Why is the Nickel Industries share price 5% worse for wear today?

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

The Nickel Industries Ltd (ASX: NIC) share price is currently one of the worst performers within the S&P/ASX 200 Index (ASX: XJO).

At the time of writing, it’s down 5.26% to 90 cents.

So what’s going on?

Well, China is one of the world’s key buyers of commodities, so what happens in the country can have widespread ramifications for resource prices, the Nickel Industries share price, and so on.

According to reporting by Reuters, GDP growth in China has slowed considerably. In the three months to June 2022, GDP growth was reportedly down to just 0.4% year on year, which was lower than the 1% growth expected.

Looking at the quarter-on-quarter number, GDP dropped 2.6%, which was worse than the 1.5% decline predicted.

China’s lockdowns to stop the spread of COVID-19 are being blamed for the fall.

Chinese property market

ASX 200 mining shares are also having a rough time of it today. This comes as Bloomberg reports that Chinese home buyers aren’t making payments on dozens of projects across many cities.

As noted by Commsec, the nickel price has sunk by more than 8%. Many other commodities are also seeing red, including the iron ore price, which has dropped heavily.

As a commodity business, Nickel Industries’ earnings can significantly shift if the nickel price goes higher or lower over time.

Nickel Industries share price snapshot

Since the start of 2022, the Nickel Industries share price has fallen by around 38%.

It is also down by almost 18% over the past 12 months and 14% over the past month.

The post Why is the Nickel Industries share price 5% worse for wear today? appeared first on The Motley Fool Australia.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Nickel Industries Limited isn’t one of them.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFF”, ‘color’, ‘#fff’);
})()

More reading

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 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/bfdUM2O

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s