ASX 200 afternoon report: 15 February with CSL and CBA earnings results

The ASX 200 trades 54 points (+0.72%) higher at 7604 at 3.30pm AEDT.

Today, the ASX 200 snapped a three-day losing streak, helped along by another batch of stronger-than-expected earnings reports and a soft jobs report.

Focusing on today's employment data for January, the Australian economy added just 0.5k jobs, compared to the expected 25k gain. The unemployment rate climbed to 4.1%, marking the highest level since January 2022 – exactly two years ago!

This is despite the Australian Bureau of Statics noting some potential seasonal issues in January,

"January is a popular month for people to take annual leave. Compared with January surveys before the pandemic, we again saw a higher proportion of employed people working no hours because they were on leave."

The underlying trend is for cooling in the labour market, and we reaffirm our call for two 25bp RBA rate cuts in 2024, the first coming in August.

Highlights of today’s earnings season

Turning to today's earnings season highlights, Origin Energy's share price has increased by 2.68% to $8.79 following a report that its underlying earnings rose by 88% to $1.99 billion. Fund manager Magellan's share price jumped 5.21% to $9.40 as it announced its statutory net profit after tax (NPAT) grew by 24% to $104.1 million.

Wesfarmers' share price climbed 4.89% to $61.82 after record earnings from Kmart and Target contributed to an interim profit of $1.42 billion. In contrast, Telstra's share price dropped 2.26% to $3.90 despite reporting a $1 billion profit, as its earnings fell short of expectations.

In merger and acquisition (M&A) news, software maker Altium's share price surged 28.44% to $65.85 following a takeover offer from Japanese chip manufacturer Renesas Electronics Corporation, which values the company at $9.1 billion.

CSL and CBA's earning results

Biotech giant CSL snapped a three-day losing streak, adding 0.66% to $282.00. CSL shareholders have been left dazed after the company's share price dived almost 10% earlier this week on news of a failed phase three drug trial, and its earnings report failed to excite.

Fellow index heavyweight CBA was another to rebound today, gaining 0.53% to $114.67. Disappointment over the company's 3% decline in net profits to $5,019 million and a 6bp compression in its NIM to 199bp sent the share price tumbling over 4.5% lower at one point yesterday.

Today's market movement

Mining sector

Rounding out the day's action, the big miners have struggled for direction with much of Asia still out for China's Lunar New Year holidays.

• Fortescue: + 1.16% to $28.01
• Mineral Resources: + 0.67% to $57.26
• Rio Tinto: - 1.11% to $126.83
• BHP: -2% to $45.03

ASX 200 technical analysis

Yesterday's sell-off provided an initial indication that the post-CPI rally to the 7703.6 high was a false breakout from the top of a three-year range. Further confirmation would come from a sustained break below the uptrend support, viewed on the chart below, around the 7510 mark. Should the ASX 200 reclaim resistance at 7630/7650, it would suggest that the ASX 200 is poised to test the upper limits once again.

ASX 200 daily chart

• _{Source: Tradingview. The figures stated are as of 15 February 2024. 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.}