Why is the Woodside share price sliding today?

sad looking petroleum worker standing next to oil drillsad looking petroleum worker standing next to oil drill

The Woodside Energy Group Ltd (ASX: WDS) share price is struggling today.

Woodside shares are currently trading at $32.07, a 1.72% fall. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down nearly 1% today.

So why is the Woodside share price falling?

Oil prices fall

The Woodside share price may be in the red today, but it is not alone among ASX oil and gas producers. The Santos Ltd (ASX: STO) share price is descending 0.63%, while the Beach Energy Ltd (ASX: BPT) is down nearly 5%.

Investors may be reacting to news on oil prices. As my Foolish colleague James reported this morning, oil prices dropped overnight due to weak economic data from China.

International benchmark Brent Crude Oil has fallen 0.86% to US$94.28 a barrel, Bloomberg data shows. Meanwhile, West Texas Intermediate (WTI) oil has descended 0.58% to US$88.89 a barrel, while Tokyo Crude Oil has slipped 1.58%.

Oil prices dropped after China, a major buyer of crude oil, released “disappointing” economic data, Reuters reported. The economy slowed, leading China’s central bank to slash lending rates.

IG Group market strategist Yeap Jun Rong said in comments cited by the publication:

Commodities prices across the board were under pressure as China’s July economic data painted a more downbeat growth picture than previously expected, which prompted renewed concerns on demand outlook

Woodside is due to report half year 2022 results on 30 August.

Woodside share price snapshot

The Woodside share price has exploded 51% in a year, while it is up 46% year to date.

In the past month, the company’s share price has climbed nearly 5%.

Woodside has a market capitalisation of nearly $61 billion based on the current share price.

The post Why is the Woodside share price sliding today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Here are the 3 most heavily traded ASX 200 shares on Tuesday

a hand reaches up from a large pile of papers.

a hand reaches up from a large pile of papers.

It’s turning out to be another top day for the S&P/ASX 200 Index (ASX: XJO) and ASX shares this Tuesday. At the time of writing, the ASX 200 has risen by a pleasing 0.5% to just on 7,100 points.

But let’s dig a little deeper into these market moves and take a look at the shares that are currently topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is first up this Tuesday. So far during today’s session, a sizeable 17.89 million Telstra shares have changed hands despite there being no fresh news out of Telstra today.

However, the company has gained some further steam and has powered ahead by 1.49% to $4.09 a share so far. Investors seem to have been showing a renewed interest in the telco since it raised its dividend last week. This gain is probably the source of the high volumes we are seeing.

Lake Resources N.L. (ASX: LKE)

Next up today is ASX 200 lithium stock Lake Resources. This Tuesday has seen a notable 19.64 million Lake shares bought and sold so far. Lake shares seem to be having the opposite problem to Telstra. The lithium share has copped a heavy selloff so far today. It’s currently down a nasty 8.22% at $1.34 a share.

There hasn’t been any news out of Lake either. However, this company has been on a breathtaking run in recent weeks. Despite today’s selloff, Lake shares remain up more than 100% over the past month alone. Even so, it’s the size of this share price fall that is probably to thank for the volumes we are witnessing.

Core Lithium Ltd (ASX: CXO)

Another ASX 200 lithium share rounds out our list today in Core Lithium. This Tuesday has seen a hefty 38.5 million Core shares fly across the ASX so far.

We seem to have a similar situation to Lake Resources here. Core Lithium shares have also been sold off today after a stellar run in recent weeks. The company has lost a painful 8.85% so far at $1.472 a share. Even so, Core Lithium shares remain up a pleasing 66% over the past month alone.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Why is nickel such a big deal and which ASX shares have exposure?

Graphic drawing of electric vehicles charging batteries at charging station

Graphic drawing of electric vehicles charging batteries at charging station

ASX shares with exposure to nickel exploration and production are in the spotlight.

This comes as nickel prices are rebounding and global EV production is booming. China reported an all-time high of 571,000 EV sales in June, helping drive increased demand for the metal.

Like lithium, nickel is a core element in EV and grid storage batteries. Most of the global nickel production goes into making stainless steel. But some 15% is now used in the EV market. And that share is likely to grow, with a single Tesla battery requiring some 50 kilograms of nickel.

According to Hayden Bairstow, resources division director at Macquarie (courtesy of ABC News):

But certainly over time, expectations are that [electric vehicles] will become a much larger piece of the demand pie for nickel. It is about 15% now of the global nickel demand market, if you like, for electric vehicles.

That’s certainly grown from basically nothing a few years ago, and the expectations are that it will move into the 20s and 30% of the total, and beyond that over time, as the EV market gets larger and larger.

That strong demand growth should offer some welcome tailwinds for ASX shares with nickel exposure.

Which ASX shares have exposure?

There are a number of ASX shares with a strong focus on nickel exploration and production.

Some leading names include Poseidon Nickel Ltd (ASX: POS), Mincor Resources NL (ASX: MCR), and Nickel Industries Ltd (ASX: NIC).

Some of the biggest ASX mining shares have also been actively seeking to increase their nickel holdings, partly driven by forecasts of continued growth in EV battery demand.

In June IGO Ltd (ASX: IGO) completed its acquisition of nickel miner Western Areas.

At the time, IGO’s CEO, Peter Bradford said the move was “a logical consolidation of key nickel assets in Western Australia”. Bradford added that the acquisition improved the company’s position “as a leading, independent producer of metals critical for a clean energy future”.

BHP nickel expansion thwarted… for now

The largest ASX share of them all and one of the world’s biggest miners, BHP Group Ltd (ASX: BHP), made headline news earlier this month for its unsolicited, conditional and non-binding indicative proposal to acquire all shares in nickel and copper focused OZ Minerals Limited (ASX: OZL).

The takeover offer of $25 per share in cash was unanimously rejected by Oz Minerals’ board. Commenting on that decision, CEO Andrew Cole said, “We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations.”

The post Why is nickel such a big deal and which ASX shares have exposure? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Growthpoint share price lags ASX 200 despite ‘strong performance’ in FY22

A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead as he watches his screen.A male executive worker wearing glasses and a blue collared shirt looks at his laptop screen with a concerned look on his face and his hand to his forehead as he watches his screen.

The Growthpoint Properties Australia Ltd (ASX: GOZ) share price has been stuck in the mud today after the company released its FY22 results.

The ASX-listed real estate investment trust (REIT) is currently down 0.53% to $3.72. In comparison, the S&P/ASX 200 Index (ASX: XJO) is enjoying a day in the green, up 0.5%.

Let’s review Growthpoint’s FY22 results.

What did the company report?

These were the highlights of Growthpoint’s full-year results for FY22:

  • Revenue lifted by 5.9% to $311.5 million relative to FY21
  • Net profit attributable to security holders fell 17% from $553.2 million to $459.2 million
  • Distribution of 20.8 cents per share for the year, 4% higher than FY21
  • Net tangible assets (NTA) per security went up by 9.4%
  • The portfolio occupancy rate remained consistent at 97%

The increase in white-collar workers returning to the office meant rental income and other revenue from the office segment rose substantially.

Office revenue increased from $183.4 million in FY21 to $193.9 million in FY22.

Industrial revenue improved marginally with a $0.9 million uptick in FY22.

There was a strong property valuation uplift of 7.9% within the portfolio, which is currently valued at $5.4 billion.

The weighted average lease expiry (WALE) increased slightly from 6.2 years to 6.3 years.

Growthpoint secured more capital through refinancing $715 million of its debt facilities and entering into $350 million of new facilities to assist with strategic acquisitions this financial year.

What else happened?

In February 2022, Growthpoint extended its on-market buyback program for up to 2.5% of issued capital.

Growthpoint only acquired 499,458 securities (0.06% of issued capital) as the company’s share price recovered for the majority of the financial year.

In early August, Growthpoint announced it had acquired Fortius Funds Management Pty Ltd, which is expected to be completed in the first quarter of FY23.

What did management say?

Commenting on the FY22 results, Growthpoint managing director Tim Collyer said:

We have a had a strong performance this year, delivering a robust set of results which reflects the successful execution of the Group’s growth strategy and underlying strength of the business.

The Group’s portfolio continues to be leased to predominantly government, listed or large organisations and has maintained its high occupancy of 97% and WALE of 6.3 years as at 30 June 2022.

Growthpoint successfully leased approximately 234,000 square metres of accommodation, with key leases signed or renewed with Samsung, Fox Sports, Scope and Bunnings in the office portfolio and Woolworths, Linfox and Eagers Automotive in the industrial portfolio.

Regarding the outlook for the company, Collyer said:

Going into FY23, Growthpoint is positioned to manage the business through a period of higher inflation and higher interest costs, with 61% of its debt fixed at 30 June 2022 and ample headroom to debt covenants.

The Group’s gearing of 31.6% at 30 June 2022 remains below the target range of 35% to 45%, providing flexibility to invest in property or funds where we see value for security holders.

We intend to grow the recently announced funds management business, targeting 10% to 20% of Group EBIT, over the medium term delivering incremental growth to earnings and income stream diversification for security holders. Growthpoint remains committed to providing securityholders with sustainable income returns and capital appreciation over the long term.

What’s next for Growthpoint?

Management noted the changing environment has made it a challenging period for the Australian REIT sector.

There are concerns over the potential impact of further central bank rate rises, increasing interest costs, and higher inflation.

The company believes its industrial and metropolitan office properties will provide a resilient foundation for the group.

Growthpoint provided guidance for funds from operations of between 25 cents per share and 26 cents per share compared to 27.7 cents per share in FY22.

As for FY23 distribution, Growthpoint expects this to be 21.4 cents per share. This is premised on an average FY23 floating cash rate of 2.8%.

Growthpoint share price snapshot

The Growthpoint share price has fallen almost 8% in the past six months and by a similar amount in the past year. However, it is up by 3% over the past month.

In comparison, the ASX 200 has slipped more than 6% in the last year but has improved in the past six months, posting a drop of 2.50%.

The post Growthpoint share price lags ASX 200 despite ‘strong performance’ in FY22 appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned.

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