Target: $144.00 from $145.00
Retained at neutral at Macquarie; Price Target: $118.00 from $119.00
Retained at overweight at Morgan Stanley; Price Target: $138.50
Upgraded to add from hold at Morgans; Price Target: $130.00 from $132.00
Retained at outperform at RBC Capital Markets; Price Target: $130.00
Retained at neutral at UBS; Price Target: $125.00
Seek (SEK)
Downgraded to neutral from outperform at Macquarie; Price Target: $23.00 from $29.00
Retained at buy at UBS; Price Target: $27.10 from $29.20
Santos (STO)
Retained at equal-weight at Morgan Stanley; Price Target: $8.00
Suncorp Group (SUN)
Retained at overweight at Morgan Stanley; Price Target: $20.20
Transurban Group (TCL)
Retained at hold at Jefferies; Price Target: $13.49
Retained at neutral at Macquarie; Price Target: $12.81
Retained at equal-weight at Morgan Stanley; Price Target: $13.06
Retained at sector perform at RBC Capital Markets; Price Target: $12.75
Viva Energy Group (VEA)
Retained at equal-weight at Morgan Stanley; Price Target: $3.64 from $3.79
Retained at buy at UBS; Price Target: $3.65 from $3.75
Woodside Energy Group (WDS)
Retained at overweight at Morgan Stanley; Price Target: $35.00
Scans
Top Gainers
Code | Company | Last | % Chg |
|---|---|---|---|
| LRL | Labyrinth Resources Ltd | $0.015 | +200.00% |
| XGL | Xamble Group Ltd | $0.03 | +50.00% |
| WNR | Wingara AG Ltd | $0.011 | +37.50% |
| ID8 | Identitii Ltd | $0.012 | +33.33% |
| ADN | Andromeda Metals Ltd | $0.021 | +23.53% |
Top Fallers
Code | Company | Last | % Chg |
|---|---|---|---|
| AX8 | Accelerate Resources Ltd | $0.015 | -31.82% |
| CAQ | CAQ Holdings Ltd | $0.011 | -31.25% |
| BEZ | Besra Gold Inc | $0.07 | -29.29% |
| ITM | Itech Minerals Ltd | $0.078 | -22.00% |
| PGO | Pacgold Ltd | $0.13 | -21.21% |
52 Week Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| LRL | Labyrinth Resources Ltd | $0.015 | +200.00% |
| TTT | Titomic Ltd | $0.173 | +23.21% |
| ACW | Actinogen Medical Ltd | $0.086 | +11.69% |
| ECP | ECP Emerging Growth Ltd | $1.365 | +10.08% |
| ERD | Eroad Ltd | $1.238 | +10.00% |
52 Week Lows
Code | Company | Last | % Chg |
|---|---|---|---|
| AX8 | Accelerate Resources Ltd | $0.015 | -31.82% |
| BEZ | Besra Gold Inc | $0.07 | -29.29% |
| KM1 | Kali Metals Ltd | $0.17 | -19.05% |
| SRH | Saferoads Holdings Ltd | $0.041 | -18.00% |
| PAM | Pan Asia Metals Ltd | $0.077 | -16.30% |
Near Highs
Code | Company | Last | % Chg |
|---|---|---|---|
| AN3PK | Australia and New Zealand Banking Group Ltd | $102.149 | -0.05% |
| EX20 | Betashares Australian Ex-20 Portfolio Diversifier ETF | $20.68 | +0.05% |
| RSG | Resolute Mining Ltd | $0.66 | +1.54% |
| LOV | Lovisa Holdings Ltd | $33.69 | +0.06% |
| MQGPF | Macquarie Group Ltd | $105.92 | +0.06% |
Relative Strength Index (RSI) Oversold
Code | Company | Last | % Chg |
|---|---|---|---|
| CNEW | Vaneck China New Economy ETF | $5.53 | 0.00% |
| CCX | City Chic Collective Ltd | $0.125 | +2.04% |
| WC8 | Wildcat Resources Ltd | $0.265 | -1.85% |
| BCOM | Global X Bloomberg Commodity Complex ETF | $10.11 | -0.10% |
| CGUN | Claremont Global Fund (Managed Fund) | $1.625 | +0.62% |
