Between the Bells

Morning Bell 15 September


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Overnight, the three major US indices closed lower. 

Following Wall Street, the futures are suggesting the Aussie share market will fall 0.6% this morning, as investors adjust their portfolios ahead of the end of the quarter. 

The Aussie share market is approximately 3% off a record high, with the market falling twice over the last 18 months. In September, companies go ex-dividend and investors sell stocks after collecting dividends. 

What to watch today: 

  • At the end of the quarter, investors take profits from well performing stocks. Tech stocks are down the most this week, however the tech sector is one of the best performers this quarter. On the other hand, investors top-up on stocks that underperformed. Energy stocks this week are the best performers, up 5.7%, however energy is one of the worst performers this quarter. 
  • The lithium sector is in the spotlight as Pilbara Minerals (ASX:PLS) sold spodumene lithium at a record price. 
  • The oil price rose 0.4% to US$70.73, the gold price is steady above US$1,805, while the iron ore price fell again, down 1.5% to US$124. Some analysts believe the iron ore price will bottom at US$115. Additionally, the coal price is at a record high, and Goldman Sachs increased its price target for thermal and metallurgical coal. 
  • In economic news, yesterday business confidence improved, and today consumer confidence data will be released at 10:30am AEST. In addition, yesterday the RBA Governor said that the official cash rate won’t increase until 2024. However, corporate interest rates will rise after the RBA stop bond buying in February next year. 
  • Companies going ex-dividend today include: CIMIC (ASX:CIM), Costa Group Holdings (ASX:CGC), and Lovisa (ASX:LOV). 

 

Trading Ideas: 

  • Agriculture and real estate business Elders Ltd (ASX:ELD) was reiterated as a Bell Potter BUY rating with a $13.75 target, implying 18% share price growth in a year. 
  • Bullish charting signals have been identified in Origin Energy (ASX:ORG), Pure Hydrogen (ASX:PH2) and Fletcher Building (ASX:FBU), according to Trading Central. 
...more
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Between the BellsBy Bell Direct


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