On Friday the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished a disappointing week with a small daily decline.
Will the market be able to bounce back on Monday? Here are five things to watch:
ASX futures pointing higher.
The local market looks set to have a positive start to the week on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 0.3% or 17 points higher this morning. This follows a reasonably positive finish to the week on Wall Street which saw the Dow Jones rise 0.5% and the S&P 500 climb 0.2%. The Nasdaq failed to follow the other indices higher and fell 0.15% after Facebook shares sank 3% lower.
Fairfax-Nine merger disruption.
A spanner was thrown into the works of the Fairfax Media Limited (ASX: FXJ)-Nine Entertainment Co Holdings Ltd (ASX: NEC) merger this weekend. According to the AFR, former Domain Holdings Australia Ltd (ASX: DHG) chief executive, Antony Catalano, has made a proposal to buy 19.9% of Fairfax on the proviso that the merger doesn't go ahead and he is granted a seat on the Fairfax board.
Oil prices flat.
Oil prices had a reasonably flat finish to the week. According to Bloomberg, on Friday the WTI crude oil price was flat at US$56.46 a barrel and the Brent crude oil price was 0.2% higher at US$66.76 a barrel. WTI crude oil is down 18% and Brent crude oil is down 16% since this time last month, much to the dismay of shareholders of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).
Shares going ex-dividend.
The shares of energy provider Ausnet Services Ltd (ASX: AST) and agribusiness company Elders Ltd (ASX: ELD) are likely to trade lower this morning after going ex-dividend for their respective final dividends. Eligible Austal shareholders will receive their dividend on December 20, whereas eligible Elders shareholders can expect a pay check on December 14.
JB Hi-Fi tipped as a buy.
One buy rating of note at the Sohn Hearts and Mind Conference on Friday was highly shorted retailer JB Hi-Fi Limited (ASX: JBH). According to the AFR, Tim Carleton from Auscap named JB Hi-Fi as a buy on the belief that the market is "underestimating the resilience of the Australian consumer to falling property prices, and is ignoring positive economic signals."
