Market wraps 29th July 2020
Morning Bell - Jessica Amir
The Aussie share market is eyeing a fall of 0.4% at the open. U.S. equities fell back into the red overnight with lawmakers debating the COVID-19 relief plan that was partly unveiled yesterday.
Companies reporting today:
- Rio Tinto (ASX:RIO) – expect results after market close
- Unibail-Rodamco-Westfield (ASX:URW)
- Independence Group (ASX:IGO) – quarterly production
- Janus Henderson (ASX:JHG) – quarterly earnings
What to watch today:
- For an economic pulse check, we’ll learn what Aussie inflation is at. Inflation is expected to fall from 2.2% to -0.4% in Q2 on a year-on-year basis, reflecting zero wage growth in the private sector and pay cuts in the public sector.
Local trading ideas:
- Bell Potter upgraded betting company PointsBet’s (ASX:PBH) speculative buy rating and price target to $7.60, implying 31% share price growth from yesterday’s close price of $5.80. Yesterday it fell almost 8% but is tracking 18% higher this year. With TAB outlets being closed and limited access to pokies, PBH has a bullish outlook. PBH recently received a permit to operate in Illinois, which will add to its newly created programs in Michigan, Indiana and New Jersey. PBH is a buy, but is classed as speculative given it is making a loss.
- Bell Potter upgraded Temple & Webster’s (ASX:TPW) buy rating and price target to $9.70, implying 18% share price growth from yesterday’s close price of $33.61. Yesterday TPW charged almost 6% higher after it announced full-year revenue jumped 74%.
- Bell Potter upgraded Virgin Money UK (ASX:VUK) from a hold to a buy, increasing its target to $2, implying 13% share price growth from yesterday’s close at $1.77.