Market wraps 30th June 2020

Morning Bell - Jessica Amir

The Aussie futures are eyeing a 1.2% lift at the open. Today is the end of financial year, so it could be a volatile day. Wall Street clawed back half of its prior day’s losses on stronger than expected economic data. 

After close of trade, Bank of America, Citi, and Goldman announced they’ll keep their dividends the same, following the Fed’s new stress test, while Wells Fargo will have to cut its quarterly dividends.

What to watch today:

  • Private sector credit data is out.
  • Colins Food (ASX:CKF) reports its full year results.
  • There is lot of ex-dividends today, including tech ETFs (ASX:TECH), (ASX:FANG), (ASX:ROBO) and the biotech (ASX:CURE).

Local Trading ideas:

  • UBS rated Brickworks (ASX:BKW) as a buy, initiating coverage of the Brickmaker, expecting its shares to grow to $17.10.
  • Citi reiterated Coca-Cola Amatil (ASX:CCL) as a buy expecting 15% share price growth as drink consumption begins to fizz up.
  • After Fisher & Paykel Healthcare (ASX:FPH) reported a 30% rise in net profit after tax, its highest growth rate in at least a decade. It also provided stronger than expected FY21 profit guidance levels 2% above consensus, given continued level of COVID-19 related demand. Citi reiterated the stock as a sell, however Fisher & Paykel Healthcare trades at 25 times earnings.