Market wraps 10th November 2020

Morning Bell - Jessica Amir - Jessica Amir

The local futures are suggesting the Aussie share market will lift 2.7% at the open.

Overnight, a vaccine developed by Pfizer and BioNTech is 90% effective in treating COVID-19. As a result, cyclical stocks saw huge gains, on hopes that a V-shape recovery may be on track. Airlines and banks soared, while stay at home stocks lagged.

Elsewhere, Oil soared 8.5% to US$40.40, while the safe-haven Gold lost a fair bit of investment, falling 4% to US$1,866.

What to watch today

  • Cyclicals like travel stocks Qantas (ASX:QAN), Corporate Travel Management (ASX:CTD) and Flight Centre (ASX:FLT) are likely to rally today. Along with banks like Macquarie (ASX:MQG), and the big four CBA, ANZ, WBC, NAB.
  • Companies that are in trial phase of a vaccine locally, particularly CSL (ASX:CSL) which has kicked off production of 30 million doses of a vaccine.
  • Mesoblast (ASX:MSB) might be worth a look as it’s in phase three trials for a COVID-19 vaccine and is working on treating a rare disease in children, graft versus host disease for bone marrow transplants.
  • Those that will likely lag today, including gold stocks and tech giants.
  • Companies reporting results: James Hardie (ASX:JHX) and Incitec Pivot (ASX:IPL).
  • AGMs: Domain (ASX:DHG) & Ingenia (ASX:INA).

Trading ideas:

  • Bell Potter increased Uniti Group (ASX:UWL) Buy rating and target to $1.80 (implying 30% upside) with the Telco set to buy smaller competitor Opticomm. UWL shares are up 19% in 7 days.
  • UBS reiterated Tabcorp (ASX:TAH) as a Buy with a $4.70 target. From a technical perspective – Tabcorp’s shares look like they could move higher, the 50-day moving average price crossed the 200 day.
  • Los Corros (ASX:LCL), Pointsbet Holdings (ASX:PBH) and Praemium (ASX:PPS) are all showing bullish charting signals according to Trading Central.