Between the Bells

The Aussie share market is eyeing a lift of 0.4% at the open following commodities rallying on Friday.

The Australia Prime Minister is expected to outline details of the Government's JobMaker plan, as well as increased spending on infrastructure projects including the expansion of BHP’s Olympic Dam in South Australia.

Investors will be watching Healius (ASX:HLS) and Select Harvest (ASX:SHV).

Trading ideas:

• Citi estimates there is a 85% downturn of global share markets, suggesting there will be more bad news to come. So in this instance, you might like to consider looking at short ETFs to hedge your portfolio. You could consider (ASX:BEAR), (ASX:BBOZ) and (ASX:BBUS).
• UBS has given Seven Group Holding (ASX:SVH) a price target of $19, expecting a 9.5% rise from Friday's close of $17.35. Macquarie increased its target to $19.10 and Credit Suisse increased its target to $20.35.
• Macquarie increased Santos' (ASX:STO) price target to $6.05. 

With Australian and U.S economic data exceeding expectations, the Aussie share market found itself amidst a 3-month high mid-week. However, a second wave of COVID-19 cases emerging in the U.S has swung the market lower on Thursday and Friday.

In this week’s wrap, Jessica covers: 

• COVID-19 in the U.S: Texas, Florida & Arizona report spikes in hospitalisation (0:33)
• Three standout stocks (1:22)
• How to play defence in your portfolio? (2:26) 
• Two key themes to consider: The rise of online lockdown leisure and; putting the magnifying glass on the rally (3:33)
• Five lockdown trading ideas - thematic trading (5:36)
• Mitigating currency risk using a hedged US ETF (6:59)

The ASX200 is tipped to see heavy selling today, with the futures suggesting a 3% fall at the open.

The second COVID-19 wave hit with the first US states to reopen from lockdown reporting a surge in hospitalisations including Texas, Florida and Arizona. 

Local trading ideas:

• Investors have been lining up to buy two Aussie short ASX ETFs before the open, (ASX:BEAR) and (ASX:BBOZ).
• Car dealership company A.P Eagers (ASX:APE) was upgraded again by Bell Potter with new vehicle sales in June expected to rise to the same levels as last year, given Aussies are less likely to jump on public transport and are more inclined to drive to work to. 
• UBS increased its target for Qantas to $5.50 with domestic capacity to return to about half of pre-COVID flight levels by the end of next month.
• Testing laboratory business HRL (ASX:HRL) is growing its suite of services and released stronger than expected earnings guidance levels for FY20. Bell Potter maintained it as a buy and increased its price target, expecting 43% capital growth.

Aussie equities have gained for 7 straight days and closed at a new 3-month high yesterday, but the futures are suggesting a fall of 1% at the open following the S&P500 and the Dow losing 0.5% and 1% respectively overnight.

What to watch today:

• Kathmandu Holdings (ASX:KMD) received some heavy weight buy in, with fund managers Harbour Asset Management buying 8.3% of its shares.
• Newcrest Mining (ASX:NCM) announced positive drill results at its WA and Canadian mines with plans for expansion.
• Alliance Aviation (ASX:AQZ) entered a trading halt pending capital raising. Its shares have gained 221% from COVID-19 lows, hitting a new all time high.

Local trading ideas:

• Bell Potter upgraded intellectual property firm IPH’s (ASX:IPH) price target to $8.70 after the firm announced the purchase of a well established IP NZ business for $7.4 million. IPH is a Bell Potter buy, but Macquarie is more bullish with a $9.60 target.
• Bell Potter upgraded building and construction business Johns Lyng Group's (ASX:JLG) price target to $2.90 after JLG announced record job volumes in the second half.
• UBS reiterated WorleyParsons (ASX:WOR) as a buy with a $11.75 target after the company unveiled a new cost cutting project.

The ASX200 is eyeing a fall of 1.6% at the open following yesterday's gain of 2.4%, taking the total gain from the March lows to 36%.

Trading ideas for today:

• CSL (ASX:CSL) was reiterated by Citi as a buy with a price target of $334, while UBS targets $335. CSL’s recent success has been in 1- the acquisition of kidney treatment company Vitaeris, 2-the results of phase 2 clinical trial of for hereditary angio-edema (HAE), and 3 - CSL’s latest involvement in the development of a COVID-19 vaccine.
• Bell Potter upgraded Auswide Bank (ASX:ABA) to a buy, and increased its price target to $5.15
• Bell Potter downgraded Flight Centre (ASX:FLT) to a hold from a buy, noting its 96% gain from COVID-19 lows outpaces the company’s fundamentals. 
• Macquarie raised City Chic Collective (ASX:CCX) price target by 20% to $3.25 from yesterday's close of $2.80. The plus size women’s retailer CCX, is also a Bell Potter buy as it has been having great online trade success.

Investors will be watching:

• NZ infrastructure company Infratil (ASX:IFT) announced it secured $250 million NZD from an Institutional Share Placement. So its shares could come under pressure once the new shares are placed onto market. 
• Stockland (ASX:SGP) and Smartgroup (ASX:SIQ) hold their AGMs today 
• In the US this evening, inflationary data for May is out ahead of the Fed’s Thursday interest rate decision, with rates tipped to remain at 0.25%.

Aussie equites are eyeing another stellar start to the week, and the 6th straight day of gains with the futures suggesting a 0.7% lift at the open. This lift will push the ASX200 above the 6,000-point milestone. In other smashing news, the Aussie dollar soared to a 11-month high, 70.17 US cents.

What to watch today:

• Air New Zealand (ASX:AIZ) announced plan to start earning healthy profits again, even though it may be 70% less than pre-COVID-19 levels.
• Wesfarmers (ASX:WES) announced Officeworks sales are up 28% in the second half, Bunnings rose 19%, Kmart sales rose 4% and Target which it’s winding down, sales walk 2% down.
• OFX Group (ASX:OFX) goes ex-dividend today so we could see some selling.
• NAB (ASX:NAB) business confidence for May

Local Trading ideas:

• UBS rated Fortescue (ASX:FMG) as a Buy with a $14.50 price target, as its overseas competitor, Vales has been ordered to suspend operations in Brazil.
• UBS rose Zip’s (ASX:Z1P) price target to $5.60 and downgraded the stock to a hold ahead of the Quadpay deal being executed.
• Integrated Research (ASX:IRI) was rated a Buy by Bell Potter. Its shares to grow 16% to $4.25, the business expected to benefit from the shift to working from home
• Credit Suisse expects Kogan’s (ASX:KGN) share price will fall to $11.82 following its share price surge of 211% from the March low.

The Aussie share market touches the 6,000pt milestone, hits a 13-week high, and collects a 32% gain from its COVID-19 bottom. Technical trend lines show that significant growth for the ASX200 could be around the corner.

In this week’s wrap, Jessica covers:

• The comeback from COVID-19 (0:15)
• All sectors rise, iron ore hits a 10-month high, pushing up Aussie export revenue & shares in the iron ore majors (0:40)
• Unibail-Rodamco-Westfield (ASX:URW) charges 33% after reopening centres in France, and it's likely to rally further (1:24)
• Three key themes: property developers/fund managers set for growth, a potential looming recession and the U.S triple threat? (2:30)
• How these key themes translate into trade ideas: a word on Centuria (ASX:CNI), CSL (ASX:CSL) and Qantas (ASX:QAN) (4:20)

Investors are tipped to lock in fresh profits with the futures eyeing a dip of 0.2% today after the ASX200 has gained 4% so far this week. The oil price nudged ahead to US$37.41 a barrel with OPEC mulling over extending their production cuts to boost the oil price. The gold price lost $5.90 in value, falling to $1,722. an ounce. Iron ore fell 1.6%, but the price of ore has gone up by 9.4% compared to last week, and it’s trading at $10 a tonne.

What to watch today:

• Kogan (ASX:KGN) just reported June quarter results with Gross Profit rising over 130% across 4QTD of the financial year, and active customers rising to 2 million, that means Kogan.com customers grew by 126,000 in May.
• Companies going ex-dividend include ALS (ASX:ALQ) and Infratil (ASX:IFT) and OFX Group (ASX:OFX) goes ex-div on Tuesday (remember if you buy shares before the ex-div date, you’ll be entitled to the upcoming dividend – which is why on the day ex-div date, shares are usually sold down).

Trading ideas:

• Afterpay (ASX:APT) was upgraded by Bell Potter overnight, with a $65.00 price target, after Bell Potter did a deep dive into profit prospects
• Beacon Lighting (ASX:BLX) Citi’s top small cap pick, got a big boost following the government’s HomeBuilder scheme. Its shares have gained 150% from COVID-19 lows.
• UBS initiated coverage of property group, Centuria (ASX:CNI) for the first time overnight, saying it’s the top buy pick for property fund managers.

In today's morning bell, Jessica discusses:

• Local markets - (0:00)
• Global markets - (0:14)
• What to watch today - (1:21)
• Trading ideas: Afterpay (ASX:APT) - (2:16), Beacon Lighting (ASX:BLX) - (2:30) & Centuria (ASX:CNI) -(3:06)

The ASX200 is eyeing a lift of 1.2% at the open. This week the Aussie share market has gained 3.2% so far and yesterday closed 31% up from its bear market bottom. 

Trading ideas:

• Metals and mining company South32 (ASX:S32) was upgraded by UBS from a hold to a buy as the company is restarting its share-buy-back, returning money to shareholders. 
• Citi reiterated Aurizon Holdings (ASX:AZJ) estimating 10% share price growth to $5.40, following the company maintaining its earnings forecasts and clearing a funding hurler.
• Citi also reiterated CSL (ASX:CSL) as a buy expecting 18% share price growth on the possibility that elevated flu sales could offset the drop in blood plasma donations.

What to watch today:

• Retail trade data is out for April with the market pricing in a fall of 17.9% following the gain of 8.5% in April. If the figure at 11.30am misses the expectation, keep an eye on discretionary spending stocks.
• Australia’s balance of trade data for April is out today. The market is pricing in that April’s trade balance will fall to a $7.5 billion surplus, so keep an eye on mining stocks like Fortescue Metals (ASX:FMG), BHP (ASX:BHP) and Rio Tinto (ASX:RIO).
• Magellan (ASX:MFG) just announced funds under management grew $1 billion to $98 billion in May with the group receiving new retail inflows in the month.

In today's morning bell, Jessica discusses:

• Local markets - (0:00)
• Global markets - (0:22)
• What to watch today - (1:33)
• Trading ideas: South32 (ASX:S32) - (2:52), Aurizon Holdings (ASX:AZJ) - (3:28) & CSL (ASX:CSL) - (3:44)

Find Bell Direct here:
Twitter: https://twitter.com/belldirect
Facebook: https://www.facebook.com/BellDirectAu...
LinkedIn: https://www.linkedin.com/company/bell...
Instagram: https://www.instagram.com/bell.direct/

Aussie shares look set to rise for the third straight day with the ASX200 expected to lift 0.5% at the open, ahead of Australia’s economic data being released.

Trading ideas for today:

• Following Zip Co’s (ASX:Z1P) 39% gain yesterday after announcing a 90% acquisition of a New York buy now pay later group, as well as raising capital with a major U.S firm, UBS rated Zip Co as a buy.
• Following Virgin Australia proceeding to the next stages of Administration with Bain Capital or Cyrus Capital, UBS says Qantas (ASX:QAN) looks more favourable and will likely see more demand with a target of $4.65.
• Aristocrat Leisure (ASX:ALL) was reiterated as a buy by Citi with a target of $30.10.
  Investors will be watching GDP data which is out for the first time in 2020. 

In today's morning bell, Jessica discusses:

• Local markets - (0:00)
• Global markets - (0:40)
• What to watch today - (1:36)
• Trading ideas: Zip Co (ASX:Z1P) - (2:14), Qantas (ASX:QAN) - (2:32) & Aristocrat Leisure (ASX:ALL) - (2:49)

Find Bell Direct here:
Twitter: https://twitter.com/belldirect/
Facebook: https://www.facebook.com/BellDirectAustralia/
LinkedIn: https://www.linkedin.com/company/bell-direct/
Instagram: https://www.instagram.com/bell.direct/