The Fortescue Metals Group Limited (ASX: FMG) share price is climbing today after a choppy week for iron ore miners.

At the time of writing, the Fortescue share price is 1.68% higher at $14.56.

Mixed signals for China’s steel industry

China’s energy restrictions for industrial use, which weighed on the steel industry in late September, have been easing in some areas in October. This has allowed steel mills to gradually resume production since the beginning of the month, mill sources and traders told S&P Global Platts.

Despite the potential good news for iron ore markets and subsequently Fortescue shares, sources in the regions said most steelmakers were not expected to ramp-up to full capacity to ensure 2021 crude steel output remains near 2020 levels.

Traders also told S&P Global construction steel demand in September and October turned out to be weaker than expected. Any signs of recovery in the fourth quarter were expected to be limited by a slowdown in the property sector.

Some flat steel traders went as far as saying demand from the manufacturing sector has been battered by a double whammy of power rationing and surging commodity prices.

Iron ore prices are also sending mixed signals for the Fortescue share price.

Spot prices edged higher overnight on Thursday with prices up US$1.74 or 1.4% to US$125.91 a tonne.

Prices rose slightly amid active trading activity in the spot market and at Chinese ports, sources told Fastmarkets.

China’s most active futures contracts for January 2022 delivery on the Dalian Commodity Exchange are currently trading 0.8% lower at approximately 725 yuan (US$112.7) a tonne.

Fortescue shares find support at $14

The Fortescue share price is down 41% year-to-date and sitting around 15-month lows. It is also down around 12% over the past 12 months.

Its free-fall has stabilised in recent weeks, consolidating around the mid $14 level.

The post Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. In afternoon trade, the benchmark index is up 0.5% to 7,346.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down 3.5% to $4.90. The majority of this decline is attributable to the retail giant’s shares going ex-dividend this morning. Eligible shareholders can now look forward to being paid Harvey Norman’s fully franked 15 cents per share final dividend next month on 15 November.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price has fallen 3% to $4.92. Investors have been selling the insurance giant’s shares after it revealed that ASIC has launched civil proceedings against it in the Federal Court. The corporate regulator is alleging that the company misled customers by applying discounts while simultaneously upping premiums. It is alleged that NRMA customers missed out on more than $60 million worth of discounts.

Pendal Group Ltd (ASX: PDL)

The Pendal share price has tumbled almost 13% to $6.75 following the release of its funds under management (FUM) update for the September quarter. Although Pendal reported strong growth in its FUM, this was largely due to an acquisition. Excluding this, Pendal actually reported net fund outflows of $2.3 billion during the three months.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 5% to $11.67 after the release of a first quarter trading update at its annual general meeting. The wine giant revealed that its performance during the quarter was softer than it was expecting. Management advised: “As we exit the first quarter of fiscal 22, the recovery of key luxury channels impacted by the pandemic are slightly behind the expectations we had at the beginning of the year.”

The post Why Harvey Norman, IAG, Pendal, and Treasury Wine are dropping appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX: IAG) share price is down 3% on Friday
• ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints
• Why the Treasury Wine (ASX:TWE) share price is tumbling 6% on Friday
• Why the Pendal (ASX:PDL) share price is sinking 9% today
• IAG (ASX:IAG) share price on watch as ASIC launches legal action

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Harvey Norman Holdings Ltd., Insurance Australia Group Limited, and Treasury Wine Estates 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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The Tabcorp Holdings Limited (ASX: TAH) share price is crawling higher in afternoon trade today and is currently up 0.57% to $5.29.

As of today Tabcorp shares have reached a new 52-week high, after rallying 10% in the last month and being added to the S&P/ASX 50 Index (ASX: XFL) in September.

Gambling giant on a winning run

Tabcorp shares made a jump late last month. This coincided with the NSW Premier’s roadmap navigating the reopening of NSW’s economy, once the state hit an 80% double vaccination target.

The gambling services company saw its share price climb 8.5% in the week or so following the government’s announcement, as investors regained confidence in a more favourable consumer environment.

Tabcorp shares popped once more on 11 October, the same day NSW announced it was reinstating a suite of “freedoms” after hitting the required vaccine numbers.

And since, the Tabcorp share price has shown no signs of slowing.

As the easing of Covid-19 related restrictions begins to ramp up over the coming months, many investors are wondering, can Tabcorp shares sustain this momentum?

One leading broker has weighed in on the debate, and offered its opinion on the Tabcorp share price.

Can the Tabcorp share price continue charging higher?

Analysts and investment banking giant Macquarie Group Ltd (ASX: MQG) certainly think so, and see the winding back of restrictions as a big plus to the company’s future prospects.

The broker anticipates an improved gaming and wagering environment as more and more lockdown mandates ease.

It also reckons this improved environment is accretive to Tabcorp’s earnings, and could attract investors betting on a “reopening play”.

Consequently, it has upgraded its FY22 and FY23 earnings before interest, taxes, depreciation, and amortisation (EBITDA) forecasts by 3% and 4% respectively, baking these many growth levers into its modelling.

Aside from this, Macquarie also believes Tabcorp’s demerger from its lotteries business earlier this year will be a catalyst to drive valuations into the coming years.

This is compounded by the low EBITDA multiple the broker assigns on Tabcorp’s wagering segment.

As a result of its analysis, Macquarie expanded its price target by 1.6% to $6.55, implying a 23% upside potential from the current market price.

The Tabcorp share price has climbed 36% this year to date, and 56% over the past 12 months.

The post Why Macquarie tips the Tabcorp (ASX:TAH) share price to jump 22% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie 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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The Splitit Ltd (ASX: SPT) share price has been in the red all day today, sinking by as much as 8% in afternoon trade.

The plunge follows the company’s annual general meeting, where Splitit’s leaders outlined its future direction and reflected on a year in which COVID-19 amplified its business.

The company’s interim CEO, John Harper, noted that his view as an involved newcomer had led to a new action plan to increase the company’s value.

Despite positive overtones and forward planning from its leaders, the buy now, pay later (BNPL) company’s stock has failed to rally. At the time of writing, the Splitit share price is trading at 41.5 cents, 5.68% lower than its previous close.

Simultaneously, the broader market is gaining. The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are both around 0.5% higher right now.

Splitit’s next steps forward

According to today’s releases, Splitit’s annual general meeting was topped off by the company’s interim CEO’s address. Within his speech, Harper outlined several changes Splitit will be making soon, saying:

We are operating in a market that is moving and growing quickly. We need to bring a greater sense of urgency to capitalise on this opportunity from a sales perspective…

[Splitit has] a natural and untapped opportunity in the market, but we need to do a better job of effectively articulating [its] value.

To help grasp such opportunities, Harper will bring in a chief people officer and a product team. He said the new additions would foster collaboration within Splitit’s global segments and allow its technical engineers to remain connected to customers’ needs.

The company will also focus on the North American and United Kingdom markets. Harper said doing so would enable it to tap into more “higher-value merchants”.

It will also focus on improving its core product and attracting new merchants while reducing costs.

Splitit share price snapshot

The Splitit share price has had a challenging year so far, falling 68% since the start of 2021. Splitit shares are also trading 72% lower than this time last year.

The post The Splitit (ASX: SPT) share price slumped 8% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX BNPL shares in September
• Despite today’s falls, the Splitit share price is up 23% in 7 days. Here’s why
• Why the Splitit (ASX:SPT) share price is surging 10% today
• ASX tech shares are leading the market’s gains on Thursday

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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