Don’t look now but our market could mark its seventh straight day of losses today as mixed offshore leads and a fall in the iron ore price weighs on sentiment.
The futures market is predicting a 0.1% dip in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning, which will leave us uncomfortably close to correction territory.
A correction is technically a 10% drop from the peak and the top 200 stock index currently stands at 8.6% below the high of April 27 this year.
Me? Worried?? Not at all as I am cashed up and will treat the market pullback as a buying opportunity.
Resource stocks could see some support though even though the Metal Bulletin iron ore price slipped 0.1% to $US64.27 a tonne. The West Texas Intermediate crude oil price staged a 3.4% rally to $US60.14 a barrel while copper advanced 0.7% to $US2.71 a pound and gold gained 0.3% to $US1,178 an ounce.
Petroleum products distributor Caltex Australia Limited (ASX: CTX) is likely to get an added boost as Bell Potter upgraded the stock to “buy” from “hold” with a price target of $34.75 a share.
Nine Entertainment could fall further today as the stock was downgraded by a number of brokers, such as Credit Suisse, Morgan Stanley and Goldman Sachs.
APN News and Media Limited (ASX: APN) will also be in focus as it seeks a $630 million loan for refinancing, according to Bloomberg, and advertising and marketing group STW Communications Group Ltd. (ASX: SGN) holds its investor day.
In another sign that the airline industry has turned a corner, Qantas Airways Limited (ASX: QAN) announced it is expanding its business partnership with American Airlines that will see increased flights by both airlines into Australia and the US.
On the corporate action front, construction company Cimic Group Ltd (ASX: CIM) is looking to sell its offshore unit, while Oil Search Limited (ASX: OSH) may be looking to sell part of its 38.5% stake in the P’nyang gas field to Santos Ltd (ASX: STO), according to reports in the Australian Financial Review
Finally, money transfer company Ozforex Group Ltd (ASX: OFX) is expected to fall as the stock trades without its dividend entitlement today.
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Motley Fool contributor Brendon Lau owns shares of Caltex Australia Ltd., Oil Search Limited, Ozforex Group, and STW Communications Group 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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