Last week was a volatile but positive one for Australian investors. The benchmark S&P/ASX 200 Index (ASX: XJO) ended its losing streak and recorded a 25.8 points or 0.5% gain to end the week at 4842.4 points.
Will things be better next week? Here are a few things to watch:
Wall Street tumbles but futures pointing higher.
The S&P/ASX 200 is poised to open the week a fraction higher despite heavy declines on Wall Street on Friday night. The Dow Jones dropped over 900 points or 4.1%, the S&P 500 fell 3.4%, and the technology-focused Nasdaq index tumbled 3.8% lower. Despite this, current SPI futures are pointing to the S&P/ASX 200 Index opening the week 6 points higher on Monday.
Shares going ex-dividend.
A number of ASX 200 shares are due to go ex-dividend next week and could trade lower. These include 4×4 auto parts manufacturer ARB Corporation Limited (ASX: ARB), real estate investment trust and property group Cromwell Group (ASX: CMW), and retail giant Harvey Norman Holdings Limited (ASX: HVN).
Dividends being paid.
The good news for retirees and income investors is that a number of blue chip ASX 200 shares are due to pay their dividends next week. This includes banks Bendigo and Adelaide Bank Ltd (ASX: BEN) and Commonwealth Bank of Australia (ASX: CBA), mining giant South32 Ltd (ASX: S32), insurance giant Suncorp Group Ltd (ASX: SUN), and conglomerate Wesfarmers Ltd (ASX: WES).
Flight Centre and Webjet scheduled to return.
The shares of embattled travel agents Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are scheduled to return from their suspensions next week. Both companies are currently working on capital raisings in order to provide sufficient liquidity to see them through these incredibly difficult trading conditions. Though, there is speculation that both companies are finding it harder than they would like to get the required funding.
5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)
Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained. Given how far some of them have fallen, the upside potential could be enormous. The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.
But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended ARB 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.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020