Key takeaways:

• Shares enjoyed broad-based support after the Fed began its pivot towards lowering rates by outlining plans for cuts in the year ahead

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Which Shares Excelled?

In the recent trading sessions, Sigma Healthcare (ASX: SIG) made headlines with an $8.8 billion reverse takeover of Chemist Warehouse, impressing its shareholders. However, the ACCC still has to approve the deal. Reviews are mixed as to which way they’ll lean, but the AFR reported that Morningstar retail analyst Shane Ponraj isn’t confident of approval given the deal would give over 50% market to the combined entity. Sigma shares are down 24% this week, but up nearly 45% since last month.

Strike Energy (ASX: STX) also saw its shares rise over 12% following positive results from its South Erregulla gas field in Western Australia, including a significant gas interval discovery.

Telix Pharmaceuticals (ASX: TLX) announced a major development in its US program for a renal cell carcinoma imaging agent, boosting investor confidence. Shares are up nearly 5% this week.

Meanwhile, Allkem (ASX: AKE) led the lithium shares surge, buoyed by global growth stock rallies and news about its upcoming court hearing regarding a merger with Livent. The merger is approved by the Australian Foreign Investment Review Board, but more approvals are needed. The Fed court will meet on December 20 to discuss further. Shares spiked 9% this week, mostly from Wednesday to Thursday.

High achievers this week also included Silex Systems (ASX: SLX), Audinate (ASX: AD8), and Credit Corp (ASX: CCP), all of which significantly outperformed.

Which Shares Dragged on the Market?

On the other hand, IDP Education (ASX: IEL) experienced a sharp decline following the Australian government’s announcement to cut net migration, impacting international student numbers. IDP has often featured on short reports in 2023, and the AFR reported that they had $1.1 billion of market cap wiped in May. With shares trading around 24% below January levels, many brokers have IEL as undervalued. The I/B/E/S data on the Selfwealth platform as of today indicates 10 brokers rate IEL as a buy (not a ‘strong buy’), but we should note many have also highlighted worries with the company’s CAGR and ROC.

Insurance Australia Group (ASX: IAG) felt the pressure as the US Federal Reserve indicated potential rate cuts in 2024, negatively impacting sectors like insurance that typically benefit from rate increases.

APM Human Services (ASX: APM) hit a new all-time low amid proposed changes to the NDIS and a recent profit downgrade.

Other stocks that lagged behind included Perenti (ASX: PRN), Bellevue Gold (ASX: BGL), and Nickel Industries (ASX: NIC), despite overall positive performance across all sectors.