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St Barbara and 2 more ASX 200 shares to watch this week

figurine of a bull standing on gold bars
Image source: Getty Images

It was a tough week for many ASX 200 shares as the S&P/ASX 200 Index (ASX: XJO) slumped 2.3% lower to 5,919.2 points on Friday.

Last week, I was watching Altium Limited (ASX: ALU)NextDC Ltd (ASX: NXT) and Vicinity Centres (ASX: VCX).

It was a tough week for both Altium (-1.7%) and Vicinity Centres (-8.3%) shares while the NextDC share price (+2.6%) fared considerably better.

After another volatile week on the markets, find out why I’m watching St Barbara Ltd (ASX: SBM) and 2 more ASX 200 shares this week.

St Barbara and 2 more ASX 200 shares to watch this week

St Barbara shares had a bullish run last week, closing up 10.0% for the week at $3.63 per share.

I think that strong share price growth could continue given the current market conditions. Investors are wary that the market has roared back to life despite the coronavirus pandemic weighing on economic growth.

ASX gold shares, in general, have outperformed recently but I like the look of St Barbara. Unlike many resources shares, St Barbara actually produces a significant amount of gold. St Barbara reported 181,728 ounces of gold production in its half-year results for a net profit after tax of $39 million.

With increasing market volatility, investors could flock to St Barbara and look to gold as a ‘safe haven asset’.

It isn’t just St Barbara that’s on my watchlist this week. I also think Metcash Limited (ASX: MTS) shares could be set for a resurgence.

Metcash operates the IGA supermarket chain and was an early outperformer in 2020. That came as Aussies stocked up on supplies and panic buying set in, sending supermarket sales soaring.

With tightening restrictions in Victoria, and other states potentially looking to follow suit, Metcash could be back in the buy zone.

Supermarkets remain an essential purpose for leaving the home. As such, I think sales will remain stable or even climb in July. That could make Metcash an in-demand ASX 200 share in this week’s trade.

Finally, Domino’s Pizza Enterprises Ltd. (ASX: DMP) is on my watchlist this week. The Domino’s share price climbed 1.7% last week and that momentum could be set to continue.

Once again, tightening restrictions could work in the pizza chain’s favour. More deliveries and demand for its services could provide a sales boost in 2020. 

That won’t be reflected in the group’s August earnings result, but I think investors could still be looking to invest.

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Returns as of 6th October 2020

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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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