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Market wraps 28th October 2020

Morning Bell - Jessica Amir

The local futures are suggesting the market will fall 0.4% at the open, which will mark the fifth straight day of falls. But keep in mind, every year after a U.S. presidential election, over the last 36 years, the Aussie market has rallied and had a positive year.  

Commodity traders breathed a sigh of relief. Oil rallied up 2% to US$38.97 and Gold edged up 0.2% to US$1,908.

What to watch today:

  • Afterpay (ASX:APT) announced underlying sales sky rocketed 115% to $4.1b in the September quarter, up from $1.9b the same time last year. Morgan Stanley recently upgraded APT’s buy rating and price target to $121.  
  • Quarterly results: Coles (ASX:COL) and Galaxy (ASX:GXY).
  • AGMs: Medical Developments International (ASX:MVP), Netwealth Group (ASX:NWL), Steadfast Group (ASX:SDF), Super Retail Group (ASX:SUL), Tassal Group (ASX:TGR), Vocus Group (AS:VOC) & Codan (ASX:CDA).

Trading ideas:

  • Bell Potter upgraded heavy equipment maintenance company, Mader Group’s (ASX:MAD) Buy rating, increasing its price target to $1.25 implying 37.4% upside in a year, on the back of borders opening up in Australia.
  • Bell Potter increased ANZ’s (ASX:ANZ) Buy rating, increasing its target to $21.20 implying 9% upside in a year.
  • Citi reiterated Nick Scali (ASX:NCK) as a Buy, increasing its price target to $10.50, expecting 20% share price return and 6.6% dividend yield.
  • West African Resources (ASX:WAF), Kina Securities (ASX:KSL) and Harvest Technology Group (ASX:HTG) are all showing bullish charting signals - according to Trading Central