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23rd August 2021

Morning Bell - Jessica Amir

The Aussie share market will likely follow US stocks trading higher on Friday, with the futures suggesting a lift of 0.5%.

What to watch today:

  • Company earnings and announcements today:
    • Sonic Healthcare (ASX:SHL) reported its full year net profit grew 149% to $1.32 billion. This beat market expectations of $1.28 billion profit. SHL lifted its final dividend 8% to 55cps.
    • Charter Hall (ASX:CHC) reported its full year profit rose 38% to $477 million.
    • G8 Education (ASX:GEM) reported its first half net profit more than doubled to $25.1 million and revenue lifted 39%. G8 Education declared it won’t be paying a dividend.
    • Sims Metals Management (ASX:SGM) will launch a $150 million share buy-back.
    • IGO (ASX:IGO) announced its produced its first lithium hydroxide product through its 49% joint venture in Australia’s first lithium hydroxide project.
    • Ampol (ASX:ALD) lobbed a takeover offer on Z Energy, a New Zealand petrol station operator, for NZ$3.78 per share.
  • The oil price settled 2.2% lower, falling for the 7th session and losing about 10% in the week, as demand concerns linger given global COVID-19 cases trend higher.
  • The copper price, the proxy for economic growth, is now 11% lower from its July high. However, as indicated by MACD and RSI, copper has been oversold.
  • The iron ore price is slightly higher, up 0.1% to US$160.
  • In economic news, services and manufacturing data for August will be released today. And on Friday, the Fed Chairman will give a speech.

Trading Ideas:

  • While hard commodities continue to fall, soft commodities, such as poultry, are trading at record high territory. Therefore, Bell Potter has upgraded its BUY rating on Inghams (ASX:ING), with an increased price target from $4.25 to $4.55, implying 11% share price growth in a year. ING reported profit ahead of expectations.
  • Maggie Beer Holdings (ASX:MBH), Kangaroo Island Plantation Timbers (ASX:KPT) and Peel Mining (ASX:PEX) are all giving off bullish charting signals, according to Trading Central.