ASX 200 ends slightly lower in seesaw day, utilities gloom vs uranium boom

Today in Review

Markets

ASX 200 Session Chart

The S&P/ASX200 (XJO) finished 7.7 points lower at 7,498.3, 0.3% from its session low and just 0.1% from its high. Not terrible, and even less notable given the trading range was a measly 0.4%. Volumes were miniscule, even for this time of year.

In the broader-based S&P/ASX 300 (XKO), the neutrality of the day was reflected in the advance/decline line...advancers lagged decliners by just 123 to 150.

The S&P/ASX 200 Energy Sector (XEJ) +0.5% was the best performing sector today, well, it kinda had to be – it was the only sector seeing any gain! Crude oil and natural gas prices are both trading a little higher in Asia. If you're invested in, or thinking of investing in the ASX energy sector, this article I wrote today is a must read!

Doing it tough today was the S&P/ASX 200 Utilities (XUJ) -1.4%. The XUJ was weighed down by majors Origin Energy (ASX: ORG) -0.7%, AGL Energy (ASX: AGL) -2.2%, and APA Group (ASX: APA) -1.9%. It's worth checking these charts. ORG and AGL look like they're potentially slipping into long term downtrends, and APA looks like it's resuming one.

As covered in depth in this article I published earlier today, there’s been plenty of excitement in social media given a certain uranium price provider reported the uranium price tipped US$100/lb. As you can see from the table below, the ASX uranium sector was a clear winner (technically uranium stocks are also part of the XEJ, so this also explains why the XEJ outperformed today).

Economy

• No major economic data releases today

What to watch out for...

Tonight:

• USA Producer Price Index (PPI) at 12:30am, forecast to rise 1.3% p.a. for the 12 months to December, a monthly increase of 0.1% (vs core +1.9% p.a. & +0.2%)

Monday:

• MI Inflation Gauge at 11:00am, previous reading +2.3% p.a.

• ANZ Job Advertisements for December, previous reading -4.6%

Latest News

ChartWatch: Uranium bull run continues: US$100/lb down, where to next?

Woodside, Santos attractive, but this is the cheapest stock in ASX energy: JP Morgan

Morning Wrap: ASX 200 to fall, S&P 500 eases + US inflation accelerates in December

Evening Wrap: ASX 200 notches important win as tech, consumer discretionary gain

9 of the best stocks to buy in a sell-off

Why Core Lithium's mine closure was just the tip of the iceberg

Interesting Movers

Trading higher

• +7.7% Core Lithium (CXO) - No news since 05-Jan Strategic Review Update

• +7.6% Deep Yellow (DYL) - Uranium price tips US$100/lb, broad sector rally, rise is consistent with short and long term trends

• +5.6% Bannerman Energy (BMN) - Uranium price tips US$100/lb, broad sector rally, rise is consistent with short and long term trends

• +4.9% Boss Energy (BOE) - Uranium price tips US$100/lb, broad sector rally, rise is consistent with short and long term trends

• +4.6% Bellevue Gold (BGL) - No news, rallying off long term uptrend ribbon

• +4.3% Neuren Pharmaceuticals (NEU) - No news, rise is consistent with short and long term trends

• +4.0% Seven West Media (SWM) - No news, rally is small compared to overall long term downtrend

• +3.9% Navigator Global Investments (NGI) - No news, improving short and long term uptrends

• +3.6% Telix Pharmaceuticals (TLX) - No news since 08-Jan JP Morgan Healthcare Conference and Trading Update, trying to break out of recent trading range

• +3.2% Lotus Resources (LOT) - Uranium price tips US$100/lb, broad sector rally, rise is consistent with short and long term trends

• +3.2% Sandfire Resources (SFR) - No news, trading to hold technical support around $6.50

• +3.0% Ainsworth Game Technology (AGI) - No news, rise is consistent with short and long term trends

Trading lower

• -12.9% Nuix (NXL) - 1H24 Results Update

• -8.2% Zip Co (ZIP) - No news, appears to be resuming long term downtrend

• -7.6% Healius (HLS) - No news, decline is consistent with short and long term downtrends

• -5.6% Piedmont Lithium Inc (PLL) - No news, decline is consistent with short and long term downtrends

• -5.0% Red 5 (RED) - No news since 08-Jan December Qtr Positions Red 5 to Achieve Top End of Guidance

• -4.7% Carnarvon Energy (CVN) - Fallout from 10 Jan: Downgraded to neutral from overweight at JP Morgan; Price Target: $0.19 from $0.20

• -4.6% The Star Entertainment Group (SGR) - No news, decline is consistent with short and long term downtrends

• -4.6% Calix (CXL) - No news, decline is consistent with short and long term downtrends

Broker Notes

• ANZ Group Holdings (ANZ) retained at neutral Citi; Price Target: $26.00

• Bendigo and Adelaide Bank (BEN) downgraded to sell from neutral at Citi; Price Target: $8.85 from $9.25

• Bank of Queensland (BOQ) downgraded to sell from neutral at Citi; Price Target: $5.20

• Commonwealth Bank of Australia (CBA) retained at sell Citi; Price Target: $84.00

• Coronado Global Resources Inc. (CRN) retained at buy Bell Potter; Price Target: $2.15 from $2.00

• Core Lithium (CXO) retained at neutral Macquarie; Price Target: $0.20 from $0.32

• Healius (HLS) downgraded to underweight from equal-weight at Morgan Stanley; Price Target: $1.30

• Insignia Financial (IFL) downgraded to underperforrm from equalweight at Macquarie; Price Target: $2.85

• National Australia Bank (NAB) retained at sell Citi; Price Target: $25.75

• Pinnacle Investment Management Group (PNI) retained at outperform Macquarie; Price Target: $10.75 from $10.76

• Red 5 (RED) upgraded to buy from hold at Canaccord Genuity; Price Target: $0.39 from $0.32

• Westpac Banking Corporation Ordinary (WBC) retained at neutral Citi; Price Target: $22.25

• Whitehaven Coal (WHC) retained at sell Bell Potter; Price Target: $7.25 from $6.50

• Worley (WOR) retained at buy Citi; Price Target: $20.50

Scans

This article first appeared on Market Index on 12 January 2024.