Market wraps 10th July 2020
Morning Bell - Jessica Amir
The Aussie share market is eyeing a 0.4% fall at the open, going by the futures.
The resilient Nasdaq rose 0.5% to hit another new record high helped by Amazon rising over 3% to another record, with Microsoft, Apple and Google-parent Alphabet putting on at least 0.4% each. This has helped the Nasdaq gain 2.7% this week, while the S&P500 is higher by 0.3%
The World Health Organisation (WHO) has published new guidance saying COVID-19 may be transmitted through air particles in crowded and inadequately ventilated spaces, citing “choir practice...restaurants” and fitness classes as examples. Although the WHO says its findings are preliminary, you can’t rule out air transmission.
Local trading ideas:
- UBS rated Vocus (ASX:VOC) as a buy with a $3.60 target, based on valuation, but noted earnings catalysts are potentially negative. Yesterday Vocus closed 0.7% lower at $3.05.
- Bell Potter increased its buy target for Praemium (ASX:PPS) to $0.56 given the software platform looks set to buy listed platform provider PWL for $55.6 million, which will build scale and reinvigorated interest in the stock.
- UBS reiterated its buy rating for CSL (ASX:CSL), but dropped its price target to $331 given the disruptions to its plasma centres in America, due to COVID-19, with UBS expecting donations to fall 20% from April to September, but then pick up.