Market wraps 13th January 2021

Morning Bell - Jessica Amir

The ASX200 is eyeing a fall of 0.1% at the open. The expected pull back comes as Aussie scientists are calling for the AstraZeneca vaccine rollout to be paused given it’s only 62% effective. The Aussie Government pre-bought 54 million doses of the AstraZeneca vaccine, however Scientists say they prefer the Pfizer and Moderna vaccines as they are 95% effective.

Broad market sentiment remains high with the economy expected to recover this year, as a vaccine is said to be available in Australia as early as February.

What to watch today:

  • Oil gained 1.7% overnight rising to a new 11-month high of US$53.17.
  • Lithium stocks as the lithium price is clawing out of a 2-year bear market.

Local trading ideas:

  • Citi increased Afterpay’s (ASX:APT) price target to $115 but maintained the stock as a hold, noting app downloads somewhat slowed in December.
  • UBS reiterated CSL (ASX:CSL) as a buy with a $346 target. 21 blood-plasma collection centres have opened since July last year and UBS thinks CSL is on track to reach its FY21 target opening 20-30 centres as vaccine rollouts continue.
  • Super Retail Group (ASX:SUL) was upgraded to a buy from a hold by UBS.
  • ARB Corp (ASX:ARB), Race Oncology (ASX:RAC) and Think Childcare (ASX:TNK) are giving off strong bullish charting signals according to Trading Central.