ASX battles after tumultuous Wall St trade and starts new quarter on back foot

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“We also think that trade war fears will abate in the coming weeks as economic momentum picks up again,” they wrote in a note to clients. “However, what has been missing in the last couple of weeks is a positive trigger which would lift markets as the noise around trade and geopolitical risks fades.”

“Buy the dip, if you haven’t [already],” they said.

Stock watch

Sundance Energy

Sundance Energy shares are trading at a deep discount according to Morgans, who have given the oil and gas company an “add” recommendation. Sundance is completing a large acquisition at the Eagle Ford play in North America. The company is raising US$260 million in equity to fund the US$221m acquisition of 8760 hectares, with the extra money raised helping to strengthen its balance sheet. If the deal is successful, Sundance will become one of the largest oil producers listed on the ASX, according to Morgans, which has set the company’s target price at 21¢ versus the current price of 5.8¢. “If successful in ramping-up production, SEA will emerge as one of the largest oil producers on the ASX, at a time when the market is positively re-rating the sector,” the broker said.