Market wraps 31st August 2021

Morning Bell - Jessica Amir

US stocks surged to new records again overnight, as investors seek out higher growth assets ahead of the Fed scaling back stimulus.

The Aussie share market will likely rally for the second day. The futures are suggesting a lift of 0.2%, with all eyes on tech stocks, reporting season and economic news.  

What to watch today:

  • Building permits for July will be released today, with the market expecting a fall of 5%. Keep an eye on companies such as Brickworks (ASX:BKW), CSR (ASX:CSR), Boral (ASX:BLD) and other companies in the building material industry.
  • The iron ore price is steady at US$160. However, the short term indicators are flagging that the iron ore price should start to bounce back.
  • The copper price rose 1.1%, which supported New York listed BHP, rising 1.6%, and New York listed RIO followed. Watch Aussie listed BHP (ASX:BHP), Rio Tinto (ASX:RIO) and other iron ore and copper stocks.
  • The oil price steadied at US$69.17.
  • Company earnings today:
    • Regis Resources (ASX:RRL) reported a 27% fall in profit to $146 million. The market expected profit of $156.5 million.
    • Sandfire Resources (ASX:SFR) reported record profit. Net profit rose 132% to $170.1 million, falling slightly short of market expectations of $200.8 million profit.
    • Regis Healthcare (ASX:REG) reported profit soared over 2000% to $19.9 million.
  • Companies going ex-dividend today: Appen (ASX:APX) and Link Administration (ASX:LNK)
  • One of the most traded stocks by Bell Direct clients yesterday was Fortescue Metals (ASX:FMG). FMG shares rose 6.6%, trading above its 15-day average for the first time since July. The technical indicator MACD, looks like it will flag a bullish signal, suggesting FMG’s rally could continue in the short term.

Trading Ideas:

  • Drilling company DDH1 (ASX:DDH) was reiterated as a Bell Potter BUY, with an increased price target of $1.48 (previously $1.45), implying 30% share price growth in a year.
  • Citi flagged Flight Centre (ASX:FLT) as a HOLD, following its results. Citi also increased FLT’s price target to $16.94.
  • Paladin (ASX:PDN), Red 5 (ASX:RED) and Perseus Mining (ASX:PRU) are all giving off bullish charting signals, according to Trading Central.