Morning Bell 28 April

Jessica Amir
April 28, 2020

The Australian share market looks set for a cautious opening if you go by the futures, with investors weighing up three key things:

  1. The Global equity rallying overnight
  2. The oil price swinging 25% lower to $12.93 on fears that worldwide storage will soon be at capacity
  3. Local earnings results due out today from Aussie companies

Looking at overnight markets, Wall Street charged ahead with their benchmark indices all gaining over 1%, on hopes of further lockdowns being lifted, while earnings news from Deutsche Bank and pharmaceutical Bayer helped fuel European equities higher and saw the German market gain over 3.1%.

Today, investors will be watching St Barbara (ASX:SBM), Saracen (ASX:SAR), Northern Star Resources (ASX:NST), Growthpoint Properties Australia (ASX:GOZ) and Mesoblast (ASX:MSB).

Read Transcript

Good morning and thanks for your company, I’m Jessica Amir with Bell Direct.

Well the Australian share market looks set for a cautious start that’s if you go by the futures, with investors weighing up three key things: 1. Global equities rallied overnight, 2. The oil price has swung 25% lower to $12.93, on fears that worldwide storage could soon be at capacity and 3. Earnings results are due out today from a suite of Aussie companies and we’ll touch on some of those in just a sec.

Meanwhile, traders attention is also being turned to the local banking stocks with NAB (ASX:NAB) shares set to resume trading after the bank announced half year profit halved and it’s raising $3.5 billion.

Now just touching on overnight markets, Wall Street charged ahead with the benchmark indices, they’re all rising over 1% each on hopes further lock downs will be lifted.

We saw Deutsche Bank shares and pharmaceutical company Bayer charge ahead fueling European markets higher and that saw the German market gain 3.1%.

Now in the US, the S&P500 rose 1.5% and it’s on track for its best monthly gain since 1987.

Overnight we saw stocks that could benefit the most from the economical reopening see the most charge with MGM Resorts and Carnival shares up 8%.

Meanwhile the gold price has slipped again as investors pour money back into equities and the commodity gold tracks 0.6% lower to $1,724 an ounce and the US dollar has lost some footing which helped to lift the Aussie dollar 1% higher to 64.63, its highest level in almost a month.

Now in terms of what to watch today on the Aussie share markets, St Barbara (ASX:SBM) posted third quarter results noting 2020 output will be at the lower end of its 375,000 or rather 370,000 to 400,000 ounce guidance for the company.

Saracen (ASX:SAR) meantime just announced it’s on track to meet full year guidance of more than 500,000 ounces of gold and another goal producer Northern Star (ASX:NST) just announced first quarter production as well.

Meantime a Growthpoint Properties Australia (ASX:GOZ) announced third quarter results with a gearing level that’s better than expected, while it’s important that it has no debts maturing until 2020, so good news for the property company there.

Now to a trading idea, regenerative medicine company Mesoblast (ASX:MSB) was reiterated as a Bell Potter speculative buy with a 12 months price target of $5.80 and that implies its share price could grow as much as 50% in a year, given the promising first look at its potential life-saving therapy for COVID-19 patients who are suffering from moderate to severe acute respiratory distress syndrome.

At the same time Trading Central’s data has ranked Mesoblast (ASX:MSB) as the number one stock in the biotech industry, purely based on share price performance, while Mesoblast is also giving off a bullish signal going on trading Central’s data.

Now in terms of what to watch this evening, the US Federal Reserve starts its two-day meeting on Tuesday American time and the ECB meets on Thursday with a further economic stimulus hoped to be announced.

I’m Jessica Amir with Bell Direct, happy trading and stay safe.

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