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Morning Bell 23 June

Bell Direct
June 23, 2020

The Aussie share market is eyeing a 0.6% gain at the open after new records were made overnight with the oil price jumping over US$40 for the first time since March. 

Investors will be watching:

  • Energy companies like Santos (ASX:STO) which has lower debt than most of its peers, as well as Woodside (ASX:WPL) which has a lot of head room for an acquisition down the track.
  • With copper moving higher, keep an eye on BHP (ASX:BHP) and Oz Minerals (ASX:OZL).
  • On the economic front, manufacturing and services data is out for June, with the market expecting manufacturing activity will grow to a reading of 49.3.

Local Trading ideas:

  • UBS upgraded James Hardie Industries (ASX:JHX) price target to $34, saying the building company is a key standout following earnings upgrades and better than expected U.S. sales in the first six weeks of Q1. For UBS, James Hardie Industries is a buy, meanwhile Citi also maintained its buy on the stock.
  • Ramelius Resources Limited (ASX:RMS) was rated as a buy by Shaw and Partners. Whereas UBS’ preferred gold buy is Independence Group (ASX:IGO) expecting its shares will grow to $6.00 with the price of gold tipped to reach US$2,000 in the not too distant future.
  • Citi put out a note on Stockland (ASX:SGP) following the CEO’s retirement and after it estimated a 2H20 dividend of 10.6 which was 25% of its guidance levels. Citi expects further downside for Stockland and prefers Mirvac (ASX:MGR) for residential exposure for Goodman Group (ASX:GMG) on the commercial industrial side.

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