ASX shares to open in the green – here are the Aussie stocks & ETFs to watch

Australia’s S&P/ASX 200 index (ASX: XJO) is tipped to open in the green on Monday morning according to the latest data from the Sydney Futures Exchange. Here’s everything you need to know.

Buying in the dips?

It was a mixed end to the week for the ASX200, falling 1.9%, but it recovered from intra-day lows of 3.4% as US markets showed investors were ‘buying the dip’. The S&P 500 and Dow Jones recorded gains of 1.3% and 1.9%, respectively, even as the likes of California and Beijing reported outbreaks and the threat of a second wave of COVID-19 infections mounts.

The result was a negative return for the week of 2.5% with energy (-6%) and real estate (-3.5%) among the hardest hit whilst consumer staples (-0.2%) are once again showing their diversification benefits.

It’s clear that certain sections of the market have run ahead of themselves, with a recent spike in volatility likely here to stay. There is also a substantial amount of capital in cash ‘on the sidelines’ with both retail and professional investors, many of whom missed out on the remarkable recovery. Therefore, I expect any sharp falls to be followed by some solid buying in the months ahead.

Monday’s trading is looking positive despite more tensions in the US and spiking infection rates in both Africa and the Middle East.

Featured interview: Pete Wargent, where to for Australian house prices in 2020?

Click here to watch more episodes of The Australian Investors Podcast — it’s free to subscribe on YouTube for the next episode (due out this week)!

Out with the old, in with the milk…

June saw the long-awaited Standard and Poor’s index announcements with many investors positioning in advance of the statement.

The particular highlights were poker machine manufacturer Aristocrat Leisure moving into the ASX 20 at the expense of Amcor, A2 Milk pushing AMP out of the ASX 50 and NextDC leaving Unibail Rodamco Westfield in its dust. URW, which owns Westfield’s overseas and primarily European shopping mall assets, was similarly the worst-performing company for the week, dropping some 17% as investors grow increasingly concerned about sustainable rental income post-COVID 19.

TPG Telecom was a rare gainer on Friday, adding 1.9% after floating a potential 50-cent per share special dividend should the merger with Vodafone go ahead later this year.

Shares to watch on Monday

As predicted several in the middle of the economic shutdown, Seek appears to be at the forefront of the economic recovery, announcing job advertisements for the week ended June 7 had increased 60%. This compared positively to growth rates of 30%, 40% and 50% in the preceding periods.

Zip Co reported monthly revenue growth of 78% to $15.6 million with transaction volumes up a similarly strong 63% to $189 million. Z1P now has similar transaction volumes and revenue as Afterpay but is valued at just $3 billion versus $14 billion for the latter, with the added benefit that the company undertakes credit assessments on its borrowers.

Lastly, childcare centre operator G8 Education signalled a $250 million devaluation of their property assets, which I consider to be a natural result of COVID-19 and a sign of things to come for many sectors of the property market.

If you’re looking for things to read this morning — and actionable share and ETF ideas — try these stories:

This report was written by Drew Meredith, Financial Adviser and Director of Wattle Partners. To get in contact with Drew, click here to visit the Wattle Partners website.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

General Financial Advice warning
The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

© Rask Australia 2020

Join 20,000+ smart investors

Join the Rask Australia mailing and we’ll send you free investment reports, podcasts, expert insights, investing courses, ASX news and lots, lots more. All free. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian-owned.

feedback-icon

What can we do better?

Howdy, ASX investor.

I really care about your experience today.

Please, let me know if you have any suggestions we can use to improve our site and help others invest in ETFs. 

Cheers! 

Owen Rask