Between the Bells

Bell Direct's Market Analyst, Grady Wulff, is in Adelaide for the Resources Rising Stars conference. Grady’s interviewing top mining Executives and CEOs to talk about where their companies are at and how they're fairing in 2024.

Tune in to see Grady catch up with:

• (0:36) Spartan Resources (ASX:SPR) Managing Director, Simon Lawson
• (2:38) Kingsland Minerals (ASX:KNG) Managing Director, Richard Maddox
• (4:17) Kin Mining (ASX:KIN) Exploration manager, Leah Moore
• (5:46) Australian Rare Earths (ASX:AR3) CEO, Travis Beinke.

 Learn what happened in the Australian market this week:

https://www.belldirect.com.au/smarter/insights/articles/weekly-wrap-5-april-insider-access-grady-gets-up-close-with-top-mining-execs-at-resources-rising-stars-conference

Wall St closed lower overnight as investors await the release of jobs data on Friday. The Dow Jones closed 1.35% lower, the S&P 500 lost 1.23% and the tech-heavy Nasdaq fell 1.4%.

Over in Europe, markets closed higher overnight following a slow start to Q2. The STOXX600 closed 0.16% higher with mining stocks gaining 1.7%, whilst chemicals fell 0.6%. Germany’s DAX rallied 0.19%, the French CAC lost 0.2% and over in the UK the FTSE100 closed just under half a percent higher.

Locally yesterday, the ASX200 ended Thursday’s trading session 0.45% higher with all sectors finishing in the green. Gains were led by the information technology and utilities sectors which rose 1.18% and 0.94% respectively.

What to watch today: 

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.8% at market open this morning.
• On the commodities front this morning
   
  • Oil is trading 1.32% higher at 86 US dollars and 60 cents a barrel as continuing geopolitical tensions interrupt oil supply. 
  • Gold is trading 0.28% lower at 2291 US dollars an ounce as investors await key US jobs data to be released on Friday. 
  • And iron ore is trading 1.92% lower at 102 US dollars a tonne.

Trading Ideas: 

• Bell Potter has maintained a speculative buy rating on EBR Systems (ASX:EBR) and has increased its 12-month price target to $1.43. The speculative buy rating is maintained by Bell Potter as the results from the sub-study released six months ago provided further support for EBR’s WiSE technology developed to eliminate the need for cardiac pacing leads. There is anticipated additional equity funding post FDA approval in the first half of FY25, driving a 10% valuation adjustment.
• And Trading Central has identified a bearish signal in Dexus Convenience Retail REIT (ASX:DXC), indicating that the stock price may fall from the close of $2.69 to the range of $2.43-$2.47, on a pattern formed over 53 days according to the standard principles of technical analysis.

US equities were mixed overnight with the Dow Jones closing 0.1% lower, marking its third straight negative day, while the S&P500 and the Nasdaq closed slightly up 0.1% and 0.2% respectively.  The Dow Jones was lower after Intel declined more than 8% off the back of the company posting operating losses in its semiconductor manufacturing business. And AI company Nvidia was in the red despite trading higher for most of the session on Wednesday, restricting gains for the market. Higher rates also weighed down on the market with data out yesterday showing private payrolls grew more than expected in March. 

European markets were higher after euro zone inflation fell more than expected. The STOXX 600 closed 0.3% higher with most sectors in positive territory. 

What to watch today:

• The Australian market is set to rise 0.33% at the open this morning. 
• In commodities, 
  • The price of oil is trading in the green after the latest Energy Information Administration data saw a surprise increase in US inventories. 
  • Gold is rallying, surging toward $2,300 an ounce, extending its six-day rally as investors welcomed comments made by Fed Chair Jerome Powell, who indicated that a lower policy interest rate would likely be appropriate “at some point this year”. Gold stocks to watch include Northern Star Resources (ASX:NST), Newmont Corporation (ASX:NEM), Evolution Mining (ASX:EVN) and Bellevue Gold (ASX:BGL). 
  • And iron ore is also in the green recovering the week’s earlier losses. 

Trading Ideas:

• Bell Potter maintains a Buy rating on Electro Optic Systems (ASX:EOS), an Australian defense manufacturer specializing in advanced weapon and satellite tracking technology. EOS has successfully completed a $35 million fully underwritten placement, with the proceeds intended to fund future growth. Bell Potter has lowered their price target by 5% to $2.20 with upcoming potential catalysts for the stock including the next debt repayment scheduled for April, a first quarter update later this month  and the H1 results in September. At the current share price of $1.58, this price target implies 39.2% share price growth in a year.
• And Trading Central has a bearish signal on The Star Entertainment Group (ASX:SGR), indicating that the stock price may fall from the close of $0.54 to the range of $0.37 to $0.41 over 31 days, according to the standard principles of technical analysis. 

Wall St closed lower for a second straight session, extending on the negative start to the second quarter as bond yields rose and the latest release of economic data dented investor expectations of an interest rate cut out of the Fed in June. The Dow Jones lost 1%, the S&P500 fell 0.72% and the tech-heavy Nasdaq declined 0.95% on Tuesday. Inflationary pressures are climbing from manufacturing data coming in stronger-than-expected for March and the price of oil has risen to a 5-month high.

Key economic data out in the US overnight indicated job openings rose by 8000 in February from January which was hotter than market expectations, while factory orders in the US rose 1.4% in February from a 3.8% decline in January which was also above market expectations. These two pieces of data indicate inflation in the region may remain stickier for longer than expected.

In Europe overnight, stocks closed lower across the region as major markets opened for the first time in April after the Easter long weekend. The STOXX600 fell 0.76% weighed down by retail stocks falling 2.1%. Germany’s DAX lost 1.13%, the French CAC fell 0.92% and, in the UK, the FTSE100 ended the day down 0.22%.

Across the Asia markets on Tuesday, regions closed mixed as investors assessed the release of key economic data out of South Korea and Australia. Hong Kong’s Hang Seng rose 2.18%, while China’s CSI300 index fell 0.42% and South Korea’s Kospi index added 0.2% following the release of key inflation data out in the region indicating inflation remained steady at 3.1% for March.

The local market started the holiday-shortened trading week in the red, with the ASX200 ending the session down 0.11% after touching a record high mid-session as losses among healthcare, industrials, telecom and REIT stocks offset gains among the miners and materials stocks in afternoon trade. The retreat from the midsession record high was on the back of a sluggish session on Wall St on Monday after hotter-than-expected manufacturing data released in the US curbed expectations of a rate cut out of the Fed in the very near future.

Healthcare star Mesoblast soared a further 71% on Tuesday adding to the 217% rise over the last month, in the aftermath of the US FDA approving the company’s phase three clinical trial data for BLA submission last week.

Uranium producer Paladin Energy jumped 4.74% yesterday after the company announced it has achieved the milestone of first production at its Langer Heinrich mine in Namibia. Production guidance is now expected out of the company before July given production is now underway.

What to watch today:

• Ahead of the midweek trading session here in Australia the SPI futures are expecting the ASX to open the day down 0.38%, tracking turbulence on global markets overnight.
• On the commodities front this morning, oil is trading 1.33% higher at US$85/barrel, uranium is up 4.12% at US$88.50/pound, gold is up 0.66% at US$2265/ounce and iron ore is trading 0.5% higher at US$102.50/tonne.

Trading Ideas:

• Bell Potter has increased the rating on Paladin Energy (ASX:PDN) from a speculative buy rating to a strong buy rating and have increased the 12-month price target on the uranium miner from $1.60 to $1.65 following the first uranium production drums being filled with uranium concentrate at the company’s restarted Langer Heinrich Mine in-line with its March quarter guidance. According to the analyst, a line-of sight to first revenue and cashflow removes the need for the speculative rating on the uranium producer.
• And Trading Central has identified a bullish signal on Nexgen Energy (ASX:NXG) following the formation of a pattern over a period of 40-days which is roughly the same amount of time the share price may rise from the close of $12.99 to the range of $14.60-$15.10 according to standard principles of technical analysis.

Wall St closed lower to start the trading week as investors digest the latest US inflation data. The Dow Jones closed 0.6% lower, the S&P 500 fell 0.2% whilst the tech-heavy Nasdaq gained 0.11% by the closing bell. US core PCE data was released on Friday, showing inflation rose 2.8% on a 12-month basis in February, which was in line with expectations.

Europe and local markets were closed yesterday for Easter Monday celebrations.

What to watch today:

• The ASX200 is set to open higher this morning, with the SPI futures suggesting a rise of 1.03% at market open this morning.
• On the commodities front this morning,
   
  • Oil is trading 0.92% higher at 83 US dollars and 89 cents a barrel as investors await the OPEC+’s meeting later this week. 
  • Gold is trading 0.81% higher at 2250 US dollars an ounce and iron ore is trading 1.45% lower at 102 US dollars a tonne.

Trading Ideas:

• Bell Potter has maintained a buy rating on Coronado Global Resources (ASX:CRN), despite decreasing its 12-month price target to $1.65. The buy rating is maintained by Bell Potter as CRN should realise improved production volumes and subsequent cost benefits following the self-funded investment across its Australian and US operations. It is expected that this will generate more consistent free cash flow and shareholders returns going forward.
• And Trading Central has identified a bullish signal on Pilbara Minerals (ASX:PLS), indicating the stock may rise form the close of $3.83 to the range of $4.55-$4.75 on a pattern formed over 18 days according to the standard principles of technical analysis.

Wall St closed higher overnight as the S&P 500 recorded its best quarter since 2019, ending Wednesday’s trading session up 0.86%. The Dow Jones gained 1.22% and the tech-heavy Nasdaq closed just over half a percent higher.

Over in Europe, markets closed slightly higher after a slow start to the session. The STOXX600 closed 0.1% higher with retail stocks closing higher whilst travel stocks fell 2.4%. Germany’s DAX rallied half a percent, the French CAC ended the trading session a quarter of a percent higher and over in the UK the FTSE100 closed flat, up 0.01%.

Locally yesterday, the ASX200 ended Wednesday’s trading session half a percent higher with all but two sectors ending in the green. Gains were led by the consumer staples and health sectors which gained 1.35% and 1.28% respectively. 

In terms of economic news, February CPI data came out yesterday at 3.4%, the same as it previous result and slightly lower than the consensus of 3.5%.

What to watch today: 

• The Australian share market is set to open higher, with the SPI futures suggesting a rise of 0.76% at market open this morning.
• On the commodity front this morning,
   
  • Oil is trading flat at US$81.60 a barrel, following a 9.337 million barrel increase in US crude stockpiles. 
  • Gold is trading 0.74% higher at US$2194 an ounce as investors await on  important inflation data to come out of the US. 
  • And iron ore is trading 2.71% lower at US$107.50 a tonne.

Trading Ideas: 

• Bell Potter has maintained a buy rating on Platinum Asset Management (ASX:PTM) and has a 12-month price target of $1.20. The buy rating is maintained by Bell Potter as PTM look to reduce their cost base in FY25 to get annual costs below $78m. This reduction in costs increased EBITDA forecasts by 3.9% in FY24, 15.3% in FY25 and 36% in FY26.
• And Trading Central has identified a bullish signal on Whitehaven Coal (ASX:WHC), indicating that the stock price may rise from the close of $6.74 to the range of $8.50-$8.90, on a pattern formed over 40 days, according to the standard principles of technical analysis.

Wall Street extended its losses into Tuesday’s session as a morning rally quickly faded in afternoon trade with the Dow Jones ending the day down 0.08%, the S&P500 lost 0.28% and the tech-heavy Nasdaq fell 0.42%. Orders for long-lasting goods in the US rose 1.4% in February in data out yesterday which beat economists’ expectations of a 0.8% rise, which investors may have taken as a sign that inflation remains elevated in the US thus adding support for rates to remain on hold for a little while longer, especially after the slight uptick in CPI in the latest reading out of the US.

Krispy Kreme shares soared 39% on Tuesday after the donut giant announced it would expand its partnership with McDonald’s, while Tesla rallied 5% in a rebound for the EV maker after a few months of negative sentiment from markets in 2024.

In Europe overnight, markets closed slightly higher in the region as investors continue digesting key central bank moves in the region. The STOXX600 rose 0.3%, Germany’s DAX rose 0.67%, the French CAC added 0.41% and, in the UK, the FTSE100 climbed 0.17% on Tuesday.

Across the Asia markets, it was mostly a green session across the board on Tuesday with South Korea’s Kospi hitting a 2-year high as investors assessed the latest batch of economic data. Japan’s annual B2B service inflation remained at 2.1% in February indicating companies continue passing on rising costs to customers. Singapore’s manufacturing output increased 14.2% in February from January’s 6.7% decline which boosted the local index to a 1.31% close on Tuesday and Hong Kong’s Hang Seng rose 1.1% yesterday.

The local market started the week higher before retreating 0.41% on Tuesday taking lead from Wall Street’s losing session on Monday and on the back of local market sell-offs which were hardest felt by tech stocks on Tuesday as the sector closed the session down 1.55%.

Westpac consumer confidence data for March also released yesterday weighed on the market sentiment as the reading for this month came in at -1.8% which is a sharp decline from the 6.2% reported in February and above economists’ expectations of a drop to minus 1.6% which signals consumer sentiment in market conditions is sliding and we are feeling the full bite of the currently elevated rates.

Earlier in the week commodity-related stocks weighed on the key index, however, a rebound in the price of oil, iron ore and gold saw investors buy back into the miners yesterday. While the opposite story can be told for rate sensitive stocks like technology and real estate which started the week on a high note after a less-hawkish RBA statement was released last week, before these sectors declined on Tuesday.

What to watch today:

• Ahead of the local trading session here in Australia for Wednesday, the SPI futures are anticipating the ASX to open the day down 0.24% tracking Wall Street’s turbulence overnight.
• Taking a look at commodity prices, oil has slightly retreated again overnight to trade 0.1% lower at US$81.87/barrel, gold is up 0.3% at US$2177.38/ounce, and iron ore is down 0.9% at US$110.50/tonne.

Trading Ideas:

• Bell Potter has initiated coverage of leading Australian engineering group, Monadelphous Group (ASX:MND) with a buy rating and a price target of $15.40. Bell Potter’s analyst sees strong revenue growth in the company’s FY24 guidance and the EC pipeline revenue is forecast to continue growing in the second half with a step up in construction contracts won in FY24 to date valued at over $750m scheduled to be completed over FY24-FY25.
• And Trading Central has identified a bullish signal on Northern Star Resources (ASX:NST) following the formation of a pattern over a period of 12-days which is roughly the same amount of time the share price may rise from the close of $13.93 to the range of $15.80 to $16.20 according to standard principles of technical analysis.

Wall St started the week in negative territory as US equities took a breather from record territory with the Dow Jones ending Monday’s session down 0.41%, the S&P500 lost 0.31% and the tech-heavy Nasdaq declined 0.27%. United Airlines fell 3.4% after the Federal Aviation Administration announced it would be increasing its scrutiny of the carrier after a series of safety incidents.

Over in Europe, markets closed mixed across the board on Monday as investors continued digesting central bank moves in the region to gauge how the battle against inflation is faring. The STOXX600 rose 0.04% to extend on its record close from Friday driven by oil and gas stocks rising on a rebound in the price of the two key commodities. Germany’s DAX rose 0.3% on Monday while the French CAC closed flat and, in the UK, the FTSE100 ended Monday’s session down 0.17%.

Across the Asia markets overnight, it was mostly a sea of red as investors assessed the release of key inflation data for the region. Singapore and Malaysia both released key inflation reports that came in higher than anticipated while Tokyo’s inflation numbers are due to be released on Friday. Japan’s Nikkei fell 1.16% on Monday, Hong Kong’s Hang Seng fell 0.16%, and South Korea’s Kospi slid 0.4% at the closing bell.

Locally yesterday, the ASX200 rallied 0.5% to push the key index above 7800 points again, led by a rise in interest rate sensitive sectors like technology and REIT stocks as optimism for interest rate cuts continues to rise. The rise in sentiment follows a statement released on the back of the RBA’s latest meeting indicating Australia’s central bank appears to be less hawkish than first though with regards to interest rate cuts.

The rising price of oil prompted investors to buy back into the mining giants like Santos which added 1.1% and Woodside which rose 1.2% on Monday.

Reports out of Fortescue that the mining giant is looking to develop its copper assets led to a 3.2% rise in the Andrew Forrest run mining company on Monday.

What to watch today:

• Ahead of Tuesday’s trading session here in Australia, the SPI futures are expecting the ASX to open the session 0.37% lower following the slide on Wall St overnight.
• On the commodities front this morning oil is trading 1.55% higher at US$81.88/barrel, gold is up 0.32% at US$2171/ounce, and iron ore is trading flat at US$111.50/tonne.
• AU$1.00 is buying US$0.65, 99 Japanese Yen, 51.69 British Pence and NZ$1.09.

Trading Ideas:

• Bell Potter has initiated coverage of Cleanaway Waste Management (ASX:CWY) with a buy rating and a 12-month price target of $3.10 with Bell Potter’s analyst optimistic on the growth opportunity for CWY through its three-year pathway to $450m+ EBIT under its ‘Blueprint 2030’ strategy. The analyst also expects to see recovery in C&I waste generation and labour productivity potentially presenting as further tailwinds.
• And Trading Central has identified a bullish signal on Endeavour Group (ASX:EDV) following the formation of a pattern over a period of 20 days which is roughly the same amount of time the share price may rise from the close of $5.34 to the range of $5.82 to $5.92 according to standard principles of technical analysis.

Despite a mixed session on Friday, Wall Street posted gains across the three key indices for last week with the Dow Jones recording its best week since December and the market is on track for a fifth consecutive month of gains. Investors took a slight breather on Friday after a strong week for equities following the Fed’s latest FOMC meeting where interest rates were held steady again. The Dow Jones fell 0.77% on Friday but added almost 2% for the week, the S&P500 fell 0.14% on Friday but gained 2.3% for the week, and the tech-heavy Nasdaq rose 0.16% on Friday and nearly 2.9% for the week.

FedEx added more the 7% on Friday after posting adjusted earnings that beat analysts’ expectations, while Nike fell 6.9% on disappointing guidance and easing sales in China.

Over in Europe, markets closed mostly higher in the region, even after stocks soared to an all-time-high on Thursday. The STOXX600 rose 0.02% on Friday as tech and travel stock losses weighed on the market gains. Germany’s DAX rose 0.15% on Friday while the French CAC fell 0.34%, and, in the UK, the FTSE100 rose 0.61% at the week’s end. The Swiss National Bank surprised markets on Thursday by lowering its core policy rate by 0.25 percentage points to 1.5% which marks the first major economy to cut interest rates in a sign key global economies are winning the battle of inflation and further cuts could be expected in the near future. The Bank of England held rates as expected on Thursday, however, signalled rate cuts could be on the horizon soon.

Locally on Friday, the ASX200 lost 0.2% as a sell-off in commodity-related stocks, particularly energy stocks, weighed on the key index. For the week though, the ASX200 still managed to post a 1.3% gain. Declining prices of oil, iron ore and gold were the drivers of investors selling out of commodity-related stocks on Friday.

Fisher & Paykel Healthcare rallied 7.7% on Friday after the company upgraded its earnings guidance range to NZ$260m to NZ$265m mainly due to strength in demand for the company’s hospital product group and OSA masks.

What to watch today:

• Ahead of the local trading session to start the new trading week here in Australia, the SPI futures are anticipating the ASX to open Monday’s session 0.09% higher.
• On the commodities front this morning, oil is trading 0.54% lower at US$80.63/barrel, uranium is down 6.6% at US$85/pound, gold is down 0.72% at US$2165/ounce and iron ore is up 2.77% at US$111.50/tonne.
• AU$1.00 is buying 65 US$0.65, 98.60 Japanese Yen, 51.7 British Pence and NZ$1.09.

Trading Ideas:

• Bell Potter has maintained a speculative buy rating on Deep Yellow (ASX:DYL) and have increased the 12-month price target on the uranium miner from $1.81 to $1.90/share following the company’s successful completion Tranche-1 or $140.5m of its $220m institutional placement with the remaining to be completed post a general meeting in April. Deep Yellow also plans to raise a further $30m via a retail share purchase plan, with total funds raised to be directed towards the advancement of the company’s Tumas uranium project in Namibia.
• And Trading Central has identified a bearish signal on Reece (ASX:REH) following the formation of a pattern over a period of 17-days which is roughly the same amount of time the share price may fall from the close of $27.65 to the range of $25.10 to $25.60 according to standard principles of technical analysis.

The iron ore industry has hit some turbulence. Prices have taken a nosedive this year, partly due to a slowdown in China – a big buyer of iron ore. This has influenced the Australian stock market, with mining giants like BHP and Rio Tinto feeling the heat. The US dollar and interest rates are also adding pressure. Discover what this all means for investors in this week’s Weekly Wrap video. 

In this week’s wrap, Sophia covers:  

• (0:11): why it may be worth keeping watch of iron ore stocks  
• (0:35): Australian miners sell-off – BHP, Rio Tinto, and Fortescue 
• (1:37): China’s economic slowdown and stimulus efforts
• (2:25): the impact of interest rates and the US dollar on ore prices 
• (4:14): the most traded stocks & ETFs by Bell Direct clients 
• (4:46): economic data to watch next week.