On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.7% to 8,717.7 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set for a poor session on Thursday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.5% lower this morning. In the United States, the Dow Jones was up 0.4%, the S&P 500 edged slightly higher, and the Nasdaq rose 0.1%.
Buy Nufarm shares
Nufarm Ltd (ASX: NUF) shares rocketed almost 14% on Wednesday following the release of the agricultural chemicals company's results. Bell Potter believes there is more to come. This morning, the broker has retained its buy rating and $3.60 price target on Nufarm shares. It said: "Our Buy rating is unchanged. NUF is executing on its cost out initiatives ($32m of the $50m FY26e target achieved and a $50m target in FY27-28e) with a more favourable backdrop in crop protection markets and omega-3 (a doubling in fishoil pricing). Despite this NUF trades at a ~25% discount to global crop protection and seed peers."
Oil prices sink
ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.75% to US$89.42 a barrel and the Brent crude oil price is down 4.7% to US$94.93 a barrel. Traders were selling oil after the US stated that it would give Iran peace talks "every chance to succeed."
Buy Eagers shares
Bell Potter remains bullish on Eagers Automotive Ltd (ASX: APE) shares. In response to its annual general meeting, the broker has retained its buy rating with a trimmed price target of $28.75 (from $29.25). It said: "There are no changes in the key assumptions we apply in each of the valuations used to determine our target price – 22.5x and 7.5x multiples in the PE ratio and EV/EBITDA and an 8.7% WACC in the DCF. The net result is a 2% decrease in our target price to $28.75 which has been driven by the earnings downgrades. This is still >15% premium to the share price so we maintain our BUY recommendation. Focus now perhaps shifts to vehicle deliveries in May and June – May should be out late next week – given these are two of the biggest months of the year and, as Eagers said, the company generates 20-25% of full year profit in these two months."
Gold price falls
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,456.2 an ounce. Increasing interest rate hike bets sent gold down to a two-month low.
