On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a strong gain. The benchmark index rose 0.75% to 8,285.2 points.
Will the market be able to build on this on Monday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set for a poor start to the week following a disappointing session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.3% lower. In the United States, the Dow Jones was down 0.7%, the S&P 500 fell 1.3%, and the Nasdaq tumbled 2.2%.
Oil prices tumble again
ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices tumbled again on Friday. According to Bloomberg, the WTI crude oil price was down 2.45% to US$67.02 a barrel and the Brent crude oil price was down 2.1% to US$71.04 a barrel. Traders were selling oil on concerns that a surplus is looming.
Buy Computershare shares
Computershare Ltd (ASX: CPU) shares are in the buy zone according to analysts at Goldman Sachs. In response to its annual general meeting update, the broker has retained its buy rating and $31.00 price target on its shares. It said: "Operating trends are tracking favourably across Issuer services, ESP and Corporate trust albeit there is uncertainty around where expense growth lands. MI is in line with original guidance using ~92.5% recapture rates. We think this all points to some upside risk to EPS guidance."
Gold price eases
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price eased further on Friday night. According to CNBC, the gold futures price was down 0.1% to US$2,570.1 an ounce. The precious metal had its worst week in three years after bets on US interest rate cuts lessened.
IGO shares named as a buy
IGO Ltd (ASX: IGO) shares could be undervalued according to Goldman Sachs. In its latest weekly lithium update, the broker has reaffirmed its buy rating and $6.20 price target on the miner's shares. This implies potential upside of 22% for investors over the next 12 months. It recently said: "We rate IGO as Buy relative to our lithium coverage, where on valuation IGO is trading on 0.8x NAV and pricing ~US$965/t spodumene, at a discount to peers (~1x NAV and ~US$1,025/t), with near-term FCF yields remaining positive and attractive vs. peers (<0% on average)."
