The Monday Report – 12 February 2024

Daily Market Reports | Feb 12 2024

By Greg Peel

No Thrill Ride

It was a dozy old Friday for the ASX200 with the index trading up 16 points at its high and down -11 at its low, to close up 5. The local market found no impetus from a flat Wall Street close overnight.

The lack of interest carried through Friday night. The S&P500 closed up 0.6% but our futures were unchanged on Saturday morning.

There were nevertheless some large moves among some sectors.

Energy was the worst performer (-1.3%) after Woodside Energy ((WDS)) fell back a bit following its relief rally based on abandoning merger talks with Santos ((STO)).

Healthcare rose 1.0% with Cochlear ((COH)) up another 5.9% post guidance upgrade.

Technology gained 1.2% after being relatively quiet of late.

Utilities fell -0.8% after the froth came off post AGL Energy’s ((AGL)) strong result and subsequent rally.

Materials was a mixed bag (-0.3%), balancing a strong result and guidance upgrade from Boral ((BLD)), which had that stock up 8.3%, and steep falls for high-flying uranium stocks after the uranium spot price took a dip for once led by a weaker than expected result from Canada’s Cameco.

Boss Energy ((BOE)) fell -12.7% and Paladin Energy ((PDN)) fell -7.0%.

Lithium miner Liontown Resources ((LTR)) nonetheless won the day in jumping 10.4% ahead of a potential return of interest from Gina Reinhart.

The turnaround for the index from the low to the high came as the RBA governor testified to parliament, suggesting the CPI did not need to come all the way back to 2.5% before rate cuts would be considered. Nor does services inflation need to return to 2-3%.

The excitement didn’t last long given economists have been assuming such this year, and continue to forecast the first cut coming towards the end of the year. August is still in the frame for some, but others are more inclined to assume November.

China is now closed for a week so things will be quieter among commodity prices and our market in general. Earnings reasons ramps up this week so the micro will take centre stage.

Wall Street is becoming less influential as it pushes higher on Mega Tech gains.


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