As the August reporting season hits full swing, let’s take a look at three big-name ASX companies with share prices that are on watch this week.
1. Commonwealth Bank of Australia Ltd (ASX: CBA)
CBA is set to announce its full-year results on Wednesday morning with CEO Matt Comyn the first of the Big Four leaders to present earnings since the recent Reserve Bank of Australia (RBA) rate cut.
As reported in the Australian Financial Review (AFR), the CBA share price could fall by as much 20 per cent in a lower interest rate environment, according to analysts at Morgan Stanley.
With the RBA cutting interest rates by 50 basis points (bps) in the last 2 months, Big Four bank yields have fallen lower, while the bank’s net interest margin (NIM) could come under pressure from lower mortgage lending rates.
However, with the interbank swap rate (BBSW) having cooled and signs of a resurgence in the Aussie property market, Wednesday’s results will be worth digging into to see which way the bank’s earnings are headed in FY20.
2. Crown Resorts Ltd (ASX: CWN)
The Crown share price closed the week 2.8% lower last week as the ongoing scandals surrounding the Aussie wagering group weighed on the company’s capital gains.
Despite the negative publicity and potential for further investigations, the Crown share price did recover 1% on Friday to close at $12.05 per share.
Allegations about Crown’s operations were revealed in a joint investigation by some of Australia’s biggest media outlets, with the claims now being investigated by the Australian Criminal Intelligence Commission.
While this continues to hang over Crown, I’d be keeping an eye on which way the Crown share price heads in early trade as investors weigh up whether it’s a poisoned chalice or a bargain buy.
3. Saracen Mineral Holdings Ltd (ASX: SAR)
While many of the top ASX gold miners surged higher on Friday, the Saracen share price rocketed 10.86% higher to $4.49 per share on Friday as the leader within the S&P/ASX 200 (INDEXASX: XJO) index.
The ASX gold miners have been surging higher this year, with the Saracen share price climbing 54% higher since the start of the year, with global gold prices nearing a 6-year high on Friday.
I’d be watching to see if ongoing US–China trade war tensions keep the gold price momentum higher, which could see the Saracen share price follow suit.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts 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.