ASX 200 afternoon report: 22 February 2024

The ASX 200 trades 1 point (-0.02%) lower at 7607 at 3pm AEDT.

The contrast between the ASX 200, and its large concentration of dowdy yet "reliable" financial and resource stocks, and the new world of AI and tech stocks has been laid bare today.

Nvidia earnings surge sparks AI rally, shares soar after initial dip

The local bourse mostly sidelined in trading today, despite AI chip maker Nvidia's lights-out earnings report, which will likely provide the basis for the next chapter of the AI frenzy that has driven Wall Street to new highs in 2024. Nvidia's share price initially fell over 3% after the report before rebounding to be trading over 9% higher at $735.94 in after-hours trading.

Unfortunately, there was to be no Lazarus-like rebound for ASX-listed Tabcorp, whose share price dived -15.86% to $0.61c as its EBITDA fell 14% to $170 million in the 1H FY 2023. Nor for the Reject Shop whose share price plunged -14.31% to $4.61 after net profit fell 11% to $14.5million.

Today’s market movement

ASX 200 stocks

Other ASX 200 stocks that suffered post-earnings setbacks included:

• Super Retail Group: -5.75% to $15.75
• Medibank: -4.27% to $3.70
• Qantas's share price fell -2.33% to $5.46 as its underlying profit fell 12.8% to $1,245 million on rising customer costs and as airfares continue to normalise
• Mining heavyweight Rio Tinto fell -0.95% to $124.60 despite reporting a full-year profit of $US10.1B and a larger dividend than expected

Other stocks

Better news for Bega Cheese, as its share price soared 15.49% to $4.10 on a 20.25% increase in EBITA to $86.1 million for the 1H FY2023. Fortescue gained 1.23% to $27.58 after it reported a 41% rise in NPAT to US$3.3B and a dividend of AU$1.08 per share.

Banking sector

Aside from earnings news, the big banks have been a drag on the index.

• NAB: -0.71% to $33.37
• ANZ: -0.75% to $27.89
• CBA: -0.58% to $113.98
• Westpac: -0.46% to $25.77

Lithium sector

In recent days, Lithium stocks have been trying to carve out a base but found it all too much today.

• Galan Lithium: -4.93% to $0.33c
• Liontown: -1.76% to $1.11
• Pilbara: -1.23% to $3.61
• Vulcan Energy: -1.45% to $2.04

ASX 200 technical analysis

The decline from the early February 7703’s high to last Tuesday's 7489 low, unfolded in three waves, usually indicative of a corrective or countertrend move. As such, providing the ASX 200 remains above last week's 7489 low, expect a retest and break of the 7703 high with a scope to 7900.

ASX 200 daily chart

• ^{Source: TradingView. The figures stated are as of 22 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.}