Market wraps 24th May 2022
Morning Bell - Sophia Mavridis
The local market closed with little change yesterday, amid reviving fears about China’s economic growth now that there are rising COVID-19 cases in Beijing. Locally, materials and technology shares advanced the most, while utilities, financials and consumer staples declined.
On the ASX200 leaderboard, Codan (ASX:CDA) was the best performer after releasing its FY22 guidance. The company expects to match its first-half profit in the second half. If this is achieved, Codan will hit a record full-year profit of $100 million, which would be an 56% increase year-on-year. Meanwhile Polynovo (ASX:PNV), NOVONIX (ASX:NVX) and Incitec Pivot (ASX:IPL) dropped the most.
The most traded stocks by Bell Direct clients yesterday were Lake Resources (ASX:LKE), APA Group (ASX:APA), BHP Group (ASX:BHP) and CSL Limited (ASX:CSL).
In New York there was a bank-led rally saw the Dow Jones rebound more than 600 points, closing 1.98% higher, following a week of sharp losses. The S&P500 closed with a gain of 1.86% and the tech-heavy Nasdaq gained 1.59%.
What to watch today:
- Following US equities, the Australia share market is set to rise 0.27% at the open this morning.
- In commodities, the price of oil is trading lower as worries of a recession offset expectations of higher fuel demand over in the US. Gasoline demand in the US has remained at record levels, ahead of Memorial Day weekend, the peak driving season in the US. The price of gold reached its highest in two weeks, lifted by a weaker US dollar. Meanwhile, iron ore prices have risen higher.
- Today watch Technology One (ASX:TNE), which is set to report its earnings results today.
- Viva Energy Group (ASX:VEA) will hold its AGM today.
- Amcor (ASX:AMC) and GQG Partners (ASX:QGQ) are set to go ex-dividend today.
- Bell Potter have upgraded their recommendation on AFT Pharmaceuticals (ASX:AFP) from a Hold to a Buy, after the company reports its FY23 result yesterday. The price target has remained unchanged at $4.80 and AFP’s currently share price is $3.20, which implies 50% share price growth in a year.
- Trading Central have identified a bearish signal in PM Capital Opportunities Fund (ASX:PGF), indicating at the stock price may fall from the close of $1.58 to the range of $1.44 to $1.46 over 11 days, according to the standard principles of technical analysis.