On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard and managed to carve out a small gain. The benchmark index rose 0.2% to 8,109.9 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise again
The Australian share market is expected to rise again on Tuesday despite a mixed start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.35% higher. Wall Street was closed for the Labour Day holiday but in Europe the DAX was up 0.1%, the CAC rose 0.2%, and the FTSE fell 0.15%.
Buy REA Group shares
REA Group Ltd (ASX: REA) shares are in the buy zone according to analysts at Goldman Sachs. In response to news that it is contemplating an acquisition of UK peer Rightmove (LSE: RMV), the broker has retained its buy rating and $221 price target on the property listings company's shares. It notes: "Rightmove's multiple has declined from its 12mf EV/EBITDA peak of 30X during 2020 to 15x currently, below REA, which is trading on 28X; (2) Consensus REA/RMV EPS growth is broadly similar at 19% (REA) and 15% (RMV)."
Oil prices rebound
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.7% to US$74.04 a barrel and the Brent crude oil price is up 0.3% to US$76.48 a barrel. Traders appear to believe that recent selling has been overdone and are buying the dip.
Coles and Woolworths go ex-dividend
Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) shares are likely to trade lower this morning when the supermarket giants trade ex-dividend. Eligible Coles shareholders can now look forward to receiving its 32 cents per share fully franked dividend later this month on 25 September. Whereas Woolworths shareholder will be receiving their 97 cents per share dividend a few days later on 30 September.
Gold price rises
ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price rose overnight. According to CNBC, the spot gold price is up 0.15% to US$2,531.7 an ounce. Rate cut optimism continues to give the precious metal a boost.
