ASX 200 to continue post-Brexit rally: 9 shares to watch

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade higher again today following positive leads from international markets.

Here’s a recap:

  • FTSE 100 (UK): up 3.58%
  • DAX (Germany): up 1.75%
  • CAC 40 (France): up 2.60%
  • Dow Jones (USA): up 1.64%
  • NASDAQ (USA): up 1.86%

In London, shares continued to rally with the FTSE 100 now trading higher than it was at the close on the evening before Brexit. The London-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also rallied, rising 3.2% each, suggesting today could be a good day for their local counterparts.

Meanwhile, other share markets across Europe and the United States also continued to rebound after Friday’s vicious sell-off, with investors snapping up some bargains and appearing increasingly willing to assume more risk.

Closer to home, the Sydney Futures Exchange is pointing to a 73-point gain at the open, resembling a rise of roughly 1.4%.

Considering the strength of the European markets, shares of businesses such as CYBG PLC CDI 1:1 (ASX: CYB) – or Clydesdale Bank – as well as Henderson Group plc (ASX: HGG) and BT Investment Management Ltd (ASX: BTT) could also be in for a good day.

These three businesses were sold off heavily in the aftermath of Britain’s vote to leave the European Union, but showed signs of resilience yesterday.

Kathmandu Holdings Ltd (ASX: KMD) will also be in focus after it upgraded its full-year earnings guidance. It attributed a better-than-expected gross margin to product newness and promotional activity and expects net profit to be between $32 million and $35 million, compared to previous guidance of $30.2 million as of March (figures in NZ$).

Investors will hope for further gains from businesses such as Burson Group Ltd (ASX: BAP) and Somnomed Limited (ASX: SOM) today. Both companies possess growth and defensive qualities, which is typically sought after in times of heightened uncertainty, with both shares hitting fresh all-time highs yesterday.

Finally, Vocus Communications Limited (ASX: VOC) shares will remain in a trading halt today pending a capital raising, with the shares not expected to reopen for normal trade until Monday.

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Motley Fool contributor Ryan Newman owns shares of Burson. The Motley Fool Australia owns shares of Burson. 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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