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

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