Morning market movers: 14 stocks to watch

It's the Chinese market crash that's dominating headlines and setting the scene for a weak open for the ASX. But don't take your eyes off Westpac Banking Corp (ASX:WBC) and Navitas Limited (ASX:NVT).

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We can thank the Chinese for this morning's weak open as our market is expected to give up all of yesterday's surprise gains and then some.

The whopping 8% plus crash in Shanghai's stock exchange yesterday reverberated around the world and caused US and European equity markets to suffer sizable falls.

We won't escape the downdraft as the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is forecast to open 0.7% in the red following Monday's late rally that sent the index jumping 0.4% to 5589.9.

One of few asset classes that appears to have benefited from the blow to global investor confidence is gold as the precious metal rebounded 1% to $US1,096.40 an ounce. That will be good news for the likes of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

Gold's reaction is understandable as it is seen as a safe haven but I am surprised to see iron ore bounce 1.8% to $US52.35 a tonne. I am not sure if that will be enough to keep Rio Tinto Limited (ASX: RIO) in the black though and it will be interesting to see if Atlas Iron Limited (ASX: AGO) can recover some of its 70% loss after the stock emerged from its trading halt yesterday.

What is perhaps clearer is that it won't be a good day for energy stocks like Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) with the oil price slumping into bear territory, which is defined by a 20% or more drop from the peak.

The West Texas Intermediate (WTI) fell 1.6% to a four month low of $47.39 a barrel and only a last minute surge saved it from finishing below $US47.

But it will probably be junior oil & gas company Senex Energy Ltd (ASX: SXY) that could be capturing attention in the sector as it is expected to release its fourth quarter production numbers.

Elsewhere, cement supplier Adelaide Brighton Ltd. (ASX: ABC) will be in focus after it said it expected to generate cash proceeds of around $16 million in the first half of 2015 and $32 million in the second half from land sales. Net profit from these transactions is forecast to come in at around $32 million.

Listed office landlord DEXUS Property Group (ASX: DXS) is also likely to be in the spotlight after a Chinese sovereign wealth fund paid $2.45 billion for nine office towers, implying a yield of 5%. The Australian Financial Review suggested this will trigger a re-rating in the sector.

Investors will be keenly watching Programmed Maintenance Services Limited (ASX: PRG) as it holds its annual general meeting today. The staffing solutions company recently struck an agreement to acquire Skilled Group Ltd. (ASX: SKE) and shareholders will want to hear an update on the transaction.

Could education services firm Navitas Limited (ASX: NVT) enjoy a relief bounce today following its worse than expected full year result yesterday? The stock slumped 6.4% to $4.27 but at least one broker felt the sell-off is overdone and has upgraded the stock to "neutral" from "underperform".

The Chinese market crash has not derailed Platinum Asset Management Limited's (ASX: PTM) plans to start an Asian investment fund. The listed fund manager is looking to raise a maximum of $500 million for the new venture.

News that Westpac Banking Corp (ASX: WBC) is losing $1 million a day due to IT issues is likely to drag on the stock. The AFR reported that a glitch that prevents the bank identifying investor property loans is preventing the bank from following its peers in lifting rates for the group.

Motley Fool contributor Brendon Lau owns shares of Rio Tinto Ltd., SKILLED Group Limited, Westpac Banking, and Woodside Petroleum Ltd.. Follow me on Twitter - https://twitter.com/brenlau The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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