On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and stormed higher. The benchmark index jumped 2.25% to 8,671.8 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
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ASX 200 set to rise
The Australian share market looks set for another rise on Thursday following a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% higher this morning. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 0.9% and the Nasdaq is 1.25% higher.
Buy Harvey Norman shares
Harvey Norman Holdings Ltd (ASX: HVN) shares could be undervalued according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the retail giant's shares with a reduced price target of $6.70. Based on its current share price of $4.87, this implies potential upside of 38%. It said: "Following the sharp sell-off in the name since Oct-25, HVN's 1-year forward P/E of ~13x (as per BPe) appears attractive considering the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia and opportunities to grow their real estate portfolio as Australia's single largest owner in large format retail with a global portfolio of ~$4.6b."
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session on Thursday after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.6% to US$99.73 a barrel and the Brent crude oil price is down 2.8% to US$101.03 a barrel. This has been driven by optimism that a US-Iran peace deal is near.
Graincorp shares are fully valued
The team at Bell Potter has also been looking at Graincorp Ltd (ASX: GNC) shares. However, it thinks the grain exporter's shares are fully valued at current levels and has retained its hold rating and $6.80 price target. It said: "As the focus shifts to the upcoming crop, soil moisture profiles are in general the opposite of a year ago, being improved in the south and drier in the north. At this stage, the increasing shift in outlook towards an El Nino bias in 2HCY26 warrants consideration against potential yield outcomes."
Gold price rises
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 2.4% to US$4,658.4 an ounce. A softer US dollar gave the precious metal a lift.
