The Australian share market is expected to open flat today, taking a breather after what was a tremendous day on the market yesterday.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) ended the day 99 points or 1.9% higher at 5266 points, despite the Reserve Bank of Australia's decision to leave interest rates on hold. Meanwhile, the Dow Jones and NASDAQ indices rallied 1% and 0.9% overnight, while the FTSE 100 jumped 0.6% in London.
While the Reserve Bank's meeting was in the market's focus yesterday, investors will be waiting for the release of fresh GDP figures by the Australian Bureau of Statistics today. As highlighted by The Australian Financial Review, the figures could show that the economy rebounded in the September quarter thanks to robust company profits and a surge in exports, which will support the Bank's decision to leave interest rates at 2% on Tuesday.
On the market however, investors will be watching Bellamy's Australia Ltd (ASX: BAL) again after the infant formula producer soared to a new high yesterday, rising 5.8% to $12.22. Morgans increased its price target on the shares to $13.90.
IOOF Holdings Limited (ASX: IFL) could also find some support after Morgan Stanley increased its price target on the stock to $9.30 per share, up from $8.80 previously, according to the Fairfax press.
On the other hand, Santos Ltd (ASX: STO) could come under renewed pressure on reports that retail investors may have taken up well less than half their entitlements in the $1.35 billion retail offer.
Another company that will likely be forced to face the music is Spotless Group Holdings Ltd (ASX: SPO), which is an outsourced facility, laundry and linen services provider.
In an update to the market today, Spotless Group said it expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be similar in the 2016 financial year (FY16) as in FY15, while acquisitions are taking longer to integrate into the business. Net profit could fall around 10% compared to last year.
BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) could all be in focus again as well. Although all three miners recorded gains yesterday, the iron ore price fell another 1.7% overnight to just US$42.24 a tonne, according to the Metal Bulletin, which is its lowest price in at least six years. Further falls will spell trouble for the sector as a whole.
Investors will likely get a look into TPG Telecom Ltd's (ASX: TPM) performance so far this year as the group holds its annual general meeting in Sydney today. The telco recently announced a Share Purchase Plan to pay down debt and support its ongoing capital expenditure initiatives.
Finally, Slater & Gordon Limited (ASX: SGH) and Dick Smith Holdings Ltd (ASX: DSH) will be watched closely again today.
Slater & Gordon's share price has been on a tear over the last two days but shares remain considerably below their recent levels. Meanwhile, Dick Smith is advertising a one-day sale on its website after it booked a $60 million impairment on its inventories on Monday which sparked a violent sell-off of the shares.
