ASX 200 afternoon report: August 29, 2023

The ASX 200 trades 32 points (0.46%) higher at 7192 at 3:15 pm AEST.

It's been a familiar story of late. A positive lead from Wall Street on a Monday has translated into gains for the local bourse on a Tuesday. For those keeping records, the ASX 200, after today, will have closed higher for the past ten Tuesdays in a row. A statistic more notable given the ASX 200 was at one point this month down over 4.3%.

Materials sector

The materials sector has led today's rally after mining heavyweight Mineral Resources jumped 6.8% to $68.72 after it released its Full-year earnings, which included a bigger dividend on a 40% increase in Revenue.

• Fortescue rebounded by 1.76% to $20.22 after it dropped 5% yesterday
• Rio Tinto gained 1.12% to $109.90
• BHP added 0.90% to $43.94

Building Materials company, Adbri felt the wrath of shareholders after its earnings report saw its share price fall 13.69% to $2.36. Despite robust earnings and revenue growth, the company elected not to pay a dividend to help reduce debt and pay for capital projects.

Financial sector

The big banks are all trading higher as volatility in the bond market subsides ahead of key inflation data in Australia tomorrow. The market is looking for the Monthly CPI indicator to fall to 5.2% YoY from 5.4% in June. An inline or softer-than-expected number will see the RBA stay on hold in September. Currently, there are just 5bp of rate hikes priced before year-end.

• Macquarie up by 1.21% to $174.56
• ANZ up by 0.69% to $24.75
• Westpac up by 0.75% to $21.53
• NAB up by 0.25% to $28.33
• CBA traded 0.03% higher at $100.81

Gold shares

Gold stocks are trading higher, as the price of bullion rose above $1920 following a gentle retracement in the US dollar after its strong run higher of late.

• Gold Road Resources surged 5% to $1.73
• Silver Lake Resources gained 4.4% to $0.95c
• Perseus Mining gained 4.24% to $1.85

Technology sector

An earnings beat from EML Payments' has seen its share price surge 28.86% to $0.96, taking the fellow payments company Tyro along for the ride as it gained 13.78% to $1.28. The BNPL company Zip bravely attempted to reclaim a semblance of its former glory days, gaining 6.06% to $0.35 after noting it was on track to hit profitability during the 1H 2024. The market remains skeptical, with Zip's share price trading at levels last seen in 2015.

ASX 200 technical analysis

After its sell-down in August, the ASX 200 has since rebounded from ahead-of-range lows 7050/00. While above range lows, we expect further rotation with the ASX 200s well-worn range between 7370ish and 7000.

ASX 200 daily chart

• _{TradingView: the figures stated are as of August 29, 2023. 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.}