S&P/ASX 200 rose 1% in May with large caps leading the gains and small caps lagging
S&P/ASX 200 information and utilities were the top performing sectors in May
Resources stocks dominated the May winners table with Australian Gold and Copper surging
Australia’s benchmark equity index, the S&P/ASX 200, remained range-bound and closed the month up ~1%, led by large-cap companies as small caps lagged. Emerging companies extended gains, up ~10% YTD, according to S&P Dow Jones Indices (S&P DJI).
Looking at key economic points released in May and Australian CPI climbed to its highest point in five months, making it unlikely that interest rates will be cut soon and instead has raised the possibility of an RBA rate hike.
The CPI for the year ending in April was 3.6%, higher than the expected 3.4%. In comparison, monthly inflation for the year ending in March was 3.5%.
In the US inflation as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, remained steady at 2.7% on a yearly basis in April, the US Bureau of Economic Analysis reported on May 31.
The reading matched the increase seen in March and aligned with market expectations. As forecast the PCE Price Index rose 0.3% month-over-month.
Wealth Within chief analyst Dale Gillham told Stockhead the key message he is getting from the Reserve Bank of Australia (RBA) is that the restrictive environment caused by high interest rates is working, albeit more slowly than they expect.
“Moving forward they still expect demand to be subdued as it comes into line with supply, when this occurs, we may see inflation and interest rates ease,” he says.
“To me whilst we would all like to see interest rates come down sooner rather than later, it seems the RBA is happy with the current rate at least for now.
“With these economic challenges we are facing, it has been surprising that the Australian stock market has been so resilient during May.”
The All Ordinaries Index (ASX:XAO), which contains the 500 largest ASX listed companies and accounts for 97% of Australia’s equity market, closed the month up 0.49%.
“Over the last 40 years typically May and June are bearish months for the All Ordinaires Index, with June on average being the second most bearish month in our market,” Gillham says.
“Given this it would not be surprising to see our market fall for a few more weeks.”
Chart via S&P
Tech takes out first place in May
Five of the 11 sectors finished in the red in May. The S&P/ASX 200 information and utilities were among the performing sectors with 5.45% and 3.38% gains in May, extending their YTD gains to 26% and 12%, respectively. The tech sector is the top performer for 2024, up 26% YTD.
Communication Services had the biggest fall of 2.63% in May to become the worst performing sector YTD.
Chart via S&P
Fear gauge falls slightly in May
The S&P/ASX 200 VIX moved lower from its April hike and closed the month at 11.5, near its one-year average. VIX (short for volatility index) is known as the “fear gauge” and reflects investor expectations about volatility over the next 30 days in the S&P/ASX 200.
Chart via S&P
Fixed income mostly back in positive territory
Fixed income indices in Australia finished May mostly marginally up, with signals the RBA may need to stay restrictive for longer on interest rates.
Chart via S&P
Here are the 50 best performing ASX stocks for May:
Scroll or swipe to reveal table. Click headings to sort.
CODE COMPANY LAST SHARE PRICE MAY RETURN % MARKET CAP CAQ CAQ Holdings Ltd 0.065 713% $46,656,108 AGC AGC Ltd 0.465 447% $103,333,333 KP2 Kore Potash PLC 0.038 245% $25,014,051 DY6 DY6 Metals 0.12 173% $4,849,300 ERW Errawarra Resources 0.115 161% $11,030,877 FRS Forrestania Resources 0.046 156% $7,442,144 ICL Iceni Gold 0.066 154% $18,002,229 FAL Falcon Metals 0.32 137% $56,640,000 LTP Ltr Pharma Limited 0.605 133% $42,595,320 BUR Burley Minerals 0.14 115% $21,051,932 CRS Caprice Resources 0.036 112% $10,053,912 RC1 Redcastle Resources 0.025 108% $8,207,104 M4M Macro Metals Limited 0.035 106% $125,946,867 IS3 I Synergy Group Ltd 0.014 100% $4,957,125 SER Strategic Energy 0.02 100% $11,959,939 BDX Bcal Diagnostics 0.175 90% $44,151,575 CBH Coolabah Metals 0.077 83% $9,271,283 NVU Nanoveu Limited 0.031 82% $13,816,564 PH2 Pure Hydrogen Corp 0.2 82% $71,696,164 CU6 Clarity Pharma 5.08 81% $1,579,950,104 EMU EMU NL 0.032 78% $2,159,775 ILT Iltani Resources Lim 0.335 72% $11,393,519 A3D Aurora Labs Limited 0.064 68% $21,996,034 SVY Stavely Minerals Ltd 0.047 68% $17,951,184 ENT Enterprise Metals 0.005 67% $4,423,605 IND Industrial Minerals 0.25 67% $16,846,200 PEC Perpetual Resources 0.015 67% $9,600,441 EQN Equinox Resources 0.355 65% $43,842,501 IRI Integrated Research 0.71 65% $123,972,127 BM8 Battery Age Minerals 0.165 65% $15,348,983 BMR Ballymore Resources 0.205 64% $36,229,770 FTZ Fertoz Ltd 0.05 61% $12,512,444 CCZ Castillo Copper Ltd 0.008 60% $10,396,043 PPY Papyrus Australia 0.016 60% $7,883,081 PUA Peak Minerals Ltd 0.004 60% $4,165,506 CYP Cynata Therapeutics 0.335 60% $60,176,648 MDX Mindax Limited 0.053 56% $108,585,540 MHI Merchant House 0.056 56% $5,278,924 RR1 Reach Resources Ltd 0.014 56% $12,242,039 GIB Gibb River Diamonds 0.048 55% $10,152,453 KOB Koba Resources 0.15 55% $23,784,242 AQD Ausquest Limited 0.017 55% $14,027,537 TOR Torque Met 0.2 54% $36,645,760 SUM Summit Minerals 0.23 53% $10,961,139 GBE Globe Metals & Mining 0.058 53% $39,200,320 OZZ OZZ Resources 0.05 52% $4,626,506 8IH 8I Holdings Ltd 0.015 50% $5,360,340 AOA Ausmon Resorces 0.003 50% $3,176,998 CNJ Conico Ltd 0.0015 50% $1,805,095 FGL Frugl Group Limited 0.09 50% $8,938,649
Resources stocks stood out on the May winners table. Australian Gold and Copper (ASX:AGC) was one of the big winners for May after earlier in the month hitting a 5m intersection at 16.9g/t gold, 1,473g/t silver and 15% lead+zinc in a drilling campaign.
During May AGC announced firm commitments have been received for an $11 million placement at 32 cents/share. Funds will be applied towards the company’s portfolio of exploration assets including the South Cobar Project and for general working capital.
Kore Potash (ASX:KP2) got hit with a price and volume in relation to change in the price of its share from a low of $0.014 to an intraday high of $0.022 on May 23 and “the significant increase in the volume of KP2’s securities” traded from May 16-23 May 2024.
KP2 responded the recent increase trading price and volume could be linked to market expectation in finalising the engineering, procurement and construction (EPC) proposal and contract with PowerChina International Group.
“The company confirms that no further or formal legal agreements have been entered into with work and negotiations on these matters continuing,” KP2 says in an announcement.
Critical minerals company DY6 Metals (ASX:DY6) was up in May after receiving additional historical drilling data supporting the Tundulu rare earth elements project in southern Malawi.
Known as a gold, lithium and nickel hunter, Forrestania Resources’ (ASX:FRS) focus is in the Eastern Goldfields of WA, but also Canada (lithium).
However, FRS rose strongly during the month on news related to iron ore, in the Yilgarn region. The company announced it’s entered into an option agreement with shareholders of Netley Minerals to acquire 100% of issued shares in Netley, which is the holder of highly prospective iron ore tenements right next to Mineral Resources’ (ASX:MIN) Koolyanobbing operations.
Here are the 50 worst performing ASX stocks for May:
Scroll or swipe to reveal table. Click headings to sort.
CODE COMPANY LAST SHARE PRICE MAY RETURN % MARKET CAP OSX Osteopore Limited 0.053 -85% $6,020,959 JTL Jayex Technology Ltd 0.001 -80% $281,279 WOA Wide Open Agriculture 0.02 -79% $4,470,468 APC Australian Potash 0.001 -75% $6,030,284 ICU Investor Centre Ltd 0.007 -67% $2,131,579 ENL Enlitic Inc. 0.25 -58% $19,678,657 MPP Metro Perf.Glass Ltd 0.072 -56% $13,347,222 SHP South Harz Potash 0.011 -56% $9,099,035 MCL Mighty Craft Ltd 0.006 -54% $2,397,910 GLL Galilee Energy Ltd 0.026 -51% $8,833,361 CLZ Classic Min Ltd 0.004 -50% $1,634,340 HCT Holista CollTech Ltd 0.005 -50% $1,394,000 ME1 Melodiol Global Health 0.002 -50% $1,646,275 TKL Traka Resources 0.001 -50% $1,750,659 VBS Vectus Biosystems 0.13 -48% $6,917,368 AMS Atomos 0.021 -48% $25,486,908 AAU Antilles Gold Ltd 0.007 -46% $6,975,745 LU7 Lithium Universe Ltd 0.018 -45% $9,120,844 FTC Fintech Chain Ltd 0.01 -44% $6,507,696 BEL Bentley Capital Ltd 0.023 -43% $1,750,942 CGR CGN Resources 0.195 -42% $17,701,747 MKR Manuka Resources 0.044 -41% $33,430,738 CHM Chimeric Therapeutic 0.018 -40% $15,415,319 ECT Environmental Clean Technologies 0.003 -40% $12,687,242 IMI Infinity Mining 0.045 -40% $5,343,903 NGS NGS Ltd 0.003 -40% $753,682 NYR Nyrada Inc 0.057 -39% $10,226,296 DTI DTI Group Ltd 0.011 -39% $4,934,066 ATV Active Port Group 0.054 -39% $17,125,985 WYX Western Yilgarn NL 0.033 -38% $3,032,948 WLD Wellard Limited 0.025 -38% $13,281,258 VRX VRX Silica Ltd 0.044 -37% $27,643,249 MPR Mpower Group Limited 0.012 -37% $4,124,439 DMG Dragon Mountain Gold 0.007 -36% $2,762,702 MSI Multistack International 0.009 -36% $1,226,735 HAS Hastings Tech Metals 0.22 -35% $38,802,749 THL Tourism holdings 1.75 -35% $381,892,716 LV1 Live Verdure Ltd 0.415 -35% $51,815,155 ADS Adslot Ltd 0.002 -33% $6,448,991 AUH Austchina Holdings 0.002 -33% $4,200,767 AYM Australia United Mining 0.002 -33% $5,527,732 BFC Beston Global Ltd 0.004 -33% $7,988,188 INP Incentiapay Ltd 0.004 -33% $4,975,720 LNR Lanthanein Resources 0.004 -33% $9,774,545 RIE Riedel Resources Ltd 0.002 -33% $4,447,671 RLG Roolife Group Ltd 0.004 -33% $3,129,527 RMX Red Mount Min Ltd 0.001 -33% $3,423,577 RTR Rumble Resources 0.044 -33% $32,137,348 SHO Sportshero Ltd 0.004 -33% $2,471,331 TMR Tempus Resources Ltd 0.004 -33% $2,923,995
Regenerative food and agriculture company Wide Open Agriculture (ASX:WOA)was asked a couple of times to explain a few things by the ASX, and dropped 79% in May.
Craft beer accelerator with a nationally diversified portfolio of craft beverages Mighty Craft (ASX:MCL) fell in 54% May. MCL has built an infrastructure and distribution offering that enables the company to scale production, distribution, and sales.
MCL announced in May it was selling 7.5% of the shares in Better Beer to its senior debt provider PURE Asset Management for ~$6.1 million, as parts of its plan to reduce debt.
At Stockhead, we tell it like it is. While DY6 Metals is a Stockhead advertiser, the company did not sponsor this article.
The post ASX May Winners: The best 50 stocks as inflation continues to weigh on markets appeared first on Stockhead.
