Key ASX 200 Drivers to Watch Ahead of Friday Trading
Analysts highlight expected gains, oil price movements, Woolworths rating, gold price dip and Coles Group's quarterly sales report as the main factors influencing Friday's ASX 200 session.
The S&P/ASX 200 index closed Thursday at 8,891.8 points, up 0.5%, and market participants are looking to see if the upward trend can continue into Friday. Futures data from SPI suggest the index could open about 0.3% higher, despite a modest decline in U.S. equities, where the Dow Jones fell 0.25%, the S&P 500 slipped 0.3% and the Nasdaq dropped 1.4%.
Energy stocks such as Santos Ltd and Woodside Energy Group Ltd are under watch after oil prices eased, with WTI crude down 0.35% to US$102.42 a barrel and Brent crude down 0.15% to US$115.18 a barrel, a movement linked to renewed U.S.-Iran peace talks.
Morgans downgraded Woolworths Group Ltd to a hold rating, setting a price target of $43.55. The broker noted that while the core Australian food business remains strong, the stock is trading at a high multiple and offers limited upside.
"In our view, while trading conditions remain challenging in NZ Food and BIG W, the core Australian Food business (~88% of group EBIT) continues to perform well, supported by improved execution and sustained sales growth ahead of the market. While we expect this momentum to continue, WOW is now trading on 28x FY27F PE with a yield of 2.7%. As a result, we see limited upside from current levels, with the valuation largely reflecting the growth outlook. We downgrade our rating to HOLD from ACCUMULATE."
Gold miners Evolution Mining Ltd and Newmont Corporation may see softer performance as gold futures fell 0.5% to US$4,032.4 an ounce, a decline driven by U.S. inflation data that has increased expectations of further rate hikes.
Coles Group Ltd is scheduled to release its first-quarter sales figures, adding another focal point for investors on Friday.