9th July 2020
Morning Bell - Jessica Amir
The Aussie share market looks set to bounce 0.9% higher at the open.
U.S. equities dusted off their knees and attempted to recoup their losses from the prior session. Stay at home stocks soared. Apple shares lifted 2.3% to a new all-time high after Deutsche Bank rose its price target, Microsoft followed up 2.2%, also hitting a new record high. These tech darlings helped the Nasdaq forget about the prior day’s slip, ending 1.4% higher at a brand new record high of 10,493 points.
What to watch today:
- After BHP rose 2% in London overnight, keep an eye on the Aussie listed BHP (ASX:BHP) and other majors like Fortescue Metals (ASX:FMG) and Rio Tinto (ASX:RIO).
Local trading ideas:
- UBS reiterated its buy rating on Independence Group (ASX:IGO) with a price target of $6.20. The Aussie miner reported stronger than expected preliminary copper and cobalt March quarter production results, while nickel production was closer to consensus it was lower than UBS forecasts.
- UBS reiterated its buy rating on Select Harvests (ASX:SHV) with a $7.75 target, while Bell Potter dropped its buy rating to a hold with a $6.10 target. The almond grower has been hit by wet weather which increased its costs allowing drying time, despite that, conditions are at their “best” in the last three years.
- Bell Potter upped its buy rating for dentist group Pacific Smiles Group (ASX:PSQ), increasing its target to $1.75. Pacific Smiles Group signed a 10 year deal with HBF that will accelerate its margin growth, effectively meaning its profits.