Market wraps 29th June 2020
Morning Bell - Jessica Amir
The Aussie futures are suggesting a fall of 1.6% at the open, with the U.S. futures currently down 0.5%.
There’s just one more sleep until the end of the financial year, with ASX portfolio adjustments to continue today and tomorrow. Local traders and investors will also be factoring in the poor finish in the U.S. on Friday. The overarching concern is COVID-19 cases are spiking with fears of mandated shut downs and concerns that the market rally was too soon.
What to watch today:
- A survey of U.S. Fund managers has found that they are holding 10% cash, that’s double the long term average. The fund managers also said they are investing in defensives, and technology for growth.
- Ampol (ASX:ALD) appointed Matthew Halliday as Managing Director and CEO.
- Fisher & Paykel (ASX:FPH) reports full year results.
Local Trading ideas:
- Air traffic and management Adacel Technology (ASX:ADA) was reiterated as a Bell Potter buy after the U.S. Army purchased over 60 Adacel simulators valued at US$2.8 million.
- Credit Suisse increased Qantas' (ASX:QAN) share price target to $3.00 after it fell about 13% last week after announcing $15 billion in cost savings over the next three idle years and then $1 billion a year in savings from FY23.
- GUD (ASX:GUD) was reiterated by Citi and Bell Potter as a buy given the rise in spare parts demand. GUD is also paying a fully franked dividend yield and is well above market average.