Market wraps 9th October 2020

Morning Bell - Jessica Amir

The Aussie share market is eyeing a lift of 0.4% at the open. All eyes will be on the cyclical sectors tied to economic growth like Energy and Financials which are up the most this week.

Aussie shares are on pace for the best week since April 10 thanks to budget stimulus. U.S. equities are having a good week too on the back of a potential $1,200 payment to individuals.

What to watch:

  • The oil price rose 3% to US$41.29, its highest level in almost 5 weeks.
  • Gold rose 0.3% after U.S. President Trump said he would not do the second presidential debate next week unless it’s face to face, despite Trump being diagnosed with COVID-19 about a week ago.
  • The RBA Financial Stability review will be released today at 11:30am. 
  • Companies going ex-dividend today: Harvey Norman (ASX:HVN), while ETFs going ex-div include IAF, IOF, IGB, and IHD.

Local trading ideas:

  • BINGO (ASX:BIN) was reiterated as a UBS buy, with the international bank increasing BIN’s target price of $3.00.
  • UBS maintained Ramsay Health Care (ASX:RHC) as a hold with a $71.20 target.
  • Pinnacle Investment Management (ASX:PNI), ReadyTech (ASX:RDY) and FINEOS (ASX:FCL) are all showing bullish charting signals according to Trading Central.