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5 things to watch on the ASX 200 next week

Last week was a disappointing one for the S&P/ASX 200 Index (ASX: XJO). A poor finish to the week led to the benchmark index falling 1.6% over the period to 5,927.8 points.

Investors will no doubt be hoping for better next week. Ahead of another eventful week, I thought I would take a look to see what we should be watching out for.

Here are five things to watch next week:

ASX futures flat.

The ASX 200 looks set to have a subdued start to the week. According to the latest SPI futures, the ASX 200 is expected to fall 1 point at the open on Monday. This is despite a positive end to the week on Wall Street on Friday, which saw the Dow Jones rise 0.45%, the S&P 500 push 0.8% higher, and the Nasdaq index jump 1.5%. The latter was supported by the Apple share price, which surged 10% higher after its quarterly update. The tech giant is now the world’s most valuable company.

REA Group results.

The REA Group Limited (ASX: REA) share price will be one to watch on Friday when the property listings giant releases its full year results. According to CommSec, analysts are expecting the company to deliver a full year net profit after tax of $263.12 million. This will be a decline from $295.5 million in FY 2019, which isn’t a bad result all things considered. A final dividend of 51 cents per share is also expected to be declared.

Reserve Bank meeting.

On Tuesday the Reserve Bank of Australia will meet to discuss the cash rate. At present, the market is pricing in a 57% probability of a rate cut to zero at the meeting. While this means a cut is reasonably unlikely, it certainly is in play. Especially given the recent strengthening of the Australian dollar versus the greenback.

BWP results.

Bunnings Warehouse landlord BWP Trust (ASX: BWP) is scheduled to release its full year results on Tuesday. In June the company revealed that it has been collecting rent largely as normal during the pandemic. As a result, it expects to declare a second half distribution of 9.27 cents per unit. This will bring its full year distribution to 18.29 cents per unit, up 1% on the prior financial year. According to CommSec, analysts expect a full year profit of $117 million.

Insurance Australia results.

All eyes will be on the Insurance Australia Group Ltd (ASX: IAG) share price on Friday when it hands in its full year results. According to CommSec, the market is expecting the insurance giant to post a net profit after tax of $444.83 million. Last month the company advised that no final dividend would be declared. It commented: “While IAG recognises many shareholders will be disappointed with no final dividend, it believes it is important to adhere to its long-established dividend payout policy and to maintain a strong capital position in the current uncertain environment.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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