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5 things to watch on the ASX on Monday

On Friday the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished the day with a decline of 0.1%, meaning the index posted a weekly decline of approximately 0.5%.

Will the index perform better this week? Here are five things that could shape the day ahead:

ASX futures are pointing lower.

According to the latest SPI futures, the Australian share market is expected to open the week 0.5% or 30 points lower following a weak end to the week on Wall Street. On Friday the Dow Jones Industrial Average was marginally higher, but the S&P 500 was down almost 0.3% and the Nasdaq was off 0.4%.

Royal Commission resumes.

Round three of the Royal Commission commences on Monday with a focus on loans to small and medium enterprises. Shareholders of Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four will be hoping for no more bombshells.

Oil prices give back some gains.

Energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could come under pressure on Monday after oil prices gave back some recent gains. According to Bloomberg, WTI crude oil fell 0.3% to US$71.28 a barrel and the Brent crude oil price fell 1% to US$78.51 a barrel. Profit taking ahead of the weekend break was believed to be behind the decline.

Infant formula shares will be on watch.

The shares of A2 Milk Company Ltd (ASX: A2M) and Bellamy’s Australia Ltd (ASX: BAL) will be on watch today after last week’s sizeable selloff. Last week A2 Milk share price fell 15.5% and Bellamy’s share price lost 15.3% of its value. Investors appear concerned about whether the two companies can live up to their premium valuations.

Elders goes ex-dividend.

Elders Ltd (ASX: ELD) is likely to sink lower this morning after the agribusiness company’s shares go ex-dividend for its 9 cents per share interim dividend. This will be paid to eligible shareholders on June 15. Elsewhere, eligible shareholders of Money3 Corporation Limited (ASX: MNY) will receive its 4.5 cents per share interim dividend today.

Here are three more exciting shares to watch in FY 2019 and beyond.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Elders Limited. 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 Scott Phillips.

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