ASX200 Afternoon Report April 26th 2022

A sea of red as the ASX200 plunged 142 points today to be trading at 7330.60, with all sectors losing ground on the day.

The Energy and Mining sectors have led the wipe-out over fears for the outlook for crucial commodity and energy exports as the Covid-19 lockdown in Shanghai enters the fourth week and looks set to spread to Beijing after a mass testing blitz.

Mineral Resources (MIN) plunged 11% to $54.00. Fortescue Metals (FMG) fell 6.7% to $19.80. BHP Group (BHP) fell 5.24% to $45.93 and is now 14.5% below last week’s high. Rio Tinto (Rio) lost 3.57% to $109.58.

The large coal mining names were also savaged. Whitehaven Coal (WHC) fell 7.25% to $4.35, Coronado Coal (CRN) fell 5.36% to $2.12, while New Hope Coal (NHC) fell 2.71% to $3.23.

China's pursuit of Covid Zero and associated mobility restrictions have sent the Crude oil price back below $100, a move that has weighed on the oilers.

Beach Energy (BPT) fell 3.47% to $1.60, Santos (STO) fell 4.5% to $7.82, while Woodside Petroleum (WPL) fell 5% to $30.44, compounding an already rough day by reporting an earnings miss.

After a 5% fall last week, the IT sector has had another messy day, falling a further 1.73%.

EML (EML) payments fell 38% to $1.70 after issuing a profit warning on "operational execution issues" in Europe. Sezzle (SZL), dropped 7.8% to $0.89c, Tyro Payments (TYR) fell 6.8% to $1.29, Zip (ZIP) fell 2.73% to $1.07, retesting its March 2020 $1.05 low. Wisetech Global (WTC) fell 2.8% to $44.55. Life 360 (360) and Block (SQ2) both bucked the trend to close higher by 1.5% and 2%, respectively.

A tough day for the big banks ahead of the release of Q1 Australian inflation data tomorrow, which is expected to see the RBA's preferred measure of inflation rise above its 2-3% band for the first time since 2010.

National Australia Bank (NAB) fell 1.45% to $32.65. Westpac (WBC) fell 1.3% to $23.89, ANZ fell 0.6% to $27.61, Commonwealth Bank (CBA) fell 0.4% $104.95.

Carnage also in Lithium stocks. Galan Lithium (GLN) fell 10.4% to $1.73. Liontown Resources (LTR) fell 7.8% to $1.45, Allkem (AKE) fell 6.90 to $11.88, while Iluka Resources (ILU) fell 6.6% to $10.45.

The AUDUSD is trading higher at .7225 after Chinese authorities pledged more support for their economy and the Chinese currency, the RMB strengthen for the first time in six sessions.

Source Tradingview. The figures stated are as of April 26th, 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

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