Market wraps 21st October 2020
Morning Bell - Jessica Amir
The ASX futures are suggesting the market will lift 0.2% - with the focus on Daniel Andrews opening Victoria’s boarders. This comes after seven of Australia’s largest companies, including BHP, Wesfarmers, CBA and CSL called on the government to open the boarders, saying ‘the current situation is not sustainable’.
Hopes are high for a new U.S. fiscal rescue package to be reached, with House of Representatives Speaker Nancy Pelosi just hours away from handing a deal to the Trump Administration, to hopefully be passed before the election. The benchmark S&P500 ended 0.5% higher, the Dow lifted 0.4% and the Nasdaq rose 0.3%. As for commodities: Oil gained 1.7% to US$41.51 and Gold maintained its foothold around US$1,909.
What to watch today:
- More quarterly results are out today, including for: Lynas Corporation (ASX:LYC), Megaport (ASX:MP1), Sandfire Resources (ASX:SFR), Syrah Resources (ASX:SYR), Atlas Arteria Group (ASX:ALX), and Coronado Global Resources (ASX:CRN).
- AGMs today: AGL Energy (ASX:AGL), MyState (ASX:MYS), Orora (ASX:ORA), Service Stream (ASX:SSM) and Temple & Webster (ASX:TPW).
- Ex-dividends: Acrow Formwork & Construction Service (ASX:ACF), Australia & International Holdings Limited (ASX:AID) and Sandon Capital Investments (ASX:SNC).
- Preliminary retail data is out today. Not likely to move the needle though.
- Bell Potter upgraded costume jewellery business Lovisa (ASX:LOV) as a Buy, increasing its price target to $10.00 , implying 15% upside. LOV held its AGM yesterday, noting same store sales are almost back in the black, while Metro Melbourne stores are set to open on 1 November.
- Zip (ASX:Z1P) was reiterated as a UBS Sell, with a $5.50 price target, after Zip launched ‘Tap and Zip’ allowing people to shop anywhere that accepts Zip.
- Bell Potter downgraded Pacific Smiles (ASX:PSQ) from a Buy to a Hold, but increased its target to $2.05. However Morgan Stanley maintained Pacific Smiles as a Buy with a $2.40 target as the group is expecting fee growth of 20%.
- Uniti Group (ASX:UWL), Structural Monitoring Systems (ASX:SMN) and West African Resources (ASX:WAF) are all showing bullish charting signals - according to Trading Central.