ASX 200 afternoon report: 16th of February 2023
Find out all the latest information on the ASX 200. Updated as of 16th February, 3.00 pm AEDT.
The ASX 200 trades 59 points (0.81%) higher at 7411 at 3.00 pm Sydney time.
Building on a positive lead from Wall Street, the ASX 200 found another gear higher following the release of softer-than-expected Australian labour market data.
Employment declined by 12k in January, the second negative print in a row, while the unemployment rate rose from 3.5% to 3.7% in January, to be just 0.1% below the RBA’s 3.8% end-of-year forecast. The rise in the unemployment rate came despite the participation rate dropping to 66.5%, falling further from the 66.8% high of November.
Despite the possibility of some seasonal effects in play over the holiday season, the RBA, currently under fire, will take some relief from the notion that the unemployment rate troughed in October at 3.4% and that there is further evidence of cooling in the labour market.
The Consumer Discretionary sectors led the charge higher, responding to the softer jobs data and lower bond yields. Super Retail Group added 3.5% to $12.39, supported by a strong earnings report showing profits surged 30%. Kogan added 1.9% to $3.77, Nick Scali added 2.6% to $10.42, and Myer added 2% to .88c.
IT stocks gained, led by Afterpay owner Block which added 8.96%. Fellow BNPL stock Zip added 8.11% to $0.60c, Megaport gained 7.6% to $6.37, and Sezzle added 7.27% to $0.59c.
After yesterday’s horror show, three of the big banks have been able to steady the ship. NAB added +0.97% to $30.65. ANZ added 0.73% to $24.96, and Westpac added 0.43% to $22.93.
The share price of CBA remains under siege, trading down another 0.8% at $102.96 ahead of its ex-dividend date. AMP fell 13.75% to $1.13 on news of investment losses and more outflows from its superannuation business.
Another tough day for coal mining stocks. New Hope coal fell 4.2% to $5.49, and Whitehaven coal fell 3.54% to $7.90 after their earnings updates missed the mark. Yancoal fell 3.12% to $5.59, which is affected by the NSW government’s new price cap policy under which Yancoal will not be compensated for the difference between market and price cap rates.
After its rampaging run higher during the opening weeks of 2023, we shifted from a bullish view to a more cautious one in late January and suggested cutting longs ahead of the bull market 7632 high. Last week’s more hawkish-than-expected RBA meeting reinforced the pullback view, further amplified by a number of 1H 2023 earnings landmines.
We will look to start rebuying towards the 7200/7000 support area (uptrend support from the October 6411 low and the 200-day moving average), which represents a 5-7% pullback from the February highs.
ASX 200 daily chart
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Explore the markets with our free course
Learn how shares work – and discover the wide range of markets you can spread bet on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade on over 13,000+ popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.