Market Wraps

Evening Wrap: Quiet on surface, but great day for energy, discretionary, lousy for gold, Pilbara Minerals

Mon 11 Dec 23, 5:29pm (AEDT)

The S&P/ASX 200 closed 3.7 points higher, up 0.05%.

On the surface, it appeared to be a very quiet day on the ASX to start the week. But scratch the surface, and there was plenty to both cheer and lament. In the cheer column, Energy, Consumer Discretionary and Health were generally very solid. Lamentable included Materials stocks, particularly Gold, but iron ore and lithium weren't far behind. For example, Pilbara Minerals (ASX: PLS) gave back just over 3% of it's recent short covering rally, leaving die hard fans wondering...Is that it? 🤔

Let's dive in.


Today in Review

Mon 11 Dec 23, 4:14pm (AEDT)

Name Value % Chg
Major Indices
ASX 200 7,199.0 +0.06%
All Ords 7,410.2 +0.06%
Small Ords 2,765.9 -0.22%
All Tech 2,524.0 +0.01%
Emerging Companies 1,910.0 -0.99%
Currency
AUD/USD 0.6554 -0.44%
US Futures
S&P 500 $4,604.75 -0.06%
Dow Jones $36,285.0 +0.01%
Nasdaq $16,053.5 -0.28%
Name Value % Chg
Sector
Energy 10,267.4 +1.16%
Consumer Discretionary 3,093.2 +0.58%
Health Care 39,789.8 +0.44%
Financials 6,427.2 +0.22%
Industrials 6,600.7 +0.20%
Consumer Staples 11,953.5 +0.19%
Real Estate 3,150.4 -0.03%
Communication Services 1,506.8 -0.08%
Information Technology 1,719.5 -0.31%
Materials 18,154.0 -0.58%
Utilities 7,932.8 -0.61%

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Markets

ASX 200 Session Chart

S&P ASX 200 (XJO) Intraday Chart 11 Dec 2023
Just another manic Monday...

The S&P/ASX200 (XJO) finished points higher at 7,198.6, 0.12% from its session low and 0.39% from its high. In the broader-based S&P/ASX 300 (XKO), advancers lagged decliners by 123 to 147.

The S&P/ASX 200 Energy Sector (XEJ) +1.2% was again the best performing sector today, as the sector bathed in the warm afterglow of the proposed Woodside Energy (ASX: WDS) and Santos (ASX: STO) merger. Today, investors saw particular value in Strike Energy (ASX: STX) +7.8%, with the WA-based junior gas producer topping the sector leaderboard.

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Strike Energy (STX)

$0.415

+$0.03

+7.8%

+9.2%

+29.7%

Nexgen Energy (Canada) (NXG)

$10.64

+$0.51

+5.0%

+10.0%

+74.4%

Beach Energy (BPT)

$1.545

+$0.055

+3.7%

+2.7%

-5.8%

MMA Offshore (MRM)

$1.620

+$0.04

+2.5%

+26.6%

+113.2%

Paladin Energy (PDN)

$0.955

+$0.02

+2.1%

+2.1%

+38.4%

Woodside Energy Group (WDS)

$30.26

+$0.45

+1.5%

-5.5%

-15.9%

Ampol (ALD)

$34.77

+$0.28

+0.8%

+4.1%

+30.2%

New Hope Corporation (NHC)

$5.07

+$0.04

+0.8%

-3.1%

-9.6%

Santos (STO)

$7.29

+$0.04

+0.6%

+1.0%

+1.7%

Karoon Energy (KAR)

$1.920

+$0.01

+0.5%

-17.5%

-16.4%

Some energy stocks are still showing substantial 1-year declines despite the recent rally

Also doing well today was the S&P/ASX 200 Consumer Discretionary Sector (XDJ) +0.6%. Expectations the RBA is done hiking rates and anticipation of a strong Christmas trading period buoyed retailers like Lovisa Holdings (ASX: LOV) and Nick Scali (ASX: NCK), while positive comments from broker Citi assisted auto stocks like GUD Holdings (ASX: GUD), and Eagers Automotive (ASX: APE).

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Lovisa Holdings (LOV)

$21.22

+$0.61

+3.0%

+8.7%

-5.7%

G.U.D. Holdings (GUD)

$11.57

+$0.29

+2.6%

+3.9%

+41.4%

Eagers Automotive (APE)

$13.93

+$0.31

+2.3%

+2.7%

+17.6%

Nick Scali (NCK)

$11.24

+$0.22

+2.0%

-2.9%

+2.2%

Accent Group (AX1)

$1.870

+$0.035

+1.9%

-7.4%

+7.2%

Corporate Travel Management (CTD)

$18.57

+$0.32

+1.8%

+6.5%

+27.1%

EVT (EVT)

$11.77

+$0.19

+1.6%

+8.7%

-12.2%

Flight Centre Travel Group (FLT)

$18.91

+$0.21

+1.1%

-3.0%

+23.7%

Premier Investments (PMV)

$25.90

+$0.26

+1.0%

+7.8%

+5.8%

Retail stocks are hoping for a very merry Christmas

Doing it tough today was the S&P/ASX 200 Materials Sector (XMJ) -0.6% which failed to capitalise on stronger base metals prices on the London Metals Exchange on Friday. Iron ore prices were a touch lower in Singapore today, which probably didn't help, but the blame lay fairly and squarely at the feet of gold stocks as the S&P/ASX All Ordinaries Gold Sub-Index (XGD) dropped -1.9%. Gold prices couldn't shake off that big reversal candle I discussed in Friday's Evening Update, and stocks paid the price today.

Company

Last Price

Change $

Change %

1-month Perf %

1-year Perf %

Bellevue Gold (BGL)

$1.675

-$0.14

-7.7%

+21.8%

+57.3%

West African Resources (WAF)

$0.875

-$0.05

-5.4%

+6.7%

-18.6%

De Grey Mining (DEG)

$1.265

-$0.07

-5.2%

+11.0%

+2.0%

Westgold Resources (WGX)

$2.10

-$0.1

-4.5%

+3.4%

+176.3%

Predictive Discovery (PDI)

$0.220

-$0.01

-4.3%

+4.8%

+4.8%

Ora Banda Mining (OBM)

$0.230

-$0.01

-4.2%

+35.3%

+150.0%

Genesis Minerals (GMD)

$1.775

-$0.065

-3.5%

+20.3%

+34.5%

Gold Road Resources (GOR)

$1.875

-$0.06

-3.1%

+1.1%

+6.8%

Silver Lake Resources (SLR)

$1.105

-$0.035

-3.1%

+3.8%

-14.3%

Capricorn Metals (CMM)

$4.30

-$0.11

-2.5%

-6.1%

-10.4%

Gold stocks showed plenty of promise up until the start of the month, but have since failed to fire

One materials sector chart which caught my eye today was market darling Pilbara Minerals (ASX: PLS) which fell 3.0%. Given Pilbara had rallied over 22% from Wednesday's low to today's high, I'd suggest this is just a necessary pullback.

The reason for Pilbara's rally was a rebound in GFEX lithium carbonate futures over the last three trading sessions - two of which were closed early due to limit up moves. Pilbara's short sell interest, which peaked above 20%, has been well publicised and I'm pretty sure the recent pop is largely to do with shorts scrambling to cover back.

Pilbara Minerals chart ASX-PLS 11 Dec 2023
I'll be doing a comprehensive technical review of the ASX lithium sector in ChartWatch tomorrow

The big question for all you Pilbara faithful is this: Sure it's a big positive shorts are covering back, but after they're done, will there be anyone left to buy Pilbara to spur another leg of this rally? FYI, I'll be doing a comprehensive technical review of the ASX lithium sector in ChartWatch tomorrow - so I might just have some answers for you!


Economy

There weren't any major data releases today.

What to watch out for...

RBA Gov Bullock is due to speak at the AusPayNet Summit, in Sydney at 9:20am AEDT tomorrow, then at 10:30am AEDT we'll get the Westpac Consumer Sentiment Survey Index, and at 11:30am AEDT the NAB Business Confidence Index.


Latest News


Interesting Movers

Trading higher

  • +7.8% Strike Energy (STX) - Energy sector M&A activity

  • +7.4% Smartgroup Corporation (SIQ) - South Australian Government contract win and trading update

  • +5.1% Regal Partners (RPL) - Lodgement of Prospectus for Acquisition of PM Capital

  • +4.5% Silex Systems (SLX) - Rebound in several uranium stocks on stronger uranium price

  • +3.9% Piedmont Lithium Inc (PLL) - Continued rally in several lithium stocks on firmer lithium carbonate price

  • +3.9% Credit Corp Group (CCP) - No news

  • +3.9% Australian Ethical Investment (AEF) - M&A activity in funds management industry (SOL vs PPT)

  • +3.7% Beach Energy (BPT) - Energy sector M&A activity

  • +3.6% Ricegrowers (SGLLV) - No news

  • +3.4% Garda Property Group (GDG) - No news

  • +3.3% Magellan Financial Group (MFG) - M&A activity in funds management industry (SOL vs PPT)

  • +3.3% MA Financial Group (MAF) - M&A activity in funds management industry (SOL vs PPT)

Trading lower

  • -14.0% Latin Resources (LRS) - Correction in several lithium stocks after sharp rally post recovery in lithium carbonate futures price

  • -8.7% The Star Entertainment Group (SGR) - No news, 12-month lows

  • -7.7% Bellevue Gold (BGL) - Correction in several gold stocks on weaker gold price

  • -5.7% Core Lithium (CXO) - Correction in several lithium stocks after sharp rally post recovery in lithium carbonate futures price

  • -5.6% Liberty Financial Group (LFG) - No news

  • -5.6% Zip Co. (ZIP) - Likely pullback from strong gains last week

  • -5.4% Perenti (PRN) - Update and FY24 Guidance

  • -5.4% West African Resources (WAF) - Correction in several gold stocks on weaker gold price

  • -5.3% Fineos Corporation Holdings (FCL) - No news

  • -5.2% De Grey Mining (DEG) - Correction in several gold stocks on weaker gold price

  • -4.7% Chalice Mining (CHN) - Correction in several gold stocks on weaker gold price

  • -4.5% Westgold Resources (WGX) - Correction in several gold stocks on weaker gold price


Broker Notes

  • AGL Energy (AGL) retained at accumulate at Ord Minnett; Price Target: $12.80

  • ANZ Group Holdings (ANZ) retained at neutral Macquarie; Price Target: $24.00

  • ARB Corporation (ARB) upgraded to buy from sell at Citi; Price Target: $35.18

  • Bapcor (BAP) retained at neutral Citi; Price Target: $6.40

  • Beach Energy (BPT) retained at neutral Macquarie; Price Target: $1.50

  • City Chic Collective (CCX) retained at buy at Citi; Price target $0.62

  • Commonwealth Bank of Australia (CBA) retained at underperforrm Macquarie; Price Target: $87.50

  • Chalice Mining (CHN) retained at buy Bell Potter; Price Target: $5.40

  • Champion Iron (CIA) retained at outperform at Macquarie; Price target $9.20

  • Coronado Global Resources (CRN) retained at outperform at Macquarie; Price target $2.50

  • Genesis Minerals (GMD)

    • Downgraded to neutral from outperform at Macquarie; Price target $2 from $1.90

    • Initiated hold at Ord Minnett; Price Target: $1.70

  • Genetic Signatures (GSS) retained at buy Bell Potter; Price Target: $0.83

  • Golden Road Resources (GOR) downgraded to neutral from outperform at Macquarie; Price target $2

  • G.U.D. Holdings (GUD) retained at buy Citi; Price Target: $13.27

  • Mount Gibson Iron (MGX) retained at outperform at Macquarie; Price target $0.55 from $0.50

  • National Australia Bank (NAB) retained at neutral Macquarie; Price Target: $28.00

  • Santos (STO)

    • Retained at buy Citi; Price Target: $8.25

    • Retained at outperform Macquarie; Price Target: $9.60

  • The Lottery Corporation (TLC) retained at buy Citi; Price Target: $5.60 from $5.70

  • Westpac Banking Corporation (WBC) retained at neutral Macquarie; Price Target: $20.50

  • Woodside Energy Group (WDS)

    • Retained at sell Citi; Price Target: $26.50

    • Retained at neutral Macquarie; Price Target: $31.00


Scans

Top Gainers

Code Company Last % Chg
LTP LTR Pharma Ltd $0.39 +95.00%
WC1 West Cobar Metals... $0.074 +37.04%
GGE Grand Gulf Energy... $0.011 +31.25%
ILA Island Pharmaceut... $0.085 +28.79%
CXU Cauldron Energy Ltd $0.019 +26.67%
View all top gainers

Top Fallers

Code Company Last % Chg
SCL Schrole Group Ltd $0.15 -42.31%
WEC White Energy Comp... $0.04 -31.03%
RNO Rhinomed Ltd $0.028 -30.00%
RWD Reward Minerals Ltd $0.07 -22.22%
M2M MT Malcolm Mines NL $0.025 -21.88%
View all top fallers

52 Week Highs

Code Company Last % Chg
LTP LTR Pharma Ltd $0.39 +95.00%
CXU Cauldron Energy Ltd $0.019 +26.67%
ADRDA Adherium Ltd $0.033 +22.22%
ICR Intelicare Holdin... $0.03 +15.39%
CU6 Clarity Pharmaceu... $1.725 +9.87%
View all 52 week highs

52 Week Lows

Code Company Last % Chg
SCL Schrole Group Ltd $0.15 -42.31%
WEC White Energy Comp... $0.04 -31.03%
RNO Rhinomed Ltd $0.028 -30.00%
LPE Locality Planning... $0.04 -11.11%
PAM Pan Asia Metals Ltd $0.125 -10.71%
View all 52 week lows

Near Highs

Code Company Last % Chg
PCI Perpetual Credit ... $1.07 0.00%
WVOL Ishares Edge MSCI... $36.71 +0.85%
PMGOLD Gold Corporation $30.37 -0.75%
GCI Gryphon Capital I... $2.02 +0.50%
VVLU Vanguard Global V... $65.10 +1.47%
View all near highs

Relative Strength Index (RSI) Oversold

Code Company Last % Chg
WDS Woodside Energy G... $30.25 +1.48%
KAR Karoon Energy Ltd $1.915 +0.26%
FAR FAR Ltd $0.36 +1.41%
CD2 CD Private Equity... $1.11 +0.45%
TLG Talga Group Ltd $0.815 -2.98%
View all RSI oversold

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience and has helped investors navigate several bull and bear markets over this time. He is a well respected markets commentator who specialises in how the global macro impacts Australian and US equities. Carl has a passion for technical analysis and has taught his unique brand of price-action trend following to thousands of Aussie investors.

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