Between the Bells

Morning Bell 16 September


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US stocks rebounded from prior losses, with energy stocks leading the gains after the oil price increased 3%. US stocks are 1.3% away from an all-time high. 

Investors are bracing for further volatility, as it is the end of the quarter and options expire on September 17. 

The Aussie share market is set to open higher, with the futures suggesting the market will rally 0.4%, and the focus on employment data ahead. 

What to watch today: 

  • Unemployment data for August will be released today at 11:30am AEST. Unemployment is expected to grow from 4.6% to 4.9%. If the data is weaker, expect selling pressure. Watch banking and consumer spending stocks. 
  • Uranium stocks are in focus today. The US President, the Australian Prime Minister, and the UK Prime Minister, announced a new partnership with Australia, to build nuclear powered submarines. Historically, this is the first partnership of its nature. Prime Minister Scott Morrison said that the three nations will work together over the next 18 months, to determine the best path forward, to get the wheels into motion, and examine “nuclear stewardship responsibilities” in Australia. Therefore, uranium stocks to watch include Paladin (ASX:PDN), Deep Yellow (ASX:DYL), 92E Energy (ASX:92E), Devex Resources (ASX:DEV) and Energy Resources of Australia (ASX:ERA). Also watch ship builder Austal (ASX:ASB). 
  • Watch the lithium sector, after Australian produced lithium from Pilbara Minerals (ASX:PLS) was sold at a record amount. 
  • Oil stocks are in focus, as oil is trading at a 7-week high at US$72.65. Meanwhile, iron ore fell again, down 3% to US$122, after China’s construction investment fell 3.2% from January to August, and China’s steel output fell to a 17-month low in August after tightening property restrictions. 
  • Companies going ex-dividend today include Sky City, (ASX:SKC) and Spark NZ (ASX:SPK). 
  • The most traded stocks by Bell Direct clients yesterday included Metalhawk (ASX:MHK). MHK shares rose 13% and the day prior its shares rose 264%. Metalhawk is a gold and nickel explorer in Western Australia. Sayona Mining (ASX:SYA) was also a highly traded stock yesterday. SYA shares rose 13% as the lithium sector remains under the spotlight. 

Trading Ideas: 

  • South32 (ASX:S32) was upgraded as a Citi BUY, with an increased target from $3.50 to $3.80, implying 13% share price growth in a year. 
  • Bullish charting signals have been seen in Pilbara Minerals (ASX:PLS), Perseus Mining (ASX:PRU) and Challenger Exploration (ASX:CEL) according to Trading Central. 
...more
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Between the BellsBy Bell Direct


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