ASX200 Afternoon Report August 15th 2022

The ASX200 trades 41 points higher at 7074 at 3 pm Sydney time.

The ASX200 has stormed out of the blocks, looking to notch up a fifth straight week of gains for the first time since May 2021, shaking off news that a group of U.S. lawmakers were flying to Taiwan to meet Taiwanese President Tsai Ing-wen.

The Real Estate Sector added 1.88% as Mirvac Group added 3% to $2.19, Charter Hall Group added 2.5% to $12.74, Goodman Group added 1.73% to $20.54, Domain Australia added 1.74% to $4.09, while Stockland Group added 1.44% to $3.88.

Shrugging off a -0.3% fall in Nasdaq futures following their reopening this morning, the IT Sector has climbed by 1.55%. Megaport added 9.43% to $8.65, Novonix added 3% to $3.08, Wisetech Global added 2.55% to $54.21 and Xero added 2.25% to $96.88.

The PBOC’s surprise 10bp cuts to the 1yr MLF and 7-day reverse repo rates have helped the Materials Sector offset another round of dour Chinese economic data. Industrial output, retail sales and fixed asset investment all were weaker than expected.

Blue Scope Steel added 5.7% to $17.85 after taking advantage of strong steel prices to double its net profit to $2.81bn. Mineral Resources added 2.65% to $60.92, Lynas Rare Earths added 1.75% to $9.89, FMG added 1.5% to $19.22, and BHP added 1% to $39.20.

The Financial Sector has fallen, led by an 8.95% decline in Bendigo Bank to $9.86 after it released its Full Year results which noted interest rate margins (NIM) declined by 11bp to 1.69%. Westpac fell 1% to $22.42, NAB fell 0.1% to $30.75. CBA rose by 0.37% to $100.71; Macquarie rose by 1.45% to $181.18.

Last week’s best performer, the Energy Sector, has fallen -0.7% as Beach Energy fell 12.3% to $1.62 after it reported earnings well below market expectations and noted higher than expected costs. Cooper Energy fell 3.26% to $0.22c and Woodside energy fell 0.27% to $32.70.

Topping off a busy day, Lithium stocks have been at it again as Core Lithium surged 10% to $1.62 following an investor update. Lake Resources added 6.5% to $1.47, Galan Lithium added 4.73% to $1.44, and Iluka Resources added 1.4% to $10.26.

After consolidating its foothold above the critical psychological 7000 level last week, we are open-minded that the ASX200 has scope to extend its rally towards the 200-day moving average at 7166.

Source Tradingview. The figures stated are as of August 15th, 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

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.