Day: 2 March 2022

If you’re looking to add some quality shares to your investment portfolio, then you might want to look at the ASX 50 shares listed below.

Here’s why analysts at Morgans are tipping these ASX 50 shares as ones to buy right now:

CSL Limited (ASX: CSL)

The first ASX 50 share to look at is CSL. This biotherapeutics giant could be a top option for investors looking for exposure to the healthcare sector.

Particularly given the underperformance of the CSL share price over the last 12 months, which Morgans appears to see as an opportunity for investors to buy in at a good price. Its analysts have an add rating and $327.60 price target on its shares.

Morgans explained: “Promisingly, plasma collections continue to improve, although remain slightly below pre-pandemic levels, and while industry wide issues remain (eg Omicron; staffing; increase costs), the worst appears behind us.”

“While near term challenges remain, the ongoing recovery in plasma collections, coupled with management’s confidence, paints a favourable earnings picture,” it adds.

Wesfarmers Ltd (ASX: WES)

Another ASX 50 share that is rated highly by Morgans is Wesfarmers. It is of course the conglomerate behind the Bunnings, Kmart, Officework, and Target businesses, as well as a collection of industrial businesses.

The team at Morgans believes that recent weakness in the Wesfarmers share price has created a buying opportunity for investors. Its analysts currently have an add rating and $58.50 price target on its shares.

It said: “Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors.”

This is due to its “diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering value for shareholders.”

The post 2 ASX 50 shares Morgans rates as buys appeared first on The Motley Fool Australia.

More reading

• The Wesfarmers (ASX:WES) share price dumped 9% in February. What happened?
• Why did the CSL (ASX:CSL) share price go backwards in February?
• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?
• Top ASX shares to buy in March 2022
• Top broker tips over 20% upside for Wesfarmers (ASX:WES) share price

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 CSL Ltd. The Motley Fool Australia owns and has recommended 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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The Woodside Petroleum Limited (ASX: WPL) share price is currently 5.44% higher at $30.24 — making it the best performing ASX energy share at the time of writing.

The S&P/ASX 200 Energy Index (ASX: XEJ) is up 4.42% so far, also making it the highest performing sector on the ASX today.

By comparison, the wider S&P/ASX 200 Index (ASX: XJO) is up just 0.03%.

So, what’s going on with Woodside today?

What’s going on with Woodside?

While the company didn’t have any price-sensitive news this morning, it released a report on its 2021 climate target progress.

In it, the energy giant revealed that it was on track to achieve its 2025 target of a 15% reduction in greenhouse gas emissions.

Woodside is aiming for a 30% decrease of emissions by 2030, and “net zero” by 2050, “or sooner”.

According to the report, the company says its methane emissions for the year accounted for 0.1% of production.

Woodside also outlined a number of energy projects, including its Woodside Solar Project, with an initial phase target of 100 megawatts (MW) and a maximum capacity of 500MW.

Its H2Perth and H2TAS plants are underway, with initial phase targets of hydrogen and ammonia achieved. Its Heliogen solar site is set for construction this year.

According to the company, “increased investment in hydrogen [is] needed to support the Net Zero Emissions 2050 pathway”.

Oil prices rising

Woodside’s increased share price is likely also being boosted by rising oil and gas prices on commodity markets.

According to Trading Economics, Brent crude oil is up more than 5% today to US$110.77 a barrel and natural gas is up 2.4% to US$4.68 MMBtu.

Russia’s invasion of Ukraine has put a strain on oil prices amid growing concern over “supply disruption”, with Russia a “key exporter”.

According to The Guardian, the United States and a number of other countries are set to access their emergency stores of oil in a bid to “stabilise global energy markets”.

This comes as the Brent crude oil prices hit a seven-year high.

Woodside share price snapshot

Over the last 12 months, the Woodside share price has jumped 22%, hitting a two year high today.

The company has a market capitalisation of $29 billion and a current price-to-earnings ratio (P/E) of 13.99.

The post Woodside (ASX:WPL) shares are up 5% today. Here’s the lowdown appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Own Woodside (ASX:WPL) shares? Here’s the latest on the energy giant’s major court win
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX energy shares smashing 52-week highs today
• The Woodside (ASX:WPL) share price is a buy: broker

Motley Fool contributor Alice de Bruin 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 All Ordinaries Index (ASX: XAO) is having a rather wild day of trading so far this Wednesday. At the time of writing, the All Ords is up a tentative 0.13% after descending into negative territory for much of the morning. But just because the market isn’t doing anything too remarkable, it doesn’t mean that some ASX shares aren’t. Today, we look at 3 ASX All Ords mining shares that are managing to crack new 52-week highs. 

3 ASX All Ordinaries mining shares cracking new 52-week highs today

Core Lithium Ltd (ASX: CXO)

Core Lithium is the first ASX share enjoying a new high watermark this Wednesday. Core Lithium shares opened at 90 cents each this morning. But this ASX lithium stock hit 98 cents a share soon after midday and is currently trading at 96 cents a share, up a very pleasing 16%. That’s a long way from the 52-week low of just 18 cents that we saw in March of 2021.

Today’s move appears to have been sparked by the announcement that Core Lithium has just signed a new lithium spodumene concentrate supply deal with the US electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA). Core Lithium shares are now up an extraordinary 337% over the past 12 months. 

Coronado Global Resources Inc (ASX: CRN)

The Coronado share price is another All Ords company that’s on fire today. This metallurgical coal producer is currently up by 8.8% at $1.85 a share. That’s just a whisker off of the $1.88 price that we have just seen. That’s a new 52-week high for Coronado.

There has been no major news or announcements out of this company today. However, It’s likely that this new high has been assisted by rising prices of coal that management confirmed the company is enjoying when it released its FY21 earnings recently. Coronado shares are now up 88% over the past 12 months.

South32 Ltd (ASX: S32)

Our final mining share to check out today is the diversified miner South32. This former flame of BHP Group Ltd (ASX: BHP) is powering ahead today with a strong share price rise of its own. South32 shares are presently trading for around $4.96.

That’s just below the company’s new 52-week high of $4.98 that we saw earlier today. Again, rising commodity prices seem to be helping here. Although, as my Fool colleague James covered earlier today, some love from ASX brokers is probably helping as well. South32 has now put on more than 81% over the past year. 

The post 3 ASX All Ords mining shares cracking new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Giddy up: Core Lithium (ASX:CXO) share price races 11% higher on Tesla deal
• This broker tips South32 (ASX:S32) as one of the best ASX 200 mining shares to buy
• 3 ASX mining shares breaking new 52-week highs today

Motley Fool contributor Sebastian Bowen owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is trading higher. At the time of writing, the benchmark index is up 0.2% to 7,112.8 points.

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

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down a further 2.5% to $77.77. Investors have been selling this pizza chain operator’s shares since the release of its half year results. Those results fell short of expectations due to a much weaker than expected performance from its Asian operations. It was because of these operations that Goldman Sachs downgraded its shares earlier this week.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 5% to $16.82. Yesterday the team at UBS responded to Magellan’s latest funds under management (FUM) update by retaining its sell rating and cutting its price target to $15.40. It has concerns over the sharp decline in Magellan’s FUM, which won’t be helped by its flagship Global Fund being downgraded by a ratings agency.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is down 11% to $3.69. This appears to have been driven by a broker note out of Goldman Sachs. According to the note, while Goldman has held firm with its buy rating, it has slashed the price target on this sports betting company’s shares by a further 32% to $6.74. Goldman made the move to reflect a de-rating of peer multiples and lower earnings estimates.

Zip Co Ltd (ASX: Z1P)

The Zip share price has continued its slide and is down a further 5.5% to $1.95. Investors have been selling this buy now pay later (BNPL) provider’s shares following the completion of a ~$150 million institutional placement and amid a decidedly mixed response to its planned takeover of Sezzle Inc (ASX: SZL). Some analysts fear that Zip is overpaying to acquire its BNPL rival.

The post Why Domino’s, Magellan, PointsBet, and Zip shares are falling appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Why is the PointsBet (ASX:PBH) share price sinking 13% today?
• ‘Strategic sense’: What brokers are saying about the Zip (ASX:Z1P)-Sezzle deal
• 2 ASX growth shares analysts say have 40%+ upside

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 Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Pointsbet Holdings Ltd. 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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While the All Ordinaries (ASX: XAO) is climbing 0.18% today, the Damstra Holdings Ltd (ASX: DTC) share price is rocketing.

This follows an announcement from the workplace management solutions company regarding Victoria’s $15.8 billion North East Link project.

At the time of writing, Damstra shares are swapping hands for 22 cents, up 12.82%.

What was in Damstra’s announcement?

Investors are buying Damstra shares after the company provided a positive update to the ASX this morning.

According to its release, Damstra advised it has been appointed as a technology partner for the North East Link project.

In what will be Victoria’s largest road project, the North East Link project will fix the missing link in the city’s freeway network.

Building the state’s longest twin road tunnels, the design delivers an overhaul of the Eastern Freeway, Melbourne’s first dedicated busway, completion of the Ring Road in Greensborough and a North East Trail with more than 34km of walking and cycling paths.

It’s estimated up to 135,000 vehicles will use the North East Link each day, reducing congestion on other major roads.

The Spark Consortium, which is in charge of ensuring the project is delivered, comprises a number of companies. This includes Cimic Group Ltd (ASX: CIM) companies CPB Contractors, Ventia and Pacific Partnerships, Italy’s WeBuild, South Korea’s GS Engineering and Construction, China Construction Oceania, Capella Capital, John Laing Investments and DIF.

The project is expected to deliver new $4.9 million of revenue for Damstra over six years (average $816,000 per annum).

Under the partnership, Damstra will provide mobilisation systems via its Enterprise Protection Platform (EPP) to approximately 15,000 users. This will allow utilising the workforce management, Damstra Learning and digital forms modules.

Mobilisation for early work projects is forecasted to commence sometime during the third-quarter of FY222. Full project implementation will follow in FY23.

What did management say?

Damstra CEO, Christian Damstra commented:

We are very pleased to announce this significant long-term arrangement with the Spark Consortium, which will be a major new client for Damstra.

We believe it reflects confidence in Damstra’s ability to provide critical services for workers and contractors for large-scale infrastructure projects and demonstrates the strength of our integrated EPP offering. It also leverages the strength of our construction vertical which has continued to rebound strongly since COVID restrictions began to lift.

About the Damstra share price

It has been a turbulent 12 months for Damstra shareholders, with the company’s shares down more than 25%. The downfall began after Damstra reported its disappointing half-year results for FY21 in February.

Damstra has a market capitalisation of roughly $58.63 million, with approximately 257.70 million shares on its books.

The post Here’s why this ASX tech share is surging 12% today appeared first on The Motley Fool Australia.

More reading

• Damstra (ASX:DTC) share price stoops 11% amid downgraded margins
• Ups and downs: Why is the Cettire share price leaping 10% today?
• The Cettire (ASX:CTT) share price is plunging 14% today. What’s going on?
• Hazer (ASX:HZR) share price rockets 14% on low-carbon hydrogen project
• Selling out? Cettire (ASX:CTT) share price slumps amid founder selling rumours

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. owns and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns and has recommended Damstra Holdings Ltd. 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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ASX bank shares have shown mixed results so far in 2022 with some names flying well ahead of the pack whilst others drag the group down.

 The S&P/ASX 200 Financials Index (ASX: XFJ) has slipped more than 4% into the red since trade commenced on January 4.

Although, it has clawed back gains and landed 1% up over last month as the market digests a wave of geopolitical conflict and macroeconomic pressures.

One particular ASX 200 bank share that has struggled heavily this year is Australia and New Zealand Banking Group Ltd (ASX: ANZ), finding itself more than 6% in the red, well ahead of the broad sector.

Not only that, but the bank nudged past its 52-week low’s in trading today, settling at a price of $25.75 at the time of writing.

Not all are so downbeat on the ANZ share price, however. Analysts at JP Morgan reckon the bank has plenty of upside left and rates it one of the top picks amongst the banking majors.

ANZ share price tipped to surge 20% in 2022 by top broker

Analysts at JP Morgan reckon there is “greater certainty” in ANZ’s growth story and have subsequently baked in a period of underlying momentum in 2022 and 2023 projections.

The broker recently made some key earnings changes to its outlook of ANZ by increasing net interest margin (NIM) by 300 basis points in FY23/24, “primarily to reflect a bring forward of rate hikes to Q4 of CY22”.

This should transpose well for the bank’s impairment expenses, the broker says, reducing its loan-loss estimates in the process.

“Our loan-loss forecasts have reduced in FY22 (higher assumed CP release), but increased in FY24 to 18bps of gross loans, reflecting the impact of rate hikes on the broader economy” the broker said.

“While mortgage growth has been disappointing of late, we expect a gradual improvement in line with improved processing efficiencies”, it added.

In JP Morgan’s eyes ANZ also offers the best exposure to non-domestic interest rates, a luxury it enjoys thanks to its NZ enterprise and the size of its institutional segment.

And to help offset the foreseeable headwinds to mortgage margins, that are likely to plague the sector in 2022 due to saturation and tightening policy, the broker says ANZ’s relatively large exposure to business lending should provide enough protection.

One key headwind the broker alludes to in its thesis is “a more negative impact than expected from APS111 and RBNZ capital rule changes”.

JP Morgan analysts set a price target of $30.50 on ANZ shares whilst urging clients to buy the stock. At the current market price today, that valuation signals an upside potential of 20% on last check.

Around 60% of brokers have ANZ as a buy right now according to a list provided by Bloomberg Intelligence, where the consensus price target is $29.13.

ANZ – an ASX 200 share with a mixed past

In the last 12 months, the ANZ share price has collapsed over 4% and is down 6% this year to date.

During the past month of trading, shares have collapsed another 3%, and ANZ is thus trailing the major ASX 200 banking indexes this year.

The post Can this ASX 200 bank share flame 20% higher? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why did the ANZ (ASX:ANZ) share price lag the other banks in February
• Own ANZ shares? Here’s the bank’s latest move to ‘better prepare for future growth’
• Greater Certainty: Why this top broker is bullish on ANZ (ASX:ANZ) shares in 2022
• Bad ATM? The ANZ share price was hammered more than any other ASX 200 bank today

Motley Fool contributor Zach Bristow 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.1% to 7,105.7 points.

Four ASX shares that are climbing more than most are listed below. Here’s why they are rising:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price has jumped 17% to 96.5 cents. Investors have been bidding the lithium developer’s shares higher today after it announced a binding agreement with auto giant Tesla. According to the release, the agreement is for the supply of 110,000 tonnes of lithium spodumene concentrate across a four-year period.

Medical Developments International Ltd (ASX: MVP)

The Medical Developments International share price has rocketed 27% higher to $4.35. Investors have been buying the medical device company’s shares after it revealed that the US Food and Drug Administration (FDA) has unconditionally lifted the agency’s clinical hold on its Penthrox (aka the green whistle) product. This means the company can now start to plan a phase 3 trial in the US.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is up 4.5% to $123.20. This follows a strong night of trade for commodity prices. For example, according to CommSec, the spot iron ore price rose 3.8% to US$144.45 per tonne overnight. This bodes well for Rio Tinto’s performance and its cash flow generation in FY 2022.

South32 Ltd (ASX: S32)

The South32 share price is up 4.5% to $4.96. Once again, this appears to have been driven by rising commodity prices. According to CommSec, the aluminium price climbed 3.3% overnight to US$3,501 per tonne. In addition, this morning Goldman Sachs retained its conviction buy rating and lifted its price target to $5.60.

The post Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today appeared first on The Motley Fool Australia.

More reading

• Here’s how these top 3 ASX 200 mining shares performed in February
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Giddy up: Core Lithium (ASX:CXO) share price races 11% higher on Tesla deal
• Why the Medical Developments International (ASX:MVP) share price is rocketing 32% higher
• This broker tips South32 (ASX:S32) as one of the best ASX 200 mining shares to buy

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 Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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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There is a lot going on with the AGL Energy Limited (ASX: AGL) share price right now. Yes, AGL shares have shed 0.54% or thereabouts so far today at $7.38 a share. But that’s not the most exciting happening with this company.

Last month, AGL was sensationally on the front page as billionaire Mike Cannon-Brookes launched a surprise bid for the stalwart energy utility company. Cannon-Brookes made the $7.50 a share bid for AGL through his private company Grok Ventures. It was in partnership with the Canadian investment house Brookfield Asset Management.

Cannon-Brookes, if successful, intends to halt AGL’s planned demerger of its generation and retail arms that the company is planning to execute this year. He also wants to rapidly accelerate AGL’s decarbonisation plans, and close the company’s coal-fired power plants as early as possible in order to transition into renewable energy generation.

AGL’s management was quick to reject the offer, saying it vastly undervalues the company. However, we might not have read the last chapter of this gripping tale just yet.

For one, AGL is fighting a battle of its own right now. Not all shareholders are on board with the demerger plans. As my Fool colleague Tristan covered last month, the activist London-based AGL investor Snowcap has described the demerger plans as “value destructive and environmentally disastrous”.

Snowcap proposes that rather than accept the bid from Cannon-Brookes (which it agrees undervalues the company), AGL should instead abandon the demerger and accelerate AGL’s coal exit itself.

AGL shares mired in drama

But are Cannon-Brookes and Brookfield finished with AGL after their offer was rejected?

Well, that remains to be seen. But there seems to be a consensus among many interested parties that they will need to step up their enthusiasm. According to a recent report in The Australian, one of AGL’s top shareholders in VanEck is one of them.

The report reveals that VanEck, an ETF provider and major AGL shareholder, reckons that Cannon-Brookes and Brookfield will need to up their $8 billion bid to convince shareholders to take it on. Here’s some of what VanEck Australia’s deputy head of investments and capital markets, Jamie Hannah, had to say:

It‘s just not a good enough price… What it comes down to is $7.50 doesn’t take into account the long-term benefits of AGL. It’s certainly had a terrible five-year share performance, I won’t argue that. However, it’s just trying a very opportunistic price down at $7.50, when it is at such a low…

They’ll definitely need to go higher to get engagement for sure… I’m not going to give a level but they definitely need to make it attractive for current shareholders to be willing to sell.

Although Hannah wasn’t keen to put a dollar figure on a new offer, AGL’s management itself has. In another article in The Australian last month, AGL chief executibe Graeme Hunt told the paper the following:

Typically, for a change of control of a company, shareholders are looking for a premium 30-40 plus per cent over whatever the appropriate share trading range is for the company.

That would equate to another $1 billion or so.

So unless Cannon-Brookes and Brookfield want to walk away from AGL, it looks like they have some more work to do. Not to mention some more cash to put on the table. Perhaps a billion? We await their next move.

The post Will Mike Cannon-Brookes bring an extra $1 billion to the table in his AGL takeover bid? appeared first on The Motley Fool Australia.

More reading

• This commodities index just saw its biggest rise in over 10 years. What might this mean for ASX 200 shares?
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Why did AGL (ASX:AGL) shares smash Origin in February?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

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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A message from our CIO, Scott Phillips: “G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

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ASX gold shares are posting another strong day of outperformance.

The All Ordinaries Index (ASX: XAO), down 0.8% in morning trade, has bounced to a 0.2% gain at lunchtime. This follows on intraday news that the Aussie economy grew by a stronger than expected 3.4% in the fourth quarter of 2022.

But ASX gold shares are still broadly beating the benchmark.

At time of writing the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 1.9%. Reflecting gold’s haven status, the ASX Gold Index slipped from its 3.1% gains earlier today on the strong GDP figures. 

Why are ASX gold shares outperforming today?

As you’d expect, ASX gold shares tend to perform much better when gold prices are high. And gold prices have been soaring amid the combination of increasing inflation concerns and geopolitical instability following Russia’s invasion of Ukraine. 

While bullion slipped over the past hours from US$1,945 to US$1,932 per troy ounce, it’s well up from the US$1,908 per ounce it was trading for on 28 February. And the yellow metal remains 7.3% above its 1 February level of US$1,801 per ounce. 

Commenting on the forces driving gold prices higher, and helping ASX gold shares outperform again, Gary Dugan, CEO of Global CIO Office said (quoted by Bloomberg):

The whole crisis has gone to a level that we couldn’t have believed, and investors are no longer saying we’ll buy some defensive stocks or bonds. It’s now about buying gold especially against the backdrop of inflation risks that have been made worse by the conflict.

Yeap Jun Rong, a strategist at IG Asia added: 

Gold may continue to outperform other haven assets, with an added tailwind from central bank purchases and also displaying its characteristic as an inflation hedge. The conflict has not seen any signs of easing and further escalation may heighten risks of persistent inflationary pressures, which will continue to draw traction for gold prices.

4 outperforming gold miners

We can’t cover all of the ASX gold shares here, but below are 4 that are handily beating the index today.

With gold high on global investors’ radars, the Newcrest Mining Ltd (ASX: NCM) share price is up 1.3%.

S&P/ASX 200 Index (ASX: XJO) listed Evolution Mining Ltd (ASX:EVN) is also charging higher, up 2.2%, while the Northern Star Resources Ltd (ASX: NST) share price is up 1.6%.

Leading the pack of ASX gold shares today is AngloGold Ashanti CDI (ASX: AGG). The Anglogold share price is up 7.7%. 

The post Here’s why ASX gold shares are having another stellar day appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Dubber, Evolution, Sandfire, and Zip shares are dropping
• Here’s why ASX gold shares just had their best month in 2 years
• 5 things to watch on the ASX 200 on Tuesday
• Is Bitcoin or gold a better buy for these uncertain times?

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) gained 1.1% in February. That came off the back of a 9.9% fall in the first 3-plus weeks of January.

Most ASX 200 mining shares didn’t fall nearly that hard, or at all, in the early weeks of 2022. So, they didn’t have as much rebound potential as the wider index.

Still, that didn’t keep one of the iron ore giants from trouncing the benchmark gains, as it announced the biggest dividend in Australian history last month.

How did these 3 top ASX 200 mining shares move in February?

From the closing bell on 31 January through to the closing bell on 28 February, the BHP Group Ltd (ASX: BHP) share price gained 0.7%.

But that doesn’t tell the full story.

BHP reported strong half year results (1H FY22) on 15 February, beating consensus expectations. BHP’s revenue leapt 27% from 1H FY21 to hit US$30.53 billion. Underlying profits reached US$9.72 billion, up 57% year-on-year.

It also declared a $2.08 fully franked interim dividend.

Importantly, the ASX 200 mining share went ex-dividend on 24 February. This, as you’d expect, saw BHP’s share price drop 6.9% on the day. So we’ll need to factor that into its February performance.

Meanwhile rival ASX 200 mining share, Rio Tinto Limited (ASX: RIO), gained 5.9% in February.

Rio Tinto reported its full year results after market close on 23 February. And Rio Tinto didn’t disappoint.

Among the highlights, the miner’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) reached US$37.72 billion. That was up 58% from the prior year.

Rio also declared a total dividend payout of US$10.40 per share, up a whopping 87% from FY20, and the biggest ever in Aussie history.

The difference from BHP, however, is that Rio Tinto didn’t go ex-dividend in February. Hence that hasn’t yet impacted its share price.

Moving on to number 3

Moving on to our third leading ASX 200 mining share, Fortescue Metals Group Limited (ASX: FMG) closed February down 8.6%.

Fortescue reported its half year financial results on 16 February. And unlike its competitors, Fortescue’s figures slumped year-on-year.

The miner’s total revenue was down 13% from 1H FY21 to US$8.1 billion. Underlying net profit after tax (NPAT) also slipped 32% to US$2.8 billion. And its 86 cent fully franked interim dividend was also down 41% year-on-year.

Topping that off, the ASX 200 mining share went ex-dividend on 28 February, which saw shares close the day down 2.4%.

The post Here’s how these top 3 ASX 200 mining shares performed in February 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 Bruce Jackson.

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