On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a subdued note. The benchmark index rose by a modest 4.9 points to 7,063.5 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to storm higher
The Australian share market looks set to start the week on a very positive note. This follows a solid finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 35 points or 0.5% higher this morning. On Wall Street on Friday, the Dow Jones rose 0.5%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.1% higher. The Dow hit a new record high after posting its fourth straight week of gains.
Redbubble shares added to ASX 200
The Redbubble Ltd (ASX: RBL) share price could be given a boost by news that it will soon be added to the ASX 200 index. S&P Dow Jones Indices has announced that it will replace Coca-Cola Amatil Limited (ASX: CCL) on the benchmark index, subject to final court approval of its takeover. S&P Dow Jones Indices intends to make the changes prior to the open of trading on 22 April 2021.
Oil prices lower
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.5% to US$63.13 a barrel and the Brent crude oil price dropped 0.25% to US$66.77 a barrel. That wasn’t enough to stop both WTI and Brent crude oil recording solid weekly gains. This was driven by optimism over a recovery in demand.
Gold price rises
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,777.30 an ounce. The easing of bond yields led to the precious metal having its best week in four months.
Goldman remains positive on Origin shares
The Origin Energy Ltd (ASX: ORG) share price could be dirt cheap after its significant decline on Friday. According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating but trimmed their price target slightly to $6.50. This implies potential upside of over 50% from the last Origin share price. Goldman said: “On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT).”
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More reading
- Why the Redbubble (ASX:RBL) share price could charge higher today
- 2 high-yielding ASX 200 dividend shares
- These were the best performing ASX 200 shares last week
- What to make of all this good news?
- These were the worst performing ASX 200 shares last week
Motley Fool contributor James Mickleboro 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 Bruce Jackson.
The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.
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