Wednesday 24th April – Australian Market Wrap

24 Wednesday Apr 2024

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ASX 200 fell 1 point to 7683 (-0.01%) after a CPI gut punch stole the momentum. Inflation is once again higher than expected, and insurance costs and education continue to pressure the upside. Banks again led the charge higher, with the Big Bank Basket up to $203.73 (+0.4%). WBC the standout up 0.9% despite news yesterday on profit hit. REITs mixed as rates pushed higher, GMG up 1.7% with most of the sector down. Insurers better on bond yields. Healthcare mixed too, CSL taking a break. Industrials mixed, retail fell after the CPI number as rates now seem on hold for longer. Tech eased, the All–Tech Index flat. In resources, FMG gained 0.7% on production report, Gold miners found a level and bounced. NST up 1.0% and EVN up 0.5%. Lithium miners were better on Tesla sentiment moves, PLS up 1.3% and IGO up 1.5%. LTR had a good day, up 2.3%. Oil and gas stocks slightly better, copper still finding buyers, BOC up 15.4%. Must be a boom. In corporate news, NCK is raising money to push into the UK. Richard Goyder was elected Chair again at WDS with 80% voting for him. PPT fell 3.5% on FUM news, KGN crashed 27.5% on a business update, and CWY dropped back to where it started Tuesday morning on denial of takeover talk from WES. On the economic front, CPI came in above expectations and showed that inflation is still a clear and present danger with rents, insurance and school fees. Asian markets better with Japan screaming ahead by 1.7%. China up modestly with HK up 2.1%. 10Y yields boosted to 4.4%. European futures are set to open higher. Dow Futures up 61 points. NASDAQ Futures up 128 points. 

HIGHLIGHTS

  • Winners: TIE, GWA, NXL, RRL, FPH, NGI, WC8, SQ2
  • Losers: KGN, C79, DRO, CWY, ADR, ZIP, STX, SGR
  • Positive sectors: Banks. Gold miners. Oil and gas.
  • Negative sectors: Retail. REITs. Healthcare.
  • ASX 200 Hi 7724 Lo 7680
  • Big Bank Basket: Up to $203.73(+0.4%)
  • All-Tech Index:  Flat.
  • Gold: Falls to $3572 as tensions ease.
  • Bitcoin: Better to US$66836
  • 10-year yields rally to 4.39% on higher CPI.
  • AUD: Rallies to 65.18c
  • Asian markets:  Japan up 2.3%, China up 0.2% and HK up 2.0%.
  • Dow Futures up 61 Nasdaq futures up 131 Tesla helps.

MAJOR MOVERS

  • TIE +6.3% takeover unconditional.
  • WC8 +4.4% good volume.
  • APM +3.4% finds friends.
  • SLR +2.9% court approvals and quarterly.
  • BOC +15.4% must be a copper boom.
  • BSE +11.1% takeover arbitragers.
  • DXB +9.8% buyers back.
  • KGN -27.5% trading update.
  • CWY -10.0% takeover rumour denied.
  • DRO -10.2% placement weighs.
  • ZIP -5.7% comes undone.
  • ADT -6.0% base metal sell off.
  • CHN -10.1% poisoned by Gonneville remodelled.
  • NXS -25.0% quarterly report.
  • 88E -20.0% successful placement.
  • Speculative Stock of the Day: Western Mines WMG +36.5% Diamond drilling update.

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

  • Australia’s inflation rate decelerated to 3.6% YonY in Q1 2024, down from 4.1% in the preceding quarter but surpassing market projections of 3.4%. This marks the lowest rate since Q4 2021, primarily driven by subdued goods inflation, which eased for the sixth consecutive quarter, and a deceleration in services inflation for the third straight quarter. In contrast, the monthly CPI indicator for Australia rose by 3.4% in the year to Mar-24, exceeding expectations. This uptick, representing the highest level in four months, primarily stems from accelerated price increases in housing and transport.
  • The monthly CPI indicator rose 3.5% in the 12 months to March.
  • ANZ-Roy Morgan Consumer Confidence fell 3.2 points to 80.3 in the week to 21 April, and the index has now spent a record 64 straight weeks below the mark of 85. Consumer Confidence is now only 2.3 points above the same week a year ago (78.0), and 2.5 points below the 2024 weekly average of 82.8.
  • Legislation requiring the social media app’s Chinese owners to divest sailed through Congress, capped by Senate passage late Tuesday. TikTok and Beijing-based ByteDance Ltd. have vowed to do all they can to stop the measure.
  • China called on the US to rein in support for Taiwan. “It sends a wrong signal to the Taiwan separatist forces.”
  • Chinese smartphone company Xiaomi’s new car is selling better than expected, putting it closer to break-even despite undercutting Tesla’s Model 3 on price. Xiaomi has received more than 70,000 orders for its electric SU7 sedan as of April 20.
  • Boeing reports quarterly results before the market opens. Expect a loss of $1.76 per share and revenue of $16.23bn.
  • Jamie Dimon cautions over soft landing for ‘unbelievable’ US economy.
  • ASX Closed tomorrow for ANZAC Day. Lest We Forget.

Clarence

XXXX

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