Equities market rebounds after recent sell off

The equities market rebounded strongly after bulls pulled back all the losses from the prior week of trading. Much of the gains were associated with a drop in the strength of the US dollar which retraced after its insane run. The Dow Jones, Nasdaq, and S&P 500 all finished the trading week exceptionally strong rising 2.65%, 4.05% and 3.65%, respectively. Although with interest rate hikes still to come and a weak growth forecast, the midterm outlook may still be bearish.

In the commodity market, Oil dropped to its lowest levels since February 2022 on the back of lower demand forecasts. With China still using lockdowns in response to Covid 19 and a 9% drop in its oil imports since the year prior, the price of Brent fell harshly before finding support at $90 a barrel. Gold continues to test its support zone near $1650-1720 USD per ounce, whilst Coal prices continue to jump to record highs.

The outlook for Australian equities remains volatile with the ASX200 benefiting from the US market’s rise. Additionally big jumps in Lithium and Coal prices saw companies in the resource sector see large jumps in their price.

Stocks In the Spotlight

Pilbara (PLS)

The lithium miner has been on a remarkable run since June. However, in the last week the price of its shares catapulted to all-time highs and has increased by 47% in the last three weeks. As the leading lithium producer in Australia, the rise for PLS has been a catalyst for many of the lithium stocks to follow suit. The company has benefited from another jump in the underlying commodity price as demand grows for the element critical to Electric vehicle batteries. The share price closed the last trading session at $4.50 a 26% jump for the week.

Lovisa (LOV)

The global jewellery business’s shares have reached all-time highs after announcing that it will be joining the ASX200 index in its next reconstitution. The company will be added to the index in the next quarter due to the increase in its market capitalisation meaning that it now qualifies to be in the index. The company’s share price has kept some of the momentum from its recent end of year financial report in which its NPAT rose by 116% and an almost 20% increase in sales. The LOV share price is currently trading at $23.75.

Monadelphous Group (MND)

The engineering and maintenance company has seen its share price rise to 12-month highs on the back of its recent financial results. Operating revenue increased by 3.2% and net profit after tax increased by 6.86% on the year prior. The company’s managing director, Rob Velletri commented that “Demand for our maintenance services is expected to remain strong and resource developments in iron ore and oil and gas as well… a highly competitive labour market will remain the major challenge.” The company also handed out a $0.24 dividend a 19% increase on the year prior. The current share price is at $13.86 a 9.13% gain across the week.

Weekly Ex Dividend dates

12 September

HUB – HUB24

DYR – Duratec

DVR – Diverger

CNU – Chorus

DSK – Dusk Group

PRU – Perseus Mining

JYC – Joyce Corporation

MTO – Motorcycle Holdings

WBCPK – Westpac Banking Corporation

LSF – L1 Long Short Fund

SND – Saunders International

PGC – Paragon Care

13 September

NWS – News Corporation

TPG – TPG Telecom

ING – Ingham’s Group

IGL – Ive Group

GRR – Grange Resources

FOS – FOS capital

OCL – Objective Corporation

14 September

LOV – Lovisa

GC1 – Glennon Small Companies

CAF – Centrepoint

NZM – NZME Ltd

CGC – Costa Group Holdings

MCY – Mercury NZ Ltd

MGH – Maas Group

PPM – Pepper Money

15 September

EPY – Earlypay

CTE – Cryosite

PGF – PM Capital Global Opportunities Fund

PL8 – Plato Income Maximiser

FBU – Fletcher Building

BST – Best and Less Group

DTL – Data#3

IGO – IGO Limited

EGH – Eureka Group

DDH – DDH1

REG – Regis Healthcare

SPK – Spark New Zealand

ABA – Auswide Bank Ltd

29M – 29Metals

RMS – Ramelius Resources

SVW – Seven Group Holdings

S32 – South 32

EQT – EQT Holdings

WQG – WCM Global Growth Ltd

PWH – PWR Holdings

16 September

ARA – Ariadne Australia

AHC – Austeco Healthcare

PPC – Peet Ltd

SNL – SupplyNetwork

CAU – Cronos Australia

CAR – Carsales.com

Key Economic Events -Australian Eastern Standard Time

Monday

4:00pm – GBP GDP m/m

Tuesday

10:30pm – USD CPI m/m

10:30pm – USD Core CPI m/m

Wednesday

4:00pm – GBP CPI y/y

10:30pm – USD PPI m/m

Thursday

8:45am –NZD GDP q/q

11:30am – AUD Employment Change

11:30am – AUD Unemployment Change

10:30pm – USD Core Retail Sales m/m

10:30pm – USD Empire State Manufacturing Index m/m

10:30pm – USD Retail Sales m/m

Saturday

12:00 – USD Prelim UOM Consumer Sentiment