Market Wraps

Evening Wrap: Banks and defensives lift the ASX 200 higher, Tech stocks lag

Mon 03 Jun 24, 5:04pm (AEST)

 The S&P/ASX 200 closed 59 points higher, up 0.77%. 

The local sharemarket is now up around 1.7% in the last two sessions but Monday's session was led by major banks, real estate and utility stocks. The ASX 200 Financial's Index has staged an impressive reversal from a near one-month low last Friday, Stanmore Resources rallied after an upgrade from Citi, DroneShield shares soar to another fresh all-time high and China flashes some encouraging PMI data.

Let's dive in.

Today in Review

Mon 03 Jun 24, 4:30pm (AEST)

Name Value % Chg
Major Indices
ASX 200 7,761.0 +0.77%
All Ords 8,024.1 +0.67%
Small Ords 3,024.0 +0.04%
All Tech 3,066.9 -0.26%
Emerging Companies 2,208.6 -0.46%
Currency
AUD/USD 0.6642 -0.16%
US Futures
S&P 500 5,306.25 +0.20%
Dow Jones 38,878.0 +0.22%
Nasdaq 18,643.25 +0.28%
Name Value % Chg
Sector
Financials 7,400.4 +1.54%
Utilities 9,104.1 +1.47%
Real Estate 3,656.3 +1.42%
Energy 10,262.2 +0.68%
Industrials 6,911.3 +0.57%
Materials 18,131.6 +0.41%
Consumer Discretionary 3,419.1 +0.36%
Consumer Staples 11,859.6 +0.22%
Health Care 42,476.0 +0.14%
Communication Services 1,462.4 -0.04%
Information Technology 2,291.0 -0.72%

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ASX 200 Session Chart

2024-06-03 16 41 13-Window
ASX 200 higher and finished near best levels (Source: Market Index)

Markets

Today's Evening Wrap will be another brief one. Carl returns on Tuesday!

The bounce bank continues to a second session, with encouraging APRA lending data lifting bank stocks higher. The gains were led by Westpac (+2.50%), NAB (+1.6%), CBA (+1.4%) and ANZ (+1.1%) – all four major banks are trading around 2-5% from recent highs. The largely in-line US PCE inflation data (the Fed's preferred inflation measure) helped ease bond yields, lifting yield-sensitive sectors like Utilities and Real Estate. Some notable gainers from these sectors include AGL (+2.7%), Goodman Group (+1.8%) and Stockland (+1.7%). Technology stocks struggled, in-line with the Nasdaq's overnight weakness. Large cap names like Wisetech, Xero and NextDC all finished around 1% lower.

Economy

China’s Caixin Manufacturing PMI jumped to 51.7 in May from 51.4 in the previous month.

  • Highest since June 2022 and beat analyst forecasts of 51.5

  • Production was underpinned by higher new work inflows, strong production and global demand

APRA data shows second consecutive quarter of system credit growth offset by softer deposit growth.

  • Westpac led mortgage and deposit growth among major banks

  • NAB lagged in business lending while ANZ and CBA had the weakest retail deposits


Latest news


Interesting movers

Trading higher

  • +13.5% Navigator Global Investments (NGI) – Guidance

  • +10.4% APM Human Services (APM) – To be acquired by Madison Dearborn at $1.45

  • +10.2% DroneShield (DRO) – Initiated Buy at Shaw and Partners

  • +9.8% Percheron Therapeutics (PER) – Appoints CMA

  • +7.1% Vulcan Energy (VUL) – Raises 40m Euros from CIMIC, Hancock Prospecting

  • +5.0% Strike Energy (STX) – Walyering-7 well update

  • +2.4% Ingenia Communities (INA) – JPMorgan upgrade

Trading lower

  • -14.2% WA1 Resources (WA1) – Assay results

  • -10.3% Lovisa (LOV) – CEO succession update

  • -4.8% The Reject Shop (TRS) – Jarden downgrade

  • -4.7% Betmakers Technology (BET) – Agreements with Bet365


Broker notes

Morgan Stanley’s take on ASX (ASX):

  • Underweight with $53.50 target price

  • “The ASX will provide first-time FY25E cost guidance at its Investor Forum. We think guidance will be higher than what consensus expects, as ASX is simultaneously modernising critical tech (inc. CHESS), satisfying regulatory obligations, while attempting to develop new revenue opportunities.”

  • The analysts expect the ASX to guide to FY25 costs of around $490 million, which will drive a 3-8% selloff for the stock

Citi’s take on Champion Iron (CIA):

  • Buy with $8.60 target price

  • FY24 EBITDA was a 6% beat against Citi’s expectations from lower sea freight and positive provisional pricing adjustments in 4Q24

  • “CIA continues to solidify operations following a strategy to identify bottlenecks at Bloom Lake by pushing beyond the 15mtpa nameplate capacity.”


Scans

Top Gainers

Code Company Last % Chg
IIQ Inoviq Ltd $0.655 +40.86%
NYR Nyrada Inc $0.073 +28.07%
KLI Killi Resources Ltd $0.05 +25.00%
EMS Eastern Metals Ltd $0.04 +21.21%
EOF Ecofibre Ltd $0.082 +20.59%
View all top gainers

Top Fallers

Code Company Last % Chg
TM1 Terra Metals Ltd $0.042 -20.76%
BDX Bcal Diagnostics Ltd $0.14 -20.00%
DTM Dart Mining NL $0.02 -20.00%
MGA Metalsgrove Minin... $0.064 -20.00%
XPN Xpon Technologies... $0.012 -20.00%
View all top fallers

52 Week Highs

Code Company Last % Chg
NGI Navigator Global ... $2.09 +12.97%
DRO Droneshield Ltd $1.235 +9.78%
TDO 3D Energi Ltd $0.085 +8.97%
LPE Locality Planning... $0.115 +4.55%
IPX Iperionx Ltd $2.52 +4.13%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
VRX VRX Silica Ltd $0.036 -18.18%
PAT Patriot Lithium Ltd $0.064 -17.95%
BSN Basin Energy Ltd $0.077 -14.44%
IMI Infinity Mining Ltd $0.039 -13.33%
LVH Livehire Ltd $0.013 -13.33%
View all 52 week lows

Near Highs

Code Company Last % Chg
A200 Betashares Austra... $129.96 +0.75%
IJH Ishares S&P Mid-C... $45.12 +1.51%
VVLU Vanguard Global V... $71.50 +1.48%
FPH Fisher & Paykel H... $27.19 -0.04%
HETH Betashares Global... $14.24 +1.28%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
WLE Wam Leaders Ltd $1.315 +1.15%
OML Ooh!Media Ltd $1.47 +3.16%
NVX Novonix Ltd $0.73 +5.80%
NSC Naos Small Cap Op... $0.50 +1.01%
SUNPH Suncorp Group Ltd $101.85 +0.10%
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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