ASX 200 afternoon report: 23 January 2024

The ASX 200 trades 44 points (+0.59%) higher at 7520 at 2 pm AEDT.

The ASX 200 has enjoyed a third consecutive session of gains and is on track for its highest daily close since the opening session of 2024.

Gains today came courtesy of supportive tailwinds from Wall Street and as the NAB business confidence index improved to -1 in December from a revised -8 the prior month.

Within the key sub-indices, softer readings were noted across final prices, capacity utilisation, employment and labour costs – a mix that will meet the RBA's approval.

Today’s market movement

Health care sector

The health care sector extended its rebound from its November lows. Its gains were led by:

• Ansell: +1.56% to $24.05
• Ramsay Health Care: +1.37% to $26.91
• Cochlear: +1.07% to $302.28
• CSL: +1% to $293.43

Banking sector

• Macquarie Bank: +2.15% to $187.99
• NAB: +0.85% to $31.90
• Westpac: +0.83% to $23.65
• ANZ: +0.60% to $26.66
• CBA: + 0.60% to $115.49 after printing a new fresh record high at $115.98 earlier in the session

Energy sector

Despite crude oil posting its first daily close above $74 in four weeks, it's been a disappointing day for energy stocks.

• Strike Energy: -4.89% to $0.44c
• Beach Energy: - 0.97% to $1.53
• Woodside Energy: -0.16% to $31.09

Iron ore mining sector

The big iron ore miners, who dived approximately 10% in the opening weeks of 2024, have extended their rebound, led by:

• Fortescue: +1.22% to $28.16
• BHP: +1.13% to $46.37
• Rio Tinto: + 0.18% to $128.26

Lithium sector

The Lithium sector remains volatile and not for the faint of heart.

• Iluka: +4.16% to $6.77
• IGO: +4.06% to $7.30
• Galan Lithium: +1.92% to $0.53c
• Liontown Resources: - 2.66% to $0.91c, extending its decline following news yesterday that banks had withdrawn a $760 million funding offer.

ASX 200 technical analysis

After the ASX 200 failed in early January to break the August 2021 7632 high, we moved to a neutral/cautious stance, looking for a correction to develop from three-year range highs.

While we were looking for a slightly deeper pullback, the ASX 200's 330-point (4%) pullback to last week's 7322 low likely completed the pullback we were looking for.

This interpretation suggests a retest of the 7633 double top is likely in the coming sessions. Nonetheless, we remain neutral while the ASX 200 remains below range and year-to-date highs.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 23 January 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.}