Evening Wrap: ASX 200 bounces as copper and uranium stocks soar, plus lithium's big day out
The S&P/ASX 200 closed 61.5 points higher, up 0.81%.
Copper and uranium stocks were boosted today on a combination of well received quarterly updates and modest price gains in their respective underlying commodities (copper to closing at 1 year highs on Friday on the London Metals Exchange).
But, it's lithium stocks which are to be watched closely going forward as a key lithium contract in China surged over 5% ahead of the upcoming May Day holiday later this week. We check the chart, and it shows this was an important move – big, and on large volume.
Outside of the usual gyrations in commodity stocks, Real Estate, Technology and Communications stocks topped the sector performance list, while Energy lagged behind.
Let's dive in!
Today in Review
Mon 29 Apr 24, 4:24pm (AEST)
| Name | Value | % Chg |
|---|---|---|
| Major Indices | ||
| ASX 200 | 7,637.4 | +0.81% |
| All Ords | 7,906.6 | +0.88% |
| Small Ords | 3,032.2 | +2.27% |
| All Tech | 3,017.8 | +1.60% |
| Emerging Companies | 2,211.2 | +1.17% |
| Currency | ||
| AUD/USD | 0.6567 | +0.51% |
| US Futures | ||
| S&P 500 | 5,144.0 | +0.24% |
| Dow Jones | 38,538.0 | +0.25% |
| Nasdaq | 17,909.5 | +0.36% |
| Name | Value | % Chg |
|---|---|---|
| Sector | ||
| Real Estate | 3,512.4 | +1.69% |
| Information Technology | 2,189.9 | +1.68% |
| Communication Services | 1,501.0 | +1.33% |
| Industrials | 6,933.2 | +1.23% |
| Health Care | 42,176.9 | +1.19% |
| Consumer Discretionary | 3,405.2 | +1.12% |
| Financials | 7,165.0 | +0.62% |
| Materials | 17,977.4 | +0.51% |
| Utilities | 8,689.6 | +0.50% |
| Consumer Staples | 11,921.6 | +0.44% |
| Energy | 10,257.5 | +0.01% |
Markets
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 61.5 points higher at 7,637.4, 0.81% from its session low and just 0.12% from its high. In the broader-based S&P/ASX 300 (XKO), advancers beat decliners by an impressive 254 to 35.
The Real Estate (XRE) (+1.7%) sector was the best performing sector today, likely in response to a very modest pullback in market rates reflected in the bond market since Friday. I put to you this sector is the most sensitive to market interest rates, lesser being better of course.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Pexa Group (PXA) | $12.15 | +$0.73 | +6.4% | -9.6% | -9.3% |
Centuria Capital Group (CNI) | $1.755 | +$0.065 | +3.8% | -2.0% | +1.7% |
Lifestyle Communities (LIC) | $12.04 | +$0.42 | +3.6% | -20.7% | -27.1% |
HMC Capital (HMC) | $6.36 | +$0.22 | +3.6% | -10.2% | +61.4% |
Arena REIT/Units (ARF) | $3.65 | +$0.12 | +3.4% | -6.9% | -1.6% |
Homeco Daily Needs REIT (HDN) | $1.240 | +$0.04 | +3.3% | -2.7% | +3.3% |
Ingenia Communities Group (INA) | $4.67 | +$0.13 | +2.9% | -8.1% | +13.9% |
Charter Hall Group (CHC) | $11.86 | +$0.33 | +2.9% | -12.7% | +6.1% |
Charter Hall Social Infrastructure REIT (CQE) | $2.53 | +$0.07 | +2.8% | -8.0% | -15.4% |
Charter Hall Long Wale REIT (CLW) | $3.44 | +$0.09 | +2.7% | -9.2% | -20.7% |
Property stocks bounced back strongly today
Also doing well today were the Information Technology (XIJ) (+1.7%) sector and the Communication Services (XTJ) (+1.3%) sector. There's plenty of overlap between these two sectors, and like real estate, tech stocks are highly sensitive to moves in interest rates (lesser is better here also!).
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Weebit Nano (WBT) | $3.16 | +$0.22 | +7.5% | -8.7% | -40.8% |
TPG Telecom (TPG) | $4.36 | +$0.22 | +5.3% | -2.0% | -17.3% |
Technology One (TNE) | $16.26 | +$0.58 | +3.7% | -3.9% | +7.5% |
Nine Entertainment Co. Holdings (NEC) | $1.530 | +$0.045 | +3.0% | -8.7% | -25.4% |
EVT (EVT) | $12.08 | +$0.33 | +2.8% | -0.6% | -1.8% |
Life360 (360) | $14.05 | +$0.38 | +2.8% | +7.3% | +192.1% |
Siteminder (SDR) | $5.71 | +$0.14 | +2.5% | +2.5% | +71.0% |
Nextdc (NXT) | $16.69 | +$0.39 | +2.4% | -4.0% | +45.7% |
Car Group (CAR) | $33.94 | +$0.79 | +2.4% | -5.7% | +45.5% |
REA Group (REA) | $179.97 | +$4.06 | +2.3% | -3.2% | +28.4% |
Tech stocks also did well as market rates edged lower...but how long can it last?
All eleven major ASX sectors were in the black today, but at the bottom of the sector performance table were notable laggards Resources (XJR) (+0.38%) and Energy (XEJ) (+0.01%). Still, check the Interesting Moves section below for some big gains in copper, lithium, and uranium stocks.
After writing the last paragraph, I'm inclined to delve back into my Evening Wraps over the last few weeks and investigate how many times I either wrote "All eleven major ASX sectors were down" or "all were up". I won't in favour it being a totally pointless exercise, but let's just say I bet the answer is "a lot"!
Basically, the Aussie market has either been unanimous up or unanimous down quite a bit lately, and I think we'd all welcome a period of calm.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
29METALS (29M) | $0.530 | +$0.06 | +12.8% | +32.5% | -54.7% |
Lotus Resources (LOT) | $0.435 | +$0.04 | +10.1% | +8.8% | +135.1% |
Boss Energy (BOE) | $4.78 | +$0.4 | +9.1% | 0% | +106.0% |
Liontown Resources (LTR) | $1.210 | +$0.09 | +8.0% | +6.1% | -55.7% |
Deep Yellow (DYL) | $1.430 | +$0.105 | +7.9% | +6.7% | +180.4% |
Bannerman Energy (BMN) | $3.77 | +$0.26 | +7.4% | +5.3% | +194.5% |
Aeris Resources (AIS) | $0.295 | +$0.02 | +7.3% | +103.4% | -46.7% |
Latin Resources (LRS) | $0.225 | +$0.015 | +7.1% | +25.0% | +104.5% |
Vulcan Energy Resources (VUL) | $3.41 | +$0.21 | +6.6% | +14.8% | -41.1% |
Develop Global (DVP) | $2.49 | +$0.14 | +6.0% | +5.1% | -20.2% |
Big gains in copper, lithium, and uranium stocks
ChartWatch
Lithium Carbonate Futures GFEX
An important candle in the context of the broader lithium carbonate rally
If you had asked me before today’s session what I thought the probability was of today’s candle/volume combination appearing – I would have said bupkis!
Today’s candle’s range is the largest in over two weeks, and its volume the largest in nearly a month. It indicates elevated motivation from the demand-side in a prevailing environment where I was increasingly believing there was none.
If I’m surprised, I bet market participants are also trying to get their heads around what today’s move means for prices going forward.
I suggest the supply-side might back away in the hope the newly found demand might get them a better deal down the track. The demand-side might feel some urgency to fulfil their requirements.
Basically, it should put a proverbial cat among the pigeons – let’s see how high they fly.
In this regard, we’re approaching several key historical points of supply beginning with 117,350 and extending all the way up to the major point of supply at 125,000.
White candles and or downward pointing shadows in this range would further signal the demand-side’s new-found resolve, and therefore increase the likelihood of a major breakout.
Simply, a close above 125,000 commences a new bull market in lithium carbonate – and I honestly didn’t think I’d have reason to type that last sentence any time soon. But there you go – I just did!
If you asked me before today’s session what I thought the probability was of the lithium carbonate price closing below the key historical point of demand at 105,800 – I would have said it feels like an inevitability. Below that point we’re very much in resumption of the bear market phase, and who’s to say it won’t still feature in the not-too-distant future?
S&P/ASX 200 (XJO)
Stuck in the middle, but today's candle is a welcome addition to the bull's case
Just a quick update here. Since the last note, the XJO price has indeed manifested supply at the zone between the short term downtrend ribbon and 7741 – exactly as predicted.
The long term uptrend ribbon continues to offer dynamic support, and as long as the XJO closes above this key zone, the long term trend remains up.
We are vibrating between two well defined support and resistance zones. A close above 7741 signals a resumption of the bull market, and therefore a likely test of the 7911 all time high, whereas a close below 7489-7492 would be problematic for Aussie investors to say the least!
Economy
Today
There weren't any major economic data released in our time zone today
Later this week
Tuesday
11:30 AUS Retail Sales March (+0.2% forecast vs +0.3% February)
11:30 CHN Manufacturing PMI April (50.3 forecast vs 50.8 March)
11:30 CHN Non-Manufacturing PMI April (52.2 forecast vs 53.0 March)
22:30 USA Employment Cost Index March quarter (+1.0% forecast vs +0.9% December)
Wednesday
00:00 USA CB Consumer Confidence March (104 forecast vs 104.7 February)
Thursday
00:00 USA JOLTS Job Openings March (8.68 million forecast vs 8.76 million February)
04:00 USA Federal Reserve official cash rate, statement, and press conference (no change at 5.25-5.50%)
Friday
22:30 USA Non-Farm Employment Change April (+243,000 forecast vs +303,000 March); Unemployment rate April (3.8% forecast, no change); Average Hourly Earnings April (+0.3% forecast, no change)
Saturday
00:00 USA ISM Services PMI April (52.0 forecast vs 51.4 March)
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More News
Interesting Movers
Trading higher
+16.7% Mesoblast (MSB) - No news, possible continued positive response to 26 March FDA Notifies Clinical Data Sufficient for Refiling aGVHD BLA, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up, bounced off short term uptrend ribbon 🔎📈
+14.7% Pacific Smiles Group (PSQ) - PSQ enters into a Scheme Implementation Deed with NDC
+12.8% 29METALS (29M) - No news, copper rose to 1 year highs on LME on Friday, is now challenging long term downtrend ribbon 🔎📈
+10.1% Lotus Resources (LOT) - No news, uranium price up slightly on Friday, bouncing off short term uptrend ribbon, rise is consistent with prevailing long term uptrend 🔎📈
+10.0% Strike Energy (STX) - No news 🤔
+9.4% Firefly Metals (FFM) - Drilling hits high-grade copper zones well outside resource, copper rose to 1 year highs on LME on Friday, rise is consistent with prevailing short and long term uptrends 🔎📈
+9.4% Ora Banda Mining (OBM) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈
+9.1% Boss Energy (BOE) - Quarterly Activities Report - March 2024, bounced off long term uptrend ribbon 🔎📈
+8.0% Liontown Resources (LTR) - March 2024 Quarterly Activities and Cashflow Report, lithium carbonate price up over 5% today in China
+7.9% Deep Yellow (DYL) - No news, uranium price up slightly on Friday, bouncing off short term uptrend ribbon, rise is consistent with prevailing long term uptrend 🔎📈
+7.4% Bannerman Energy (BMN) - No news, uranium price up slightly on Friday, bouncing off short term uptrend ribbon, rise is consistent with prevailing long term uptrend 🔎📈
+7.4% Alligator Energy (AGE) - Quarterly Activities Report and 5B Cashflow - March 2024, uranium price up slightly on Friday
+7.4% Chalice Mining (CHN) - Lithium carbonate price up over 5% today in China helping boost some beaten down lithium and battery metals stocks
+7.1% Latin Resources (LRS) - Lithium carbonate price up over 5% today in China helping boost some beaten down lithium and battery metals stocks
+6.9% Zip Co (ZIP) - No news, today's rise sets rising troughs, closed back above short term uptrend ribbon, rise is consistent with prevailing long term uptrend 🔎📈
+6.6% Novonix (NVX) - Lithium carbonate price up over 5% today in China helping boost some beaten down lithium and battery metals stocks
+6.6% Vulcan Energy Resources (VUL) - Lithium carbonate price up over 5% today in China helping boost some beaten down lithium and battery metals stocks
Trading lower
-11.1% Strickland Metals (STK) - Exploration Update
-4.2% Droneshield (DRO) - Continued negative response to 22 April Completion of Upsized Underwritten $100m Placement
-3.3% Brainchip Holdings (BRN) - Appendix 4C and Quarterly Activities Report, fall is consistent with prevailing short term downtrend 🔎📉
-2.8% Nick Scali (NCK) - Minor pullback after price surged following 24 April Entry into UK Market, Acquisition and Equity Raising
-2.6% Kogan.Com (KGN) - Continued negative response to 24 April April 2024 Business Update, fall is consistent with prevailing short term downtrend, trading below long term trend ribbon 🔎📉
Broker Notes
Alkane Resources (ALK)
Retained at buy at Bell Potter; Price Target: $1.25 from $1.00
Beach Energy (BPT)
Retained at buy at Bell Potter; Price Target: $1.80
Car Group (CAR)
Upgraded to overweight from neutral at Barrenjoey; Price Target: $39.00 from $36.00
Develop Global (DVP)
Retained at buy at Bell Potter; Price Target: $3.30
Immutep (IMM)
Retained at buy at Bell Potter; Price Target: $0.80 from $0.65
Initiated at buy at Canaccord Genuity; Price Target: $1.00
Latin Resources (LRS)
Retained at buy at Bell Potter; Price Target: $0.40 from $0.43
Lynas Rare Earths (LYC)
Retained at buy at Bell Potter; Price Target: $7.55 from $7.20
Mineral Resources (MIN)
Retained at buy at Bell Potter; Price Target: $85.00 from $75.00
Nuix (NXL)
Retained at overweight at Morgan Stanley; Price Target: $2.50
Pointsbet Holdings (PBH)
Retained at buy at Bell Potter; Price Target: $1.02 from $1.08
Perpetual (PPT)
Retained at buy at Bell Potter; Price Target: $27.60 from $27.15
Resmed Inc (RMD)
Retained at buy at Citi; Price Target: $36.00 from $34.00
Retained at overweight at Jarden; Price Target: $32.85 from $31.33
Retained at overweight at JP Morgan; Price Target: $34.50 from $31.00
Retained at overweight at Morgan Stanley; Price Target: $33.70 from $31.80
Retained at sector perform at RBC Capital Markets; Price Target: US$200.00 from US$87.00
Retained at neutral at UBS; Price Target: US$195.00 from US$180.00
Regis Resources (RRL)
Retained at buy at Bell Potter; Price Target: $2.80 from $2.60
Reliance Worldwide Corporation (RWC)
Retained at buy at Citi; Price Target: $5.45
Scans
Top Gainers
| Code | Company | Last | % Chg |
|---|---|---|---|
| MSI | Multistack Intern... | $0.014 | +250.00% |
| CBY | Canterbury Resour... | $0.046 | +43.75% |
| MXO | Motio Ltd | $0.02 | +33.33% |
| PVT | Pivotal Metals Ltd | $0.02 | +33.33% |
| ERW | Errawarra Resourc... | $0.048 | +29.73% |
View all top gainers
Top Fallers
| Code | Company | Last | % Chg |
|---|---|---|---|
| KNB | Koonenberry Gold Ltd | $0.014 | -30.00% |
| ZNO | ZOONO Group Ltd | $0.041 | -25.46% |
| RIM | Rimfire Pacific M... | $0.024 | -25.00% |
| FZR | Fitzroy River Cor... | $0.115 | -23.33% |
| EE1 | EARTHS Energy Ltd | $0.013 | -18.75% |
View all top fallers
52 Week Highs
| Code | Company | Last | % Chg |
|---|---|---|---|
| MSI | Multistack Intern... | $0.014 | +250.00% |
| CBY | Canterbury Resour... | $0.046 | +43.75% |
| RCR | Rincon Resources Ltd | $0.086 | +24.64% |
| CYM | Cyprium Metals Ltd | $0.037 | +15.63% |
| PSQ | Pacific Smiles Gr... | $1.87 | +14.72% |
View all 52 week highs
52 Week Lows
| Code | Company | Last | % Chg |
|---|---|---|---|
| VTI | Visioneering Tech... | $0.11 | -18.52% |
| OZZ | OZZ Resources Ltd | $0.035 | -16.67% |
| EME | Energy Metals Ltd | $0.084 | -14.29% |
| VN8 | VONEX Ltd | $0.012 | -14.29% |
| KLI | Killi Resources Ltd | $0.03 | -9.09% |
View all 52 week lows
Near Highs
| Code | Company | Last | % Chg |
|---|---|---|---|
| CDA | Codan Ltd | $10.97 | +1.67% |
| WA1 | WA1 Resources Ltd | $17.61 | -2.22% |
| IXJ | Ishares Global He... | $135.10 | -0.15% |
| DBI | Dalrymple Bay Inf... | $2.76 | +0.36% |
| MXT | Metrics Master In... | $2.07 | +0.98% |
View all near highs
Relative Strength Index (RSI) Oversold
| Code | Company | Last | % Chg |
|---|---|---|---|
| NSR | National Storage ... | $2.17 | +1.88% |
| WAM | WAM Capital Ltd | $1.493 | +0.17% |
| WAX | Wam Research Ltd | $1.08 | +0.94% |
| SGR | The Star Entertai... | $0.418 | +7.05% |
| 5GOV | Vaneck 5-10 Year ... | $50.24 | +0.32% |
View all RSI oversold