Month: May 2022

The Group 6 Metals Ltd (ASX: G6M) share price has soared in the past month.

Group 6 Metals shares have gained 24% since market close on 26 April to close at 25 cents apiece on Tuesday. In contrast, the S&P/ASX 200 Index (ASX: XJO) has fallen about 2% over the same time frame.

Let’s take a look at what has impacted the Group 6 Metals share price.

Tungsten explorer

Group 6 Metals shares had a major boost between market close on 9 May and 17 May. The company’s shares surged 50% to a peak of 27 cents before pulling back slightly.

Investors appeared to buy up Group 6 shares following the company’s appearance on the ABC’s flagship ‘Four Corners’ program.

The company is redeveloping the Dolphin Tungsten Mine on King Island, Tasmania. Tungsten is a critical rare metal that can be used in lithium-ion batteries for Electric Vehicles (EV). Electric vehicle sales doubled in 2021 from the previous year to 6.6 million units, an International Energy Agency report released yesterday states.

In an interview with the ABC, aired on 9 May, Group 6 Metals chairman Johann Jacobs revealed the company has fielded interest from the United States. The US government has reportedly approached the Australian company in the face of China’s dominance of the tungsten market. Asked how often he had met with the US Embassy, Jacobs said:

Probably three over the last 12 months, and those discussions are continuing.

At this stage, they don’t have any financial interest, but they certainly are very keen to see us progress and develop the mine because it’s another supply chain…from a friendly nation. 

Construction at the Dolphin Tungsten Mine started in late January, with first concentrate sales earmarked for early 2023.

On 11 May, Group 6 addressed activity in its shares following the company’s appearance in the media. In a statement approved by the board, Group 6 Metals noted the recent share price rises.

Following the broadcast of the program, there was a notable increase in the Company’s share price and volume of shares traded on the market.

…the company reiterates its indicative timeline to achieving plant commissioning in early 2023 ahead of first shipment of tungsten concentrate in Q1 2023.

Share price snapshot

The Group 6 Metals share price has rocketed more than 74% year to date while it has climbed around 5% in the past year.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned more than 1% in the past year.

Group 6 Metals has a market capitalisation of about $159 million based on today’s share price.

The post Why has the Group 6 Metals share price surged 24% in a month? appeared first on The Motley Fool Australia.

More reading

• Battery-powered! 3 ASX mining shares up more than 50% in 2022
• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)
• This ASX battery metals share rocketed 20% today. What’s going on?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/GFpaS4v

A record-breaking $97.9 billion of dividends made their way to those invested in ASX shares over the 12 months ended 31 March.

That’s 5.3% more than the market’s previous ASX 12-month record, according to research by Janus Henderson Group (ASX: JHG).

Perhaps unsurprisingly, of the top 20 ASX dividend payers of the period, 19 are S&P/ASX 200 Index (ASX: XJO) constituents. Additionally, mining shares are overrepresented when it comes to ASX dividend payouts.

Here are the stocks proven to be Australia’s biggest dividend payers.

Here are the ASX’s top dividend-paying shares

ASX shareholders, rejoice! Australia is one of the few nations to see dividend payments surpass pre-COVID-19 levels.

The global reopening and sky-high commodity prices boosted ASX dividends over the 12 months ended March. In fact, mining companies accounted for $1 in every $2 of dividends handed to investors over that period.

BHP Group Ltd (ASX: BHP) has come in as the biggest dividend payer – handing shareholders $10.8 billion of dividends in the first quarter of 2022 alone.

Fortescue Metals Group Limited (ASX: FMG) came in second despite dropping its interim dividend by 42% in February.

Luckily that drop was partially made up by a higher payout from Rio Tinto Limited (ASX: RIO).

Outside of the S&P/ASX 200 Materials Index (ASX: XMJ), the Commonwealth Bank of Australia (ASX: CBA) dividend led the pack. It was lifted by 17% in February.

CBA’s big bank peers Westpac Banking Corp (ASX: WBC), National Bank of Australia Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) followed. Others included:

• Wesfarmers Ltd (ASX: WES)
• Telstra Corporation Ltd (ASX: TLS)
• CSL Limited (ASX: CSL)
• Macquarie Group Ltd (ASX: MQG).
• Woolworths Group Ltd (ASX: WOW)
• Coles Group Ltd (ASX: COL)
• Transurban Group (ASX: TCL)
• James Hardie Industries (ASX: JHX)
• Goodman Group (ASX: GMG)
• Aristocrat Leisure Limited (ASX: ALL)
• Newcrest Mining Ltd (ASX: NCM) and
• Woodside Energy Group Ltd (ASX: WPL)

New Zealand’s Meridian Energy Ltd (ASX: MEZ) was the only non-ASX 200 share to make the list. It rounded out the top 20 dividend shares of the 12 months ended March.

The post ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers? appeared first on The Motley Fool Australia.

More reading

• Own ASX 200 energy shares? Here’s the ‘key risk to watch’ post election
• Overexposed: What every Australian dividend investor needs to know
• 3 reasons this broker thinks the NAB share price is great value
• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Could ASX shares pay out $100b in dividends this year? Expert weighs in

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 positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hQf2pEk

The Sayona Mining Ltd (ASX: SYA) share price has come under pressure for a second day in a row.

In afternoon trade, the lithium explorer’s shares sank a further 15% to 20 cents.

When Sayona Mining’s shares hit that level, it meant they were down 28% this week.

Why are investors saying sayonara to Sayona Mining shares?

The catalyst for the weakness in the Sayona Mining share price has been the release of an update on the company’s North American Lithium (NAL) operation in Québec, Canada.

According to the release, the pre‐feasibility study (PFS) found that the operation has a pre‐tax net present value (NPV) of approximately A$1 billion.

This was much lower than many were expecting. And given that Sayona Mining only owns 75% of the operation, with Piedmont Lithium Inc (ASX: PLL) owning the balance, its share of the operation is worth $750 million pre-tax.

Furthermore, on a post-tax basis, the operation is valued at A$844 million, with Sayona Mining’s share worth $633 million.

But it is worth remembering that this is based on a long run lithium spodumene price of US$1,242 per tonne and cash costs per tonne of US$590.

As I have mentioned previously here, Goldman Sachs recently forecast a long run average of US$800 per tonne of lithium spodumene concentrate. This is almost 36% lower than what Sayona Mining has used for its PFS.

And while predicting commodity prices is incredibly difficult, not least for lithium, if Goldman’s forecasts are accurate it paints a very different picture of this operation.

Time will tell, but judging by the Sayona Mining share price performance this week, some investors aren’t willing to wait and find out what happens with this or its other projects.

The post Why investors are saying sayonara to Sayona Mining shares this week appeared first on The Motley Fool Australia.

More reading

• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling
• Why Incitec Pivot, Openpay, PolyNovo, and Sayona Mining shares are sinking
• Why is the Sayona Mining share price crashing 21% today?
• Here’s why the Sayona share price is up 10% today
• Lighting up the market: ASX lithium stocks surge again on Tuesday

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/ThGYpeZ

S&P/ASX 200 Index (ASX: XJO) energy shares finished ahead of the benchmark index today, the second day of trading since Anthony Albanese and the Labor party took the reins in Canberra.

The ASX 200 closed down 0.28%, while the Woodside Petroleum Ltd (ASX: WPL) share price was up 0.28%.

Meanwhile, Whitehaven Coal Ltd (ASX: WHC) shares were up 0.97%, the Beach Energy Ltd (ASX: BPT) share price finished 0.93% higher, while Santos Ltd (ASX: STO) shares were down 0.12%.

For the moment, it appears, ASX 200 energy shares aren’t feeling the heat from this weekend’s election results.

But risks to the Aussie fossil fuel energy sector remain.

A key risk for ASX 200 energy shares

Perhaps the biggest potential headwind on the horizon for the big oil, gas, and coal producers is that Labor might not win the majority.

With the final count in a few core seats still ongoing, Labor may need to negotiate with the Greens and teal independents. With far more stringent emissions reduction goals than either the Coalition or Labor, this could hamper the growth outlook for ASX 200 energy shares.

According to Goldman Sachs economist Andrew Boak (quoted by the Australian Financial Review):

[A] key risk to watch is whether increasingly influential Green and climate-focused independents eventually push the ALP towards more ambitious targets on emission reductions.

Morgan Stanley analysts added: “On the face of things, Labor climate policies were more specific in targeting decarbonisation goals in tighter time frames versus the Coalition.”

Why Labor is unlikely to pull the emissions trigger yet

As reported by The Australian, Credit Suisse analyst Saul Kavonic cautioned that numerous other national governments aren’t imposing strict emissions reduction targets, opening the door to more fossil fuel production heading offshore.

That means ASX 200 energy shares “could be left less competitive if forced to decarbonise while global competitors in places like the Middle East and Russia are not subject to similar pressures”.

Kavonic added that Russia’s invasion of Ukraine and the resulting global energy crisis could delay any moves to ramp up emissions reduction targets Down Under.

“Australia’s role to assist global allies and trading partners with democracy gas in wake of the Ukraine crisis could also temper any stricter approach to project approvals,” he said.

Kavonic’s views look to be supported by Madeleine King, who’s been flagged to be Australia’s new resources minister under the Labor government.

According to King:

The government will not rule out or shut down export industries and the jobs and investment that come with them. All that would do is send resources jobs to other countries with lower standards. It is vital that high quality environmental standards are upheld.

ASX 200 energy shares CEOs speak out

Commenting on Labor’s election win, Whitehaven Coal chief executive Paul Flynn said (quoted by the AFR):

Given the new government’s concerns around budget repair, we see our booming export industries playing a major role in paying down Australia’s burgeoning debt so we can more responsibly rise to meet the challenges we face as a nation.

It’s “essential the government supports the competitiveness of our export industries, including our more emissions-intensive sectors”, he said, adding:

This is why we have called for further detail around proposed changes to the Safeguard Mechanism, and we look forward to consulting with Labor ahead of any further policy design and implementation.

The Safeguard Mechanism, if you’re not familiar, sets an emissions baseline above which big emitters, like ASX 200 energy shares, are not meant to tread.

A spokeswoman for Woodside sounded a diplomatic note, saying: “Woodside congratulates the incoming senators and looks forward to working with all of them to achieve outcomes that are in the national interest.”

The ASX 200 energy share has already received the green light from state and federal regulators to proceed with its US$12 billion Scarborough LNG project in Western Australia.

The post Own ASX 200 energy shares? Here’s the ‘key risk to watch’ post election appeared first on The Motley Fool Australia.

More reading

• What’s boosting the Woodside share price on Tuesday?
• Keen to bag the special BHP dividend? Here’s what you need to do
• 5 things to watch on the ASX 200 on Tuesday
• What might a Labor government mean for ASX energy shares?
• Why is the Santos share price leaping higher on Monday?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/orC8HEt

It’s safe to say that the pandemic had a significant impact on dividend investors around the world. Many ASX companies cut or completely suspended their payments during the pandemic, leaving shareholders with little to no income.

However, following a broad economic reopening, dividends are flowing back in record numbers. According to the latest Janus Henderson Global Dividend Index report, dividends for the 12 months ending March 2022 have reset record highs in Australia — reaching $97.9 billion in payments.

This is great news for dividend investors! Yet there is one key piece of information that every investor should be aware of…

A major risk to Aussie dividend investors

The good news for Australian dividend shares is there has been an incredible bounce back in the total value of payments made to shareholders. This phenomenon has played out at a global level in the last 12 months with dividends rising a further 11% in the first quarter of 2022 to a new record of $302.5 billion.

Notably, Australia joins a select group of seven countries that have now surpassed their pre-pandemic dividend levels. For reference, the $97.9 billion of profits paid to shareholders represented a bonkers increase of 82% from the prior year.

Without a doubt, this is all great news for income investors. But it also comes with an important consideration… sector concentration risk.

Based on Janus Henderson’s findings, around 94% of the recovery in Australian dividends is attributable to banking and mining. Furthermore, the two sectors constituted roughly 81% of the total sum of profits paid out over the 12-month period.

Possibly more concerning is the fact that BHP Group Ltd (ASX: BHP) made up 32% of the total $97.9 billion handed out to Aussie investors. This meant the diversified mining giant claimed the title of the world’s biggest dividend payer.

Janus Henderson highlighted the high reliance on a small number of ASX companies, stating:

Australia’s high level of dividend concentration leaves domestic investors far more heavily dependent on just a handful of companies for a very large portion of their dividend income than in any comparable country. What’s more, all the top five are in either mining or banking sectors.

Providing some caution, the asset manager mentioned this concentration puts domestic Australian investors at risk of dividend reductions related to company-specific incidents.

Shopping outside the miners and banks

While banks and mining companies featured prominently in the top 20 dividend shares, there were a few options for investors outside of these sectors. For example, other noteworthy ASX shares included:

• Wesfarmers Ltd (ASX: WES)
• Telstra Corporation Ltd (ASX: TLS)
• Woolworths Group Ltd (ASX: WOW)
• CSL Limited (ASX: CSL)
• Coles Group Ltd (ASX: COL); and
• Transurban Group (ASX: TCL)

Though these other ASX shares do not offer the same level of returns as their banks and mining counterparts.

The post Overexposed: What every Australian dividend investor needs to know appeared first on The Motley Fool Australia.

More reading

• Could ASX shares pay out $100b in dividends this year? Expert weighs in
• Looking for the world’s biggest dividend? You’ll find it right here on the ASX 200
• Better buy, BHP or Fortescue shares?
• Keen to bag the special BHP dividend? Here’s what you need to do
• Why is the Woodside share price having such a strong start to the week?

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 positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3fy6CWp

The S&P/All Ordinaries Index(ASX: XAO) is trading down on Tuesday, currently 5 basis points in the red at 7,394.

The All Ordinaries has crept down in recent weeks, having fallen from a high of 7,887 on 21 April and cooling off to its current level.

Meanwhile, these 3 shares have spiked past their multi-year highs in Tuesday’s session.

Yancoal Australia Ltd (ASX: YAL)

Shares of Yancoal have surged 130% higher in 2022 amid a bullish run for the price of coal.

The price of coal has surged another 27% in the past month of trade and has now eclipsed a 296% gain over the last 12 months.

This price action has inflected positively for Yancoal, seeing its share price cruise past its highest mark since 2018.

At the time of writing, Yancoal shares are fetching $6 apiece, meaning very patient investors have now been rewarded with a 200% gain in the last 12 months.

New Hope Corporation Ltd (ASX: NHC)

Shares of New Hope have charged more than 3% higher on Tuesday and now rest at $4.09 apiece.

The $3 billion company by market cap has seen its share price rally on the back of the coal price’s hefty run as well.

Not only that, but New Hope’s exposure to other energy resources such as oil and gas have helped lock in a 83% gain this year to date.

Each of natural gas and Brent Crude oil have surged 130% and 64% in the last 12 months respectively.

Given that New Hope is a price taker on these commodities the market appears to have looked favourably on the miner amid this commodity boom.

Much of the upside in these segments has stemmed from the conflict in Europe, sending concerns of a supply shock throughout global markets.

After its gain today New Hope now trades at its highest level in around 3 years.

Worley Ltd (ASX: WOR)

Shares of Worley nudged past their highest mark since 2020 in early trade today, eclipsing the $14.96 mark just after the open.

They have since trended down across the day and now rest at $14.74.

Curiously, news of a strategic partnership with Avantium Renewable Polymers progressing to the next phase received a muted reaction from the market on 18 May.

Nevertheless, Worley had already clipped a 39% total return from the 12 months to that point anyway.

At the time of writing, it had risen 38% this year to date as well.

The post 3 ASX All Ordinaries shares smashing multi-year highs on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why are ASX coal shares charging higher again today?
• 3 ASX 200 shares smashing multiyear highs on Wednesday
• Here are the best performing dividend shares in the ASX All Ords so far in 2022
• 3 ASX All Ordinaries shares hitting multi-year highs on Monday
• Why are these ASX coal shares having a top run 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/5hNxOTm

The National Australia Bank Ltd (ASX: NAB) share price has been a positive performer on Tuesday.

In afternoon trade, the banking giant’s shares are up 1.5% to $31.20.

Why is the NAB share price rising?

There appear to have been a couple of catalysts for the rise in the NAB share price today.

One is the release of a strong update from US bank JP Morgan overnight on Wall Street. The other is a bullish broker note out of Goldman Sachs this morning.

In respect to the latter, the broker has retained its conviction buy rating and $34.17 price target on the bank’s shares.

Based on the current NAB share price, this implies potential upside of 9.5% for investors over the next 12 months. This increases to approximately 14.5% if you include the $1.51 per share fully franked dividend the broker is forecasting in FY 2022.

What did the broker say?

After looking through recent updates in the sector, Goldman believes that bank margins may have found a bottom now. However, it suspects that volumes will start to slow, which means that cost cutting will become particularly important.

We think NIMs troughed in 1H21 and should start rising in 2H22E, supported by higher rates and the mix impact of less lower margin fixed rate mortgages. On volumes, we expect both system housing and business loan growth to experience a slowdown but overall remain elevated relative to pre-covid levels. We continue to see costs as a key determinant of relative sector performance particularly in light of inflationary pressures and higher investment spend.

In light of this, the broker believes NAB shares are the ones to buy in the sector right now.

We reiterate our Buy (on CL) on NAB and it remains our preferred sector exposure given: i) NAB’s balance sheet mix provides the best exposure to the domestic system growth we foresee over the next 12-18 months, which should favour commercial over mortgage lending, ii) NAB’s franchise is performing strongly, growing at or above system growth in most segments, iii) NAB’s disclosure on NIM leverage to higher rates is even more optimistic than we previously estimated.

The post 3 reasons this broker thinks the NAB share price is great value appeared first on The Motley Fool Australia.

More reading

• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Has the NAB dividend been growing?
• 3 cheap ASX shares set to boom with higher interest rates: Wilsons
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?
• Why I think NAB shares could be the smartest big four ASX bank 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. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/VzsJEf3

The Chalice Mining Ltd (ASX: CHN) share price remains in a trading halt this afternoon. This is despite the company providing an update in regards to its latest capital raising efforts.

At the time of writing, the mineral exploration company’s shares are frozen at $6.67.

Chalice launches institutional placement

The Chalice share price was halted this morning while the company prepared to make an announcement. In a statement to the ASX this afternoon, Chalice advised it is conducting a non-underwritten $100 million institutional placement.

The offer will see approximately 16.7 million new ordinary shares issued at a price of $6 apiece. This represents a 10% discount to the last closing price on 23 May.

The new shares to be issued under the placement account for roughly 4.7% of the company’s existing registry (355 million shares).

Chalice noted that it reserves the right to accept placement oversubscriptions within its capacity pursuant to ASX Listing Rule 7.1.

The proceeds received will be used to fund the company’s exploration activities over the next 18 months at Julimar in Western Australia. This includes advancing the Gonneville pre-feasibility study as well as undertaking reconnaissance exploration at West Yilgarn.

In addition to the $100 million, Chalice will tap into its own existing funds of $49 million to support expansion.

As such, $92 million will be allocated towards Julimar and $16 million to West Yilgarn.

Furthermore, $10 million is being set aside for corporate and $31 million for working capital and offer costs.

The new shares are expected to be allotted and issued on 30 May.

About the Chalice share price

Over the last 12 months, the Chalice share price has dropped 14%. It is also down 30% this year to date.

The company’s share price reached a 52-week low of $5.17 earlier this month before rebounding higher.

On valuation metrics, Chalice commands a market capitalisation of roughly $2.37 billion, with 355.02 million shares on issue.

The post Chalice share price remains frozen despite capital raise update appeared first on The Motley Fool Australia.

More reading

• Why is the Chalice Mining share price on ice today?
• These were the best performing ASX 200 shares last week
• 3 ASX mining shares that went gangbusters on Friday
• Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher
• Here’s why the Chalice Mining share price is jumping 15% today

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/Fh0Noe7

Well, the S&P/ASX 200 Index (ASX: XJO) is having a topsy-turvy kind of day so far this Tuesday. After initially opening into green territory this morning, the ASX 200 has whipsawed around, and is currently pretty flat, having lost just 0.03% for the day as it currently stands.

But one ASX exchange-traded fund (ETF) is faring far worse. That would be the BetaShares Nasdaq 100 ETF (ASX: NDQ).

Even though the ASX 200 hasn’t gone far today, NDQ units are presently down a nasty 0.93% at $26.72. So what’s going on with this ASX ETF?

Why is the BetaShares NDQ ETF struggling today?

Well, to answer that, let’s go through what this ETF actually invests in. NDQ is an index fund. But one that only covers the US NASDAQ-100 (INDEXNASDAQ: NDX) Index. The Nasdaq 100 is a US-only index that houses most of the US’ big tech shares. You’ll find famous names like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) on this index. Some other notable Nasdaq names include Google owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Netflix Inc (NASDAQ: NFLX) and Tesla Inc (NASDAQ: TSLA).

NDQ is an index ETF that mirrors the Nasdaq 100. Thus, the Nasdaq’s largest holdings – Apple, Microsoft and Amazon – are also NDQ’s largest portfolio holdings.

Last night on the US markets, the Nasdaq 100 actually rose by 1.68%, as did Apple and Microsoft shares. However, it was a far different story during after-hours trading. Many US tech shares, including the three named above, plunged during after-hours trading. This seemed to be sparked by the social media company and owner of Snapchat, Snap Inc (NYSE: SNAP), giving quite a pessimistic update to its investors, which we discussed in detail today.    

As it currently stands, futures markets are pointing to some significant selloffs for the Nasdaq 100 in this Tuesday’s trading session. So it’s probably for this reason that the BetaShares Nasdaq 100 ETF is struggling on the share market today. 

The post Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is sinking today appeared first on The Motley Fool Australia.

More reading

• Are these 2 sold-off ASX growth shares now cheap bargains?
• 2 high quality ETFs for ASX investors to buy after the market meltdown
• VAS: Were you better off buying the Nasdaq ETF?
• 3 ETFs for ASX investors in May
• 2 ASX shares to consider amid the share market sell-off

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Netflix, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, Netflix, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hkKlyv8

The S&P/ASX 200 Index (ASX: XJO) has failed to follow the lead of Wall Street and is edging lower. In afternoon trade, the benchmark index is down 0.1% to 7,142.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Nufarm Ltd (ASX: NUF)

The Nufarm share price is down 14% to $5.01. The catalyst for this is news that a major shareholder has sold down its position in the agricultural chemicals company. Sumitomo Chemical Company has decided to sell its 15.9% shareholding in Nufarm for an average of $5.38 per share. This was a 7.8% discount to its last close price.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is down a further 12% to 20.7 cents. This lithium explorer’s shares have come under pressure since the release of a disappointing pre‐feasibility study (PFS) for the North American Lithium operation in Canada. That PFS found that the project has a pre‐tax net present value of A$1 billion, which was a lot lower than many were expecting.

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price is down 81% to 99.7 cents. The catalyst for this was the demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX: TLC). This will leave Tabcorp with its wager and media and gaming services businesses. The good news is that the combined market capitalisation of Tabcorp and The Lottery Corporation is more than Tabcorp was valued at yesterday. So, investors are still better off despite this huge decline.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is down 1.5% to $10.23. This follows the release of the enterprise software company’s half-year results. While TechnologyOne reported a 19% increase in revenue to $172.5 million and a 44% jump in SaaS annual recurring revenue (ARR) to $225.1 million, its earnings fell short of expectations. This was driven softer than expected margins.

The post Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Here’s what you need to know about the Tabcorp demerger
• The Lottery Corporation share price debuts on the ASX boards
• Here’s why ASX 200 tech shares are under pressure on Tuesday
• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/VelFGgC