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A strong rebound for the ASX following news of a ceasefire overnight, though it seems missiles continued to fly today, and while it knocked the ASX off its morning high, the concern was short lived. After 5 sessions of weakness which saw the ASX pull back by less than 2%, one good day saw the market back within 1% of the all-time high as both the resources and the banks did well, supported by a good move in the Tech stocks.
- The ASX200 +80pts/+0.95% closing at 8574.
- Materials (+1.98%), Financials (+1.89%) & Technology (+1.09%) led the line.
- Energy (-3.89%) & Utilities (-1.99%) the only sectors that fell.
- The heavyweight miners rose on the back of easing geopolitical tensions seeing the likes of BHP Group (BHP) +2.36% and Fortescue (FMG) +4.75% higher.
- Rio Tinto (RIO) +3.05% announced it is teaming up with Gina Rinehart’s Hancock Prospecting to progress the $US1.6 billion Hope Downs 2 Mine project in W.A.
- WiseTech Global (WTC) +2.45% rallied as technology stocks outperformed, though Xero (XRO) +0.39% underperformed the sector’s strength.
- Investment platform HUB24 (HUB) +4.52% hit new all-time highs. This is very much a risk on/market linked stock held in the Active Growth Portfolio, and a sign that risk appetite has re-emerged.
- Virgin Australia (VGN) +11.38% closed well above its $2.90 IPO price, closing at $3.22 – relisting on a good day for airlines with Qantas (QAN) +2.38% also higher on lower oil prices.
- Woodside Energy (WDS) -6.54% was hit hard and is now off -10% from yesterday’s early morning top. Shawn’s trade idea on WDS stopped out today for a profit.
- Treasury Wine Estates (TWE) -0.87% was mildly lower after guiding to a softer earnings outlook, though a share buyback was announced + they reinforced their commitment their to premium pricing and expansion into the Chinese market, providing somewhat of a cushion.
- Collins Foods (CKF) +17.36% jumped after reporting solid net profit of $51.1 million, 15% above consensus of $44.3 million on improved margins and 2H store sales.
- Greatland Resources (GGP) +10.6% debuted on the ASX and closed at $7.30 with an IPO price of $6.60. The dual-listed gold miner operating the Telfer and Havieron gold-copper mines in W.A has moved its primary listing to the ASX though remains listed in London too.
- Gold fell $50/oz during the session, trading around $US3319/oz around our close.
- Interesting to see the Gold names actually finish higher, Evolution (EVN) +0.74% an example. This is a theme we’ve been writing about where gold stocks tend to lead the commodity on the turns.
- Solid trading in Asia, Hong Kong up +2%, China up +1% while Japan was trading 1% higher.
- Iron Ore in Singapore mostly flat at $93.30/mt.
- US Futures have been strong during our time zone, trading up ~1% around our close.
