On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and ended the day higher. The benchmark index rose 0.15% to 8,695.6 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to edge lower
The Australian share market looks set to edge lower on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is flat, and the Nasdaq is 0.5% higher.
Oil prices fall
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.6% to US$56.20 a barrel and the Brent crude oil price is down 0.95% to US$60.13 a barrel. This follows news that Donald Trump has reached a deal to import up to US$2 billion worth of Venezuelan crude.
Buy Premier Investments shares
Premier Investments Ltd (ASX: PMV) shares could be dirt cheap according to Bell Potter. Despite a disappointing recent update from the Peter Alexander and Smiggle owner, the broker has retained its buy rating with a trimmed price target of $20.00 (from $26.50). It said: "We see limited catalysts for Smiggle, apart from the interim management change and lower our assumptions. However, our views remain unchanged that the current share price implies minimum levels of earnings assumed in the Smiggle brand and any improvements from a lower base case should see some risk-reward for current conditions."
Gold price eases
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Thursday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.75% to US$4,462 an ounce. This appears to have been driven by profit taking from traders.
Hold SGH shares
Bell Potter thinks that SGH Ltd (ASX: SGH) shares are fully valued. In response to its takeover offer for BlueScope Steel Ltd (ASX: BSL), the broker has retained its hold rating and $52.00 price target. It said: "We believe SGH is securing a good deal for shareholders, acquiring the Australia and RoW businesses at cycle-lows. These assets will benefit from SGH's capital-backing and high-performance operating model which has proven successful with the Boral turnaround. At an offer price of A$30.00/sh, we estimate SGH is paying A$6.00- 9.00/sh for the non-NA assets or 8.4-12.6x EV / FY25a EBIT (SGH: 15.2x pre-deal). We make no material changes to our EPS forecasts and valuation in this report."
