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Friday, S&P/ASX 200 Index The ASX:XJO ended a tough week on a positive note. The benchmark index rose 0.75% to 7,921.3 points.
Will the market be able to capitalize on this on Monday? Here are five things to watch:
ASX 200 expected to rise again
The Australian stock market looks set to rally again on Monday after a strong close on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open today up 60 points or 0.75%. In the US, the Dow Jones is up 1.6%, the S&P 500 is up 1.1% and the Nasdaq is up 1%. This comes on the back of the release of fresh US inflation data.
Oil prices drop
Energy stocks in the ASX 200 Santos Company Limited (Australian Stock Exchange: STO) And Woodside Energy Group Limited (ASX: WDS) It could be a bad start to the week after oil prices fell on Friday. According to BloombergWest Texas Intermediate crude fell 1.4% to $77.16 a barrel, while Brent crude fell 1.5% to $81.13 a barrel. Concerns about Chinese demand weighed on prices.
Buy Bellevue Gold Shares
After falling about 22% on Friday, Goldman Sachs believes investors should buy Bellevue Gold Company Limited (ASX: BGL) shares today. According to the note, the broker maintained a Buy rating on the gold mining company’s shares with a reduced target price of $1.85 (from $2.15). This implies a potential upside of more than 28% for investors. It said: “We rate BGL as a Buy based on: (1) valuation, as BGL remains relatively undervalued in our view, at a discount to peers, as near-term free cash flow yields are impacted by accelerated development spending, and we see these yields returning to double digits by FY27E and remaining attractive relative to peers, supporting the higher expectations for potential future capital returns once expansion ramps up.”
Gold prices rise
It could be a great start to the week for ASX 200 gold stocks. Newmont Corporation (ASX: No) And Northern Star Resources Ltd. (ASX: NST) after the price of gold rose sharply on Friday. According to CNBC, Spot gold price Gold rose 1.2% to $2,427.9 an ounce, following the release of US inflation data that supported interest rate cuts.
Buy Treasury Wine Shares
Treasure Wine Estates Ltd. (ASX: TWE) A good value stock according to analysts at Goldman Sachs. This morning, the broker reaffirmed a buy rating and $14.70 price target on the wine giant’s shares. This suggests that Penfolds owner shares could rise 20% from current levels. Looking ahead to its results next month, the broker said: “We expect TWE FY24 results to be a non-event given the tight guidance, although 1H25 run rate should be strong given a weak 1H24 and the overlap of both DAOU and Penfolds.”
