On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.55% to 8,653.3 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 tumble
It looks set to be a difficult session for Australian investors on Thursday after a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 0.8% lower this morning. In the United States, the Dow Jones was down 1.9%, the S&P 500 fell 1.6%, and the Nasdaq sank 2%.
Buy WiseTech shares
WiseTech Global Ltd (ASX: WTC) shares are good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the logistics solutions technology company's shares with a trimmed price target of $71.75 (from $78.75). It said: "We have reduced the multiples we apply in our PE ratio and EV/EBITDA valuations from 55x and 30x to 50x and 27.5x and also increased the WACC we apply in the DCF from 8.6% to 8.8% given the lack of apparent progress in shifting large customers to CVP and the resulting downgrades in our forecasts. These changes combined with the downgrades have resulted in a 9% decrease in our TP to $71.75 which is still, however, a significant premium to the share price so we maintain our BUY recommendation. That is, we believe the lack of progress is already reflected in the share price as well as the risk of a revenue result at the low end of guidance."
Oil prices jump
It could be a good session for ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3.9% to US$91.67 a barrel and the Brent crude oil price is up 3.4% to US$94.55 a barrel. This was driven by concerns over an escalation in US-Iran tensions.
Buy Develop Global shares
The Develop Global Ltd (ASX: DVP) share price is undervalued according to Bell Potter. In response to final investment decisions for its Sulphur Springs and Pioneer Dome mining developments, Bell Potter has retained its buy rating and $7.10 price target on the miner's shares. It said: "DVP's ability to rapidly bring Pioneer Dome to market presents an opportunity to capitalise on current robust lithium prices, with strong resulting free cash flows to support its balance sheet at a time of heightened capital spend at Sulphur Springs."
Gold price sinks
It could be a tough session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price sank overnight. According to CNBC, the gold futures price is down 4.5% to US$4,092.2 an ounce. This reflects fading Middle East peace hopes and interest rate hike concerns.
