Market wraps 1st July 2020

Morning Bell - Jessica Amir

The Aussie share market is eyeing a muted start with the futures suggesting a 0.1% fall at the open to kick off the new financial year and quarter. Yesterday the ASX200 ended the second quarter of the year up 16.7%, the best quarterly rise since 2009. 

Wall Street wrapped up the June quarter on a high with the Dow Jones gaining 17.8%, the best quarterly gain since 1987.

What to watch today:

  • Manufacturing data for June is out with the sector set to remain in contractionary phase. Building approvals are out and expected to fall 10% given the numbers are from May.
  • COVID-19 restrictions ease heavily today in NSW with pubs and cafes to allow max capacity, weddings and public gatherings can have up to 20 people, funerals can have up to 50 people and community sport can kick off. So watch companies like Coca-Cola Amatil (ASX:CCL), Woolworths (ASX:WOW) and Coles (ASX:COL) with food and beverage demand to tick up.
  • Alot of ETFs go ex-dividends today, including (ASX:VGS) a popular global investment, and (ASX:VAS) which invests in the ASX300.

Local Trading ideas:

  • UBS rated KFC franchisee Colins Foods (ASX:CKF) as a buy following its stronger than expected results in this challenging environment. UBS upgraded its outlook suggesting its price will grow to $10.65.
  • UBS reiterated IDP Education (ASX:IEL) as a long term growth stock with a $18.20 target.
  • After Telstra (ASX:TLS) lifted mobile prices, UBS also reiterated the telco giant as a buy with a $3.70 target.