It looks set to be a quieter day for the ASX 200 on Friday…
The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia. –
On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning run and dropped lower. The benchmark index fell 0.55% to 7,491.2 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to end the week in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. This follows a poor night on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.6%, and the Nasdaq tumble 0.65%.
Wesfarmers full year results
The Wesfarmers Ltd (ASX: WES) share price will be one to watch today when it hands in its full year results. According to Morgans, its analysts are expecting the conglomerate to report a full year earnings before interest tax (EBIT) growth of 18% to $3,481 million. This compares to the analyst consensus EBIT estimate is $3,632 million. Morgans’ expects Wesfarmers result to be driven largely by Bunnings EBIT growth of 20% and Kmart Group growth of 62%.
Oil prices fall
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.75% to US$67.85 a barrel and the Brent crude oil price is down 1% to US$71.57 a barrel. COVID concerns were weighing on prices.
Ramsay rated as buy
The Ramsay Health Care Limited (ASX: RHC) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker responded to the private healthcare company’s full year results by retaining its buy rating and $74.00 price target on its shares. It commented: “In our view, valuation of 8.5x NTM EV/EBITDA is not demanding for a defensive asset leveraged to improving vaccine rates, with a favourable growth profile (+8% EBITDA CAGR FY21-24E GSe) and material balance sheet optionality.”
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.15% to US$1,793.90 an ounce. The price of the precious metal has been volatile this week due to the ongoing US Federal Reserve event at Jackson Hole. Fed Chair Jerome Powell will be making a speech tonight.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.