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Morning Bell 26 October

Paulina Peters
October 26, 2021

The ASX200 lifted 26 points or 0.34%, which marks the third straight gain, with the market now tracking 1.5% higher for the month of October. Sectors wise, the energy sector rose the most, up 2.6%, fuelled by further gains in oil prices. The tech sector fell the most, down 0.7%.

The best and worst performers of the ASX200 yesterday included Mineral Resources (ASX:MIN) on top of the leader board, after the company announced that operations would restart at the Wodgina Lithium Mine, in the Pilbara region of WA. The worse performing stock was Perpetual (ASX:PPT), which was down 5%, and this may be due to profit taking after its strong gains last week.

In the US, equities rose to record highs on Monday as investors prepare for a huge week of earnings from heavyweight tech companies. The Dow and S&P500 both closed at record highs and the Nasdaq lifted 0.9%, taking it just 1% off its record high.

Following the gains on Wall Street, the futures are suggesting the Aussie share market will open 0.19% higher this morning.

What to watch today:

  • There’s a few companies holding their AGMs later today. These include gold producer Regis Resources (ASX:RRL), Redbubble (ASX:RBL), Sealink Travel Group (ASX:SLK), medical device company Polynovo (ASX:PNV) and Bega Cheese (ASX:BGA).
  • Southern Cross Electrical Engineering (ASX:SXE) goes ex-dividend today.
  • One of the most traded stocks yesterday by Bell Direct clients was mineral exploration company, Andromeda Metals (ASX:ADN). Its shares came under pressure, falling 11.9% after the market digested its quarterly update.
  • Oil prices were mixed – the WTI crude oil price was down 0.1% to US$83.68 a barrel, while the Brent crude oil price rose 0.5% to $85.93 a barrel, as global supply remained tight amid strong demand worldwide. The gold price rose 1% higher on lower US yields and the sea borne iron ore price traded slightly lower at US$122 a tonne.

Trading ideas:

  • Bell Potter has reiterated its BUY recommendation on death care services company, Propel Funeral Partners (ASX:PFP) with a price target of $4.90. The stock is currently trading up 48% YTD and at its current share price of $4.21, that implies 16.5% share price growth.
  • Bullish charting signals have been identified in Galan Lithium (ASX:GLN), Genex Power (ASX:GNX) and American Pacific Borates (ASX:ABR), according to Trading Central.

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