ASX200 Afternoon Report August 16th 2022

The ASX200 trades 41 points higher at 7105 at 2.45 pm Sydney time.

The ASX200 has today extended its Lazarus-like like recovery, to trade above 7100 for the first time in 10 weeks following a thumping earnings report from index heavyweight BHP.

The Big Australian, which accounts for a monstrous 10% weighting in the ASX200, reported an underlying profit of $US21.3bn, up 39% from 2020 and a second-half dividend of $US1.75. This took the Full Year’s payout to $US3.25, better than the market expected.

After spiking above $41.00 for the first time since late June, BHP’s share price eased to be 4.5% higher at $40.70. Elsewhere, Yancoal added 1.5% to $5.26, FMG added 1.4% to $19.41, OZ Minerals added 0.85% to $25.89, and Rio Tinto gained 0.17% to $95.42.

The share price of last month’s BNPL darlings, Sezzle and Zip continued to fade. Sezzle fell 12.5% to $0.72c and is trading 54% below July’s $1.49 high. Zip fell 5.8% to $1.06, and its share price is trading about 40% below July’s $1.72 high. Going the other way, Life 360 added 4.9% to $5.77 following the release of its first half results today.

The Consumer Staples sector gained, supported by takeover target Tassal group which added 5.2% to $5.14 after an earnings surprise. Bubs Australia added 4.8% to $0.66c, Blackmores added 1.46% to $79.83 and Graincorp added 1.35% to $8.13.

Bio-Tech giant CSL has led the Healthcare Sector higher ahead of its earnings report due tomorrow morning, adding 1.26% to $196.90. Ramsay Health Care added 1% to $72.30, Resmed added 0.81% to $33.67, and Cochlear added 0.3% to $220.69.

The Real Estate Sector has given back a chunk of yesterday’s gains led lower by Shopping Centres Australia, which fell 4.9% to $2.81 after its earnings report. REA fell 1.38% to $133.01; Stockland Group fell -0.91% to $3.83; Charter Hall Group fell 0.93% to $12.81.

The fallout from yesterday’s disappointing earnings report from Bendigo Bank has continued today as its shares fell 5.11% to $9.38. ANZ fell 0.52% to $23.91; Westpac fell 0.45% to $22.33. NAB added 0.24% to $30.89 while CBA and Macquarie added 0.9% and 1.2% respectively.

Beach Energy’s disappointing earnings report yesterday has seen its share price fall 5% to $1.56. Woodside Energy fell 1.76% to $32.06 after the price of crude oil dropped below $89.00 on weak economic data out of China, and the U.S. Santos fell 0.56% to $7.06.

After extending its rally this week above the critical psychological 7000 level, the ASX200 is eyeing crucial resistance at 7161, coming from the 200-day moving average – a level the ASX200 has not closed above in 15 weeks.

Source Tradingview. The figures stated are as of August 16th, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

This content will only appear on Forex websites!

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.