Market wraps 20th October 2020
Morning Bell - Jessica Amir
The futures are suggesting the Aussie share market will pull back 0.7% after the ASX200 scaled to a new 7-month high yesterday, its highest level since the 6th of March 2020. But remember the market is in a technical break out point, trading above its 200 and 50 day moving average, indicating the market is likely to explore higher levels.
What to watch today:
- Reporting today: BHP’s (ASX:BHP) quarterly results with all eyes on China’s alleged Australian coal ban, and Sydney Airport (ASX:SYD) reports September traffic numbers.
- AGMs: Bapcor (ASX:BAP), Cochlear (ASX:COH), Lovisa (ASX:LOV), McMillan Shakespeare (ASX:MMS), Stockland (ASX:SGP) & Tabcorp (ASX:TAH) .
- RBA Assistant Governor of Financial Markets speaks about monetary policy today and the tools to stimulate the economy at 10am.
- RBA minutes will be released at 11:30am.
- South32 (ASX:S32) has been reiterated as a UBS Buy, with a $3.00 price target, after it handed down quarterly results yesterday, bumped up its outlook and reinstated its share buyback program.
- Bell Potter upgraded car repair and aftercare business AMA’s (ASX:AMA) Buy rating, increasing its price target to $0.95, implying 39% upside. Bell Potter says with Victoria’s lockdowns easing, AMA should be able to increase its earnings, forecasting higher earnings than AMA expects.
- Ansell (ASX:ANN) was maintained as a Citi Buy with a $41 target given demand for medical gloves from COVID-19 is tipped to remain high for some time.
- OZ Minerals (ASX:OZL), Orica (ASX:ORI) and Zoono Group (ASX:ZNO) are all showing bullish charting signals - according to Trading Central