Day: March 4, 2022

3 promising small cap ASX shares to watch

a woman looks through a magnifying glass that englarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.

a woman looks through a magnifying glass that englarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.a woman looks through a magnifying glass that englarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.

As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Three small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY

The first small cap share to look at is Australia’s leading online beauty retailer, Adore Beauty. Although the company has come along way since being founded in a Melbourne garage in 1999, it still only has a modest slice of the Australian beauty and personal care market. This market is estimated to be worth $11.2 billion a year at present, which gives Adore Beauty a long runway for growth. Especially given the structural shift online and its growing customer base, which is approaching 1 million.

UBS remains positive on Adore Beauty. It recently retained its buy rating with a $4.70 price target.

Avita Medical Ltd (ASX: AVH

Another small cap ASX share to look at is Avita Medical. It is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. It is also looking to use its system to treat vitiligo and is working on an interesting project with Houston Methodist Research Institute. That project is essentially looking for the fountain of youth by finding a way to reverse cellular ageing.

Bell Potter is positive on the company. It has a speculative buy rating and $4.60 price target on its shares.

Mach7 Technologies Ltd (ASX: M7T

A final small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Operators then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. It appears well-placed for the future, particularly given how demand for this type of software continues to grow thanks to industry tailwinds such as telehealth.

Morgans is a fan of the company. It currently has an add rating and $1.55 price target on the company’s shares.

The post 3 promising small cap ASX shares to watch 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 over ten 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 January 12th 2022

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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 and has recommended Avita Medical Limited and MACH7 FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Avita Medical Limited, and MACH7 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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Here are the top 10 ASX shares today

Computer key - Top 10 ASX todayComputer key - Top 10 ASX todayComputer key - Top 10 ASX today

Today, the S&P/ASX 200 Index (ASX: XJO) walked back some of its gains made throughout the week amid Russia’s attack on Ukraine’s largest nuclear power plant. At the end of the session, the benchmark index finished 0.57% lower at 7,110.8 points.

Only two sectors were able to move meaningfully higher during the final session of the week. In a day of uncertainty, investors tended to lean towards more defensive areas of the market, including consumer staples and utilities. In contrast, money was flowing away from hard-hit sectors such as tech shares and retail.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Newcrest Mining Ltd (ASX: NCM) was the biggest gainer today. Shares in the gold mining company rallied 2.77% as producers of the precious commodity continue to benefit from a rush to, quote on quote, safe havens. Find out more about Newcrest Mining here.

The next biggest gaining ASX share today was Yancoal Australia Ltd (ASX: YAL). The coal producer continues to hit new 52-week highs as countries grapple with finding alternative energy sources outside of Russia. Shares in the company rose 2.74% in another green showing. Uncover the latest Yancoal Australia details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company Share price Price change
Newcrest Mining Ltd (ASX: NCM) $26.02 2.77%
Yancoal Australia Ltd (ASX: YAL) $4.88 2.74%
Cromwell Property Group (ASX: CMW) $0.87 2.35%
Meridian Energy Ltd (ASX: MEZ) $4.80 2.35%
Incitec Pivot Ltd (ASX: IPL) $3.28 2.18%
Atlas Arteria (ASX: ALX) $6.43 2.06%
Woolworths Group Ltd (ASX: WOW) $34.81 2.05%
Lendlease Group (ASX: LLC) $10.32 1.78%
Northern Star Resources Ltd (ASX: NST) $10.12 1.71%
APM Human Services International Ltd (ASX: APM) $2.90 1.40%
Data as at 4:00pm AEDT

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today 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 over ten 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 January 12th 2022

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Motley Fool contributor Mitchell Lawler 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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Why is the iron ore price hitting 6-month highs?

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.

The price of iron ore surged on Friday amid news China’s strict COVID-19 elimination strategy could soon be relaxed.

That could make way for a surge of infrastructure growth in the nation, which would likely, in turn, increase demand for iron ore.

Of course, that would be good news for producers of the metal such as ASX shares BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG).

Let’s take a closer look at the news that boosted the commodity’s price today.

What drove the iron ore price higher today?

China is getting ready to reopen, with plans to scrap parts of its COVID-zero policy in select areas over summer (June to August), according to reporting by the Wall Street Journal.

Following the initial relaxing, a widespread reduction in China’s suppression strategy could begin in spring, sources told the publication.

The country is then expected to return to a more normal reality next year.

China is the world’s biggest importer of iron ore. Thus, an end to its COVID-19 strategy could see it demanding more of the steel-making material.

The iron ore price hit its highest point in six months – US$161.20 per tonne – on Friday, according to the Australian Financial Review (AFR).

Early last month, The Motley Fool Australia reported on the outlook for iron ore producers according to Randal Jenneke, head of Australian equities at T. Rowe Price.

Janneke believes, after the Chinese market fell in 2021, recovery-fuelled growth in China will drive the iron ore price this year.

And such growth was seemingly made evident recently. China’s Purchasing Managers’ Index (PMI) rose to 50.2 in February.

The PMI outlines the health of the nation’s manufacturing sector. Any result above 50 reflects growth in the sector, while results below 50 indicate contractions.

Finally, there could be more good news for the iron ore price next week.

All eyes will be on China over the weekend as the nation’s ‘Two Sessions’ meetings begin.

The meetings will see China’s key economic targets for the year ahead revealed, as well as other important matters, reports Reuters.

The post Why is the iron ore price hitting 6-month highs? 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 over ten 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 January 12th 2022

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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3 ASX ETFs hitting 52-week lows on Friday

ETF spelt out

ETF spelt outETF spelt out

There are a few ASX exchange-traded funds (ETFs) which hit 52-week lows on Friday.

Volatility has increased across the global share market.

There is an ongoing war between Russia and Ukraine.

Investors are also looking at what’s happening with inflation and interest rates. Central banks think that it’s very important that inflation doesn’t get too far ahead. The Reserve Bank of Australia (RBA) has a target range for inflation of between 2% to 3%. The RBA targets this range because:

This is a rate of inflation sufficiently low that it does not materially distort economic decisions in the community. Seeking to achieve this rate, on average, provides discipline for monetary policy decision-making, and serves as an anchor for private-sector inflation expectations.

The US Federal Reserve has a similar sort of expectation that it will keep a lid on inflation.

However, in January the market learned that US inflation in December was 7% higher than a year earlier. That was the fastest pace since June 1982.

US Fed boss Jerome Powell says that the plan is to increase interest rates by 0.25% this month. There are expectations of quite a few more increases during this year.

Why do interest rates matter so much to ASX shares and ETFs?

At the 1994 Berkshire Hathaway annual general meeting, Warren Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

ETFs fall

It has been a negative 12 months for some of the following growth-orientated ETFs below:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Today, the ASIA ETF declined more than 4%. Over the last 12 months it has dropped by 36%.

An ETF’s return is only a reflection of the underlying businesses.

The ASIA ETF owns many of Asia’s biggest tech businesses outside of Japan like Samsung, Taiwan Semiconductor Manufacturing, Tencent, Alibaba, Infosys and KD.com.

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The ACDC ETF has also fallen by more than 4% today. The past year only shows a 5% decline. But from the middle of January 2022, it has dropped close to 20%.

This ETF, as the name suggests, this gives exposure to the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining. In the portfolio are names like Pilbara Minerals Ltd (ASX: PLS), ABB, TDK, Sumitomo and Hyundai Electric.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The ESPO ETF dropped close to 5% today. From the middle of November 2021, the ESPO ETF has actually fallen by more than 20%.

This portfolio owns some of the world’s biggest businesses related to the video gaming industry such as Advanced Micro Devices, Tencent, Activision Blizzard, Nintendo, Electronic Arts, Take-Two Interactive Software and Bandai Namco.

The post 3 ASX ETFs hitting 52-week lows on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Betashares Asia Technology Tigers ETF right now?

Before you consider Betashares Asia Technology Tigers ETF, 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 Betashares Asia Technology Tigers ETF wasn’t one of them.

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*Returns as of January 13th 2022

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Motley Fool contributor Tristan Harrison 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 and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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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