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Market wraps 4th November 2021

Morning Bell - Paulina Peters

Yesterday, the ASX200 rallied 0.9%, its best session in a month. Supporting the market was strong gains from the materials sector and major banks, while the tech sector closed in the red, down 0.19%.

The best performer of the ASX200 was AMP (ASX:AMP), its shares closed 9.3% higher after the company agreed to divest its 19.13% equity interest in Resolute Life Australasia for a consideration of $524 million to Resolution Life Group. Tyro Payments (ASX:TYR) was the worst performer, tumbling over 15% after its AGM update.

In the US, all three benchmarks closed at new records following the Fed Reserve confirming that it would begin winding back some of its COVID stimulus later this month and will also reduce buying by $15 billion a month. This puts it on track to end quantitative easing by the middle of next year, which is in line with expectations.

After a positive session on Wall Street, the futures are suggesting the Aussie share market will open 0.50% higher this morning.

What to watch today:

  • In economic news, Australia’s balance of trade data for September will be released today at 10:30am AEDT. That’s the difference between what we export vs. what we import. It’s calculated by subtracting the value of the goods and services Australia buys from overseas from the value of the goods and services we sell to other countries. Australia’s trade surplus, increased to a record high of $15.08 billion in August. Third quarter retail sales volumes will also be released today.
  • Companies holding their AGMs today include Domain (ASX:DHG), Credit Corp Group (ASX:CCP), Ingham’s Group (ASX:ING), Zip (ASX:Z1P) and Myer (ASX:MYR).
  • The most traded stocks by Bell Direct clients yesterday, included three of the big four banks – Westpac (ASX:WBC), CBA & ANZ, as well as lithium company, Lake Resources (ASX:LKE).
  • Medusa Mining (ASX:MML) is set to go ex-dividend today.
  • Oil prices fell on Wednesday after US crude stocks rose more than anticipated. The WTI crude oil price fell about 4.7% to US$80 a barrel. The gold price also came under pressure, down nearly 1%, and the iron ore price continues to be dragged into a bear market off the back of weakening steel production and an economic slowdown in China.

Trading Ideas:

  • Bell Potter has reiterated its BUY recommendation on agricultural chemical company, Nufarm (ASX:NUF), with an increased price target of $5.35 (previously $5.30). NUF is currently up nearly 14% YTD and closed 4.2% higher yesterday to $4.67.
  • Bullish charting signals have been identified in Imugene (ASX:IMU), Syrah Resources (ASX:SYR) and Nanosonics (ASX:NAN) and that’s according to Trading Central.