It was an up and down week for S&P/ASX 200 Index (INDEXASX: XJO) shares last week with coronavirus concerns and the RBA interest rate cut moving markets.
Last week I was watching Bega Cheese Ltd (ASX: BGA), InvoCare Limited (ASX: IVC) and Saracen Mineral Holdings Limited (ASX: SAR).
The Bega share price surged 10.12% higher last week despite a disappointing half-year result on Monday. Heavy selling of Bega shares in recent months may have caused some investors to buy in at what seemed like a good price. The InvoCare share price crashed 4.48% back to earth last week while Saracen shares surged 13.79% higher as investors flocked to the safety of ASX gold miners.
Check out the 3 ASX 200 shares that I'll be keeping my eye on as we get ready for another big week of trade in Aussie equities.
Coles Group Ltd (ASX: COL)
The Coles share price will be worth watching as the coronavirus concerns continue in Australia. We've seen consumers rush to stock up on supplies from the Aussie supermarkets in the last week or so.
In the midst of all the panic buying, the sales for an Aussie supermarket like Coles could surge. I wouldn't be surprised to see the Coles share price climb higher as investors factor in this short-term earnings boost in the coming weeks.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue Metals share price could be one to watch this week. It can be hard to know what's real and what's not when it comes to the coronavirus. One small milestone last week was the smallest number of new cases coming out China to date.
This could be a sign that things are starting to stabilise in the COVID-19 epicentre. If you think of that as a leading indicator, we could soon see a return to normal levels in manufacturing and production.
Should that be the case, I would expect increased demand for Aussie minerals from China. The Fortescue share price is trading at $9.60 per share and has a dividend yield of 10.42% right now. At a price to earnings (P/E) ratio of just 3.91 times, that could be an absolute bargain.
Westpac Banking Corp (ASX: WBC)
The Westpac share price will start this week trading at a 52-week low of $21.35. That's largely due to investors pricing in the impact of last week's RBA interest rate cut to 0.50%.
However, this week could be a good one to watch Westpac shares. I'd expect many of the banks to be heavily traded this week as investors position themselves for any economic changes.
While lower interest rates can mean lower profit margins, it could also boost property prices and help drive loan volume for the banks.
