The ASX was down today. At time of writing, the S&P/ASX200 had dropped 68.70 points or 0.96% to 7,113.40. The index has lost 0.49% for the last five days, but has gained 1.06% over the last year to date.
The bottom performing stocks in this index are Pilbara Minerals Ltd (ASX:PLS) and Whitehaven Coal (ASX:WHC) Ltd down 8.12% and 7.73% respectively.
Looking at the sectors, Consumer Discretionary and Consumer Staples led the way up 0.35% and 0.48% at time of writing. The main drag was Information Technology, which had lost 2.57%. There were some big sector losses today, with Materials down 1.63%, Energy losing 1.35% and Financials dropping 1.12%. All sectors were down, except for the aforementioned Consumer sectors.
The best performing sectors over the week include Information Technology up over 2% followed by Consumer Discretionary and Materials, up over 1%. The worst performing sectors include Consumer Staples down over 3% and Healthcare down over 2% and Utilities down over 1%.
The best performing stocks in the ASX top 100 include Altium Limited (ASX:ALU) up over 30% this week after reporting strong earnings and revenue growth for FY 2023. This is followed by IDP education Ltd up over 14% and Domino’s Pizza Enterprises Ltd up over 10%. The worst performing stocks were Alumina Limited (ASX:AWC) down over 15% (although it finished Friday with a 0.62% gain) followed by Ramsay Healthcare Ltd down over 12% and Iluka Resources Ltd (ASX:ILU) and Wisetech Global Ltd, both losin g over 10%.
What's next for the Australian stock market?
Wealth Within founder and chief analyst Dale Gillham shares his thoughts on what to expect over the coming weeks.
“After falling over 4% in the last 19 days, the Australian stock market is currently in positive territory for the week. Initially, the market fell at the start of the week but it has closed higher than it opened over the past three days, which is a positive sign.
“As I have previously mentioned, this year has been a constant battle between the bulls and bears although this week it seems like the bulls might be coming back. That said, the evidence is far from convincing, which is why I continue to say that you need to be cautious and not jump into stocks prematurely.
I am not a subscriber to all of the noise about the stock market crashing as I do not believe our market can or will crash. The All Ordinaries Index has been trading sideways for quite some time and has not been overly bullish in the past few years, which means the signs of a potential crash are just not there.
“Looking short term, it is possible that this week is a turning point and that the market will rise consistently over the coming month or so although this is unconfirmed. Given this, it’s wise to have the mindset that the market could fall for another week or so before it turns to rise. If it becomes more bullish, the market should rise into the end of this week and next week. If it closes lower this week, then expect at least another down week.”
Pilbara’s strong results seem to disappoint
Pilbara dipped despite strong earnings results.
Citi analysts said results were in line with expectations but its capital expenditure outlook overshoots.
"We see risks to consensus earnings for FY24 on the lower-than-expected production guidance coupled with higher capex," the Citi analysts say.
eToro market analyst Farhan Badami highlighted the strengths of the report.
"Lithium giant Pilbara Minerals posted another fantastic set of results for FY 2023. Revenue grew 242% from the previous year, coming in at A$4.1 billion, while profits grew 326%, coming in at A$2.4 billion. Significant operational success in a favourable lithium pricing environment has led to impressive financial results. Notably, the company achieved a 68% increase in sales over the year, with prices surging by approximately 87% compared to the prior year. The firm also revealed a significant 35% surge in Ore Reserves to 214Mt. This has empowered the Board to approve a fully franked final dividend of $0.14 per share.
“The surge in demand for lithium in recent years stems from automakers' plans to transition themselves into electric vehicle manufacturers, spurred by climate policies. This has boosted lithium mining stocks as these companies play a crucial role in the supply chain. Australian lithium shares often surge when companies announce high-grade lithium discoveries and attainability. Three years ago, Pilbara Minerals was a modest A$500m junior miner. Today, it has evolved into a colossal A$15 billion giant, producing 8% of the world's lithium supply. Remarkably, its stock has surged by 32% this year."
“The future for battery-grade lithium remains positive, driven by EV and battery storage adoption. Demand is set to outpace supply – despite recent price pullbacks, strong margins for the company continue to persist. Although there might be short-term price volatility due to supply chain management and macroeconomic conditions, Pilbara Minerals can expect sustained product demand moving forward. Additionally, lower operating costs give it a considerable advantage compared to its peers."
Five at five
The S&P/ASX Small Ordinaries had dropped a full 1.00% at time of writing. Over the past five days, it was up slightly 0.05%, but as we near the end of the month it is down 2.08%.
There was a steady stream of news today.
Aldoro Resources completes RC drilling to extend Narndee nickel mineralisation
Aldoro Resources Ltd (ASX:ARN) has completed a series of reverse circulation (RC) drilling at its Narndee project to extend the nickel and platinum-group-elements (PGE) footprint of the Western Australian asset.
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Nova Minerals releases interactive 3D model of Estelle Gold Project for public viewing
Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has invited investors and the general public to take a sneak peek into the Estelle Gold Project, releasing a 3D interactive geoscientific model and 360-degree photo site tour of the site on the company’s website.
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Tamboran Resources completes Falcon farm-in carry commitments
Tamboran Resources Ltd (ASX:TBN, OTC:TBNRF) has taken a further step toward its goal of delivering much-needed gas to the Northern Territory and East Coast markets, advising Falcon Oil and Gas Ltd that it has reached the associated cost carry commitment, the final piece required to satisfy the 2014 Falcon farm-in agreement.
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Auric Mining completes first-stage production and sale of gold
In a significant milestone, Auric Mining Ltd (ASX:AWJ) has revealed the completion of the first stage mining and processing phase, resulting in the production and sale of 1,721 ounces of gold from a 36,180-tonne ore parcel.
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Brightstar Resources awaits first gold pour as mining commences
Mining has commenced at Brightstar Resources Ltd (ASX:BTR)’s Selkirk Deposit within the Menzies Gold Project as it looks to join the ranks of Western Australia’s gold producers.
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On your six
Arm IPO prompts questions around AI’s value
As the clock ticks down to the unveiling of Arm's initial public offering (IPO) in the US, investors diligently perused the company's reported financial metrics. In what is likely to be the year's largest US IPO, many are out to discern the legitimacy of the British chipmaker's ambitious valuation aspirations in a market hungry for AI stocks.
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The one to watch
Moho Resources boosts nickel prospectivity at Weld Range North
Moho Resources Ltd (ASX:MOH) MD Ralph Winter tells Proactive the company has enhanced the nickel prospectivity of the Weld Range North Project in the Murchison region of Western Australia through an orientation soil sampling survey.
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