Market Wraps

Evening Wrap: ASX 200 tanks, Origin Energy slides on gas cap, US futures slip

Mon 12 Dec 22, 4:57pm (AEST)

The S&P/ASX 200 closed 32 points lower, down -0.45%.

The local sharemarket slumped in-line with the weakness across US markets, AGL and Origin Energy shares slump on coal and gas price caps, miners pull back after a strong rally and Tyro rejects a $875 million takeover from Potentia Capital.

Let's dive in.


Today in Review

Mon 12 Dec 22, 4:33pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,180.8 -0.45%
All Ords 7,370.6 -0.48%
Small Ords 2,841.9 -0.84%
All Tech 2,066.5 -0.11%
Emerging Companies 2,122.1 -0.59%
Currency
AUD/USD 0.6775 -0.31%
US Futures
S&P 500 3,931.5 -0.12%
Dow Jones 33,487.0 -0.03%
Nasdaq 11,549.75 -0.17%
Name Value % Chg
Sector
Energy 10,893.8 +1.22%
Real Estate 3,085.0 +0.33%
Financials 6,405.7 +0.16%
Information Technology 1,433.9 +0.09%
Communication Services 1,440.8 -0.12%
Health Care 42,644.0 -0.27%
Consumer Discretionary 2,870.2 -0.44%
Industrials 6,384.4 -0.61%
Consumer Staples 12,672.6 -1.10%
Materials 18,135.1 -1.49%
Utilities 8,033.1 -4.27%

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Markets

The ASX 200 sold off after Wall Street handballed us a weak session after US producer prices came in hotter-than-expected for November.

  • Energy led to the upside as oil prices try to stabilise around the US$70 a barrel level after an almost -11% slide last week

  • Utilities tumbled after the Australian Government agreed to cap coal and gas prices as part of a $1.5bn intervention to ease volatile energy prices. AGL and Origin Energy weighed on the sector, down -2.4% and -7.9% respectively

  • Materials fell amid a pullback for iron ore and copper prices. The Materials sector is up almost 20% since November

  • 130 of the top 200 declined (65%)

Economy

No major economic updates.

Commodities 

“Optimism over China’s reopening supported sentiment across commodity markets. However, concerns of the broader macro backdrop crimped the gains. Limited liquidity also resulted in sharp moves in both directions,” said ANZ senior commodity analyst, Daniel Hynes. 

  • Iron ore futures fell -2.2% to US$109

  • Copper -1.5% to US$3.82


Latest news


Post market brief

Nothing too exciting on Monday. The Australian Government basically nationalised the gas sector, sending Origin Energy and AGL shares lower.

That aside, the Materials sector pulled in after a strong rally, gold names sold off after the hotter-than-expected producer price data last Friday and oil names bounced from no man's land.

XMJ chart
S&P/ASX 200 Materials (Source: TradingView)
Newcrest Mining
Newcrest Mining (Source: TradingView)
XEJ chart
S&P/ASX 200 Energy (Source: TradingView)

The ASX 200 closed a little off session lows of -0.79% but remains in this awkward in-the-midst-of-a-pullback state.

XJO chart
XJO chart (Source: TradingView)

The S&P 500 is a more interesting chart after failing to break above the longstanding trendline. It's pulling back into the 50-day and this key 3,900 level.

S&P 500 chart
S&P 500 chart (Source: TradingView)

All-in-all, it's a bit of a snooze fest until Wednesday, where we get some high stakes US inflation data.


Major announcements

Large caps (>$1bn)

  • Sayona Mining (SYA) +2.3%: Received its final permit to restart its North American Lithium operation in Quebec

  • Rio Tinto (RIO) -0.7%: Received support from Turquoise Hill Resources shareholders for its proposed acquisition of the remaining 49% shares of Turquoise Hill that it does not currently own 

  • AUB Group (AUB) -2.2%: Updated its FY23 net profit split, guiding to $41.5-44.5m in the first-half and $66-70.5m in the second-half 

  • Grange Resources (GRR) -7.4%: Entered into a binding agreement with its JV partner ,SRT Australia to acquire a 30% interest in SRT’s Southdown Magnetite Project 

Mid-to-small caps

  • Nitro Software (NTO) +4.7%: Bidders Cascade have agreed to amend the takeover price by 15 cents to $2.15 per Nitro share

  • Tietto Minerals (TIE) +3.3%: Confirmed potential to develop a second gold mine at its Abujar Gold Project in Cote d’Ivoire

  • Cooper Energy (COE) -7.7%: The proposed gas price cap by the Australian Government is not expected to apply to Copper Energy’s 2023 sales 

  • Tyro Payments (TYR) -19.5%: Will ceases all current discussions in relation to a possible takeover 

Trading halts

  • Genesis Minerals (GMD): Has agreed to merge with St Barbara. Genesis shareholders will receive 2.0338 new shares in St Barbara for each share they own


Broker updates 

Ticker

Company

Broker

Rating

Target price

BHP

BHP

Macquarie

Outperform

$50.00 from $45.00

CIA

Champion Iron

Macquarie

Neutral

$7.00 from $5.50

CRN

Coronado Global

Macquarie

Outperform

$2.80 from $3.10

FMG

Fortescue Metals

Macquarie

Underperform

$17.00 from $14.50

MGX

Mount Gibson Iron

Macquarie

Neutral

$0.50 from $0.40

PDN

Paladin Energy

Macquarie

Outperform

$1.00 from $1.10

RIO

Rio Tinto

Macquarie

Neutral

$115 from $94

SIQ

Smartgroup

Citi

Buy

$6.60


Scans

Top Gainers

Code Company Last % Chg
FG1 FLYNN Gold Ltd $0.17 +75.26%
3DA Amaero Internatio... $0.099 +43.48%
GRV Greenvale Energy Ltd $0.17 +30.77%
HFY Hubify Ltd $0.038 +26.67%
NNL Nordic Nickel Ltd $0.24 +26.32%
View all top gainers

Top Fallers

Code Company Last % Chg
MQR Marquee Resources... $0.043 -21.82%
NGL Nightingale Intel... $0.11 -21.43%
IMI Infinity Mining Ltd $0.285 -20.83%
LLI Loyal Lithium Ltd $0.40 -20.79%
TYR Tyro Payments Ltd $1.21 -18.79%
View all top fallers

52 Week Highs

Code Company Last % Chg
ACF Acrow Formwork an... $0.635 +4.96%
LAU Lindsay Australia... $0.685 +3.79%
TON Triton Minerals Ltd $0.039 +2.63%
MSV Mitchell Services... $0.42 +1.21%
SM1 Synlait Milk Ltd $3.42 +0.59%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
MQR Marquee Resources... $0.043 -21.82%
NGL Nightingale Intel... $0.11 -21.43%
HNR Hannans Ltd $0.018 -18.18%
PAT Patriot Lithium Ltd $0.295 -18.06%
MBX My Foodie BOX Ltd $0.038 -16.48%
View all 52 week lows

Near Highs

Code Company Last % Chg
SMLL Betashares Aust S... $3.46 -0.86%
OZBD Betashares Austra... $44.73 -0.40%
PCI Perpetual Credit ... $0.97 +0.52%
WVOL Ishares Edge MSCI... $35.24 -0.98%
NUF Nufarm Ltd $6.20 -1.74%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
NVX Novonix Ltd $1.77 -1.12%
CCX City Chic Collect... $0.695 +4.51%
LPM Lithium Plus Mine... $0.435 -8.42%
QPM Queensland Pacifi... $0.105 -8.70%
MGTDB Magnetite Mines Ltd $0.64 +1.59%
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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