5 things to watch on the ASX 200 on Thursday 25 May 2023

5 things to watch on the ASX 200 on Thursday

Here's what to expect on the ASX 200 on Thursday.

James Mickleboro

Author Bio
James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas.

Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends.

His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed.

Areas of Expertise

ASX shares
Growth and dividend investing
Broker research
Interpreting company announcements
Market news
Portfolio strategy
Long-term wealth creation

Education
Bachelor of Politics, Philosophy and Economics. CFA Institute
Social Media
LinkedIn

James is the founder of Evermore Asset Management, which focuses on undercovered global stocks.

Favorite Investment Quote
"It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
— Warren Buffett

Published May 25, 2023 6:21 am AEST

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark fell 0.6% to 7,213.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face. — Image source: Getty Images

ASX 200 expected to fall again

The Australian share market is expected to have a tough session on Thursday after another poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.65% lower this morning. In the United States, the Dow Jones fell 0.8%, the S&P 500 dropped 0.75% and the NASDAQ tumbled 0.6%. US debt ceiling concerns weighed on sentiment.

Webjet shares downgraded

The Webjet Limited (ASX: WEB) share price charged higher on Wednesday after the online travel agent's full-year results impressed the market. The team at Goldman Sachs believes its shares have now peaked and have downgraded them to neutral with a $7.90 price target. Goldman made the move on valuation grounds.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices rose on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.87 a barrel and the Brent crude oil price is up 1.5% to US$77.97 a barrel. Falling US stockpiles boosted prices.

ASX 200 shares go ex-dividend

A number of ASX 200 shares will be going ex-dividend this morning for their latest payouts and could trade lower. This includes gaming technology company Aristocrat Leisure Limited (ASX: ALL), agricultural chemicals company Nufarm Ltd (ASX: NUF), and commercial explosives company Orica Ltd (ASX: ORI).

Gold price drops

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor session after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.7% to US$1,961.4 an ounce. A stronger US dollar weighed on the precious metal.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.