Market Wraps

Evening Wrap: ASX 200 trades sideways, uranium and tech stocks rally, US futures tick lower

Mon 30 Jan 23, 4:35pm (AEST)

The S&P/ASX 200 closed 12 points lower, down -0.16%.

The local sharemarket struggles to find upside after a V-shaped rally, all eyes on the Fed's interest rate hike on Thursday, uranium and tech stocks surge and three brokers retained a Sell rating for Fortescue after a bumper December quarter update.

Let's dive in.


Today in Review

Mon 30 Jan 23, 4:17pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,481.7 -0.16%
All Ords 7,700.4 -0.12%
Small Ords 3,016.0 +0.13%
All Tech 2,230.1 +2.20%
Emerging Companies 2,286.4 -0.05%
Currency
AUD/USD 0.7092 -0.24%
US Futures
S&P 500 4,070.0 -0.35%
Dow Jones 33,947.0 -0.29%
Nasdaq 12,169.75 -0.43%
Name Value % Chg
Sector
Information Technology 1,505.0 +2.32%
Communication Services 1,495.5 +1.08%
Real Estate 3,282.8 +0.63%
Utilities 8,086.5 +0.40%
Industrials 6,529.9 +0.09%
Consumer Discretionary 2,993.4 -0.05%
Energy 11,214.5 -0.30%
Financials 6,710.0 -0.32%
Materials 19,245.7 -0.39%
Health Care 42,412.4 -0.71%
Consumer Staples 12,983.4 -0.74%

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Markets

Nothing much to see here: The ASX 200 is stalling after a monster ~8% run in the past three weeks.

  • Tech stocks continue to shine in parallel with a rotation back to megacaps and last year's losers on Wall Street

  • Defensive sectors underperform with heavyweights Woolworths, Coles and CSL down between 0.5% and 1.0%

  • Miners ease despite iron ore prices steadily grinding higher, up 1.5% to US$128.9 a tonne

Economy

No major economic updates. Although the rest of the week is absolutely stacked with Eurozone GDP and inflation data, China manufacturing PMIs, the Fed, BoE and ECB’s interest rate decision and US unemployment figures. Regarding the interest rate decisions:

  • Fed: 25 bps full priced hike

  • ECB: 50 bps priced but 75 bps is possible

  • BoE: 50 bps priced but 75 bps is possible

  • Language and signals will be key; the December FOMC minutes flagged the “unwarranted” loosening in financial conditions


Latest news


Post market brief

A few sectors of interest on Monday:

Uranium: Most uranium names finished the day up 4-7%. The sector is starting to show some signs of life after more than 18 months of sideways action.

Tech: Lots of tech names making moves on Monday, including Wisetech (+5.6%), Xero (+3.1%), NextDC (+3.7%) and Block (+4.1%). The ATEC ETF pushed trough the 200-day moving average.

ATEC chart
Betashares ATEC ETF (Source: TradingView)

Oil: Israel carried out a drone strike against a defense compound in Iran over the weekend. This isn't sparking any major moves for oil markets. But worth keeping an eye on.


Interesting news and movers

Trading higher

Trading lower 


Broker updates 

Fortescue – Three brokers remain Sell rated 

  • The average target price among the three brokers was $16.78

  • Morgan Stanley: Operationally strong with most production and cost metrics 1-4% better than estimates

  • Citi: FMG is up 15% in the past month and trades at ~1.3 times DCF versus Rio Tinto at 1.0 times, so relatively expensive compared to peers

  • Macquarie: Uncertainty re funding requirements for FFI and likely impact on dividends remains a key medium-term concern

Wisetech – Investing in core software

  • Morgan Stanley: Target raised to $64.00 from $62.00; Maintains Overweight rating

  • Notes: “The acquisition of Evase supports our positive investment thesis … that Wisetech’s leadership position is becoming clearer.”

Champion Iron – Higher prices but higher costs

  • Citi: Retains $8.40 target price; Maintains Buy

  • Notes: “Champion Iron is a hard-to-find mining production growth story with valuation upside which also benefits from steel decarbonisation trends.” Though, C1 cash costs for the December quarter was up sharply to C$76/t reflecting higher fuel, explosive and maintenance costs

Global Lithium – “Upside Potential Remains”

  • Macquarie: Retains $4.20 target price; Maintains Buy

  • Notes: Manna Project scoping study to de-risk the project. Scoping study result scheduled for 1Q23. Manna resource update also due in 2023, incorporating an additional ~20km of drilling 


Scans

Top Gainers

Code Company Last % Chg
BLG Bluglass Ltd $0.052 +44.44%
HTG Harvest Technolog... $0.092 +31.43%
ERG Eneco Refresh Ltd $0.018 +28.57%
PYR Payright Ltd $0.062 +24.00%
X2M X2M Connect Ltd $0.095 +23.38%
View all top gainers

Top Fallers

Code Company Last % Chg
ENX Enegex Ltd $0.032 -25.58%
AHI Advanced Health I... $0.10 -20.00%
WTN Winton Land Ltd $1.985 -19.96%
WGR Western Gold Reso... $0.06 -17.81%
MRC Mineral Commoditi... $0.057 -17.39%
View all top fallers

52 Week Highs

Code Company Last % Chg
BLG Bluglass Ltd $0.052 +44.44%
HMI Hiremii Ltd $0.059 +18.00%
RVT Richmond Vanadium... $0.33 +17.86%
WR1 Winsome Resources... $2.45 +14.49%
ERW Errawarra Resourc... $0.28 +7.69%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
WTN Winton Land Ltd $1.985 -19.96%
WGR Western Gold Reso... $0.06 -17.81%
MRC Mineral Commoditi... $0.057 -17.39%
AVD Avada Group Ltd $0.70 -15.15%
ACU Acumentis Group Ltd $0.079 -12.22%
View all 52 week lows

Near Highs

Code Company Last % Chg
SMLL Betashares Aust S... $3.61 0.00%
OZBD Betashares Austra... $44.61 +0.18%
AN3PI Australia and New... $103.05 -0.03%
PCI Perpetual Credit ... $0.99 0.00%
WVOL Ishares Edge MSCI... $34.03 -0.15%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
LNK Link Administrati... $1.955 +0.26%
VBLD Vanguard Global I... $60.43 +0.05%
IXI Ishares Global Co... $83.87 -0.20%
IIND Betashares India ... $9.53 +0.95%
REG Regis Healthcare Ltd $1.745 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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