5 things to watch on the ASX 200 on Monday

Coca-Cola Amatil Ltd (ASX:CCL) and Premier Investments Limited (ASX:PMV) shares will be on watch on the ASX 200 on Monday…
The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia. –

On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped slightly lower. The benchmark index fell 0.2% to 6,167 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rise.

It looks set to be a positive start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is expected to open 0.3% or 18 points higher this morning. This follows a reasonably positive end to the week on Wall Street, which saw the Dow Jones fall 0.1%, but the S&P 500 rise 0.35% and the Nasdaq push 0.4% higher. 

Coca-Cola Amatil takeover?

The Coca-Cola Amatil Ltd (ASX: CCL) share price is in a trading halt ahead of a major announcement this week, possibly as early as today. There was speculation the beverage company was looking to buy some of Asahi’s assets. However, it could be Coca-Cola Amatil that is the one being acquired. According to Bloomberg, Coca-Cola European Partners, the world’s largest independent bottler of soft drinks, is in talks to acquire Coca-Cola Amatil. It is wanting to expand into the Asia Pacific region.

Gold price flat.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after a subdued finish to the week for the gold price. According to CNBC, the spot gold price was mostly flat at US$1,903.40 an ounce on Friday night.

Oil prices drop lower.

It could be a tough start to the week for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) following a weak night of trade for oil prices on Friday. According to Bloomberg, the WTI crude oil price fell 1.9% to US$39.85 a barrel and the Brent crude oil price dropped 1.6% to US$41.77 a barrel. Demand concerns weighed on prices.

Premier Investments shares downgraded.

The Premier Investments Limited (ASX: PMV) share price could come under pressure today after being downgraded by analysts at Goldman Sachs on valuation grounds. According to the note, the broker has downgraded the retailer’s shares to a sell rating with an improved price target of $19.20. It commented: “Adjusted for the market value of the investments in Breville Group and Myer, we estimate that PMV is currently trading at c. 14x our FY21 EBIT, significantly higher than that over the past decade and also at the higher end on a growth vs. valuation spectrum against global apparel peers.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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