Market Wraps

Evening Wrap: ASX rallies, consumer confidence bounces, Dow futures higher ahead of CPI print

Tue 13 Sep 22, 4:45pm (AEST)

The S&P/ASX 200 closed 45 points higher, up 0.65%.

The local sharemarket rallies for fourth consecutive day, Ramsay Health Care shares dip as KKR talks collapse, Australian consumer confidence bounces but remains grim and a closer look at agriculture stocks.

Let's dive in.

ASX summary
ASX 200, All Ords and All Tech intraday overview


  • 9 out of 11 sectors advanced

  • Real Estate stocks led to the upside: the top 13 REITs by market cap were all green

  • Energy stocks extended gains thanks to a recovery in oil prices

  • Financials also helped lift the index with CBA shares up 1.7%

  • Tech stocks underperformed even after the Nasdaq rallied 1.2% overnight

  • 76% of the top 200 companies declined


  • Vulcan Energy (ASX: VUL) +9.9% commenced onsite construction of its Sorption-Demo Plant in Germany, scheduled to start commissioning in late 1Q23 

  • Neuren Pharma (ASX: NEU) +4.3% was granted priority review by the US FDA for its trofinetide drug used to treat Rett syndrome

    • The milestone earns Neuren a US$10m milestone payment from its North American partner Acadia 

  • Imugene (ASX: IMU) 2.2% raised $80m at 20 cents per share, an 11.1% discount to the stock’s last close

  • Ramelius Resources (ASX: RMS) -2.0% upgraded its Mineral Resources by 15% to 6.2m oz of gold

  • Neometals (ASX: NMT) -3.8% finalised its internal Engineering Cost Study for a first-stage shredding plant for a potential lithium-ion battery recycling operation in Germany 

  • Ramsay Health Care (ASX: RHC) -10.4% advised that the consortium of investors led by KKR were ‘not in a position’ to improve terms of a revised acquisition

  • Link Administration (ASX: LNK) -20.1% provided an update on a UK regulatory hurdle it’s facing in relation to the $2.5bn acquisition by Dye & Durham  


  • Australian consumer confidence sentiment was 84.4 in September from 81.2 in July

    • First increase in the Index since November 2021

    • “Consumers may be a little less fearful, but confidence remains very weak,” said Bill Evans, Chief Economist at Westpac

    • “Confidence is only likely to see sustained gains once there is convincing evidence that the inflation threat is easing and the relentless rise in interest rates is nearing an end.”

  • Australian business confidence was 10 in August from 8 in July

    • “Cost growth moderated somewhat in August, likely reflecting a range of factors including some easing in commodity prices … growth in purchase costs and labour costs remain very strong,” said NAB Chief Economist Alan Oster

    • “Overall, the survey indicates that demand remained strong through August.”


  • Iron ore futures on China’s Dalian Commodity Exchange rose 1.9%

  • Copper rose 1.7% to US$3.6/lb, prices are up 6.4% in the last five sessions

Latest news


Top Gainers

Code Company Last % Chg
RFR Rafaella Resource... $0.041 +36.67%
CRR Critical Resource... $0.068 +36.00%
FRM Farm Pride Foods Ltd $0.15 +25.00%
WFL Wellfully Ltd $0.035 +25.00%
NES Nelson Resources Ltd $0.018 +24.14%
View all top gainers

Top Fallers

Code Company Last % Chg
DM1 Desert Metals Ltd $0.305 -24.69%
LNK Link Administrati... $3.57 -20.31%
MAG Magmatic Resource... $0.14 -20.00%
ILA Island Pharmaceut... $0.135 -18.18%
IND Industrial Minera... $0.405 -18.18%
View all top fallers

52 Week Highs

Code Company Last % Chg
IR1 Iris Metals Ltd $2.02 +12.85%
LIN Lindian Resources... $0.315 +8.62%
STA Strandline Resour... $0.545 +6.86%
FEG Far East Gold Ltd $0.575 +6.48%
LLL Leo Lithium Ltd $0.67 +6.35%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
MOB Mobilicom Ltd $0.012 -14.29%
DMG Dragon Mountain G... $0.013 -13.33%
BIO Biome Australia Ltd $0.072 -8.86%
AVE Avecho Biotechnol... $0.011 -8.33%
VORDB Vortiv Ltd $0.45 -8.16%
View all 52 week lows

Near Highs

Code Company Last % Chg
WVOL Ishares Edge MSCI... $34.63 +0.41%
WBCPI Westpac Banking C... $103.57 +0.40%
GCI Gryphon Capital I... $2.01 +0.75%
VVLU Vanguard Global V... $58.42 +0.59%
NEA Nearmap Ltd $2.08 0.00%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
TPG TPG Telecom Ltd $5.13 -0.77%
RWC Reliance Worldwid... $3.69 +0.55%
USTB ETFs US Treasury ... $9.74 -0.10%
WCG Webcentral Ltd $0.16 +10.35%
AFL Af Legal Group Ltd $0.27 +14.89%
View all RSI oversold

Post market charts

S&P/ASX 200: Another green candle. The sheer momentum has helped the 20-day and 50-day start to slope positive. We're around 0.5% away from the 200-day moving average. In the event of a pullback, the index needs to show an orderly pullback, not the volatile and heavy selling we saw a month earlier.

XJO chart
XJO chart (Source: TradingView, Annotations by Market Index)

S&P/ASX 200 Materials: Chart looks very similar to the broader index. I took another look at why there might be some short-term optimism surrounding China's steel production and iron ore demand.

S&P/ASX 200 Tech: On Monday, we talked about how the Tech Index continues to push. But individual names like WiseTech (ASX: WTC) and Xero (ASX: XRO) started to stall and fall from session highs. The Tech sector underperformed on Tuesday, down -0.3%. Again, in the event of a pullback, it needs to be able to defend key moving averages like the 20 and 50.

XIJ chart
XIJ chart (Source: TradingView, Annotations by Market Index)

Sectors and stocks

Taking a look at soft commodities: Corn and wheat prices are starting to pick up after a topping out earlier this year. Soybean prices soared on Monday after drought-stressed US crop reports flagged 'shockingly' tight supplies, according to Bloomberg.

Soft commodities
Corn (top left), Wheat (top right), Cattle (bottom left) and Lumber (bottom right)

And now local agriculture stocks: A few names are starting to consolidate after similar topping patterns as the above commodities. The main names that come to mind include Australian Agricultural Company (ASX: AAC), Select Harvests (ASX: SHV) and Graincorp (ASX: GNC).

AAC chart
Australian Agricultural Company chart (Source: TradingView, Annotations by Market Index)
SHV chart
Select Harvest chart (Source: TradingView, Annotations by Market Index)

Lithium still going: On Monday, we noted some large cap names like Allkem (ASX: AKE)Liontown Resources (ASX: LTR) and Lake Resources (ASX: LKE) starting to stall, closing the session down 2-3%. And on the flip side, a few names continued to defy gravity and push higher. On Tuesday, they just kept on rallying. Core Lithium (ASX: CXO) and Pilbara Minerals (ASX: PLS) both hit fresh all-time highs. Most names were green but performance varied. Wild.

Food for thought

US inflation print: The CPI print is due at 10:30 pm AEST. Inflation is expected to fall -0.1% month-on-month, the first in two years thanks to falling energy prices. Year-on-year, headline inflation is expected to fall to 8.1% in August from 8.5% in July. Core inflation is forecast to stay unchanged at 5.9%.

S&P 500 on CPI print days: Year-to-date, 6 out of 8 inflation prints have been hotter-than-expected. The S&P 500 fell every time inflation surprised to the upside, down an average -1.26%. The latest print in August (for July CPI) was cooler-than-expected and inspired a 2.15% rally.

A possible soft landing: JP Morgan said "... economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric. And the data appear to be increasingly supportive of a soft landing ... should thus continue to provide tailwinds for risky assets ...”

Oil to come close to a surplus: US Energy Information Administration's short-term outlook for world liquid fuel production and consumption. The forecast suggests a stock build and production levels above consumption for Q3 and Q4. Not exactly in-line with all the underinvestment and supply tight narrative we've seen over the past few months.

EIA oil outlook
Source: US Energy Information Administration

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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