Stocks to watch at the open

Dexus could get a rating boost based on its CPA bid, while small cap gold stocks suffer as the US dithers.

Dexus Property Group (DXS)

Rating agency Standard & Poor’s has placed Dexus Property Group on credit watch for a possible upgrade. Dexus’ credit profile potential follows its proposed acquisition of Commonwealth Property Office Fund (CPA).

Currently some sectors of the real estate investment trusts market offer better investment fundamentals than others. Dexus is well positioned due to a tilt to the Sydney market with a high quality portfolio.

Dexus’ intentions for the Commonwealth Property Office Fund were uncertain until last week, but with the play now confirmed, it will look more appealing to investors who are looking for exposure to the office market.

Small cap gold miners

Last week saw small cap gold miners lose the most ground on the ASX 200 as gold finished 3.2% lower.

Expectations are that the gold price will remain volatile until a decision on the US government shutdown and debt ceiling is reached. The recent trend has seen gold miners suffer losses greater than that of the price of gold (see Tim Treadgold's Minefield: Three golden prospects).

Gold is trading at $US1,268 per ounce, down 2.21% since the end of last week.

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