Day: 7 April 2022

The Magellan Financial Group Ltd (ASX: MFG) share price is rocketing today following the company’s funds under management (FUM) update.

At the time of writing, the fund manager’s shares are swapping hands for $17.21, up 11.24%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is having another tough day and trading at 7,459 points, down 0.41%.

FUM outflows continue

Investors appear to be shrugging off the latest FUM report, sending the Magellan share price to a 1-month high.

In its release, Magellan reported another $1.1 billion in net outflows between 11 March and 31 March. This comprised $500 million from retail investors and $600 million from institutional clients.

Furthermore, the company received notice that a further $200 million will be redeemed.

Across the board, total FUM stood at $70 billion at the end of the March quarter.

Global equities made up more than half of the FUM with $39.6 billion recorded. Next in line, infrastructure equities registered $20.5 billion, and Australian equities came to $9.9 billion.

The exchange rate fared slightly in favour of the Australian dollar with the conversion at 75.95 US cents.

About the Magellan share price

Since the start of July 2021, the Magellan share price has continued to tread downwards despite today’s gains.

Reaching a 52-week high of $56.18 on 2 July 2021, this means the company’s shares are down by roughly 70%.

Year to date it’s no better, with the Magellan share price losing about 20% over the four months.

Magellan has a price-to-earnings (P/E) ratio of 9.6 and a market capitalisation of roughly $2.87 billion.

The post Magellan share price rockets 11% despite continued FUM carnage appeared first on The Motley Fool Australia.

More reading

• Magellan share price sinks again, down 6%
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• What’s up with the Magellan (ASX:MFG) share price lately?
• Is it finally time to buy Magellan (ASX:MFG) shares?
• Magellan (ASX:MFG) share price dips despite free gift bonanza

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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March was a good month for most crypto investors.

The world’s top 2 cryptos both surged higher, setting a bullish tone for the wider market of altcoins.

Bitcoin (CRYPTO: BTC), the world’s original digital token, gained 20% in March.

Ethereum (CRYPTO: ETH), the second biggest player in the virtual currency space, did even better, surging 25% in March.

Below we look at how some of the other leading cryptos stacked up.

For the purposes of this article, we’re sticking to the top-10 by market cap and excluding the stablecoins as their prices tend to move closely with the fiat currencies they’re intended to track.

This crypto gained 27% in March

First up we have Terra (CRYPTO: LUNA).

On 1 March Terra was trading for US$85 and by 31 March the same token was worth $108. That’s a 27% gain, beating both Bitcoin and Ethereum last month.

Terra also happened to be the fifth best crypto performer (out of the top 100) in 2021, gaining 10,121% over the calendar year.

If you’re unfamiliar with the token, CoinMarketCap tells us, “Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.”

Terra launched in April 2019 with the intention to provide fast and affordable settlements.

The token reached an all-time high of US$119 just two days ago, on 5 April. It’s currently trading back at US$109. That gives it a market cap of $38.3 billion, making it the 6th biggest crypto in virtual circulation.

This crypto came in neck and neck with Ethereum in March

On 1 March Cardano (CRYPTO: ADA) was trading for 97 US cents and the crypto finished the month worth US$1.21. That 25% gain beats Bitcoin’s performance and puts Cardano neck and neck with Ethereum’s strong run.

Cardano was founded in 2017. According to CoinMarketCap, “Cardano is a proof-of-stake blockchain platform that says its goal is to allow ‘changemakers, innovators and visionaries’ to bring about positive global change… [It] aims to allow decentralised apps and smart contracts to be developed with modularity.”

Any investors who hold Cardano also hold voting rights in how the network operates and over any potential software changes.

Like most cryptos, the Cardano price has retraced so far in April, currently at US$1.05. That gives it a market cap of US$35.8 billion and puts it in the number 9 spot on the list of top tokens.

At the current price, Cardano is down 66% from its 2 September all-time high of US$3.10.

And this altcoin soared 33% in March

Handily beating the performance of Bitcoin and Ethereum last month was Solana (CRYPTO: SOL).

Solana was worth US$96 on 1 March and was trading for US$128 on 31 March, a gain of 33%.

Solana launched in March 2020. CoinMarketCap states that, “Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions.”

Solana has slipped from its 31 March levels and is currently trading for US$112. That gives it a market cap of US$37.2 billion and puts it at number 7 on the list of top cryptos.

Despite the strong performance in March, the token remains down 56% from its 6 November all-time highs of US$260.

The post How these top cryptos stacked up against Bitcoin and Ethereum in March appeared first on The Motley Fool Australia.

More reading

• Why Solana, Polkadot, and Cardano are down big today
• Why Bitcoin, Ethereum, Dogecoin, and Shiba Inu are down today
• Why this crypto is the most resilient to inflation: experts
• Can the Bitcoin price really top US$500,000?
• The Ethereum price just ended a stellar month. Expert panel predicts what’s next

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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 team at Morgans has been busy running the rule over a number of ASX 200 shares again.

We have already covered a few of its best ideas here and here. But the list continues with the three ASX 200 shares listed below:

BHP Group Ltd (ASX: BHP)

This mining giant could be a top option for investors looking for exposure to the resources sector. Morgans currently has an add rating and $51.80 price target on its shares. It likes BHP due to the diversification of its portfolio and balance sheet strength.

Morgans explained: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Cochlear Limited (ASX: COH)

Another ASX 200 share to look at is Cochlear. Morgans is a fan of the company due to its leadership position in implantable hearing solutions and the improving demand outlook. Morgans is expecting the latter to underpin strong earnings in the coming years. The broker has an add rating and $233.20 price target on its shares.

It said: “Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.”

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share on Morgans’ best ideas list is Treasury Wine. Morgans believes the wine giant’s shares are trading at a very attractive level, particularly given its positive growth outlook. The broker currently has an add rating and $13.93 price target on the Treasury Wine’s shares.

It said: “TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing a number of material headwinds. The foundations are now in place for TWE to deliver strong double digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.”

The post 3 more of the ‘best’ ASX 200 shares to buy this month: Morgans appeared first on The Motley Fool Australia.

More reading

• Why Macquarie says the BHP share price can gain another 19%
• 2 buy-rated ASX 200 dividend shares analysts are recommending
• What sent ASX mining shares flaming higher in March?
• What are the tailwinds behind BHP shares in April?
• Here’s why the performance of ASX 200 shares is smashing the S&P 500

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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 Macquarie Group Ltd (ASX: MQG) share price has surged 15% in a month, so is it still a buy?

The Macquarie share price is currently trading at $201.86, a 1.6% drop. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is falling 0.81% at the time of writing.

Let’s take a look at the outlook for Macquarie.

Is Macquarie a buy?

Analysts have mixed views on the future direction of the Macquarie share price.

WaveStone Capital principal and portfolio manager Raaz Bhuyan says Macquarie shares are a buy.

In an interview with Livewire, Bhuyan said:

It’s definitely a buy for us. We think they’re going to have a cracking result in May when they announce their full-year results. Next year, of course, is another thing, but we like the exposure that they’ve got to infrastructure and the green transition.

However, Perpetual portfolio manager James Rutledge thinks the Macquarie share price is a hold. While he tips that Macquarie will benefit “a lot” from current market volatility, he also has concerns.

Rutledge said:

For a business that is delivering mid to high teens returns, and is being priced at three and a half times price to net tangible assets (NTA), that’s quite a high level for us. And you need to see them deploying more capital to justify those high prices.

Marcus Today portfolio manager Ben O’Leary recently told my Foolish colleague Tony that he would hold Macquarie if the market closed tomorrow for four years. He said, “They just have a track record of making money in almost any environment.”

In other news, Macquarie recently modified its portfolio of ASX shares in response to the Ukraine crisis. The company has positioned its share portfolio “as if it’s a commodity boom”.

Macquarie share price snapshot

The Macquarie share price has soared 33% in the past year but has dropped 4.4% year to date. In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7.5% in the past year.

Macquarie has a market capitalisation of about $78.7 billion based on its current share price.

Macquarie will report its full-year earnings results on 6 May.

The post Is the Macquarie share price a buy ahead of next month’s earnings results? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares with impressive management teams
• Be as overweight ‘as you can possibly stomach’ in ASX shares right now: fundie
• Macquarie share price lifts despite ASIC legal action
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts

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 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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One of the hottest areas of the Australian share market in 2022 is the lithium sector again.

Thanks to the shift to electric vehicles and renewable energy, demand for lithium is increasing rapidly and supply simply cannot keep up. This has led to lithium prices continuing to rise to record levels.

The good news for investors is that it may not be too late to jump onboard the lithium train. Listed below are two lithium stocks that have been rated as buys and tipped to climb meaningfully higher from current levels. They are as follows:

Allkem Ltd (ASX: AKE)

The first ASX lithium stock that could be in the buy zone is Allkem. It is the lithium giant that was formed when Galaxy Resources and Orocobre merged last year.

This merger made Allkem a top five player in the industry and brought together a collection of world class operations and projects under one roof.

One leading broker that is bullish on Allkem is Morgans. It recently retained its add rating and lifted its price target to $16.65.

It commented: “We maintain our ADD rating given the strong growth outlook for the company and the potential 24% [now 29%] upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.”

Liontown Resources Limited (ASX: LTR)

Another lithium stock that is rated highly is Liontown Resources. It is the lithium developer behind the 100%-owned lithium projects at Kathleen Valley and Buldania in Western Australia.

The former is the project that has been getting investors most excited. When it commences production in 2024, Kathleen Valley will be producing ~510,000 tonnes per annum of spodumene. Pleasingly, Liontown has already signed deals with LG Energy Solution and Tesla for over half of this offtake.

Bell Potter is very positive on Liontown. It currently has a speculative buy rating and $3.06 price target on its shares.

The broker commented: “LTR is funded for Kathleen Valley’s initial development capital where a definitive feasibility study outlined 658ktpa SC6 production and potential for conversion into 86ktpa lithium hydroxide. LTR is independent and debt free; a strong strategic position in a market for lithium facing supply shortages. Key catalysts are awarding development contracts, final permitting and commencing development. LTR is a mine development company with prospective operations and cash flows. Our Speculative risk rating recognises this higher level of risk and volatility of returns.”

The post 2 hot ASX lithium stocks brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Wednesday
• Is a bubble forming for ASX green metals shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Allkem (ASX:AKE) share price hits record high on Olaroz and Sal de Vida lithium updates

Motley Fool contributor James Mickleboro owns Allkem 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 Fortescue Metals Group Limited (ASX: FMG) share price is outperforming on Thursday following the completion of a US$1.5 billion (A$2 billion) notes offering.

Of the cash raised through the capital raise, US$800 million will go towards the company’s sustainable projects. The other US$700 million be put to general expenses.

At the time of writing, the Fortescue share price is $21.785, 0.58% higher than its previous close.

While not a huge gain, it sees the iron ore giant outperforming the broader market. Right now, the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index (ASX: XJO) have both slipped 0.5%.

Let’s take a closer look at Fortescue’s latest capital injection.

Fortescue announces successful capital raise

The Fortescue share price is in the green after the company completed a notes offering its CEO claims demonstrates its commitment to sustainability.

News of the offering first broke yesterday when the company announced its launch.

It was made up of two tranches – a senior unsecured note for general corporate purposes and a green senior unsecured note.

The latter was issued for eligible projects under the company’s sustainability financing framework.

They include the 150-megawatt solar generation component of Fortescue’s Pilbara Energy Connect Project, its acquisition of Williams Advanced Engineering, and its hydrogen mobility project at Christmas Creek.

Fortescue CEO Elizabeth Gaines commented on the green notes, saying:

Fortescue’s sustainability financing framework recognises the global growth in sustainability and green sources of capital.

The successful completion of Fortescue’s inaugural green financing offering demonstrates the company’s passion and commitment to integrate sustainability into all aspects of our business, as we take a global leadership position in the green energy transition.

The funds earmarked for general spend will help fund Fortescue’s Iron Bridge project, together with the balance of the Pilbara Energy Connect project.

Previously, free cash flow has funded the projects.

Fortescue chief financial officer Ian Wells said the transaction highlights the ongoing support for the company’s decarbonisation targets.

He also noted it has further optimised the company’s capital structure. That has helped it maintain its strong balance sheet underpinned by investment-grade credit metrics.

Fortescue share price snapshot

The Fortescue share price has been performing well through 2022 so far.

It has gained 9% year to date. It’s also 6% higher than it was this time last year.

For context, the ASX 200 has fallen 1.8% year to date. It has also gained 7.5% over the last 12 months.

The post Fortescue share price lifts amid $2b cap raise appeared first on The Motley Fool Australia.

More reading

• Iron ore just passed US$160 per tonne. So why is the Fortescue share price slipping?
• What’s the outlook for the Fortescue (ASX:FMG) share price in April?
• The Fortescue share price doubled the return of the ASX 200 in March
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Fortescue share price jumps 4% higher

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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Shares in Flight Centre Travel Group Ltd (ASX: FLT) have been trading up this week and are now 14% higher over the past month. That’s more than twice the upwards movement of the S&P/ASX 200 Index (ASX: XJO) over the same period.

The Flight Centre share price is lower in early morning trade today though, down 4.79% to $19.46.

What’s in store for the Flight Centre share price in April?

Analyst sentiment is mixed on Flight Centre. For instance, JP Morgan is bearish on the stock and rates it a sell at a $15 per share valuation. Its analysts say that lines of revenue tied to leisure and international travel are likely to be worst hit in Australia and New Zealand.

The broker also says that because Flight Centre’s income is so tied up with these markets – 50% of 1H20 group total transaction value (TTV) to be exact – ongoing restrictions will continue to be a thorn in the company’s side.

Meanwhile, analysts at Goldman Sachs take the opposite side of the coin. They’re bullish on the Flight Centre share price moving forward.

Curiously, it recently mentioned that travel “appears to be relatively protected” amid ongoing COVID-19 restrictions. Primarily, it says this is due to pent-up demand, based on projections for Flight Centre’s Webbeds division.

Goldman mentioned that its travel expectations for Australia are for “consumption to remain robust at circa 6.7% compound annual growth rate (CAGR) over FY22-24 on a nominal basis”. It notes that leisure lines should see the highest run rate.

What’s the consensus on Flight Centre?

More than 57% of brokers covering Flight Centre have it as a hold right now. Just 14% recommend a buy, according to Bloomberg data. There are also four sell ratings (28% of coverage).

The consensus price target on Flight Centre is $18.97 per share. This suggests a small amount of downside potential using the ‘wisdom of the crowd’.

 

The post The Flight Centre share price is diving 5% today. What’s next in April? appeared first on The Motley Fool Australia.

More reading

• ASX travel shares have been flying higher over the past month. Here’s why
• Why the Flight Centre share price travelled 12% higher in March
• Why this broker thinks the Webjet share price can fly 26% higher
• Here’s why the Flight Centre share price is taking off today
• These are the 10 most shorted ASX shares

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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. owns and has recommended Goldman Sachs. The Motley Fool Australia has recommended Flight Centre Travel 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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It was a rather uninspiring quarter for the All Ordinaries Index (ASX: XAO) during the first three months of the year. For those holding ASX tech shares, the stretch of time was particularly disappointing.

The invasion of Ukraine by Russia, paired with increased expectations of higher interest rates, led to a dismal 0.1% return during the period for the All Ords. Meanwhile, the information technology sector suffered a near 14% blow.

Nonetheless, there were some tech names that were able to expunge the negativity. So, let’s peer into the top five ASX tech shares in the All Ords of the last quarter.

Which 5 ASX All Ords tech shares stayed positive?

Data#3 Limited (ASX: DTL)

With it being such a challenging month for tech shares across the board, it didn’t take much to make the top five tech shares in the All Ords this time around. That being said, IT solutions provider Data#3 scraped in with a flimsy 0.34% gain during the quarter.

The company’s share price was saved from a lacklustre quarter in February when it released its first-half results for FY22. A 16% bump in revenue to $999.3 million and a 32% increase in net profit after tax (NPAT) gave investors renewed hope.

Rubicon Water Ltd (ASX: RWL)

A new entrant to the ASX All Ords tech share club, Rubicon Water managed to give shareholders some sunshine. The water technology solutions company bounced off its February low of $1.14 to finish the quarter 1.4% higher at $1.50.

At a quick glance, there were two notable items for the $250 million company between January and March. Firstly, Rubicon found itself being added to the ASX All Ords after debuting on the market in August last year. Secondly, the company released its FY22 first-half results. However, most figures represented a decline from the previous corresponding period.

Hansen Technologies Limited (ASX: HSN)

Making the podium as one of the best ASX All Ord tech shares during the quarter is Hansen Technologies. This billing solutions provider crept 7.3% higher to $5.74 per share while much of the tech category suffered.

It seems shareholders’ optimism was fortified by the company’s solid first-half results. A 13% lift in underlying NPAT and a retained FY2022 guidance will do that. Additionally, Hansen announced it signed a master agreement with Fortune 100 Energy giant Exelon Corporation on 15 March.

Computershare Limited (ASX: CPU)

Stock transfer company Computershare gave its investors something to celebrate in the last quarter. With a share price gain of 23.5% over the three-month period, the ASX All Ords tech share makes the leaderboard.

Overall, sentiment continued to improve for the Aussie company following its first-half results in February. Positively, management revenue increased 4.6% to US$1.2 billion. However, a 2% to 9% improvement in full-year guidance might have been the real star of the show.

BrainChip Holdings Ltd (ASX: BRN)

Finally, the MVP of ASX All Ords tech shares at the end of the quarter is none other than BrainChip Holdings. Despite falling from a new all-time high set in January of $1.76, the artificial intelligence chip developer posted a quarterly gain of 41.9%.

It was a fast-paced period for BrainChip, notching up an extra couple of patents and gaining Depository Trust Company approval. However, the company’s widening losses of $19.5 million for FY21 took some of the gusto out of its sails.

The post Let’s get technical! 5 best All Ords tech shares of the quarter revealed appeared first on The Motley Fool Australia.

More reading

• These were the best and worst performing ASX sectors in March
• These were the best performing ASX 200 shares in March
• This ASX 200 tech share has inked 3 all-time highs this week
• 3 ASX All Ordinaries shares smashing 52-week highs on Wednesday
• 3 ASX 200 shares smashing multi-year highs on Tuesday

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. owns and has recommended Hansen Technologies. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

The cryptocurrency market had a bad start to the day Wednesday and values dropped across the board. A broad sell-off caught almost every cryptocurrency and volatility continues to be normal for the industry. 

As of 12:05 p.m. ET, the value of Solana (CRYPTO: SOL) was down 10.5% over the last 24 hours, Polkadot (CRYPTO: DOT) had fallen 8.9%, and Cardano (CRYPTO: ADA) had fallen 7.6%. 

So what 

The stock market is down sharply today and growth stocks are tumbling as well. Cryptocurrencies have been correlated with growth stocks for most of the last year and so when there’s a big sell-off it’s not surprising to see cryptocurrencies drop. 

One of the reasons the stock market is down is because interest rates are rising. In the U.S., the 10-year Treasury rate is up 5 basis points today to 2.59% and rates in developing countries are up even more. Brazil’s 10-year rate was up 18 basis points to 11.54% and Mexico was up 6 basis points to 8.49%. Cryptocurrencies are traded globally, so the increases around the world will cause investors to flee to “safer” assets. 

There’s also news that the Securities and Exchange Commission (SEC) has proposed expanding its definition of an exchange and may require more traders and businesses to register with the agency. The industry has been in regulatory limbo for years and at times there are signs regulations will be light and at other times it seems like burdensome regulations are coming. This news would fall in the latter camp and for now it’s causing cryptocurrencies to lose value overall. I wouldn’t be surprised to see regulation be a cause of volatility throughout the year.

Now what 

There are a lot of macro factors driving cryptocurrencies today but fundamentally I don’t see any major changes to the long-term investment thesis. The disruptive nature of crypto and blockchains still exists and money is flowing into the industry. 

What also hasn’t changed is that cryptocurrencies remain extremely volatile, especially on the interest rate and economic news. With rates on the rise and the economy uncertain for the next year it’s understandable that there’s a pullback in valuations. 

What I will point out about each of these cryptocurrencies is that they’re utility cryptocurrencies that enable developers to build functionality in decentralized finance, non-fungible tokens, and other markets. Long-term, this should be the best place for investors and as development grows the value of cryptocurrencies should rise as well. 

For now, uncertainty has taken hold of the market and that’s what’s causing today’s pullback. But it’s nothing to be concerned about long-term because the crypto industry is maturing and becoming more valuable everyday. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Solana, Polkadot, and Cardano are down big today appeared first on The Motley Fool Australia.

More reading

• Why Solana jumped again today
• Why Solana Stock jumped 10% today
• Why this lesser-known crypto left Bitcoin in the dust this week
• Why Ethereum, Solana, and Dogecoin are surging higher today
• 3 rising cryptos that are up more than 10% over the past week

Travis Hoium owns Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Solana. 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. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Last month was a rough one for most ASX buy now, pay later (BNPL) shares.

While the broader market ended the month in the green – the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index(ASX: XJO) each gained 6.3% in March – nearly all ASX-listed BNPL stocks slipped lower.

In fact, the market’s favourite pureplay BNPL stock, Zip Co Ltd (ASX: Z1P), recorded the biggest tumble of the month.

So, what dragged on some of the sector’s biggest players in March? Let’s take a look.

What drove ASX BNPL shares lower in March?

While ASX BNPL shares might have been hit with talk of inflation and interest rate rises, there were plenty of concrete happenings that weighed many down last month.

Firstly, shares in Zip and Sezzle Inc (ASX: SZL) both entered March fresh from the freezer after the former made a takeover bid for the latter.

The all-scrip deal – quickly accepted by Sezzle’s board – will see investors receiving 0.98 shares in Zip for each Sezzle stock they own.

The Zip share price tumbled 6% on 1 March, while that of Sezzle gained almost 10%.

Zip also underwent a $148.7 million institutional placement to strengthen its balance sheet last month. Finally, it opened a share purchase plan that could raise $50 million.

Additionally, Sezzle made more headlines in March when it announced it would dump 20% of its workforce to save around US$10 million annually.

Over the course of last month, the Zip share price tumbled 32.5% while that of Sezzle fell 24.1%.

Block Inc (ASX: SQ2) was one of the only ASX BNPL shares to record a gain last month. It is, of course, the owner of former market favourite, Afterpay.

The Block share price gained 19.3% in March despite no news being released by the company. However, it was removed from the S&P/ASX 20 Index (ASX: XTL).

Speaking of index movements, shares in Latitude Group Holdings Ltd (ASX: LFS) entered the All Ords last month. Meanwhile, those of Splitit Ltd (ASX: SPT) were booted from the benchmark index.

Novatti Group Ltd (ASX: NOV)’s stock also went through an index shakeup – it was dumped from the S&P/ASX All Technology Index (ASX: XTX).

The share prices of Latitude, Novatti, and Splitit fell 5.7%, 4.1%, and 11.1% respectively last month.

Finally, ASX BNPL shares Humm Group Ltd (ASX: HUM) and IOUPay ltd (ASX: IOU) also slipped lower last month. They fell 2.2% and 5.5% respectively.

The post March was a lousy month for ASX BNPL shares. Here’s why 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Humm 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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