The 10 most shorted ASX stocks plus the biggest risers and fallers – Week 22
Tue 04 Jun 24, 1:57pm (AEST)
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Market Wraps
/Evening Wrap: ASX 200 dips as gains in banks, insurance, nearly makes up for lousy day in mining and energy
Market Wraps
Evening Wrap: ASX 200 dips as gains in banks, insurance, nearly makes up for lousy day in mining and energy
Tue 04 Jun 24, 5:51pm (AEST)
Stocks in article
The S&P/ASX 200 closed 23.9 points lower, down 0.31%.
Live by the sword...You know the next bit.
We love our resources stocks. Mining, energy. Any company that digs stuff out of the ground and sells it for zillions (or is kicking over rocks in the desert somewhere hoping to!)
But it means we, and the local bourse, is subject to the whims of commodity prices. Several key commodities sold off on Monday, and this has put a substantial dent in the share prices of local resources stocks.
The modest 24 point loss on the benchmark S&P/ASX 200 suggests it wasn't all terrible today – and it wasn't if you were in Financial and Consumer Staples companies. (Pretty much the rest was, though, so on that cheery note...)
Let's dive in!
Today in Review
Tue 04 Jun 24, 4:40pm (AEST)
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Markets
ASX 200 Session Chart
The S&P/ASX 200 (XJO) finished 23.9 points lower at 7,737.1, 0.4% from its session high and smack-bang on its session low. In the broader-based S&P/ASX 300 (XKO), advancers lagged decliners by a dismal 80 to 197.
Only two of the major ASX sectors closed in the black today, Financials (XFJ) (+0.23%) and Consumer Staples (XSJ) (+0.19%). In Financials, banks and insurance were solid, while in Consumer Staples, agricultural stocks were the best.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Graincorp (GNC) | $8.87 | +$0.41 | +4.8% | +9.4% | +18.6% |
Select Harvests (SHV) | $3.34 | +$0.14 | +4.4% | -0.3% | -26.3% |
Elders (ELD) | $8.44 | +$0.14 | +1.7% | +2.6% | +32.7% |
Insurance Australia Group (IAG) | $6.38 | +$0.07 | +1.1% | -0.3% | +22.7% |
Commonwealth Bank of Australia. (CBA) | $122.46 | +$1.17 | +1.0% | +5.0% | +26.5% |
Coles Group (COL) | $16.59 | +$0.09 | +0.5% | +3.3% | -8.5% |
Westpac Banking Corporation (WBC) | $26.74 | +$0.11 | +0.4% | -0.9% | +30.5% |
Judo Capital Holdings (JDO) | $1.295 | +$0.005 | +0.4% | -7.5% | +7.9% |
Treasury Wine Estates (TWE) | $11.39 | +$0.04 | +0.4% | -0.4% | -2.5% |
National Australia Bank (NAB) | $34.56 | +$0.1 | +0.3% | -0.3% | +32.7% |
The best stocks in the Financials and Consumer Staples sectors today
Whilst not considered a major sector index, the Gold (XGD) (+0.70%) sub-index was actually the best performing sector today, though. The gold price is up a smidge from yesterday, and silver has popped in a nice downward pointing shadow at a key demand zone.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Perseus Mining (PRU) | $2.39 | +$0.07 | +3.0% | +7.7% | +25.1% |
De Grey Mining (DEG) | $1.120 | +$0.025 | +2.3% | -10.2% | -12.2% |
Kingsgate Consolidated (KCN) | $1.775 | +$0.03 | +1.7% | +14.1% | +39.2% |
Gold Road Resources (GOR) | $1.630 | +$0.025 | +1.6% | +3.5% | -10.9% |
Capricorn Metals (CMM) | $4.68 | +$0.06 | +1.3% | -0.2% | +5.2% |
Red 5 (RED) | $0.430 | +$0.005 | +1.2% | 0% | +186.7% |
Bellevue Gold (BGL) | $1.935 | +$0.02 | +1.0% | +15.5% | +46.0% |
Silver Lake Resources (SLR) | $1.465 | +$0.015 | +1.0% | +2.1% | +36.9% |
Northern Star Resources (NST) | $14.39 | +$0.14 | +1.0% | -1.0% | +8.1% |
ASX gold stocks were about the only shining light on the local bourse today...
Everything else was varying degrees of down, with Energy (XEJ) (-1.6%) and Resources (XJR) (-1.0%) stocks distancing themselves at the bottom of the performance tables.
In Energy, stocks there are reeling from a sharp drop in crude oil prices Monday as OPEC announced it would be scaling back some of its previously announced production cuts as soon as October. Most analysts were expecting this announcement around the middle of next year. See ChartWatch for technical analysis on Brent Crude Oil Futures.
Compounding the issues for the Energy sector, the uranium price is also lower, and uranium stocks are technically energy stocks.
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Gold Hydrogen (GHY) | $1.510 | -$0.07 | -4.4% | -4.4% | +344.1% |
Cooper Energy (COE) | $0.220 | -$0.01 | -4.3% | +7.3% | +57.1% |
Peninsula Energy (PEN) | $0.110 | -$0.005 | -4.3% | -1.8% | -27.1% |
Karoon Energy (KAR) | $1.715 | -$0.07 | -3.9% | -9.7% | -13.0% |
Nexgen Energy (Canada) (NXG) | $11.33 | -$0.39 | -3.3% | -10.6% | +87.9% |
Bannerman Energy (BMN) | $4.21 | -$0.14 | -3.2% | -8.1% | +210.7% |
Boss Energy (BOE) | $4.54 | -$0.12 | -2.6% | -16.2% | +65.7% |
Strike Energy (STX) | $0.205 | -$0.005 | -2.4% | -4.7% | -57.7% |
Beach Energy (BPT) | $1.640 | -$0.04 | -2.4% | +3.5% | +16.7% |
Viva Energy Group (VEA) | $3.38 | -$0.08 | -2.3% | -0.6% | +5.6% |
Yancoal Australia (YAL) | $6.42 | -$0.15 | -2.3% | +12.4% | +44.3% |
Santos (STO) | $7.51 | -$0.16 | -2.1% | +0.4% | +2.3% |
Woodside Energy Group (WDS) | $27.43 | -$0.5 | -1.8% | +0.4% | -19.7% |
Paladin Energy (PDN) | $15.59 | -$0.24 | -1.5% | -0.3% | +157.7% |
Energy stocks on the ASX today
It wasn't much better in Resources either, as base metals with the exception of copper fell on the London Metals Exchange Monday (copper was up a miniscule amount). The table below should put yesterday's decline into perspective compared to 1 month and 1 year gains.
Metal | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
Aluminium - LME Official Cash | $2625.00 | -$52 | -1.9% | +2.8% | +16.4% |
Copper - LME Official Cash | $9985.50 | +$0.50 | +0.0% | +2.0% | +24.6% |
Iron Ore CFR China 62% Fe Spot | $110.10 | -$7.42 | -6.3% | -6.8% | +4.4% |
Nickel - LME Official Cash | $19325.00 | -$505 | -2.5% | +3.8% | -5.5% |
Lead - LME Official Cash | $2224.00 | -$22 | -1.0% | +3.2% | +9.3% |
Tin - LME Official Cash | $32600.00 | -$700 | -2.1% | +4.7% | +28.5% |
Zinc - LME Official Cash | $2929.00 | -$65.50 | -2.2% | +3.3% | +31.5% |
Base metals on the LME Monday
Iron ore is the elephant in the room with its 6.3% plunge. This naturally had an impact on local iron ore plays which feature heavily in the sector losses table below, but they weren't the only ones that copped substantial losses today...(See ChartWatch for technical analysis on Iron Ore Futures).
Company | Last Price | Change $ | Change % | 1mo % | 1yr % |
|---|---|---|---|---|---|
29METALS (29M) | $0.545 | -$0.035 | -6.0% | +16.0% | -20.7% |
Wildcat Resources (WC8) | $0.405 | -$0.025 | -5.8% | -17.3% | +447.3% |
Champion Iron (CIA) | $6.75 | -$0.37 | -5.2% | -3.4% | +18.8% |
Sayona Mining (SYA) | $0.043 | -$0.002 | -4.4% | +30.3% | -76.1% |
Metals X (MLX) | $0.450 | -$0.02 | -4.3% | +3.4% | +73.1% |
Vulcan Energy Resources (VUL) | $4.89 | -$0.19 | -3.7% | +39.3% | +36.2% |
Liontown Resources (LTR) | $1.285 | -$0.045 | -3.4% | +3.6% | -52.4% |
Chalice Mining (CHN) | $1.615 | -$0.055 | -3.3% | +38.0% | -77.7% |
Firefly Metals (FFM) | $0.710 | -$0.02 | -2.7% | -11.8% | +21.4% |
WA1 Resources (WA1) | $17.75 | -$0.43 | -2.4% | -0.3% | +217.5% |
Adriatic Metals (ADT) | $3.93 | -$0.08 | -2.0% | -15.3% | +26.8% |
Fortescue (FMG) | $24.32 | -$0.46 | -1.9% | -7.6% | +25.6% |
Pilbara Minerals (PLS) | $3.75 | -$0.07 | -1.8% | -10.5% | -13.6% |
Mineral Resources (MIN) | $70.82 | -$1.05 | -1.5% | -8.0% | +3.8% |
IGO (IGO) | $7.05 | -$0.09 | -1.3% | -11.2% | -48.1% |
BHP Group (BHP) | $44.28 | -$0.53 | -1.2% | +3.6% | +5.3% |
Heavy losses across ASX metals stocks today
ChartWatch
Iron Ore China 62pct Futures SGX
The demand-side finally gave up the fight
The last time covered iron ore was in ChartWatch in the Evening Wrap on 28 May.
In that update, I noted that iron ore was at a “critical juncture”. Of the two scenarios provided, the bearish one has played out, punctuated by the reversal of the 28 May candle (it was white bodied at the time of the last update, but a late surge of supply smashed it to a low close – creating the tell-tale signal of excess supply – an upward pointing shadow).
Since then, it’s been a wall of excess supply.
Today’s candle is still live, but if the close finalises where it is, it would completely dispense with the key 109.25-111.95 demand zone.
Below there, the next zone of significant demand isn’t likely to occur until 94.00-99.20.
113.15 is now the most relevant point of supply, and above that, it’s the dynamic supply zones of the short and long term trend ribbons.
Only white bodied candles and or downward pointing shadows, particularly on large volume, can reverse the prevailing decline. In their absence, there’s no reason to believe that lower demand zones can’t be probed over the next few sessions/weeks.
Brent Crude Oil Futures NYMEX
The demand-side finally gave up the fight here too
The last time covered brent crude was in ChartWatch in the Evening Wrap on 29 May.
We were searching for an “An emphatic close above 84.48, that is, with a long white-bodied candle and high session close” to complete a resumption of the long term uptrend.
Instead, we ended up with the supply-side opposites. As noted in that last update – a close below the crucial points of demand at 80.37-80.77 has provided a clear signal the long term uptrend is over.
Monday’s long black candle was triggered by news OPEC would be scaling back some its output cuts earlier than previously expected. Whatever the reason, the candle is a signal of continued supply-side control.
The point of demand at 79.23 also fell by the wayside, leaving 73.80 as the next logical point of demand prices may probe over the next few sessions/weeks.
80.37-80.77 has moved to the most relevant point of supply. The short term trend remains intact until the brent crude price can close back that zone.
As always, keep an eye out for white bodied candles and or downward pointing shadows, particularly on large volume, to signal the demand-side is again making a stand.
Until then, the status quo of black bodied candles and upward pointing shadows is likely to remain.
Economy
Today
There weren't any major economic data releases in our time zone today
Later this week:
Wednesday
00:00 USA JOLTS Job Openings (8.37M forecast vs 8.49M previous)
11:30 AU GDP March Quarter (+0.2% q/q forecast vs +0.2% q/q December)
22:15 USA ADP Non-Farm Employment Change May (173,000 forecast vs 192,000 April)
Thursday
22:15 EUR Main Refinancing Rate & Monetary Policy Statement (-0.25% to 4.25%)
Friday
22:30 USA Non-Farm Employment Change May (189,000 forecast vs 175,000 April)
22:30 USA Average Hourly Earnings May (+0.3% m/m forecast vs +0.2% m/m April)
Latest News
Interesting Movers
Trading higher
+19.4% Northern Minerals (NTU) - Cyber security breach and NOTICE OF DISPOSAL ORDERS OF INTERESTS IN NORTHERN MINERALS, rise is consistent with prevailing short term uptrend, long term trend is transitioning from down to up 🔎📈
+7.7% Melbana Energy (MAY) - No news 🤔
+6.4% Omni Bridgeway US Prohibited (OBL) - No news 🤔
+5.6% Regal Partners (RPL) - Continued positive response to yesterday's Acquisition of Merricks Capital, rise is consistent with prevailing short and long term uptrends 🔎📈
+4.8% Graincorp (GNC) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈
+4.4% Select Harvests (SHV) - No news, several broker moves (See Broker Notes section)
+4.3% The Star Entertainment Group (SGR) - No news 🤔
+4.1% Spartan Resources (SPR) - Pepper continues to grow - 25.24m @ 16.66g/t
+3.9% Stanmore Resources (SMR) - No news, initiated at BUY by Citi (See Broker Notes section)
+3.2% Droneshield (DRO) - No news, rise is consistent with prevailing short and long term uptrends 🔎📈
+3.1% Ramsay Health Care (RHC) - No news, upgraded to NEUTRAL from UNDERWEIGHT at JP Morgan (See Broker Notes section)
Trading lower
-8.0% Appen (APX) - No news, fall is consistent with prevailing short and long term downtrends 🔎📈
-7.9% Credit Corp Group (CCP) - No news, fall is consistent with prevailing short and long term downtrends 🔎📈
-7.4% Weebit Nano (WBT) - No news, fall is consistent with prevailing short and long term downtrends 🔎📈
-7.4% Lotus Resources (LOT) - No news, closed below short term uptrend ribbon 🔎📉
-6.5% Zip Co Limited. (ZIP) - No news, fall is consistent with prevailing short term downtrend, falling peaks and falling troughs 🔎📈
-6.3% Imugene (IMU) - No news, fall is consistent with prevailing short and long term downtrends 🔎📈
Broker Notes
<NOTE: Today's list is a mashup of notes from Friday, Monday, and today>
Adrad Holdings (AHL)
Retained at buy at Bell Potter; Price Target: $1.15 from $1.25
AMA Group (AMA)
Retained at buy at Bell Potter; Price Target: $0.08 from $0.12
ANZ Group Holdings (ANZ)
Retained at sell at Citi; Price Target: $24.50
APM Human Services International (APM)
Retained at equal-weight at Morgan Stanley; Price Target: $1.40
Retained at hold at Ord Minnett; Price Target: $1.45 from $2.00
ASX (ASX)
Retained at underweight at Morgan Stanley; Price Target: $53.50
AUB Group (AUB)
Retained at Buy at UBS; Price Target: $34.50
Avita Medical Inc. (AVH)
Retained at buy at Ord Minnett; Price Target: $5.40
Bendigo and Adelaide Bank (BEN)
Retained at sell at Citi; Price Target: $9.50
Bega Cheese (BGA)
Upgraded to outperform from underperform at CLSA; Price Target: $4.65 from $4.00
BHP Group (BHP)
Retained at buy at Citi; Price Target: $48.50 from $48.00
Brickworks (BKW)
Upgraded to buy from hold at Bell Potter; Price Target: $29.50 from $29.00
Bank of Queensland (BOQ)
Retained at sell at Citi; Price Target: $5.05
Commonwealth Bank of Australia (CBA)
Retained at sell at Citi; Price Target: $85.00
Retained at sell at UBS; Price Target: $107.00 from $105.00
Charter Hall Group US Prohibited (CHC)
Retained at neutral at UBS; Price Target: $12.20 from $11.25
Champion Iron (CIA)
Retained at buy at Citi; Price Target: $8.60
Collins Foods (CKF)
Retained at accumulate at Ord Minnett; Price Target: $14.40
Chorus (CNU)
Retained at neutral at UBS; Price Target: NZ$7.25
Corporate Travel Management (CTD)
Retained at accumulate at Ord Minnett; Price Target: $14.91 from $17.16
Retained at buy at UBS; Price Target: $19.80 from $21.80
Dicker Data (DDR)
Upgraded to neutral from sell at Goldman Sachs; Price Target: $9.85 from $10.50
Droneshield (DRO)
Initiated at buy at Shaw and Partners; Price Target: $1.40
Duratec (DUR)
Initiated at accumulate at Ord Minnett; Price Target: $1.30
Initiated at buy at Shaw and Partners; Price Target: $1.50
Fletcher Building (FBU)
Retained at neutral at Goldman Sachs; Price Target: $3.05
Downgraded to underweight from neutral at JP Morgan; Price Target: NZ$23.00 from NZ$24.00
Retained at hold at Ord Minnett; Price Target: $2.70
Firefly Metals (FFM)
Initiated at buy at Moelis Australia; Price Target: $1.00
Flight Centre Travel Group (FLT)
Retained at neutral at UBS; Price Target: $21.30 from $22.50
Hub24 (HUB)
Initiated at outperform at RBC Capital Markets; Price Target: $47.50
Ikegps Group (IKE)
Retained at buy at Bell Potter; Price Target: $0.63
Imdex (IMD)
Initiated at add at Morgans; Price Target: $2.50
Ingenia Communities Group (INA)
Upgraded to overweight from neutral at JP Morgan; Price Target: $5.50 from $4.80
Karoon Energy (KAR)
Retained at accumulate at Ord Minnett; Price Target: $2.65
Lightning Minerals (LAG)
Retained at Neutral at UBS; Price Target: $6.50
Lovisa Holdings (LOV)
Downgraded to hold from buy at Canaccord Genuity; Price Target: $29.00 from $31.00
Downgraded to neutral from buy at Citi; Price Target: $31.65
Downgraded to neutral from positive at E&P; Price Target: $28.40
Downgraded to equal-weight from overweight at Morgan Stanley; Price Target: $30.25 from $32.50
Latin Resources (LRS)
Retained at buy at Bell Potter; Price Target: $0.40
Meridian Energy (MEZ)
Retained at lighten at Ord Minnett; Price Target: NZ$5.50 from NZ$4.75
Macquarie Group (MQG)
Retained at sell at Citi; Price Target: $176.00
National Australia Bank (NAB)
Retained at sell at Citi; Price Target: $26.50
Retained at sell at UBS; Price Target: $31.00 from $30.00
Navigator Global Investments (NGI)
Downgraded to neutral from outperform at Macquarie; Price Target: $2.22 from $1.55
Retained at buy at Ord Minnett; Price Target: $2.20 from $1.85
Northern Minerals (NTU)
Retained at hold at Ord Minnett; Price Target: $0.04
Netwealth Group (NWL)
Initiated at sector perform at RBC Capital Markets; Price Target: $20.00
Pro Medicus (PME)
Upgraded to hold from sell at Bell Potter; Price Target: $115.00 from $75.00
Patriot Battery Metals Inc. (PMT)
Initiated at buy at UBS; Price Target: $1.30
Premier Investments (PMV)
Upgraded to outperform from underweight at CLSA; Price Target: $32.00
Praemium (PPS)
Initiated at outperform at RBC Capital Markets; Price Target: $0.65
PSC Insurance Group (PSI)
Retained at Buy at UBS; Price Target: $6.19
Peter Warren Automotive Holdings (PWR)
Downgraded to equal-weight from overweight at Morgan Stanley; Price Target: $1.90 from $3.00
QBE Insurance Group (QBE)
Retained at Buy at UBS; Price Target: $21.00
Ramsay Health Care (RHC)
Upgraded to neutral from underweight at JP Morgan; Price Target: $50.00
Rio Tinto (RIO)
Retained at overweight at Morgan Stanley; Price Target: $139.00
Steadfast Group (SDF)
Retained at outperform at Macquarie; Price Target: $6.70
Retained at Buy at UBS; Price Target: $6.70
Stockland (SGP)
Retained at overweight at Morgan Stanley; Price Target: $5.30
Select Harvests (SHV)
Retained at hold at Bell Potter; Price Target: $3.75 from $4.10
Retained at underperform at CLSA; Price Target: $3.40
Retained at buy at Ord Minnett; Price Target: $5.15 from $5.25
Upgraded to buy from hold at PAC Partners; Price Target: $4.06 from $4.21
Retained at buy at UBS; Price Target: $4.25 from $4.70
Retained at overweight at Wilsons; Price Target: $5.53 from $5.39
Silver Lake Resources (SLR)
Downgraded to hold from buy at Argonaut Securities; Price Target: $1.70
Synlait Milk (SM1)
Retained at hold at Bell Potter; Price Target: $0.47 from $0.66
Stanmore Resources (SMR)
Initiated at buy at Citi; Price Target: $4.00
Service Stream (SSM)
Retained at buy at Ord Minnett; Price Target: $1.37 from $1.21
Suncorp Group (SUN)
Retained at Buy at UBS; Price Target: $18.20
The Lottery Corporation (TLC)
Upgraded to buy from neutral at Citi; Price Target: $5.60 from $5.50
Telix Pharmaceuticals (TLX)
Retained at hold at Bell Potter; Price Target: $19.00 from $14.50
Retained at buy at Jarden; Price Target: $16.62 from $13.94
Retained at buy at UBS; Price Target: $26.00
Retained at overweight at Wilsons; Price Target: $20.00
The Reject Shop (TRS)
Downgraded to overweight from buy at Jarden; Price Target: $5.80 from $6.00
Task Group Holdings (TSK)
Retained at hold at Bell Potter; Price Target: $0.86 from $0.85
Retained at hold at Ord Minnett; Price Target: $0.81
Treasury Wine Estates (TWE)
Retained at neutral at Citi; Price Target: $12.40
Tyro Payments (TYR)
Retained at buy at Ord Minnett; Price Target: $1.70 from $1.85
West African Resources (WAF)
Initiated at buy at Argonaut Securities; Price Target: $3.10
Westpac Banking Corporation (WBC)
Retained at sell at Citi; Price Target: $24.75
Retained at sell at UBS; Price Target: $25.00 from $24.00
Xero (XRO)
Retained at buy at Citi; Price Target: $158.20
Retained at buy at Goldman Sachs; Price Target: $164.00
Scans
Carl has over 30-years investing experience, helping investors navigate several bull and bear markets over this time. He is a well respected markets commentator who specialises in how the global macro impacts Australian and US equities. Carl has a passion for technical analysis and has taught his unique brand of price-action trend following to thousands of Aussie investors.
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