Between the Bells

With several COVID-19 vaccines around the corner, the Aussie share market rose 3.7% this week (Mon-Thu). Better than expected business and economic confidence also helped fuel the charge. And given all eyes are on an economic recovery, portfolio positioning ticked up a notch.In this week’s wrap, Jessica covers:

• (0:24) The three key drivers fuelling Aussie shares to 9-month highs
• (1:09) Sectors: Energy charging up 15% on the oil price rally
• (1:23) Unibail-Rodamco-Westfield (ASX:URW) rising 40%
• (2:22) Global trends: Key indices on the move
• (2:52) BetaShares vs. Morningstar - how these fund managers have changed their investments over the year

The ASX200 is set to fall 0.6% at the open following global markets taking a breather overnight.

The Fed Chair said the U.S. economic outlook remained uncertain, despite a potential COVID-19 vaccine. Also weighing on equities, COVID-19 cases continue to rise to a new record.

What to watch today:

• Amid the pull back and profit taking overnight, keep an eye on the sector rotations that have stood out this week.
• AGMs: NEXTDC (ASX:NXT), Orocobre (ASX:ORE) and Polynovo (ASX:PNV).

Local trading ideas:

• Bell Potter upgraded Emeco Holdings’ (ASX:EHL) Buy rating, increasing its target to $1.58, implying 68% upside in a year from yesterday’s close.
• Bell Potter reiterated GrainCorp (ASX:GNC) as a Buy, with a $4.85 price target, implying 23% upside in a year from yesterday’s close, with the crop outlook looking strong.
• Globe International (ASX:GLB), JB Hi-Fi (ASX:JBH) and Reece (ASX:REH) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.5% at the open, headed towards its 6th straight day of gains.

Better than expected consumer and business confidence news added fuel to local markets, with consumer confidence at its highest level in 7 years.

What to watch today:
 - Keep an eye on tech names that have been sold down this week on the back of COVID-19 vaccine hopes. You could expect Afterpay (ASX:APT), Zip (ASX:Z1P), Temple & Webster (ASX:TPW), Appen (ASX:APX) and Altium (ASX:ALU) to rally, given what happened on Wall Street.
 - Graincorp (ASX:GNC) and Xero (ASX:XRP) report results today.
 - AGMs: Wesfarmers (ASX:WES), Woolworths (ASX:WOW), Nine Entertainment (ASX:NEC), Seven West Media (ASX:SWM) and Estia Health Care (ASX:EHE).

Local trading ideas:
 - CleanSpace Holdings (ASX:CSX) was upgraded by Bell Potter from a Hold to a Buy with a $6.75 price target, implying 17% upside. It’s been sold down recently after Pfizer announced vaccine hopes. But Bell Potter remains optimistic about CleanSpace’s growth, as sales so far have been well ahead of its prospectus forecasts.
 - Bell Potter upgraded Straker Translations’ (ASX:STG) speculative Buy rating, increasing its target to $2.10, implying 32% upside.
 - Nearmap (ASX:NEA), Pointsbet Holdings (ASX:PBH), Appen (ASX:APX) and Barra Resources (ASX:BAR) are all showing bullish charting signals according to Trading Central.

The ASX200 is set to rise for the 5th day, eyeing a gain of 0.8% at the open.

With the announcement that Pfizer and BioNTech’s COVID-19 vaccine candidate is 90% effective, global markets have continued to push ahead, for the most part, on hopes of an economic recovery.

What to watch today:
  - Keep airlines, travel stocks, engineering companies, property groups and banks on your radar. Companies to watch might include: Qantas (ASX:QAN), Corporate Travel Management (ASX:CTD), Flight Centre (ASX:FLT), Emeco (ASX:EHL), NRW Holdings (ASX:NWH), Suncorp (ASX:SUN), Auswide (ASX:ABA), Macquarie (ASX:MQG), Commonwealth Bank (ASX:CBA), ANZ (ASX:ANZ), Westpac (ASX:WBC), NAB (ASX:NAB), Ardent Leisure (ASX:ALG), Woodside (ASX:WPL) and Santos (ASX:STO).
  - Coca-Cola (ASX:CCL) may be worth a look as the New York listed company rallied overnight.
  - Company results out today: CBA (ASX:CBA), Eclipx Group (ASX:ECX), Ausnet Services (ASX:AST) and Recce Pharmaceuticals (ASX:RCE).
  - AGMs today: Fortescue Metals (ASX:FMG), Bingo Industries (ASX:BIN) and Computershare (ASX:CPU).
  - Consumer confidence data is out today. It is expected to show an improvement given rates were cut and the economy seems to be growing stronger than expected. 

Local trading ideas:
  - Bell Potter increased Flight Centre’s (ASX:FLT) Buy rating and target to $19.00, implying 21% upside as the travel industry looks brighter with a more effective vaccine potentially around the corner.
  - Bell Potter reiterated Suncorp Group (ASX:SUN) as a Buy with a $10.20 price target, implying 12% upside.
  - IDP Education (ASX:IEL), Dexus (ASX:DXS) and Spirit Technology (ASX:ST1) are all showing bullish charting signals according to Trading Central.

The local futures are suggesting the Aussie share market will lift 2.7% at the open.

Overnight, a vaccine developed by Pfizer and BioNTech is 90% effective in treating COVID-19. As a result, cyclical stocks saw huge gains, on hopes that a V-shape recovery may be on track. Airlines and banks soared, while stay at home stocks lagged.

Elsewhere, Oil soared 8.5% to US$40.40, while the safe-haven Gold lost a fair bit of investment, falling 4% to US$1,866.

What to watch today:

·       Cyclicals like travel stocks Qantas (ASX:QAN), Corporate Travel Management (ASX:CTD) and Flight Centre (ASX:FLT) are likely to rally today. Along with banks like Macquarie (ASX:MQG), and the big four CBA, ANZ, WBC, NAB.

·       Companies that are in trial phase of a vaccine locally, particularly CSL (ASX:CSL) which has kicked off production of 30 million doses of a vaccine.

·       Mesoblast (ASX:MSB) might be worth a look as it’s in phase three trials for a COVID-19 vaccine and is working on treating a rare disease in children, graft versus host disease for bone marrow transplants.

·       Those that will likely lag today, including gold stocks and tech giants.

·       Companies reporting results: James Hardie (ASX:JHX) and Incitec Pivot (ASX:IPL).

·       AGMs: Domain (ASX:DHG) & Ingenia (ASX:INA).

Trading ideas:

·       Bell Potter increased Uniti Group (ASX:UWL) Buy rating and target to $1.80 (implying 30% upside) with the Telco set to buy smaller competitor Opticomm. UWL shares are up 19% in 7 days.

·       UBS reiterated Tabcorp (ASX:TAH) as a Buy with a $4.70 target. From a technical perspective – Tabcorp’s shares look like they could move higher, the 50-day moving average price crossed the 200 day.

·       Los Corros (ASX:LCL), Pointsbet Holdings (ASX:PBH) and Praemium (ASX:PPS) are all showing bullish charting signals according to Trading Central. 

The Aussie share market is eyeing a lift of 0.2% at the open.

The Senate has been won by majority Republicans, and the House of Representatives won by majority Democrats. Kamala Harris will become the first female elected Vice President, and investors will be focused on the stimulus that Joe Biden U.S. President elect will bring in. Both are set to be sworn in on the 20th of January.

What to watch today:

• Victoria has recorded its 10th straight day of zero COVID-19 cases or deaths. Victoria also eased restrictions and if all goes to plan, restrictions will ease again in two weeks from November 22nd.
• CSL (ASX:CSL) will start making 30 million doses of a COVID-19 vaccine in Victoria today. It is the University of Oxford and AstraZeneca’s candidate that will go into production with first doses set to be released in the first half of next year, pending the outcome of clinical trials and regulatory approval.
• Brexit talks will dominate headlines overseas, so keep an eye on stocks that earn money in the UK like Link Market Services (ASX:LNK) and Virgin Money (ASX:VUK).
• Locally, building approval numbers are out today and NAB’s business confidence is out on Tuesday.

Local trading ideas:

• Bell Potter increased Macquarie Group’s (ASX:MQG) Buy rating and target to $148.00, implying 9% upside.
• Citi reiterated pallet maker Brambles (ASX:BXB) as a Buy with a $12.90 target, expecting further upside in earnings by the end of 2021.
• News Corp (ASX:NWS) has been reiterated as a UBS Buy with a $25 target, after the company reported stronger than expected results last Friday.

Global markets rallied this week as the U.S. election result edges closer. Following border re-openings, local equities rallied 3.6% (Mon-Thu), almost erasing last week's losses. Plus with record low interest rates and bond-buying, it seems bullish sentiment is in the air...

In this week’s wrap, Jessica covers:

• (0:37) Sectors: Real Estate gaining 8% supported by interest rate cuts
• (0:57) Stocks in the spotlight: Flight Centre (ASX:FLT) and Inghams (ASX:ING)
• (1:34) Opportunities in the Travel sector as borders re-open
• (2:47) What the RBA's rate cut and bond purchasing means

The Aussie share market is eyeing a lift of 0.7% at the open following Wall Street’s rally for the fourth day.

Overnight, U.S. equities bounded ahead on hopes that a Presidential winner would soon be called, with Biden likely to win as he’s gained 50.4% of the votes. It also looks like the Republican party may win the Senate and Democrats may win the House of Representatives, given the current numbers. This means taxes could possibly not be hiked and that the China trade war may not get any worse.

What to watch today:

• Macquarie (ASX:MQG), News Corp (ASX:NWS), REA Group (ASX:REA) and Amcor (ASX:AMC) report results today.
• Chorus (ASX:CNU), James Hardie Industries (ASX:JHX) and Spark New Zealand (ASX:SPK) hold their AGMs today.

Local trading ideas:

• Ingham's Group (ASX:ING), which is a Bell Potter Buy, had its price target increased to $4.25, implying 28% upside.
• UBS upgraded Treasury Wine Estates (ASX:TWE) from a Hold to a Buy with an slimmer $8.80 target. TWE shares have slipped about 40% in two months. 
• With borders opening back up, Bell Potter increased Flight Centre’s (ASX:FLT) Buy rating and target to $16.50, implying 19% upside. 
• Keep an eye on Qantas (ASX:QAN), which is a UBS Buy with a $5.25 target.
• Ingham’s (ASX:ING), Ramelius Resources (ASX:RMS) and Wiluna Mining (ASX:WMX) are all showing bullish charting signals according to Trading Central.

The Aussie share market is eyeing a lift of 0.3% at the open. 

U.S. equities rallied for the third straight day, looking past the idea that the Presidential election result could be contested, while Trump’s campaign has taken legal action to halt the counting of the ballots in Michigan and Pennsylvania.

What to watch today:
  - The NSW border opens to Victoria on November 23, this could support Qantas’ (ASX:QAN) recovery.
  - The Australian Government has secured two more potential COVID-19 vaccines, with 40 million doses being developed by biotechnology company Novavax, and 10 million doses being produced by Pfizer and BioNTech. Both vaccines are in stage three trials.
  - National Australia Bank (ASX:NAB), Goodman (ASX:GMG) and GWA Group (ASX:GWA) report results today.
  - Amcor (ASX:AMC), Ansell (ASX:ANN), Coles (ASX:COL), Downer EDI (ASX:DOW) and Estia Health (ASX:EHE) hold their AGMs today.
  - All eyes will be on Flight Centre Travel (ASX:FLT) as travel restriction ease and Treasury Wine Estates (ASX:TWE) on the back of China’s import ban.

Local trading ideas:
  - Bell Potter increased Domino's Pizza (ASX:DMP) to a Buy with a price target of $99.30, implying 14% upside.
  - Bell Potter upgraded Imdex (ASX:IMD) from a Hold to a Buy, and increased its price target to $1.45, implying 20% upside in a year.
  - Keep an eye on Qantas (ASX:QAN) today. UBS has the stock as a Buy with a $5.25 target.
  - Pact Group (ASX:PGH), Frontier Digital Ventures (ASX:FDV) and Red 5 (ASX:RED) are all showing bullish charting signals according to Trading Central.

The Aussie share market is eyeing a gain of 0.1% at the open.

U.S. equities rallied for the second straight day, continuing to claw back from last week’s retreat which was the worst weekly fall since March.

What to watch today:
 - China has allegedly put a temporary ban on Australian coal, copper-ore, wheat, wool, lobster and sugar imports into China from Friday.
 - Woolworths (ASX:WOW) announced quarterly group sales rose 12% to $17.9b, with food sales up 13% as customers consumed more at home.
 - Pendal (ASX:PDL) half year results are out today.
 - Domino’s Pizza Enterprises (ASX:DMP) and Cedar Woods Properties (ASX:CWP) hold their AGMs today.

Local trading ideas:
 - UBS reiterated the owner of IGA, Metcash (ASX:MTS), as a Buy, with a $3.25 price target.
 - Bell Potter reiterated Kazia Therapeutics (ASX:KZA) as a Speculative Buy with a $2.00 target, implying 153% upside in a year.
 - Bell Potter upgraded Auswide Bank’s (ASX:ABA) Buy rating and price target to $5.70, implying 14% upside in a year.
 - Breville (ASX:BRG), Chalice Gold Mines (ASX:CHN) and IGO (ASX:IGO) are all showing bullish charting signals according to Trading Central.