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Morning market movers: 16 stocks to watch

It’s going to be an ugly start to the week. Investors are fleeing for the Grexit, I mean exit, as Greece voted “no” to new austerity measures on Sunday that increased the probability of the country being kicked out of the European Union.

Traders are tipping a 1.5% slump in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning as the market tries to work out how bad the fallout could be from the Greek tragedy.

I can’t imagine big bank stocks in the form of Commonwealth Bank of Australia (ASX: CBA) or National Australia Bank Ltd. (ASX:NAB) with its UK business that is it trying to divest being spared, while resource stocks will also have to contend with falling commodity prices.

However, gold miners like Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be supported by a 0.4% gain in the price of the precious metal to $US1,168 an ounce.

The same can’t be said for iron ore producers like Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) as the steel making commodity suffered its seventh straight session of losses as it fell 0.7% to a two-and-a-half-month low of $US55.26 a tonne.

There isn’t much joy for energy stocks such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) either as the West Texas Intermediate (WTI) crude price crashed 2.5% to $US55.52 a barrel.

The sector, which is heavily investing in liquefied natural gas projects (LNG), will also be weighed down by an Australian Financial Review report that LNG project owners and contractors are locked in disputes that are estimated to run into the billions.

That’s going to drag on sentiment towards listed contractors like Worleyparsons Limited (ASX: WOR) and UGL Limited (ASX: UGL).

But Caltex Australia Limited (ASX: CTX) is starting to look good value to me as the falling oil price is not necessarily bad for the fuel distributor and retailer as falling crude price could help pad its margins. Also, the stock’s 15% fall since March puts it in value territory and at least one broker has upgraded the stock to a ”buy” equivalent rating from “hold.

Geospatial map technology company Nearmap Ltd (ASX: NEA) announced that it was expecting revenue to jump 29% to around $23 million for 2014-15 but that is below consensus forecasts of $25.5 million.

Childcare operator G8 Education Ltd (ASX: GEM) will also continue to be in the spotlight as its takeover target Affinity Education Group Ltd (ASX: AFJ) complains to market regulators about G8 Education’s bid and the Sydney Morning Herald revealed that G8 Education had made a $1.10 bid for its smaller rival in April.

G8 Education’s latest all-scrip bid was valued at 70 cents when it was announced on Friday morning.

In another interesting twist, Transfield Services Limited (ASX: TSE) is part of a consortium with Spanish giant Ferrovial that won a $1.6 billion toll road project in Queensland. Transfield has been subject to takeover interest from Ferrovial.

Finally, property investment company Abacus Property Group (ASX: ABP) is expected to fall as it will trade without its dividend entitlement today.

Hope you brought a towel for the bloodbath.

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Motley Fool contributor Brendon Lau owns shares of Caltex Australia Ltd., Commonwealth Bank of Australia, National Australia Bank Limited, Rio Tinto Ltd., 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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