ASX 200 afternoon report: 28 May 2024

The ASX 200 trades 20 points (-0.27%) lower at 7767 at 3.00 pm AEST.

The ASX 200 has given back one-third of yesterday's 60 points of gains after holidays in the US and the UK overnight undermined conviction to reclaim the 7800 level.

However, with three trading days left before the end of the month and the ASX 200 up a modest 1.35% month to date, there is still ample time for the ASX 200 to polish and improve its position on the scorecard, which shows the Nasdaq out front with a gain of 7.84% MTD.

Following another weak retail sales print today, the source of possible month-end strength is unlikely to be the ASX 200 consumer discretionary sector. Retail Sales in April rose 0.1% month-on-month (MoM) following a fall of -0.4% in March.

Ben Dorber, ABS head of retail statistics, said: "Underlying retail spending continues to be weak, with a small rise in turnover in April not enough to make up for a fall in March. Since the start of 2024, trend retail turnover has been flat as cautious consumers reduce their discretionary spending".

ASX 200 stocks

Consumer-facing stocks

• Baby Bunting: -1.06% to $1.40
• Kogan: - 0.87% to $4.58
• JB Hi-Fi: - 0.86% to $57.52
• Super Retail Group: - 0.84% to $13.00.
• Temple and Webster: + 3.46% to $10.17, buoyed by a $30 million buyback

Banking sector

Ahead of tomorrow's release of the monthly CPI indicator, which is expected to ease in April to 3.4% year-on-year (YoY) from 3.5% prior, the banks have enjoyed mixed fortunes.

• Macquarie Bank: - 0.92% to $191.81
• Westpac: - 0.52% to $26.61
• CBA: - 0.16% to $119.81
• NAB: + 0.16% to $34.28
• ANZ: + 0.11% to $28.46

Iron ore sector

The big miners have eased as the price of iron ore fell overnight to $119.25 (-1.29%) per tonne.

• Fortescue: - 0.25% to $26.44
• Mineral Resources: - 0.25% to $74.92
• Rio Tinto: - 0.25% to $131.35
• BHP: - 0.07% to $45.12, as the clock ticks down on its May 29 deadline to make a firm bid for Anglo-American or walk away for six months.

Uranium stocks

• Boss Energy: - 11.52% to $4.72 after several insiders, including the CEO and MD, reported selling a large chunk of their shareholdings
• Bannerman Energy: - 3.41% to $4.25
• Deep Yellow: - 2.44% to $1.60
• Silex: -0.67% to $5.95

ASX 200 technical analysis

The ASX 200 has spent the past two and half weeks spinning its wheels below resistance at 7910 (from the early April high) and above a strong band of support 7720/00 area. A sustained close above 7910 and then above the weekly trend channel resistance, currently at 7975ish, is needed to move to a bullish bias. Aware that weakness below support at 7720/00 would warn that the ASX 200 has carved out a double top at 7900/10, and a deeper pullback is underway towards 7500/7400.

ASX 200 daily chart

• _{Source TradingView. The figures stated are as of 28 May 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.}