ASX200 Afternoon Report April 27th 2022

Overnight turbulence on Wall Street overnight has transpired into a third straight session of losses for the ASX200, trading 60 pts lower at 7258 at 3.30 pm Sydney time.

Savage corrections over the past week in the big miners, including BHP Group (BHP) - 15%, Mineral Resources (MIN) –15%, Rio Tinto (Rio) -12%, and Fortescue Metals (FMG) -11.75%, saw buyers swoop to take advantage of discounted valuations.

Fortescue Metals (FMG) added 1.27% to $20.02. Mineral Resources (MIN) added 1.06% to $55.25. BHP Group (BHP) added 0.80% to $46.03, while Rio Tinto (Rio) added 0.20% to $109.58.

Coal mining, oil and energy stocks rebounded strongly as Russia looks set to make good on its threat to cut off natural gas supplies to Poland and Bulgaria because they refuse to pay for gas imports in rubles.

Whitehaven Coal (WHC) added 5.912% to $4.66, New Hope Coal (NHC) added 2.93% to $3.33, Coronado Coal (CRN) fell 5.36% to $2.12 while Yancoal added 2% to $5.05.

Origin Energy (ORG) added 1.3% to $6.63, Woodside Petroleum (WPL) lifted 1.17% to $30.96, Santos (STO) added 1.15% to $7.89, and Beach Energy (BPT) added 0.80% to $1.60.

The local IT sector was run over again after the tech-heavy Nasdaq plunged 4% overnight, wiping out its 30% gain between March and November last year.

Compounding the pain in today’s session, Life 360 (360) fell almost 30% to $3.80 after it cited changed market conditions to halt its US listing. Sezzle (SZL) dropped 7.8% to $0.83c, Block (SQ2) fell 5.84% to $140.17, Zip (ZIP) fell 4.91% to $1.02 still fighting to stay above the psychologically important $1.00 level. EMP Payments (EML) fell another 4.2% to $1.59.

The release of March Quarter inflation data smashed already elevated expectations. Headline CPI rose by 2.1% QoQ and 5.1% YoY, shattering the median consensus for a rise of 1.7%qoq or 4.6%yoy and heightened expectations the RBA will raise interest rates at its monthly board meeting next week for the first time since 2010.

The prospect of earlier rate hikes and surging inflation weighed on the big banks. ANZ fell 2.6% to $27.05, Westpac (WBC) fell 1.72% to $23.49, National Australia Bank (NAB) fell 1.75% to $32.18., Commonwealth Bank (CBA) fell 1.56% $103.11, while Macquarie (MCG) fell 1.61% to $27.04.

Despite a recovery in the price of gold back above $1900, it’s been a tough day for the goldies.

Northern Star (NST) missed production estimates out of its flagship mine in Kalgoorlie and warned investors of rising costs. The share price fell 4.75% to $9.73. Elsewhere Evolution Mining (EVN) fell 2.56% to $4.00. Newcrest Mining (NCM) fell 1.8% to $26.98.

A mixed day for Lithium stocks. AVZ Minerals (AVZ) fell 5% to $1.00, Lake Resources (LKE) fell 3.2% to $1.96, Galan Lithium (GLN) fell 2.9% to $1.69. Elsewhere, Allkem (AKE) added 0.5% to $11.90, while Iluka Resources (ILU) added 1.1% to $10.54

Source Tradingview. The figures stated are as of April 27th, 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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