ASX 200 afternoon report: 9 April 2024

The ASX 200 trades 40 points (+0.52%) higher at 7829 at 3.20pm AEDT.

Over the first quarter of 2024, iron ore plummeted by approximately 28%, from nearly $144 per ton to $100 per ton. This placed a heavy burden on the major miner stocks. However, it also presented an opportunity for the ASX 200 financial sector to step up and play a crucial role in pushing the index to new highs, a responsibility it eagerly embraced.

As we move into the second quarter, intriguing signs are emerging that the roles of the heavyweight financial and the materials sector are experiencing a reversal, as stronger-than-expected global PMIs bolster the price of key commodities, including copper, gold, iron ore and crude oil. At the same time, higher bond yields may weigh on the Financials.

ASX stocks

Today's market performance offers some compelling signs for those seeking tangible evidence of a potential shift from the financials to the materials.

Resource sector

• Rio Tinto: + 3.47% to $125.98
• Fortescue: + 2.29% to $25.43
• BHP: + 2.20% to $45.23
• Mineral Resources: + 1.46% to $71.62

Coal mining sector

• Whitehaven Coal: + 4.13% to $7.31
• New Hope: + 2.45% to $4.80
• Yancoal added 1.57% to $5.50, and
• Coronado Global added 0.65% to $1.15

Lithium mining sector

• Liontown: + 8.2% to $1.28
• IGO: + 3.35% to $7.55
• Pilbara: + 2.36% to $3.90

Gold mining sector

• Gold Road Resources: + 1.60% to $1.74
• Perseus Mining: + 1.54% to $2.31
• Silver Lake Resources: + 0.38% to $1.32
• Evolution Mining: + 0.4% to $3.93

Consumer facing stocks

Defying hopes that a more dovish set of RBA meeting minutes and looming tax cuts might be the catalyst for a lift in consumer sentiment, the opposite occurred as consumer sentiment fell 2.4% in April to remain at depressed levels. Concerningly for the retailers spending intentions fell by 6.5% MoM, to the lowest level in nearly a year.

• Myer holdings: - 0.97% to $0.76c
• Dominoes: - 0.58% to $42.73
• Adairs: + 1.10% to $2.30
• Super Retail Group: + 0.91% to $15.55

Banking sector

Rounding out a sector rotation theme, the big banks have had a mixed day compared to their performance in the first quarter.

• Macquarie Bank: - 0.60% to $191.77
• NAB: + 0.52% to $34.64
• ANZ: + 0.55% to $29.38
• CBA: + 0.66% to $118.97
• Westpac: + 0.82% to $26.30

ASX 200 technical analysis

Last week's sell-off saw the ASX 200 gravitate towards uptrend support at 7710, coming from the October 6751 low. Providing the ASX 200 remains above 7710, the uptrend remains in place, and the ASX 200 can continue its ascent towards 7950/8000 before a pullback in late April/early May.

ASX 200 daily chart

• ^{Source TradingView. The figures stated are as of 9 April 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.}