ASX200 Afternoon Report August 17th 2022

The ASX200 trades 19 points higher at 7124 at 3.20 pm Sydney time.

The ASX200 has extended its gains from the June lows today despite index heavyweight CBA trading ex-dividend and a drop in the share price of CSL after it reported a fall in earnings.

The Consumer Discretionary Sector supported the rally as Super Retail Group added 6.36% to $10.87 after reporting record sales. Wesfarmers added 2.6% to $49.16, Harvey Norman added 1.6% to $4.43, and Star Entertainment added 0.86% to $2.92.

The Real Estate sector was another winner today, despite the Domain group falling 5.2% to $3.84 after providing weaker guidance. Charter Hall Group added 2.36% to $13.00, Goodman Group added 1% to $2.87, and Mirvac Group added 0.7% to $2.19.

Coal Mining stocks have gained after the price of alternative energy source natural gas climbed by 7.25% in overnight trading. New Hope coal added 3.4% to $4.53, Whitehaven coal added 3.48% to $6.84, and Yancoal added 2.63% to $5.46.

Elsewhere in the Materials Sector a mixed day for the mining giants. FMG fell 0.7% to $19.28, Rio Tinto gained 0.38% to $96.29, and BHP added 0.42% to $40.68.

The Financial Sector gained after the release of softer than expected Wages data, which showed a rise of 0.7% for Q2 and suggests the labour market remains in good shape. NAB added 1.06% to $31.38, Westpac added 0.72% to $22.50. ANZ added 0.44% to $23.94. CBA fell 1.56% to $99.90 after going ex-dividend, while Macquarie traded flat at $182.70.

The share price of Santos fell 1.84% to $6.96 after missing earnings expectations despite reporting an 85% increase in revenue and a 300% jump in underlying profit to US$1,267mn.

Finally, the woes of funds manager Magellan have continued as its share price fell 6.8% to $14.01 after a year of underperformance and outflows that weighed on its earnings.

After extending its rally above 7100, 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. I expect this level to attract sellers and cap the market on its initial attempts.

Source Tradingview. The figures stated are as of August 17th, 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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