Market wraps 24th November 2021

Morning Bell - Sophia Mavridis

The ASX200 closed 0.8% higher, with Energy and Materials sectors making the strongest gains. All but three sectors advanced.

Iron ore miners rose higher in response to the higher iron ore and oil prices in the spot market. Fortescue Metals (ASX:FMG) advanced almost 10% by close of trade.

While gold miners fell yesterday, as the price of gold fell to a three-week low and the Australian dollar was down to a seven-week low. This saw Silver Lake Resources (ASX:SLR) down 5.6%.

Meanwhile Bapcor (ASX:BAP) was the worst performer, after the company’s founder and CEO announced his departure.

In US equities, the S&P500 rose 0.2% and the Dow rose 0.6%. However, rising treasury yields weighed down on the major tech stocks and the tech-heavy Nasdaq closed 0.5% lower, falling for the second consecutive day.

The ASX200 is set to open flat this morning, with the SPI futures suggesting a modest rise of just 0.01%.

What to watch today:

  • The oil price is up 2.3% after an announcement of a coordinated release of oil reserves in the US, India, China, Japan, Republic of Korea, and the UK, in a bid to depress prices.
  • Gold is trading below US$1,800 an ounce, the lowest level in three-weeks, following Jerome Powell’s reappointment.
  • Spot iron ore is trading almost 5% higher and the seaborne iron ore price is trading higher at US$94 a tonne.
  • Webjet (ASX:WEB) released its half year results this morning. The company reported significant positive cash generation, with cash surplus of $3.5 million per month, as well as increases in Total Transaction Volume, Revenue and EBIT.
  • Harvey Norman (ASX:HVN) and Ramsay Health Care (ASX:RHC) will hold their AGM today.
  • Graincorp (ASX:GNC), HGL Limited (ASX:HNG) and Whitefield (ASX:WHF) are set to go ex-dividend today. This often sees shares fall as investors take their profits.

Trading ideas:

  • Bell Potter maintain their BUY rating on Nickel Mines (ASX:NIC) and have increased their price target from $1.42 to $1.68. Nickel Mines has advanced over 17% over the last week, and closed yesterday at $1.31, implying 27.8% share price growth in a year.
  • Bullish charting signals have been identified in Tabcorp Holdings (ASX:TAH), Orocobre (ASX:ORE) and Centaurus Metals (ASX:CTM) according to Trading Central.