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ASX 200 rally set to continue: 7 shares to watch today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to open slightly higher this morning following a rather mixed session for international markets. The Sydney Futures Exchange suggests an 8-point or 0.15% rise at the open despite a sharp retreat in the price of oil.

Here’s a quick recap:

  • FTSE 100 (UK): down 0.15%
  • DAX (Germany): down 0.33%
  • CAC 40 (France): up 0.09%
  • Dow Jones (USA): up 0.13%
  • NASDAQ (USA): down 0.34%

Oil prices soared on Tuesday night but gave back most of their gains during the latest session, which could weigh on companies such as BHP Billiton Limited (ASX: BHP) and Santos Ltd (ASX: STO).

Meanwhile, Woodside Petroleum Limited (ASX: WPL) will also be in focus after it agreed to acquire ConocoPhillp’s interest in Senegal for US$350 million, plus a completion adjustment of US$80 million.

Elsewhere in the resources industry, Fortescue Metals Group Limited (ASX: FMG) provided an annual production update after the market closed yesterday.

The miner confirmed that it shipped a total of 169.4 metric tonnes of iron ore during financial year 2016, compared to guidance of 165 million tonnes provided in February. While still a positive, this was somewhat expected after the company said in April that shipments were ahead of target due to the mild weather experienced during the March quarter.

Investors will also be hoping for further gains from Blackmores Limited (ASX: BKL) and FlexiGroup Limited (ASX: FXL) after the shares soared 7.4% and 9.7% yesterday, respectively.

Shares of Catapult Group International Ltd (ASX: CAT) will remain in a trading halt today after the company announced two acquisitions and a capital raising yesterday.

In broker news, The Australian Financial Review noted that analysts at CLSA suggest shares of Bellamy’s Australia Ltd (ASX: BAL) could be worth $22. Notably, this isn’t a price target per se, and appears to be based almost entirely on a price paid by Danone to acquire fellow health food provider WhiteWave Foods for roughly 35x estimated FY17 earnings. Regardless, it is still encouraging for Bellamy’s investors.

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The Motley Fool Holdings owns shares of WhiteWave Foods. Motley Fool contributor Ryan Newman owns shares of Bellamy's Australia. The Motley Fool Australia owns shares of Bellamy's Australia. 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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