Thursday, September 19, 2024

5 things to watch on the ASX 200 on Monday

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.1% to 7,822.3 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Monday despite a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% lower. In the United States, the Dow Jones was up 0.2%, the S&P 500 was 0.55% higher, and the Nasdaq rose 0.9%.

Oil prices soften

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices pulled back on Friday. According to Bloomberg, the WTI crude oil price was down 0.85% to US$83.16 a barrel and the Brent crude oil price was down 1% to US$86.54 a barrel. This couldn’t stop US crude oil from recording its fourth consecutive weekly gain thanks to an improving demand outlook.

Buy Suncorp shares

Goldman Sachs thinks that Suncorp Group Ltd (ASX: SUN) shares are in the buy zone. In response to its FY 2025 reinsurance program update, the broker has retained its buy rating on the insurance giant’s shares with an improved price target of $18.00. It said: “We have kept our underlying margin profile for SUN broadly unchanged but make small upgrades largely driven by higher NEP from lower reinsurance spend / non renewal of QS. This increases our PT to $18.”

Gold price charges higher

It could be a good start to the week for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the spot gold price was up 1.2% to US$2,397.7 an ounce. Interest rate cut optimism gave the gold price a boost.

Buy Boss Energy shares

Boss Energy Ltd (ASX: BOE) shares could be undervalued according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating on the uranium miner’s shares with a trimmed price target of $5.90. It commented: “We continue to see Honeymoon as a low-cost restart operation, which has the capacity to generate strong margins in the current pricing environment.”

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