Market wraps 27th September 2021
Morning Bell - Jessica Amir
The SPI futures are suggesting a flat start to the week for the Aussie share market. On Friday, the ASX200 fell 0.4% and lost 0.8% on the week, falling for the 3rd straight week.
What to watch today:
- Watch iron ore stocks amid worry of China’s Evergrande, retail stocks amid supply-chain issues, and financial stocks given end of quarter profit taking.
- The oil price rose 3% to US$74.43, to an eight week high. The gold price rose slightly, while the iron ore price slowly bounced off its low, trading at US$120, after falling below US$100 last week. However, iron ore last traded lower on Friday. As a result of this, New York listed BHP and Rio Tinto closed in the red.
- In corporate news, Synlait Milk (ASX:SM1) forecasts a return to robust profitability. The company says it will return to pre-pandemic levels of profitability by the end of its 2023 financial year. SM1, the milk powder producer, reported a loss of $20 million for its financial year ended July 31, due to disruptions brought on by the pandemic and from its key customer A2 Milk. However, for this current year results will be bolstered as production is ramping up for the new multinational customer and normal business conditions should return.
- Companies going ex-dividend today include Imdex (ASX:IMD) and Gold Road Resources (ASX:GOR).
- In economic news, retail sales data will be released on Tuesday and building permit data will be released on Thursday.
- Citi expects Accent’s (ASX:AX1) shares to fall amid supply chain disruptions. This is partially due to Nike downgrading its 2022 outlook, as freight and supply issues mean the company can’t keep up with strong demand. Citi believe shares in the shoe store giant, Accent with fall to $2.14, however it is expected to maintain a dividend yield of 3.7%.
- Bullish charting signals have been seen in Exopharm (ASX:EX1), Orthocell (ASX:OCC) and Catapula Group (ASX:CAT), according to Trading Central.