Saturday, July 20, 2024

5 things to watch on the ASX 200 on Thursday

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and ended the day in the red. The benchmark index fell 0.15% to 7,816.8 points.

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

Strong session expected for the ASX 200

The Australian share market looks set to rebound strongly on Thursday following a very good night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 72 points or 0.9% higher this morning. In the United States, the Dow Jones was up 1.1%, the S&P 500 rose 1% and the Nasdaq stormed 1.2% higher.

Oil prices charge higher

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$82.39 a barrel and the Brent crude oil price is up 0.8% to US$85.35 a barrel. A decline in US inventories and positive outlook commentary from OPEC boosted prices.

Buy Light & Wonder shares

Goldman Sachs thinks Light & Wonder Inc. (ASX: LNW) shares are great value at current levels. This morning, the broker has initiated coverage on the cross-platform global games company that provides gambling products and services with a buy rating and $190.00 price target. This implies potential upside of 22% for investors over the next 12 months. It said: “LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus).”

Gold price rises

It could be a decent session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$2,378.9 an ounce. US interest rate cut optimism boosted the precious metal.

Aristocrat rated neutral

Aristocrat Leisure Limited (ASX: ALL) shares have been given a neutral rating by analysts at Goldman Sachs. The broker is very positive on the gaming technology company but believes its shares don’t have enough upside to initiate with a buy rating. Goldman has put a neutral rating and $55.30 price target on them instead. This implies potential upside of 7% for investors. It said: “We are most positive on the near to mid-term prospects within land-based gaming, expecting ongoing share gains from the big three, but prefer LNW to ALL given a greater risk-reward skew.”

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