Market Wraps

Evening Wrap: ASX extends gains, BHP reaffirms guidance, Whitehaven reverses selloff

Wed 19 Oct 22, 4:48pm (AEST)

The S&P/ASX 200 closed 21 points higher, up 0.3%.

The local sharemarket is on a two day winning streak led by utilities and industrials, Whitehaven Coal reverses a massive selloff to close higher, BHP reaffirms its FY23 production and cost guidance, Westpac's lending index paints a bearish view for growth in 2023 and why China's GDP data is delayed.

Let's dive in.


Today in Review

Wed 19 Oct 22, 4:44pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 6,800.1 +0.31%
All Ords 6,999.8 +0.34%
Small Ords 2,732.0 +0.52%
All Tech 2,062.6 -0.01%
Emerging Companies 2,092.7 +0.39%
Currency
AUD/USD 0.6308 +0.10%
US Futures
S&P 500 $3,752.25 +0.52%
Dow Jones $30,681.0 +0.34%
Nasdaq $11,286.25 +0.78%
Name Value % Chg
Sector
Utilities 6,847.7 +0.95%
Industrials 6,135.0 +0.90%
Consumer Discretionary 2,775.7 +0.77%
Health Care 40,320.0 +0.47%
Communication Services 1,390.1 +0.44%
Consumer Staples 12,407.6 +0.42%
Financials 6,373.5 +0.38%
Materials 15,776.9 +0.18%
Real Estate 2,861.1 +0.13%
Information Technology 1,454.1 -0.10%
Energy 10,748.2 -0.75%

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Markets

The ASX 200 shrugged off the negative news about Apple cutting its iPhone 14 production and negative SPI futures. A few more thoughts in the Post Market Brief below.

  • 9 out of 11 sectors higher

  • Defensives including Utilities, Discretionary and Healthcare led to the upside

  • Discretionary stocks also outperformed thanks to gains from Aristocrat, The Lottery Corp, IDP Education and Domino's

  • Energy fell an outsized -0.74% as oil prices stage a two day losing streak

  • Tech, Real Estate and Materials also underperformed benchmarks

  • 61% of the top 200 advanced

Announcements

  • Syrah (ASX: SYR) +6.8% shares were halted in afternoon trade, pending a funding and commercial arrangement announcement

  • Pendal (ASX: PDL) +5.5% experienced a -5.9% decline in funds under management during the September quarter 

  • Whitehaven (ASX: WHC) +1.8% generated $1.55bn cash in the September quarter thanks to a record average coal price of $581/t. Coal production fell -37% QoQ due to wet weather and flood related road closures 

  • Medibank (ASX: MPL) +0.1% shares were halted pending an announcement regarding the cyber incident 

  • Calix (ASX: CXL) unch plans to raise $60m at $4.55 per share, an 11.1% discount to its last closing price. Proceeds will be used to fast track the company’s decarbonisation solutions spanning across several industrial industries

  • Beach Energy (ASX: BPT) -0.3% posted an -8% decline in quarterly production due to natural field declines, flooding and unplanned outages

  • Northern Star (ASX: NST) -0.5% sold 369koz of gold at an AISC of A$1,788/oz in the September quarter, down -4.4% and up 12.2% respectively compared to a year ago

  • BHP (ASX: BHP) -0.9% reaffirmed its FY23 production and cost guidance

  • Origin (ASX: ORG) -1.4% guided to $500-650m EBITDA for its Energy Markets segment in FY23-24 from $365m in FY22. Improvement to be driven by ‘expected increase in natural gas gross profit’

  • Megaport (ASX: MP1) -22.1% posted 10% QoQ revenue growth in the September quarter to $33.7m  

Broker updates 

Economy

  • Westpac lending index was unchanged month-on-month in September

    • “... the six-month annualised growth rate in the index, which indicates the likely pace of economic activity relative to the trend three to nine months into the future, fell to -1.15% in September from -0.33% in August, the weakest since the pandemic first hit in 2020,” the Westpac report said

    • “The Leading Index continues to point to a material loss in momentum to a below-trend growth pace heading into 2023, broadly in line with Westpac’s forecast that economic growth will slow from 3.4% in 2022 to 1.0% in 2023.”

Commodities 

  • Iron ore futures on the Dalian Commodity Exchange rose 0.3%

  • Natural gas rose 1.5% after falling -11.8% in the previous three sessions

  • Uranium futures hit a one-month high of US$51.1/lb

Quick bites 

  • China's GDP data delay: China should have released trade data last week and Q3 GDP growth on Tuesday, but it didn't. Bloomberg said the delay was because top officials who needed to sign off on the figures were attending the Communist Party congress. That's slowed the approval process for the release of the reports. "The bigger issue is the lack of transparency - this is an unprecedented delay, but there was no announcement of why, prompting speculation and confusion." said Bloomberg report James Mayger.


Latest news


Post market brief

Wednesday was a rather encouraging day following a slightly weak lead from Wall Street - where major indices faded from session highs.

The ASX didn't really seem to care about reports about Apple cutting its iPhone 14 production. Instead, we saw Discretionary sector lead to the upside, closing 0.8% higher.

Still, volatility remains unprecedented and in the midst of US earnings seasons, the market can easily run either way following a better/worse than expected result from a big name.

We're also seeing bond yields (both Australian and US) edge a little higher after a two day losing streak. Higher bond yields has typically weighed on upside for equity markets, at least in the past few months.

Index

S&P/ASX 200: A close above the 50-day moving average, a step in the right direction and improving its damaged trend

XJO chart
XJO chart (Source: TradingView)

I promise they'll be more charts and insights tomorrow.


Scans

Top Gainers

Code Company Last % Chg
AZS AZURE Minerals Ltd $0.30 +39.54%
1CG One Click Group Ltd $0.018 +38.46%
TOY Toys'R'US ANZ Ltd $0.062 +34.78%
DEL Delorean Corporat... $0.087 +33.85%
TGM Theta Gold Mines Ltd $0.08 +25.00%
View all top gainers

Top Fallers

Code Company Last % Chg
BFC Beston Global Foo... $0.045 -27.42%
MP1 Megaport Ltd $6.61 -22.14%
LLO Lion One Metals Ltd $0.76 -20.00%
GC1PA Glennon Small Com... $8.50 -19.05%
SRK Strike Resources Ltd $0.115 -17.86%
View all top fallers

52 Week Highs

Code Company Last % Chg
IGO IGO Ltd $16.21 +5.47%
WAT Waterco Ltd $4.20 +2.69%
QAN Qantas Airways Ltd $6.03 +2.20%
XTE Xtek Ltd $0.55 +1.85%
TIE Tietto Minerals Ltd $0.69 +1.47%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
BFC Beston Global Foo... $0.045 -27.42%
LLO Lion One Metals Ltd $0.76 -20.00%
GC1PA Glennon Small Com... $8.50 -19.05%
PVL Powerhouse Ventur... $0.05 -16.67%
NAMR Namoi Cotton Ltd $0.05 -13.79%
View all 52 week lows

Near Highs

Code Company Last % Chg
E25 Element 25 Ltd $1.08 -11.48%
WVOL Ishares Edge MSCI... $34.62 +0.46%
WBCPI Westpac Banking C... $103.03 +0.21%
HLTH Vaneck Global Hea... $10.54 +0.19%
PMGOLD Gold Corporation $26.09 -0.53%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
AMI Aurelia Metals Ltd $0.11 -8.33%
BRX Belararox Ltd $0.41 +3.80%
GDG Generation Develo... $1.12 -0.44%
AESG Ishares Global Ag... $92.45 0.00%
ABC Adbri Ltd $1.405 +2.56%
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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