Morning Bell 30 March

03/29/21 • 4 min

The Aussie market is eyeing a lift of 0.7% if you go by the futures. But the market will be mulling over travel and tourism stocks as Brisbane bunkers into a three day snap lockdown.

What to watch today:

Profit reshuffles ahead of the quarter ending tomorrow – expect profit taking in stocks that have had a good rally like banks, travel and tourism stocks. While tech stocks could rally as fund managers attempt to bring their portfolio and asset allocations back into line.
AGL (ASX:AGL) announced it will split its business into two - one entity which it’s calling New AGL will create low carbon energy powering 30% of Australia’s households. The other entity PrimeCo will provide 20% of the nation’s energy into the grid via its thermal coal.
Commonwealth Bank (ASX:CBA) is due to pay out $1.50 per share in dividends today, that’s worth about $2.6 billion. Other large dividends getting paid out today are by Insurance Australia (ASX: IAG) and Northern Star (ASX:NST).
Oil stocks will likely see a bit of price action today as Oil rose 1% ahead of an OPEC meeting, with production cuts expected - which supports the price of oil moving higher.
As for other most traded stocks from yesterday at our active trader desk, Bell Direct Advantage they were: Fortescue Metals (ASX:FMG), Golden Mile (ASX:G88) and West Wits Mining (ASX:WWI).

Trading ideas:

UBS upgraded online beauty retailer Adore Beauty Group (ASX:ABY) from a Hold to a Buy with a $6.20 target. ABY recently delivered a strong maiden result earnings (EBITDA) up 26%, which was ahead of UBS estimates.
Car dealership company Eagers Automotive (ASX:APE) was also given a turnaround upgrade with Bell Potter moving it from a Hold to a Buy with a $15.50 target. Bell Potter sees APE’s earnings per share growing 10% thanks to the sale of its truck business.
Bell Potter upgraded tech athlete management business Catapult Group (ASX:CAT) from a Hold to a Buy, rising its target to $2.25.
BetMakers Technology (ASX:BET), Secos Group (ASX:SES) and Pointsbet Holdings (ASX:PBH) are giving off bullish charting signals according to Trading Central.

The Aussie market is eyeing a lift of 0.7% if you go by the futures. But the market will be mulling over travel and tourism stocks as Brisbane bunkers into a three day snap lockdown.

What to watch today:

Profit reshuffles ahead of the quarter ending tomorrow – expect profit taking in stocks that have had a good rally like banks, travel and tourism stocks. While tech stocks could rally as fund managers attempt to bring their portfolio and asset allocations back into line.
AGL (ASX:AGL) announced it will split its business into two - one entity which it’s calling New AGL will create low carbon energy powering 30% of Australia’s households. The other entity PrimeCo will provide 20% of the nation’s energy into the grid via its thermal coal.
Commonwealth Bank (ASX:CBA) is due to pay out $1.50 per share in dividends today, that’s worth about $2.6 billion. Other large dividends getting paid out today are by Insurance Australia (ASX: IAG) and Northern Star (ASX:NST).
Oil stocks will likely see a bit of price action today as Oil rose 1% ahead of an OPEC meeting, with production cuts expected - which supports the price of oil moving higher.
As for other most traded stocks from yesterday at our active trader desk, Bell Direct Advantage they were: Fortescue Metals (ASX:FMG), Golden Mile (ASX:G88) and West Wits Mining (ASX:WWI).

Trading ideas:

UBS upgraded online beauty retailer Adore Beauty Group (ASX:ABY) from a Hold to a Buy with a $6.20 target. ABY recently delivered a strong maiden result earnings (EBITDA) up 26%, which was ahead of UBS estimates.
Car dealership company Eagers Automotive (ASX:APE) was also given a turnaround upgrade with Bell Potter moving it from a Hold to a Buy with a $15.50 target. Bell Potter sees APE’s earnings per share growing 10% thanks to the sale of its truck business.
Bell Potter upgraded tech athlete management business Catapult Group (ASX:CAT) from a Hold to a Buy, rising its target to $2.25.
BetMakers Technology (ASX:BET), Secos Group (ASX:SES) and Pointsbet Holdings (ASX:PBH) are giving off bullish charting signals according to Trading Central.

Previous Episode

Morning Bell 29 March

US stocks ended higher on Friday, with the benchmark index the S&P500 rising 1.7% to a record high, while Nasdaq ended up 1.2% as investors continue to chase stocks benefiting from the economy reopening. BHP and Rio Tinto listed in the US, both rose 3.9%, after the oil price rebounded, while the copper price jumped over 2% back to it’s 10 year high neighbourhood, supported by better than expected economic growth numbers from the US last week.

What to watch today:

Futures suggest a rise of 0.7% after the market rose 1.2% last week – its biggest gain in 5 weeks.
Key economic data: building permits for February are released on Wednesday, Australian import and export data will be released on Thursday. Additionally on Thursday, retail and home loan data is set to be released.
Stocks benefiting from the economic recovery in light of NSW and VIC restrictions have eased: Centuria Capital (ASX:CNI), Redcape Hotels (ASX:RDC), APN (ASX:ADI), Charter Hall Long WALE (ASX:CLW), Centuria Office REIT (ASX:COF)
Oil stocks are likely to rebound as the oil price jumped 4% on Friday, following the Suez blockage.
88 Energy (ASX:88E) has been one of the most traded stocks over the past few weeks, and today it announced much awaited drill results from Alaska.
The most traded stocks from our active trader desk, Bell Direct Advantage were: Digital Wine Ventures (ASX:DW8), Creso Pharm (ASX:CPH) and Airtasker (ASX:ART).

Next Episode

Morning Bell 31 March

The Aussie market is set to open higher, around 0.8%, which defies the losses that were seen over on Wall Street.

Major tech shares were in the red after the 10-year Treasury yield reached its highest level since January 2020. Both Apple and Microsoft led the losses. They both fell about 1%.

What to watch today:

Building permits for February are out today at 11:30am.
The Oil price dipped 1.6% to US$60.55. This comes as the Suez Canal reopened to traffic and the dollar rallied. Focus in the market now shifts to a meeting between oil-producing nations where its expected that the supply curbs will be extended given dim demand prospects.
The Gold price slipped nearly 2%. The firmer dollar, higher Treasury yields and hopes for a faster US economic recovery has dampened demand in the safe-haven asset.
As for the most traded stocks yesterday from our active trader desk, Bell Direct Advantage they were: Byrah Resources (ASX:BYH), 88 Energy (ASX:88E), and Digital Wine Ventures (ASX:DW8).
Shares going ex-dividend today: Eagers Automotive (ASX:APE) and Harvey Norman (ASX:HVN).

Trading ideas:

Bell Potter maintains its Buy rating on Flight Centre (ASX:FLT) and price target for the stock at $21.50. Given the recovery profile of global travel remains in its early stages, and the roll out of the COVID-19 vaccinations programs is accelerating, Bell Potter believes FLT is highly leveraged to this step change and remains their key pick in the sector.
Bell Potter also has a Buy rating on AMA Group (ASX:AMA) however they have reduced its price target by about 11% to $0.85. This comes as the number of AMA job vacancy ads over the past weeks on sites such as Seek appear to be higher than usual, which suggest the company may be having some trouble sourcing qualified people. Despite this, Bell Potter sees good value in the current share price and the catalysts being a return to more normal operating conditions in FY22.
Noxopharm (ASX:NOX), Kina Securities (ASX:KSL) & Element 25 (ASX:E25) are all giving off bullish charting signals according to Trading Central.