S&P/ASX 200 set to jump: 8 shares to watch on Friday


The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is set for further gains this morning after a solid rise in global equity markets overnight.

Here’s a recap:

  • Dow Jones (USA): up 0.74%
  • NASDAQ (USA): up 0.01%
  • FTSE 100 (UK): up 1.77%
  • DAX (Germany): up 1.94%
  • EURO STOXX 50 (Europe): up 2.13%
  • Shanghai Composite (China): down 3.23%

Share markets around the world rose overnight after oil prices surged higher. Although stockpiles of the resource continued to rise, it seems investors had expected an even worse result, which subsequently drove the resource to its biggest daily gain for 2016.

The ASX futures are also pointing to a 24 point rise for the ASX 200 at the opening bell.

The optimism spread far and wide, even to the FTSE-listed shares of mining giants BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO). The pair surged 10.7% and 6% respectively, after plunging the night before, suggesting a strong day for both shares locally.

Higher oil prices is good news for energy producers, most of which have been smashed so far this year. As such, Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) shareholders will hope for a better day.

Indeed, so too will owners of Sundance Energy Australia Ltd (ASX: SEA) which plunged 9% on Thursday. Sundance Energy’s shares have nearly halved in value since the beginning of the year.

Australia and New Zealand Banking Group (ASX: ANZ) will also be in focus again today with its shares falling 6% during the last two sessions based on fears regarding the sustainability of its fully franked dividend yield.

Private health insurance giant Medibank Private Ltd (ASX: MPL) has enjoyed a strong start to 2016, and that trend could continue today.

The company updated its full-year health insurance financial targets this morning, saying it now expects operating profit of “above $470 million”. Its previous target was “above $370 million.” In saying that however, premium revenue growth will come in below expectations, while the management expense ratio will be slightly higher than anticipated.

Elsewhere, ResMed Inc. (CHESS) (ASX: RMD) will also be in focus after reporting a 7% lift in quarterly revenue, or 13% on a constant currency basis. Its performance in the Americas was particularly strong, where revenue rose an impressive 17%.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

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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