Day: 21 December 2021

Shares in exploration company Nexus Minerals Ltd (ASX: NXM) are taking a nosedive today and are trading 27.45% down at 37 cents apiece.

Nexus is tanking as investors respond to a company announcement out of its Crusader–Templar Prospect, located within the Company’s Wallbrook gold project in WA.

Nexus shares have sunk as low as 33 cents early on today before levelling back off at the current levels. This downside extends selling pressure that’s been in situ since 13 December for the company. With that in mind, let’s take a look at what was released.

What did Nexus announce today?

Nexus advised of what it dubbed as “high-grade assay results” from recent drilling at the Crusader–Templar Prospect.

The release pointed to a figure showing the “limited amount of drilling undertaken to date and the opportunity that exists both within the known strike distance and also at depth”.

Nexus says that as more drilling is completed from its reverse circulation (RC) drilling program, the density of drilling will increase, and internal characteristics to the mineralisation “including internal plunge geometry to the mineralisation will mature”.

Specifically, the release noted that the “alteration” observed in diamond hole number 4 that did not correspond to mineralisation, is believed to be a function of a “very late-stage cross cutting oblique structure”

Playing a level tone, the company explained that the drill hole represents “only a point in space, and a very small component of the total strike length, [however] this late-stage structure has provided a conduit for increased fluid flow/silica flooding but in doing so has re-mobilised the gold”.

Aside from that, the company added that gold mineralisation tenor and widths observed to date are consistent with broad mineralisation in the shallower levels of less than 100 metres. Two holes at this range are at 29m at 4.60g/t Au within 71m at 2.06 g/t Au from 25m and 16m at 2.31g/t Au within 68m at 0.98g/t Au from 28m, per the release.

These shallow levels then give way to “broad high-grade intersections” at depths of more than 100 metres, including 13m at 5.17g/t Au, within 25m at 2.95g/t Au from 109m and 5m at 4.93g/t Au, within 8m at 3.31g/t Au from 115m.

As such, Nexus explained it has 3 RC drill rigs and 2 diamond drill rigs booked for a January start, and a 50 person exploration camp ready to be established at Wallbrook in early January, to cater for “significant increase in exploration activity” in 2022.

Management commentary

Speaking on the announcement, Nexus Managing Director Andy Tudor said:

The broad high-grade gold results continue to impress and build our confidence in the continuity of the high-grade gold mineralisation at Crusader-Templar. The results from DDH#4, which appears to have been drilled down a cross-cutting post-mineralisation structure, continues to increase our understanding of the gold distribution in this very large system.

Despite its recent challenges, the Nexus share price has soared 196% in the last 12 months, after rallying a further 185% this year to date.

In the past month, it has reversed course and is 33% in the red after sliding another 37% in the past week of trading.

The post Nexus Minerals (ASX:NXM) share price plunges 27% as drill results fall short appeared first on The Motley Fool Australia.

More reading

• This metaverse ASX share is a buy: expert
• How to make share market volatility your friend: AustralianSuper CIO
• The Liontown (ASX:LTR) share price has shed 22% this month. Is it a bargain?
• Santos (ASX:STO) share price jumps on divestment speculation
• Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details

The author has no positions 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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Metaverse has been the hot word in technology this year, culminating in Facebook’s corporate renaming to Meta Platforms Inc (NASDAQ: FB) in late October.

The term describes the next stage of internet computing where a combination of virtual reality, augmented reality and video technologies immerse users into a digital “universe”.

It may surprise you that there are already ASX shares that represent businesses that deal with the metaverse.

And one of those has been labelled a “buy” this week.

One of my “favourite” metaverse companies: expert

Shares for electronic games developer Playside Studios Ltd (ASX: PLY) have rocketed more than 50% in the past 2 months after listing a year ago.

So much so that the stock now trades at more than 4 times the initial public offer price of 20 cents per share.

For Red Leaf Securities chief executive John Athanasiou, as one of his fund’s “favourite” metaverse companies, Playside is a buy at the moment.

“The video game developer has a growing client base,” he told TheBull.

“The company is at the forefront of blockchain gaming, and recently completed a $28 million capital raising, which enables it to pursue metaverse opportunities.”

Cyan portfolio manager Dean Fergie has publicly mentioned multiple times over the past year that Playside is set to boom.

He said in August that its cash flow is good and its dual business of outsourcing services and original games development is “performing outstandingly”.

“The company has an exciting 12 months ahead with the upcoming release of several new games including titles based on blockbuster movies Legally Blonde and The Godfather, which should contribute to a material uplift in revenues in FY22.”

Last month the Melbourne company signed a work-for-hire agreement with global giant 2K Games to develop games on their behalf.

PlaySide chief Gerry Sakkas said at the time that it was the largest outsourcing deal for the company since its ASX listing.

“We are excited to be working with 2K Games, a label from one of the world’s largest publishers, Take-Two Interactive Software (NASDAQ: TTWO).

“Our ability to secure this agreement with 2K Games underlines our position as Australia’s largest publicly listed game developer.”

The post This metaverse ASX share is a buy: expert appeared first on The Motley Fool Australia.

More reading

• 4 monster Metaverse stocks for the long haul
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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Ah, volatility… It can be both friend and foe to the ASX investor. While I’m sure all of us enjoy the wealth-compounding effects that can come from successful ASX share market investing, volatility is something we all usually have to deal with if we want to do so.

Volatility can be scary – no one likes to see the value of their hard-earned portfolio drop dramatically in value. But one expert investor likes to use it to their (and their members’) advantage. That would be Mark Delaney, chief investment officer (CIO) at the behemoth superannuation fund AustralianSuper. Delaney sat down for an interview with the Australian Financial Review (AFR), and it makes for some interesting reading.

How to handle market volatility, super style

Running the country’s largest superannuation fund is a challenging task. Being charged with the stewardship of millions of Australians’ retirement savings, as one could imagine, might make a CIO like Delaney dread volatility. But far from it, it’s something he accepts as inevitable. “Market prices always go from expensive to cheap. The key question is what do you do in that environment?” he says.

Not that Delaney is expecting a correction or crash. But he points out that most decades bring at least one major market plunge. As such, AustralianSuper is cutting back on its share market exposure in order to reflect the risks of possible hawkish multi-state central bank action that might be needed next year to put a leash on global inflation:

I think it’s very dangerous to be reactive in this sort of environment. Just have a broader perspective and trim into it… Prices will normalise – prices are expensive now – and then we could take advantage of better prices.

Although volatility and market crashes can be scary, Delaney is sanguine, saying that all investors “need to accept that there will be times when they lose money”.

“Your focus of control is actually yourself and how you’re feeling and what you’re doing,” he says. “Investing through a bear market is a formative experience every investor needs to go through.”

So there you have it. That’s what the investment officer of Australia’s largest super fund thinks about volatility. Remember, some of the best investors in the world love periods of market panic so they can “take advantage of better prices”, as Delaney puts it.

As the great Warren Buffett once said: “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.” Something to keep in mind this Christmas!

The post How to make share market volatility your friend: AustralianSuper CIO appeared first on The Motley Fool Australia.

More reading

• The Liontown (ASX:LTR) share price has shed 22% this month. Is it a bargain?
• Santos (ASX:STO) share price jumps on divestment speculation
• Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details
• Why is the Pilbara Minerals (ASX:PLS) share price crashing 10% lower today?
• Why is the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggling in December?

Motley Fool contributor Sebastian Bowen 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 Liontown Resources Limited (ASX: LTR) share price is having another difficult day.

In afternoon trade, the lithium developer’s shares are down 3.5% to $1.50.

This means the Liontown share price is now down 22% since the start of December.

Is the Liontown share price a bargain buy now?

While the recent weakness in the Liontown share price is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

This month the team at Bell Potter named Liontown as one of its top picks for 2022 and is predicting significant upside for its shares.

According to the note, the broker has a (speculative) buy rating and $2.15 price target on the company’s shares. Based on the current Liontown share price, this implies potential upside of 43% over the next 12 months.

Why is Bell Potter so bullish?

Bell Potter is a fan of Liontown due to its exposure to lithium through its Kathleen Valley Lithium Project in Western Australia. The broker notes that as its future offtake is uncommitted, it is well-placed to take advantage of supply shortages as decarbonisation policies are enacted.

In respect to the lithium market, Bell Potter commented: “Surging lithium commodity prices in 2021 have highlighted an emerging supply-demand deficit. This deficit is expected to widen with the ongoing uptake of electric vehicles and battery storage systems. The value of uncontracted lithium supply is evidenced by heightened sector corporate activity and record spot prices achieved by Australian spodumene producers.”

With that in mind, the broker said: “LTR is positioned to become a key supplier of battery raw materials and is now capable of funding Kathleen Valley’s initial development capital. The project DFS highlighted production of 658ktpa SC6 with potential for conversion into 86ktpa lithium hydroxide (75ktpa lithium carbonate equivalent, LCE). LTR is independent, debt free and with all offtake uncommitted it is in a strong strategic position in a market for lithium facing supply shortages as decarbonisation policies are enacted. Key catalysts are now signing product offtake contracts, project permitting and commencing project development.”

All in all, this could make the Liontown share price great value after its recent pullback.

The post The Liontown (ASX:LTR) share price has shed 22% this month. Is it a bargain? appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX mining shares to buy in 2022
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• Why the Liontown Resources (ASX:LTR) share price is sinking 13% today

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 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 Santos Ltd (ASX: STO) share price is outperforming following reports that it may be looking to spin-off $5 billion worth of assets next year.

The ink has barely dried on the ASX energy company’s $21 billion merger with Oil Search. But investment bankers hungry for their next big feast appear to be floating this divestment idea.

The talk is that Santos (and its investment bankers) could get a pretty penny for offloading infrastructure assets attached to its oil and gas projects, reported The Australian.

Santos share price fires up on spin-off rumours

It’s just speculation as the article didn’t name sources. Nonetheless, the market may like what it heard as the Santos share price jumped 1.39% in afternoon trade to $6.20.

That’s well ahead of its peers. The Woodside Petroleum Limited (ASX: WPL) share price has only managed a 0.33% advance, while the Beach Energy Ltd (ASX: BPT) share price is up 0.99% at the time of writing.

In contrast, the S&P/ASX 200 Index (Index: XJO) is barely in the black after Wall Street tumbled in overnight trade.

Hot M&A assets

There are many ways to crystallise value from divesting assets. This is particularly so for infrastructure assets as there are plenty of buyers looking for stable long-term returns in this market. Just ask Sydney Airport (ASX: SYD).

But Santos appears to be focusing on an initial public offering (IPO) for these assets, according to The Australian.

The paper quoted unnamed sources as saying that the company is “giving serious consideration to” the idea of a new float.

Other divestment options for the Santos share price

This could also be a way to force would-be acquirers to show their hands and to offer a higher price for the prize.

But there is more than one way of skinning a cat. Another alternative is for Santos to sell a stake in the infrastructure to a strategic buyer.

The Australian noted that Woodside did this with global infrastructure fund GIP, which purchased a 49% interest in its Pluto Train 2 project to strengthen its balance sheet and de-risk the project.

Can the Santos share price outperform in 2022?

The IPO route may be the lowest hanging fruit for Santos due to the complex nature of the assets. But the good news is that spin-offs or divestments often generate value for shareholders.

Selling the assets for cash will allow Santos to contemplate a capital return of sorts – and who doesn’t like the sound of that?

If Santos chooses the IPO route, existing shareholders will get to own shares in the new listed entity too. One more recent example is Iluka Resources Limited (ASX: ILU) and Deterra Royalties Ltd (ASX: DRR).

History has shown that the combined value of the parent and child entity often beats the broader market. That sounds even better, in my view.

The post Santos (ASX:STO) share price jumps on divestment speculation appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
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• ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles
• Is the Santos (ASX:STO) share price well oiled and gassed up for 2022?
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Motley Fool contributor Brendon Lau owns Deterra Royalties Limited, Iluka Resources Ltd., and Santos 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 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 much anticipated CSL Limited (ASX: CSL) share purchase plan (SPP) is officially opening today as the company attempts to raise another $750 million for its acquisition of Vifor Pharma.

The Australian biotech company is spending $16.4 billion to take over the Swiss renal disease and iron deficiency-focused giant.

At the time of writing, the CSL share price is $281.43, 2.8% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.35%.

Without further ado, here are all the details on CSL’s massive SPP.

CSL share price gains amid SPP opening

CSL is raising cash through an SPP that could see new securities in the company on offer for $273 – or less – each.

The company stamped the $273 price tag on its shares during last week’s $6.3 billion placement. It also represents about a 3% discount on the current CSL share price.

Though, if the company’s share price falls between now and 7 February – when the SPP is expected to close – the new shares will be priced at a 2% discount to CSL’s 5-day volume-weighted average price.

Those who held CSL shares as of 13 December may be eligible to apply for between $2,500 and $30,000 worth of new shares. Doing so will allow them to dodge broker and transaction costs.

However, CSL might choose to scale back its offer. If it does, it will make sure the scaled-back amount will see those who applied for new shares at least retaining their percentage shareholding in the company.

It also retains the right to extend or close the SPP early without notice.

The new shares are expected to be issued on 14 February and to begin trading on the ASX the following day.

The plan is only open to Australian and New Zealand shareholders who are outside of the United States.

The post Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details appeared first on The Motley Fool Australia.

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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. owns and has recommended CSL Ltd. 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 Pilbara Minerals Ltd (ASX: PLS) share price is having a day to forget.

At the time of writing, the lithium miner’s shares are down a sizeable 10% to $2.49.

Why is the Pilbara Minerals share price sinking today?

Investors have been selling down the Pilbara Minerals share price today after the lithium miner downgraded its December quarter and FY 2022 annual concentrate production and shipping guidance.

According to the release, delays have been experienced with both the Ngungaju Plant re-start and Pilgan Plant Improvements Project. This is particularly through plant commissioning, ramp-up initiatives and extended plant shut-downs.

Furthermore, the company’s ability to operate and improve the Pilgan Plant and restart the Ngungaju operation have been impacted by the extended border closures. This is impacting the ability for Western Australian mining companies to access key personnel in construction, production and maintenance roles.

What is the impact?

In light of the above, Pilbara Minerals now expects to produce approximately 84kt to 95kt dmt of spodumene concentrate during the December 2021 quarter. This is down from its previous production guidance of 90kt 115kt dmt.

As for shipped tonnes, management feels this is likely to be lower than production pending the timing of vessel loading and departures at the end of the current quarter.

As for FY 2022, Pilbara Minerals annual concentrate production guidance has been downgraded to 400,000 to 450,000 dmt from 460,000 to 510,000 dmt. Whereas FY 2022 shipments are expected to be 380,000 to 440,000 dmt, down from 440,000 to 490,000 dmt.

Pilbara Minerals’ Managing Director, Ken Brinsden, said: “We have made excellent progress in the construction and initial commissioning of the expanded facilities at Pilgangoora, with construction of the Pilgan Improvements Project being delivered on time and on budget. That said, as we have started ramping up capacity across the entire Pilgangoora site, Pilbara Minerals has not been immune to the skilled labour shortages currently impacting the WA resource sector.”

“As a result of these impacts, which have delayed elements of our commissioning and ramp-up plans, we have updated production guidance for the December Quarter as well as for FY22. Notwithstanding this, Pilbara Minerals remains incredibly well-placed to make a significant contribution towards satisfying the world’s burgeoning appetite for lithium raw materials.”

“Recent price developments are underlining the emergence of significant raw material supply shortages and Pilbara Minerals is doing everything in its power to respond quickly to customer demand with additional production capacity, both in the short and medium term,” he added.

The Pilbara Minerals share price is still up over 180% since the start of the year.

The post Why is the Pilbara Minerals (ASX:PLS) share price crashing 10% lower today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks
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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. 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) has actually had a pretty decent start to this twelfth month of the year thus far. Over December, the ASX 200 has gained around 0.73%. Not too shabby, one could say. But in saying that, it certainly leaves a lot to be desired from the BetaShares Asia Technology Tigers ETF (ASX: ASIA).

ASIA units have not had anywhere near the December that the ASX 200 has enjoyed. Over the month thus far, the ASIA ETF has gone backwards by a nasty 6.44%, falling from $9.79 per unit to the current price today of $9.16.

But, unfortunately for investors, that’s not where ASIA’s pain ends. In addition to losing close to 7% over December so far, ASIA is also down around 11.3% over the past month. 2021 year to date has seen this ETF lose 21.3%, and more than 35% from the all-time high of $14.36 that we saw back in February.

But let’s circle back to December. Why have ASIA units not gotten into some Christmas cheer as the ASX 200 has?

Well, to answer that, let’s check out what kind of investments ASIA actually invests in. Although it is listed on the ASX, ASIA has virtually zero exposure to the Australian share market or the ASX 200. Instead, according to its provider, ASIA invests in a portfolio “comprising [of] the 50 largest technology and online retail stocks in Asia (ex-Japan)”.

December proves to be a trying time for ASIA

As of 20 December, the top 5 of these (and their weighting in the ETF) were as follows:

1. Samsung Electronics Co Ltd, with a portfolio weighting of 11.7%
2. Taiwan Semiconductor Manufacturing Company, with a weighting of 11.4%
3. Tencent Holdings Ltd, with a weighting of 9.9%
4. Alibaba Group Holding Ltd, with a weighting of 8.5%
5. Meituan, with a weighting of 6%

So as you can tell, ASIA is a relatively concentrated ETF, with these top 5 holdings making up almost half (47.5%) of the entire ETF’s weighting. As such, we can say that these 5 companies pretty much determine what happens to the value of this ETF.

Well, Samsung shares have had a pretty decent December thus far, rising a touch over 8% since the start of the month so far.

But Taiwan Semiconductor hasn’t had such a good time. It’s down 1.9% over the same period.

Likewise, Tencent has lost 6.4% since the start of the month, while Alibaba is down 9.83%. Rounding out the top 5, Meituan has given up 7.9% over the month so far.

So on the whole, ASIA’s top holdings haven’t had a great time of it over December thus far, even accounting for the outperformance of its top holding in Samsung. And this is the likely reason why ASIA units have been struggling over December. A sluggish Aussie dollar probably hasn’t helped either.

But it’s not all bad news. ASIA units are still up close to 50% since this ETF’s ASX debut back in 2018.

The BetaShares Asia Technology Tigers ETF charges a management fee of 0.67% per annum.

The post Why is the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggling in December? appeared first on The Motley Fool Australia.

More reading

• 3 ETFs for ASX investors in 2022
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Motley Fool contributor Sebastian Bowen 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 recommended BetaShares Asia Technology Tigers ETF. 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 Ampol Limited (ASX: ALD) share price is inching higher today, up 0.86% to $28.08 at the time of writing.

It’s been a difficult period for the petroleum giant these past 3 months, with shares trading as high as $31.95 in November before retracing backward to their current levels.

Add in that shares are trending in a sideways channel over the last 12 months, and the recipe is becoming more and more flavourless for Ampol shareholders.

So with these points in mind, we ask, is Ampol a buy? Let’s take a closer look at what the experts are saying.

What’s Jefferies saying about Ampol?

The team at investment bank Jefferies notes that Viva Energy Group Ltd (ASX: VEA)’s recent upgrade to earnings guidance bodes well for Ampol.

Jefferies points out that Ampol is Viva’s major competitor in the Australian petroleum refining and marketing segment. As a result, any upgrade to Viva’s earnings outlook transposes as a positive catalyst to Ampol.

In a recent note, Viva advised it expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) to come in at $470 million to $490 million in 2021, which is a substantial jump of almost 20% from median Jefferies forecasts.

The broker notes that Viva’s upgrade was likely due to margin performance at the refining and retail segments. While it acknowledges that “Viva is likely outperforming in both commercial and retail”, it concurrently believes “these dynamics augur in well for Ampol”.

Jefferies says it “remains positive on both stocks given leverage to COVID recovery and attractive valuations”. For reference, Ampol is currently trading at 14.6x price to earnings (P/E) and just under 2.3x price to book (P/B).

The team at Barrenjoey Capital Markets recently upgraded its rating on Ampol as well, recommending it as overweight with a $36.68 valuation.

This sentiment appears to be shared with the majority of analysts covering Ampol, according to Bloomberg Intelligence.

From the list of analysts covering Ampol almost 60% reckon it is a buy right now, with a consensus price target of $33.74. This consensus valuation offers a 12-month return potential of around 20% from the current market price.

What are other analysts saying about the Ampol share price?

With respect to some specific valuations, Credit Suisse has Ampol as neutral at a price target of $29.53, whereas Morgan Stanley likes the shares and rates Ampol as a buy at a $35 per share valuation.

RBC Capital Markets holds the same view and rates Ampol a buy with a $33 per share price target. In contrast, Barclay Pearce isn’t as rosy and reckons the company is a hold at $24.91 per share.

The number of analysts covering Ampol and rating it a buy has crept down gradually over the last 12 months.

This downward move has occurred alongside the Ampol share price, which has also slipped around 1.5% into the red in that same time.

The post Why is Jefferies bullish on the Ampol (ASX:ALD) share price? appeared first on The Motley Fool Australia.

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The author has no positions 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is defying the weakness on Wall Street and pushing higher. The benchmark index is currently up 0.25% to 7,309.7 points.

Here’s what is happening on the ASX 200 today:

Magellan shares bounce around

The Magellan Financial Group Ltd (ASX: MFG) share price has been bouncing around on Tuesday. After dropping to a new multi-year low, the fund manager’s shares are now trading meaningfully higher for the day. Though, this could have been driven partly by short sellers buying back shares today to close out their positions following yesterday’s 30%+ decline.

Pilbara Minerals shares tumble

The Pilbara Minerals Ltd (ASX: PLS) share price is under pressure on Tuesday after the release of a disappointing update. According to the release, the lithium miner has downgraded its December quarter and FY 2022 annual concentrate production and shipping guidance due to delays with commissioning, ramp-up initiatives and extended plant shutdowns at its Ngungaju and Pilgan Plants.

Afterpay makes new 52-week low

The Afterpay Ltd (ASX: APT) share price has continued its poor run and tumbled to a new 52-week low of $80.21 this morning. This followed another heavy decline by the Square share price overnight which devalued the takeover offer that Afterpay shareholders voted overwhelmingly in favour of last week.

Best and worst ASX 200 performers

The best performer on the ASX 200 today with a gain of almost 6% has been the Magellan share price. However, its shares are still down ~60% in 2021 despite this gain. The worst performer has been the Pilbara Minerals share price with a 7% decline after downgrading its production and shipments guidance.

The post ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks appeared first on The Motley Fool Australia.

More reading

• Magellan (ASX:MFG) shares just lost $1.8b of market cap. What now?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Sydney Airport (ASX:SYD) share price flat amid ‘subdued’ traffic outlook
• What’s going on with the strange Newcrest (ASX:NCM) share price today?

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 and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. 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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