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Market wraps 2nd September 2021

Morning Bell - Paulina Peters

The ASX dropped about 1% yesterday at the open, however better than expected GDP data trimmed losses from lunchtime onwards. Consumer staples and discretionary sectors dragged the market, while energy stocks were strong despite oil prices dropping.

In the US, the S&P500 closed flat for the first day of September. Tech stocks strengthened, which pushed the Nasdaq to close at a record high, and the Dow Jones closed 0.14% lower.

The Aussie share market is set to open lower, with the SPI futures expecting a fall of 0.2% this morning. This follows the mixed session we saw on Wall Street.

What to watch today:

  • Australia’s balance of trade data for July will be released today at 11:30am AEST. Expectations suggest that July’s reading will come in at $10.2 billion.
  • Companies going ex-dividend today include CSL (ASX:CSL), Deterra Royalties (ASX:DRR), InvoCare (ASX:IVC), Jumbo Interactive (ASX:JIN), NIB Holdings (ASX:NHF) and Woolworths (ASX:WOW).
  • One of the most traded stocks yesterday by Bell Direct clients was Kuniko (ASX:KNI). Its share price lifted nearly 19% yesterday, amid the company appointing a new CEO.
  • The oil price remained steady following OPEC and its allies agreeing to remain consistent with their existing policy of gradual oil output increases.
  • The gold price traded within its range as investors focused on key labour data that could influence the Fed Reserve’s tapering plans.
  • The iron ore price plunged over 10% amid production curbs in China.

Trading ideas:

  • Bell Potter has maintained its BUY recommendation on gold producer Regis Resources (ASX:RRL) and has increased its price target by 4% to $4.05 (previously $3.89). This is off the back of Regis Resources releasing its financial year 2021 results ahead of both Bell Potter’s and consensus’ expectations. Regis Resources lifted 0.4% yesterday to $2.48, which implies about 63% share price growth.
  • Bullish charting signals have been identified in Immutep (ASX:IMM), Janison Education Group (ASX:JAN) and Charter Hall Group (ASX:CHC) according to Trading Central.