Data Insights

You’re simply the best (and worst!) ASX stocks hitting new highs and lows

Mon 20 May 24, 12:23pm (AEST)
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Welcome back to the 52-week Series – a recap of ASX 200 stocks that have tagged a fresh yearly highs and lows in the past week.

Each Monday, before I get stuck into the winners and sinners for the week that was, I like to put the moves of these companies into context. Basically, if the overall market had a lousy week, then there’s more of an excuse for stocks in general to have made a dreaded 52-week, or even all-time low.

But if the overall market went gangbusters – there’s really no excuse. And this is kinda where we are this week. I present to you Exhibit A: The All Ordinaries Accumulation Index (XAOA).

ASX All Ordinaries Total Return Index week ending Friday 17 May 2024
The All Ordinaries Accumulation Index (XAOA) weekly chart

FYI, the All Ordinaries contains roughly 500 of the top ASX stocks (out of around +2,200) by market capitalisation. This means it’s a more broad-based representation of what’s going on in the Australian share market than the benchmark S&P/ASX 200.

The “accumulation” part means “adds back dividends”. So, compared to the standard All Ordinaries Index (and the S&P/ASX 200 for that matter) which both decline in value each time a constituent pays a dividend, the XAOA retains all dividends paid by its constituents.

For me, the combination of breadth and accumulation makes the XAOA the best indicator of the total return performance of Australian stocks.

If as an investor, your job is to try and position yourself in the best performing stocks within the market you invest in, then you probably should take a long hard look at any of your holdings which are substantially underperforming the XAOA.

At 100,803, the XAOA closed at its second best ever level, just 0.5% off the 101,304 record high it set in the week ending 28 March. Aussie stocks have just about never been better.

But as we will see, the rising tide doesn’t lift all ships. Let’s do it the other way around this week and check out the Sinners list first – i.e., the Aussie stocks that made 52-week/all time lows.

ASX Sinners week ending 17 May

A ‘Y’ in the ‘ATH’ column denotes an all-time high as well as a 52-week high. (Note: for both tables, only stocks that had an average daily turnover greater than $1 million per day over the past month were considered.)

Company

Last Price

1-wk Chg%

1-yr Chg%

ATL Y/N?

Fletcher Building (FBU)

$2.69

-0.2%

-39.0%

Y

Domain Holdings Australia (DHG)

$2.83

-0.1%

-14.0%

 

Corporate Travel Management (CTD)

$14.76

0.0%

-30.0%

 

Weebit Nano (WBT)

$2.24

-0.2%

-70.0%

 

Lendlease Group (LLC)

$6.11

0.0%

-24.0%

 

BetaShares US EQY Strong Bear ETF (BBU)

$5.50

0.0%

-41.0%

Y

Avita Medical Inc (AVH)

$2.38

-0.1%

-36.0%

 

Omni Bridgeway (OBL)

$0.760

-0.2%

-70.0%

 

Global X Ultra Short Nasdaq-100 Hedge Fund ETF (SNA)

$1.610

-0.1%

-53.0%

Y

Spark New Zealand (SPK)

$3.84

0.0%

-21.0%

 

The Sinners list for last week

Fortunately, there weren’t too many for the Sinners list this week. Unfortunately, what the list lacked in numbers it made up for in quality (or lack thereof!).

Fletcher Building (ASX: FBU)’s earnings update from last Monday disappointed investors. Morgan Stanley noted the continued deterioration in volumes in the Australian and New Zealand building sectors “provided clear evidence” of a negative impact on FBU’s earnings. MS was one of several brokers that applied a sharp cut to their price target for the stock.

Fletcher Building (ASX-FBU) chart 17 May 2024
FBU shares were savaged last week on a disappointing trading update

ASX Winners week ending

Now to the Winners list – the Aussie stocks that made 52-week/all time highs.

Company

Last Price

1-wk Chg%

1-yr Chg%

ATH Y/N?

Life360 (360)

$15.47

+0.0%

+139.0%

Y

The A2 Milk Company (A2M)

$6.74

+0.1%

+29.0%

 

Adriatic Metals (ADT)

$4.57

0.0%

+38.0%

Y

ALS (ALQ)

$13.93

+0.1%

+14.0%

 

Amcor (AMC)

$15.47

0.0%

0%

 

BetaShares Asia Technology Tigers ETF (ASI)

$9.04

+0.0%

+30.0%

 

Alumina (AWC)

$1.680

+0.0%

+16.0%

 

Bendigo and Adelaide Bank (BEN)

$10.73

+0.1%

+25.0%

 

Base Resources (BSE)

$0.250

0%

+50.0%

 

Commonwealth Bank of Australia (CBA)

$121.04

+0.0%

+24.0%

Y

BetaShares Crypto Innovators ETF (CSC)

$11.80

+0.0%

n/a

Y

Clarity Pharmaceuticals (CU6)

$4.14

+0.1%

+461.0%

Y

Dalrymple Bay Infrastructure (DBI)

$2.93

+0.0%

+16.0%

Y

Dimerix (DXB)

$0.380

+0.1%

+393.0%

 

Emerald Resources (EMR)

$3.81

+0.1%

+93.0%

 

Firefly Metals (FFM)

$0.850

-0.1%

+13.0%

 

Fisher & Paykel Healthcare (FPH)

$26.37

+0.0%

+5.0%

 

Vaneck Gold Miners ETF (GDX)

$54.20

0%

+5.0%

 

BetaShares Geared US Equity Fund Hedged ETF (GGU)

$36.75

+0.0%

+60.0%

 

Goodman Group (GMG)

$34.35

+0.0%

+70.0%

Y

BetaShares Nasdaq-100 ETF - Hedged ETF (HND)

$38.52

+0.0%

+36.0%

Y

iShares MSCI Emerging Markets ETF (IEM)

$65.15

+0.0%

+12.0%

 

iShares S&P 500 AUD Hedged ETF (IHV)

$49.07

+0.0%

+25.0%

 

Jupiter Mines (JMS)

$0.360

+0.1%

+76.0%

 

Kingsgate Consolidated (KCN)

$1.790

+0.0%

+32.0%

 

L1 Long Short Fund (LSF)

$3.09

+0.0%

+7.0%

Y

Mineral Resources (MIN)

$78.61

+0.0%

+7.0%

 

Nickel Industries (NIC)

$1.020

+0.0%

+15.0%

 

Nuix (NXL)

$2.38

+0.0%

+140.0%

 

Origin Energy (ORG)

$9.92

0%

+20.0%

 

Orica (ORI)

$18.55

+0.0%

+13.0%

 

Pro Medicus (PME)

$116.90

+0.0%

+95.0%

Y

Pinnacle Investment Management (PNI)

$12.99

+0.1%

+47.0%

 

Pantoro (PNR)

$0.090

+0.1%

+17.0%

 

Perseus Mining (PRU)

$2.38

+0.0%

+12.0%

 

Pexa Group (PXA)

$14.32

0.0%

+10.0%

 

Qantm Intellectual Property (QIP)

$1.800

0%

+109.0%

 

Qube Holdings (QUB)

$3.52

0.0%

+13.0%

Y

Red 5 (RED)

$0.470

+0.0%

+176.0%

 

Sandfire Resources (SFR)

$9.65

0.0%

+56.0%

Y

Silver Lake Resources (SLR)

$1.590

+0.1%

+43.0%

 

Silex Systems (SLX)

$6.55

+0.1%

+84.0%

 

Spartan Resources (SPR)

$0.690

+0.1%

+434.0%

 

SPDR S&P/ASX 200 Fund ETF (STW)

$70.65

+0.0%

+7.0%

Y

Southern Cross Electrical Engineering (SXE)

$1.570

+0.1%

+145.0%

 

Southern Cross Gold (SXG)

$2.73

-0.2%

+375.0%

Y

Telix Pharmaceuticals (TLX)

$14.80

0.0%

+30.0%

Y

Task Group (TSK)

$0.820

+0.0%

+123.0%

 

Tuas (TUA)

$3.91

+0.0%

+136.0%

Y

Unibail-Rodamco-Westfield (URW)

$6.41

0.0%

+77.0%

 

Vanguard All-World Ex-US Shares Index ETF (VEU)

$90.25

+0.0%

+11.0%

Y

Vanguard MSCI Index International Shares ETF (VGA)

$102.63

+0.0%

+25.0%

Y

Vanguard FTSE Emerging Markets Shares ETF (VGE)

$73.62

+0.0%

+11.0%

 

Vulcan Energy Resources (VUL)

$5.42

+0.4%

+29.0%

 

WA1 Resources (WA1)

$22.38

+0.1%

+584.0%

Y

West African Resources (WAF)

$1.470

+0.0%

+53.0%

Y

Global X Copper Miners ETF (WIR)

$15.06

+0.0%

+32.0%

Y

Wisetech Global (WTC)

$98.05

+0.0%

+40.0%

Y

The Winners list for last week

A long list – and even after this week with me upping the minimum average daily turnover requirement to $1 million per day versus the $500,000 per day of previous weeks.

Location sharing and family safety app Life360 (ASX: 360) deserves a special mention after its March quarter results released on Monday were favourably received. Goldman Sachs retained its BUY rating on the company, and also increased its price target to $16.05.

The broker noted Life360 is “executing well on managing the International growth strategy”, and that as the company’s profitability scales, “expect investors to comp to larger AU/US peers, which should be supportive of a continued valuation re-rating”.

Mining companies Adriatic Metals (ASX: ADT), Nickel Industries (ASX: NIC), and Sandfire Resources (ASX: SFR) each logged new 52-week highs on strength in their respective commodities of silver, nickel, and copper. (I also note there's also more than a fair sprinkling of gold stocks in the Winners list).

Nickel Industries (ASX-NIC) chart 20 May 2024
NIC has clearly turned the corner, but this is on the back of nickel prices finally looking up again

Spot silver closed at its highest price in over a decade on Friday, and copper closed at its highest level in over 2 years. Both have been soaring of late – you probably already knew this – but you might not have known that nickel is also getting a wriggle on lately, to the point where it may have even turned the corner after a shocking 2023.

The trend is your friend

But the Winners are too high to buy, and geez, those Sinners look like bargains” 🤔

I hear you say…

Hey, it’s always up to you how you pick your stocks, but as a trend follower, I see the Winners list essentially as my shopping list.

After all, these are the stocks exhibiting the greatest excess demand. Think about what this means. Plenty of investors, many who have much better information than us and a whole lot more capital, are falling over themselves to buy shares in these stocks.

At the same time, those investors who already own these stocks are refusing to sell them – unless they are enticed to do so by higher prices. If cash thinks these stocks are great and shareholders think they’re great too, who am I to argue?

For the Sinners, the opposite is true. Cash is looking elsewhere (i.e., at the Winners list!), and shareholders are heading for the door in a big hurry (possibly to buy the stocks in the Winners list!).

If cash thinks these stocks are lousy and shareholders think they’re lousy too, who am I to argue?

In my experience, it’s best not to argue with the market as you’re usually going to lose!

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience, helping 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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