The Match Out: Stocks slip, but Uranium stocks rip!

What Mattered Today

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The ASX attempted to follow the recovery that played out from weakness over the past two sessions, but it was all too much today, weighed by selling across the IT & Resources sectors as China heads towards a week of national holidays, starting on the 29^th.

• The ASX 200 finished down -38pts/ -0.54% to 7038.
• The Healthcare sector was best on ground (+1.08%) while Financials (+0.14%) was the only other sector to track higher.
• IT (-1.93%), Materials (-1.66%) & Property (-1.35%) fought it our for the wooden spoon.
• WEBINAR TOMORROW: REGISTER HERE – We are covering Resmed (RMD) + the other ‘unloved’ areas of the market - @ Midday.
• Qantas (ASX: QAN) -1.34% fell after CLSA became the first major broker to put a “sell” rating on the stock in a year.
• Pro-Medius (ASX: PME) +12.34% put on ~$800m in market cap after winning a $140m contract.
• Gina Rinehart is complicating Albemarle’s $6.6bn tilt for Liontown Resources (ASX: LTR) -1.67%, announcing an increase in her stake to 10.69%/235m shares. LTS dipped below the $3 bid amount today as a result.
• UBS reiterated their key pick in the contractor space today, namely Worley (ASX: WOR) +0.93%, saying the capex cycle is just beginning. We are backing WOR in this space in our Flagship Growth Portfolio.
• Resmed (ASX: RMD) +2.33% enjoyed a rare green day, both Goldmans & Macquarie out with notes saying the share price reaction is well overdone. We will provide our take on RMD in the Webinar tomorrow.
• Uranium stocks continued to run, Paladin (ASX: PDN) +3.83%%, Boss (ASX: BOE) +0.43% and Deep Yellow (ASX: DYL) +6.22%. Reiterating comments made yesterday, while we like the sector it is now starting to get very hot. PDN closed $1.085
• Iron Ore was down ~2% in Asia, dragging down Fortescue (ASX: FMG) -2.09%, RIO -2.01% & BHP -1.93%.
• Asian stocks were down, Hong Kong off -1.03%, Japan fell -1.23% while China fell -0.30%
• US Futures are lower, down around 0.5%.

ASX 200 Index

WEBINAR TOMORROW: OPPORTUNITIES IN THE UNLOVED SECTORS OF THE MARKET

In this month's Pulse Check webinar — we're diving into some of the more unloved parts of the market to discover the stock opportunities hiding in plain sight. We'll highlight the key stocks that you should be watching, and the 'buy now' gains that shouldn't be ignored. In what promises to be a highly informative and engaging webinar, join us as we wade through the uncertainty to discover the best value for investors, including the beaten up Healthcare Sector (covering out take on Resmed), Small Caps & Consumer Staples.

REGISTER HERE – ITS FREE

Pro Medicus (ASX: PME) $80.01

PME +12.39%: the medical software company jumped to all-time highs today on the back of a nice contract win. The $140m 10-year deal with Baylor Scott & White Health BSWH) is the company’s first in Texas where BSWH is the largest not-for-profit healthcare provider with around 500 radiologists. The full-stack cloud-based offering of Pro Medicus’ Visage 7 will kick off in 1Q24 with the transactional model potentially providing upside from the headline figure. The company also said their US deal pipeline remains strong, leaving the door open for similar announcements to come, which is the driver of todays outsized move which added ~$800m in market cap!  

Broker Moves

• Allkem Raised to Add at Morgans Financial Limited; PT A$15.30
• Qantas Cut to Reduce at CLSA; PT A$5.60
• Synlait Milk Cut to Sell at CLSA; PT NZ$1.19

Major Movers Today

Enjoy the night
The Market Matters Team

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