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5 things to watch on the ASX on Monday

On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) bounced back from its heavy decline with a 0.2% gain to 5,895.7 points.

Will the local market be able to build on this on Monday? Here are five things to watch:

ASX futures pointing lower.

According to the latest SPI futures, the Australian share market selloff is poised to resume on Monday with a sharp drop at the open. The latest futures contracts are pointing to a decline of 0.9% or 51 points at the bell. This is despite a positive end to the week on Wall Street which saw the Dow Jones rise 1.15%, S&P 500 climb 1.4%, and the Nasdaq storm 2.3% higher.

Wesfarmers Q1 update.

Wesfarmers Ltd (ASX: WES) has stopped providing quarterly sales updates but will make an exception today by providing a quarterly update for its Coles supermarkets ahead of its demerger. According to a note out of Goldman Sachs, it expects a strong first quarter from Coles thanks to its Little Shop promotion. It has forecast comparable store food sales of 4.5% during the quarter. Liquor sales are expected to benefit as well, with comparable liquor sales rising 3.5%.

Michael Hill update.

The Michael Hill International Ltd (ASX: MHJ) share price could come under pressure today after the jewellery retailer provided a trading update after the market close on Friday. Michael Hill saw revenue decline 8.8% and same store sales fall 11% for the three months to September 30. Management admitted that it underestimated marketing and promotional activities required to support its strategic shift away from a reliance on discount based pricing.

Lynas shares rally on review news.

The Lynas Corporation Ltd (ASX: LYC) share price was a strong performer in late trade on Friday and could build on this on Monday. Investors were fighting to get hold of the rare earths producer’s shares after Malaysian news outlet Star Online reported that Lynas-critic Fuziah Salleh has withdrawn from the review of its operations in the country.

Shares going ex-dividend.

The shares of telco giant TPG Telecom Ltd (ASX: TPM) are likely to trade lower this morning after going ex-dividend this morning. Eligible shareholders can look forward to receiving the 2 cents per share dividend in their accounts on November 20. The shares of real estate development fund United Overseas Australia Limited (ASX: UOS) are also due to go ex-dividend.

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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 and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended TPG Telecom 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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