5 things to watch on the ASX 200 on Monday

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a solid gain. The benchmark index rose 0.5% to 7,213.2 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back Friday’s gains on Monday following a poor finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.45% lower this morning. On Wall Street, the Dow Jones was down 0.9%, the S&P 500 fell 0.7%, and the NASDAQ dropped 0.7%.

Oil prices drop

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a soft start to the week after oil prices dropped again on Friday night. According to Bloomberg, the WTI crude oil price was down 0.6% to US$71.02 a barrel and the Brent crude oil price fell 0.1% to US$76.10 a barrel. Oil prices tumbled 11% last week amid concerns over demand.

Woolworths to acquire Petstock?

The Woolworths Group Ltd (ASX: WOW) share price will be one to watch this morning amid speculation the retail conglomerate is on the verge of making a major new acquisition. According to the AFR, Woolworths is close to signing an agreement to acquire pet accessories and food retailer Petstock. No acquisition price was provided but it is likely to come with a sizeable price tag given Petstock reportedly achieved sales of almost $700 million and profit before tax of $54 million in FY 2022.

HMC rated as a buy

The HMC Capital Ltd (ASX: HMC) share price could be great value according to analysts at Morgans. This morning, the broker has retained its add rating with a $5.85 price target. This implies almost 30% upside for the property development company’s shares. It said: “The share price has been impacted by the overall REIT sector underperformance this year, however with a capital light business model and a track record for executing on complex deals we back management to deliver on its targets.”

Gold price rises

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price pushed higher on Friday. According to CNBC, the spot gold price was up 0.5% to US$1,810.7 an ounce during the session. The gold price rose on hopes the US Federal Reserve could still slow its rate hikes.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

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• What’s driving ASX 200 gold shares to outperform this week?
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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