The Match Out: ASX enjoys a relief rally, gold equities give back some strength

The local market saw a bit of a relief rally today as concerns over the collapse of SVIB eased. Tech was the main winner of the bunch, but a strong day from market heavyweights financials and materials supported the index. Energy closed marginally lower as oil hit a 3-month low overnight before rebounding somewhat in Asian trade today.

• The ASX 200 finished up +60pts/ +0.86% at 7068
• The Tech sector was best on ground (+2.42%), followed by strong moves from healthcare (+1.55%) and Real Estate (+1.01%)
• Consumer Discretionary (-0.19%) was the weakest sector, with Energy (-0.01%) the only other sector to close lower.
• Trader jitters eased overnight despite little more detail in the SVIB fallout. It seems the market took a breather on a delayed reaction to the Government support that has been provided to the US banking sector.
• Northern Star (ASX: NST) -1.25% announced their Pogo asset would seem some downtime after a mechanical issue.
• Siteminder (ASX: SDR) -3.42% struggled despite saying it had secured the $10m cash held with SIVB and it’s undrawn $US20m revolving credit facility would not be impacted.
• Oil rallied 1% in Asia today after falling to a 3-month low earlier this morning. Traders are grappling with strong near-term supply and concerns over the US economy here.
• Iron Ore was marginally higher in Asia today, though equities rebounded along with the index. Rio was the best of them, up 1.73%
• Gold was marginally lower in Asian trade today, hovering around the $US1900/oz level still. Gold equities were mostly lower though as investors moved away from exposure in the precious metal.
• Asian stocks were mixed today. Nikkei was weak, falling -0.15% while China and Hong Kong rallied ~1.4% each.
• US Futures are all marginally lower at our close.

ASX 200 Chart

Northern Star (ASX: NST) $11.10

NST -1.25%: for the most part gold stocks had a breather today after being the port in a storm over recent sessions. Northern Star had its own issues with its mill suffering a mechanical failure at their Pogo operation. It’s the smallest operation for the gold miner, and is expected to see 20-40koz of production lost to downtime while the issue is resolved. Fortunately, this is just ~2% of expected gold production for the group this year and the company has left FY23 guidance unchanged at 156-1680koz.

Broker Moves

• Panoramic Resources Rated New Underweight at Barrenjoey
• Mincor Rated New Neutral at Barrenjoey; PT A$1.15
• Stockland Raised to Accumulate at CLSA; PT A$3.98
• Neuren Raised to Speculative Buy at Bell Potter; PT A$13.67

Major Movers Today

Have a great night

The Market Matters Team

Make informed investment decisions

At Market Matters, we write a straight-talking, concise, twice daily note about our experiences, the stocks we like, the stocks we don’t, the themes that you should be across and the risks as we see them. Click here for your free trial.

The Match Out will be available each day after the market close. Follow my profile to be notified when the latest report is live.