Day: September 19, 2021

Why is the ASX All Ordinaries (ASX:XAO) struggling lately?

It certainly hasn’t been a pleasant month or so for the All Ordinaries Index (ASX: XAO). Since the All Ords last peaked at 7,902 points on 13 August, the ASX’s oldest share market index has shed around 4% of its value. Much of this loss has occurred over just the past few trading days. The All Ords has now lost around 2.3% since just last Thursday.

So what’s going on here?

Well, the All Ordinaries is an ASX index that covers 500 of the largest companies on the ASX boards. But (like most indexes), it is also weighted by market capitalisation. That means the largest companies have a bigger weighting and impact on the All Ords than the smaller ones.

How is the ASX All Ordinaries constructed?

As it stands today, the 10 largest ASX shares in the All Ords are as follows (as of 31 August):

  1. Commonwealth Bank of Australia (ASX: CBA)
  2. CSL Limited (ASX: CSL)
  3. BHP Group Ltd (ASX: BHP)
  4. Westpac Banking Corp (ASX: WBC)
  5. National Australia Bank Ltd. (ASX: NAB)
  6. Australia and New Zealand Banking Group Ltd (ASX: ANZ)
  7. Wesfarmers Ltd (ASX: WES)
  8. Fortescue Metals Group Limited (ASX: FMG)
  9. Macquarie Group Ltd (ASX: MQG)
  10. Woolworths Group Ltd (ASX: WOW)

So you can already see that the major ASX banks, BHP and CSL are the heavy hitters of the ASX All Ords.

So let’s see how these ASX shares have fared since 13 August.

Since that date, CBA shares have lost a little more than 2.5% of their value. Westpac is down by 3.1%, whilst NAB has lost a far smaller 0.8%. ANZ takes the cake with a steep loss of roughly 7.7%.

CSL bucks the trend. This healthcare company has managed a healthy increase over the period in question, gaining a robust 3.33% since 13 August and today (so far).

BHP share price lets the team down

BHP takes the cake though. It has lost a very nasty 29.3% since 13 August. As such, we have the BHP share price to blame for most of the ASX All Ordinaries’ disappointing performance over the past month and a bit.

Why this steep fall for BHP shares? Well, the iron ore price has collapsed over the past few months. Iron ore is today trading back at roughly US$100 a tonne. But as recently as May, it was at record highs of more than US$230 a tonne. This steep fall in the pricing of this commodity clearly damages the profitability prospects of the ASX’s iron ore miners, of which BHP is the largest.

However, we are also seemingly seeing history repeating itself.

Many an investor would have heard the old investing proverb ‘Sell in May and go away’. It’s the idea that the months following May are almost always a bad time to have your money in the share market. So if you ‘sell in May and go away,’ you can avoid this seasonal slump.

Well, a recent article from MarcusToday puts some credibility to this theory. According to the article, the All Ords has averaged a return of roughly 6.5% for the 6 months before May ever since 1982. For the 6 months following May, the All Ords has instead returned an average of just 1.5% since 1982.

The All Ord’s performance over the past month or two has certainly fed into these averages.

Even so, that’s cold comfort for ASX All Ords investors today. So just blame BHP and falling iron ore prices!

The post Why is the ASX All Ordinaries (ASX:XAO) struggling lately? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Which ASX 300 shares are leading the way on Monday?

a view from above of six people walking along a curved upward line drawn on the ground between two axes.

The S&P/ASX 300 Index (ASX: XKO) is off to a poor start on Monday, erasing all of last week’s gains.

During afternoon trade, the ASX 300 is down 1.54% to 7,294 points. Currently, the index is around 4.5% off its all-time high of 7,625 points reached on 13 August.

Let’s take a look at which ASX companies are the biggest movers today.

AusNet Services Ltd (ASX: AST)

The Ausnet share price is rocketing 17.93% to $2.335 in early afternoon trade.

The energy provider received a non-binding offer from Brookfield Asset Management to acquire 100% of its shares at $2.50 apiece. This represents 26% premium to Ausnet’s last closing price of $1.98 and a 35% premium to its 30-day volume-weighted average share price (VWAP).

Ausnet has decided to let Brookfield conduct due diligence on an exclusive basis to put forward an offer.

Novonix Ltd (ASX: NVX)

The Novonix share price is storming 4.83% to another all-time high of $4.29.

The company hasn’t released any market-sensitive news of late, however, anticipated demand in lithium-ion batteries seems to be the catalyst. Furthermore, the spot price for lithium carbonate has roared to 153,000 Chinese yuan per metric tonne (roughly A$32,700).

Novonix has also been added to the ASX 300 Index today after surging in value due to investor interest.

Endeavour Group Ltd (ASX: EDV)

Another strong mover for the start of the week is the Endeavour share price, up 3.42% to $6.66.

The drinks company hasn’t released any price-sensitive news to the ASX since its full-year results late last month.

It appears investors are buying up Endeavour shares after they hit a monthly low of $6.43 on Friday. Its shares were recently trading as high as $7.50 in August.

And which ASX 300 companies are heading the other way?

Champion Iron Ltd (ASX: CIA)

Freefalling today is the Champion Iron share price, down a sizeable 14.38% to $4.375.

The iron ore miner’s shares are coming under pressure following weakness in the spot price of iron ore. The steel-making ingredient’s price has fallen by more than 23% over the past month.

Paladin Energy Ltd (ASX: PDN)

Also being weighed down by investors today is the Paladin share price, down 15.53% to 87 cents.

The uranium company’s shares are plunging after investors are largely taking profit off the table. Its shares rose to incredible highs over the last few weeks, reaching a multi-year high of $1.12.

It is worth noting that the company’s share price is up 520% since this time last year and above 260% year-to-date.

The post Which ASX 300 shares are leading the way on Monday? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Pointerra (ASX:3DP) share price lower despite new contract wins

bitcoin price drop, decrease, fall, plunge, bitcoin uncertainty

The Pointerra Ltd (ASX: 3DP) share price is under pressure on Monday.

At the time of writing, the 3D geospatial data technology company’s shares are down 5.5% to 50.5 cents.

Why is the Pointerra share price falling?

Investors have been selling down the Pointerra share price after broad market weakness offset the release of a positive announcement.

According to the release, the company has won a number of contracts during September. This includes a $1.55 million contract with Florida Power & Light across four projects.

In addition, the company has signed contracts with Pacific Gas & Electric and Gridvision worth ~$0.25 million each.

What are the contracts covering?

The deal with Florida Power & Light includes a vegetation growth predictive analytics project. This will study and model the likely impact on powerline infrastructure of growth in vegetation adjacent to the powerline network over a 16-month period.

Using multiple aerial captures with multiple sensors over the project period, Pointerra3D will model change (delta) in vegetation growth and use the delta combined with species detection analytics to predict vegetation growth.

Management notes that the expected outcome for Florida Power & Light is better scheduling of vegetation management activities, which is a significant part of the utility’s ongoing network asset management operations.

In addition, other projects with Florida Power & Light include weather related network change detection and the demonstration of the integration of IkeGPS Group Ltd’s (ASX: IKE) highly regarded Poleforeman utility pole engineering software into Pointerra3D.

What else?

The contract with Pacific Gas & Electric is similar to the main Florida Power & Light contract. It is a vegetation management analytics project.

Whereas, finally, the contract with Gridvision is for mine powerline data capture and analytics campaigns for the power infrastructure network of a global tier-one miner’s Australian operations.

Management believes the endorsement of the Pointerra3D solution by electrical engineering teams could accelerate adoption and spend by its mining sector customers as other business units are exposed to the technology and how it can solve their specific challenges.

The post Pointerra (ASX:3DP) share price lower despite new contract wins appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pointerra right now?

Before you consider Pointerra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pointerra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointerra Limited and ikeGPS Group Limited. The Motley Fool Australia has recommended Pointerra Limited and ikeGPS Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Infinity Lithium (ASX:INF) share price leaps 9% on project update

green fully charged battery symbol surrounded by green charge lights

The Infinity Lithium Corporation Ltd (ASX: INF) share price is soaring today after the company released news of its San José Lithium Project.

Metallurgical test work has produced bench-scale battery grade lithium hydroxide monohydrate and lithium carbonate from San José’s lithium products.

Right now, the Infinity Lithium share price is trading at 13 cents, 8.7% higher than its previous close.

Let’s take a closer look at the news driving the European lithium producer’s share price today.

Battery grade lithium produced

The Infinity Lithium share price is taking off on news of positive metallurgical test work.

The products of the company’s 75% owned San José are able to produce battery grade lithium products.

As a result, the company has begun offtake discussions with automakers and lithium-ion battery producers.

According to the company, San José’s location in Spain means it’s ready to supply lithium products to the European battery industry and related Spanish industries.

Additionally, the findings have successfully advanced Infinity Lithium’s alternative processing method for lithium bearing minerals and mineral concentrates. The company’s method is undergoing a feasibility study conducted by Dorfner’s Anzaplan. Patent applications for the process are pending.

The company is also undertaking a review of alternative extractive technologies. The review will find the best process for commercial development.

The review found 2 new and potentially feasible processes that could improve the process’ performance, cost, environmental and social requirements, as well as complexity.

Infinity Lithium has begun a laboratory-scale test work program to test the feasibility of these processes. However, it will make sure the work won’t come at the expense of its feasibility study or the delivery of lithium chemicals requested by offtake parties.

Infinity Lithium share price snapshot

Today’s gains haven’t been enough to boost the Infinity Lithium share price back into the ASX green.

Right now, the company’s share price is 26% lower than it was at the start of 2021.

However, it is 38% higher than it was this time last year.

The post Infinity Lithium (ASX:INF) share price leaps 9% on project update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Infinity Lithium right now?

Before you consider Infinity Lithium, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Infinity Lithium wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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