The report card on ASX200 companies: Aussie businesses are not doing as bad as feared

Jessica Amir joined discussion · Aug 14 03:07

So far 54 of the ASX200 companies reported earnings so far. And the good news is, so far sales and earnings are better than expected and that's supporting our Aussie share market which today moved up 0.3%, back over its 50-day simple moving average - which could be seen as a bullish signal. Plus we are also seeing the technical indicator the MACD, suggest buying could pick up here.

Remember, the market typically moves up in reporting season, when companies deliver better than expected results and upgrade their earnings. And today's 7 out of the 8 ASX200 companies that reported today, supported this notion with CBA $CommBank (CBA.AU)$, AGL $AGL Energy Ltd (AGL.AU)$, Seven Group $Seven Group Holdings Ltd (SVW.AU)$, Evolution Mining $EVN, Amotiv (AOV), Orora (ORA) and Pro Medicus (PME) reporting better than expected earnings. While HomeCo (HDN) was the only that underwhelmed. So we all like good surprises and that moved the markets needle up.

Overall, the average ASX200 company has reproted sales are up 2% (which is 1% better than expected) and average earnings have only fallen 1.1%. That's a good thing. Coming into earning seasson, average earrnings were expected to fall over 3%. So Aussie businesses are not doing as bad as feared. And that's supporting the market move up.