ASX200 Afternoon Report August 16th 2022

Australian flag
Tony Sycmore
By :  ,  Market Analyst

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.

ASX200 Daily Chart 16th of August

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

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