Morning Bell 12 August

Jessica Amir
August 12, 2020

The Aussie share market is eyeing a rise for the third straight day, a lift of 0.2%, after the ASX200 hit a two-month high yesterday.

Russia has claimed it has given regulatory approval for the world’s first COVID-19 vaccine. This news saw gold fall 5% to US$1,931, with silver falling 13% and copper down 0.8%. So the odds are stacked, gold stocks expected to fall with heavy weights likely to see some profit taking too.

Overnight, the broad U.S. indices stocks fell into negative territory in the final hours of trade with the S&P500 losing 0.8%, ending 7-days of gains, but still holding onto its yearly gain, while the Nasdaq underperformed, down 1.7%

Companies reporting today:
• Commonwealth Bank of Australia (ASX:CBA) – reported a 12.4% increase in its statutory profit to $9.6 billion.
• Transurban (ASX:TCL) reported a loss of $153 million.
• Computershare (ASX:CPU)
• Magellan (ASX:MFG)
• Mineral Resources (ASX:MIN)
• Seek (ASX:SEK) reported full year results with revenue weaker than expected, which UBS reiterated as a buy.

Local trading Ideas:
• Ramsay (ASX:RHC) is showing a strong bullish uptrend and is likely to rally along with Australian Pharmaceuticals (ASX:API) and Arena REIT (ASX:ARE), all according Trading Central’s charting and standard technical analysis.

Read Transcript
Good morning, thanks for your company this Wednesday the 12th of August.

I’m Jessica Amir, a market analyst with Bell Direct.

Well, the Aussie share market is eyeing a lift for the third straight day, earlier the futures were suggesting a rise of 0.2% after we saw the ASX200 hit a two-month high yesterday, however, the focus today is on earnings results including from the second biggest company on the ASX, Commonwealth Bank (ASX:CBA) which appears to have delivered a much stronger profit and dividend than expected would touch on that in just a sec.

However, COVID-19 uncertainty still lingers, New Zealand is entering stage 3 lockdowns after reporting their first transmission in over 100 days, while cases in Bendigo in regional Victoria are on the rise.

But a glimmer of hope, Russia has claimed that it’s given regulatory approval for the world’s first COVID-19 vaccine.

This news saw the gold price fall 5% to US$1931 an ounce with silver falling 13% and copper down about 1% so the odds today are stacked.

Gold stocks and heavyweight miners are likely to see some profit taking.

However U.S. wall street futures are now higher suggesting a positive start when they kick off trading later this evening on their wednesday, however, overnight we did see the broad U.S. indices fall into negative territory in the final hours of trade.

The s&p500 last night lost 0.8% ending seven days of gains but it’s still holding on to a yearly gain, while the NASDAQ underperformed down 1.7% as investors locked in profits on Netflix, Microsoft, Amazon, Facebook and Apple, while investors turned to investing in tourism stocks like Wynn
Resorts and Las Vegas Sands which rose 8% and 7% respectively.

Now, what to watch today well, earnings results as we mentioned are in full focus.

CBA reported a 12.4% increase in its statutory profit to $9.6 billion much stronger than Bell Potter’s
expectations of a $9.45 billion four-year profit for the financial year as it accounts for the sale of its asset management and insurance and financial planning businesses.

We’ll have a full report on CBA later in the day.
Secondly, Transurban (ASX:TLC) reported a loss of $153 million compared to a statutory profit of $170 million for the same time last year with of course less travellers being on our roads so they have less revenue.

Computer share cpu Magellan (ASX:MFG) and Mineral Resources (ASX:MIN) also reports results.

Seek (ASX:SEK) has also just reported four-year results SEK is their ticker.

A revenue came in weaker than expected earnings were in line with forecasts but fy21
this financial year’s outlook was downgraded with UBS still reiterating the stock SEK seek as
a buy.

Now, three different trading ideas Ramsay (ASX:RHC) is showing a strong bullish uptrend and is likely to rally along with Australian pharmaceutical industries (ASX:API)
and Arena REIT (ASX:ARF) all according to trading central’s charting and standard technical analysis principles.

I’m Jessica Amir with Bell Direct.

Happy trading, stay safe.
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