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Morning Bell 30 September

Paulina Peters
September 30, 2021

The ASX200 extended its poor performance yesterday, falling about 1%. This dragged the market to a four-month low. Rising bond yields and a fall in the iron ore price put pressure on all sectors, with tech stocks taking the biggest hit.

The market was mixed in the US. The Dow Jones managed to add 90 points, the S&P500 slightly rose 0.16%, while the tech heavy Nasdaq came under pressure, falling 0.24%, following the volatile 10-year Treasury yield. The House on Wednesday passed a bill to suspend the US debt ceiling as the US heads towards a first-ever default with no clear solution in sight.

Following the mixed session on Wall Street, the futures are suggesting the Aussie share market will open 0.32% higher this morning.

What to watch today:

  • In economic news, building permits will be released today. Consensus expects total dwellings approved in Australia to decline 5%, after the 8.6% drop in the prior month.
  • Companies that are paying their latest dividends include Bendigo and Australia Bank (ASX:BEN), CSL (ASX:CSL), Fortescue Metals Group (ASX:FMG), Newcrest Mining (ASX:NCM) and Ramsay Health Care (ASX:RHC). Separately, Westgold Resources (ASX:WGX) goes ex-dividend today.
  • The most traded stocks by Bell Direct clients yesterday included Mineral Resources (ASX:MIN). Its shares fell 5.6% yesterday following the decline in the iron ore price, which is driven by power outages in China and lingering concerns over Evergrande’s default. Other highly traded stocks included ANZ (ASX:ANZ), Tabcorp (ASX:TAH), Regis Resources (ASX:RRL) and Brambles (ASX:BXB).
  • The oil price edged lower on Wednesday to about US$75 a barrel. This comes as US crude inventories rose more than expected, despite OPEC planning to maintain its deliberate approach to adding supply to the market despite strong worldwide demand.
  • The uranium price rose 5%, while on the flip side, the lithium price fell 5%. Meanwhile, the gold price fell following the dollar rising and due to the growing confidence that the Fed will soon begin winding down its economic support measures.

Trading ideas:

  • Bell Potter has rated iron ore exploration and development company Genmin (ASX:GEN) as a Speculative BUY, with a price target of $0.44. GEN closed yesterday at $0.17, which implies about 159% share price growth.
  • Bullish charting signals have been identified in Insurance Australia Group (ASX:IAG), Resolute Mining (ASX:RSG) and Perseus Mining (ASX:PRU) according to Trading Central.

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