Morning Bell 5 June

Jessica Amir
June 5, 2020

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.
Read Transcript

Good morning, well investors might be looking to clip some fresh profits off the table as the futures are today suggesting a dip of 0.2% after the ASX200 so far this week has gained over 4%.

Overnight U.S equities explored new heights.

The Nasdaq-100 hit a record all-time high before running out of path, while the S&P500 saw some profit taking heading lower for the first time in four days and ended 0.3% lower weighed by weaker than expected weekly unemployment claims and also COVID-19 cases their ticking up.

While the blue chip index in the U.S the Dow Jones moved north, gaining ever so slightly rising 0.1% and tracks 3.5% higher this week.

And over in Europe the ECB committed to increasing their pandemic bond buying program to a total of 1 trillion Euros.

The oil price nudged ahead ever so slightly to $37.41 a barrel with OPEC mulling over extending their production cuts to boost the iron ore price and the gold price lost about $6 in value falling to $1,722 an ounce.

The iron ore pricing had a bit of profit taking losing 1.6% but the iron ore price is still holding on to a week to date gain of 9.4% and it last traded at $100 a ton.

Now what to watch today, well Kogan (ASX:KGN) and just handed down their June quarter results with gross profit rising over 130% in the fourth quarter of the financial year.

Active customers for rising to 2 million and that means kogan.com customers grew by over 120,000 in May.

The consensus view for Kogan shares is that they’re trading at a 31 times earning multiple.

Now company’s going ex-division today to watch include ALS (ASX:ALQ), Infratil (IFT) and OFX Group (OFX) goes ex-dividend on Tuesday and remember we do have a public holiday on Monday, also note that if you buy shares before an ex-dividend date you’ll be entitled to that upcoming dividend which is why on the day that a company trades ex-div, shares are usually sold down.

Now to some local trading ideas, Afterpay (ASX:APT) was upgraded by Bell Potter overnight with a $65 price target, after Bell Potter did a deep dive into Afterpay’s profit prospects for the future.

Beacon Lighting (ASX:BLX) is a Citi top small cap pick and they got an extra boost following the government’s homebuilder scheme being announced and Beacon is well-placed to continue to outperform the market.

Their shares have already gained a massive 150% from the COVID-19 bear bottomed lows and BLX trades at a 15% discount to Australian housing retail peers and it’s trading at their earnings multiple of 13 times a forward-looking earnings.

Citi expects Beacon Lighting’s shares to grow 16% to $1.24.

And lastly, UBS initiated coverage of the property group Centuria (ASX:CNI) for the first time saying its UBS’s top by pick for fund managers.

I’m Jessica Amir with Bell Direct, happy trading and stay safe.

Close Transcript

Morning Bell 15 July

Jessica Amir
July 15, 2020

Morning Bell 14 July

Jessica Amir
July 14, 2020

Morning Bell 13 July

Jessica Amir
July 13, 2020

Weekly Wrap 10 July

Jessica Amir
July 10, 2020

Morning Bell 10 July

Jessica Amir
July 10, 2020

Morning Bell 9 July

Jessica Amir
July 9, 2020

Morning Bell 8 July

Jessica Amir
July 8, 2020

Morning Bell 7 July

Jessica Amir
July 7, 2020

Morning Bell 6 July

Jessica Amir
July 6, 2020

Weekly Wrap 3 July

Jessica Amir
July 3, 2020

Morning Bell 3 July

Jessica Amir
July 3, 2020