Month: October 2022

If you’re an income investor, then you might want to read on. Listed below are two ASX dividend shares that have just been rated as buys by experts.

Here’s what they are saying about these top ASX 200 dividend shares:

Deterra Royalties Ltd (ASX: DRR)

The first ASX 200 dividend share to look at is Deterra Royalties.

It operates a royalty business model which involves the management and growth of a portfolio of royalty assets across a range of commodities, primarily focused on bulks, base and battery metals.

This includes the Mining Area C (MAC) iron ore operation which is co-owned with mining giant BHP Group Ltd (ASX: BHP). It is located 120 kilometres north-west of Newman in the Pilbara region of Western Australia on the Traditional lands of the Banjima people. It consists of open-cut mines, three ore handling plants and one train load-out facility.

Goldman Sachs is bullish and has a buy rating and $4.70 price target on its shares.

As for dividends, it is expecting fully franked dividends per share of 31.5 cents in FY 2023 and 26.2 cents in FY 2024. Based on the current Deterra Royalties share price of $4.21, this will mean yields of 7.5% and 6.2%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Another ASX 200 dividend share that has been tipped as a buy is Stockland.

Stockland is a residential and land lease developer and retail, logistics, and office real estate property manager.

Goldman Sachs is a fan of the company. It stated that it believes “the potential headwinds are factored into the share price and see SGP as attractively valued.”

Goldman currently has a buy rating and $4.50 price target on its shares.

In respect to dividends, the broker is forecasting dividends per share of 27.6 cents in FY 2023 and 28.3 cents in FY 2024. Based on the current Stockland share price of $3.30, this will mean yields of 8.4% and 8.6%, respectively.

The post Analysts name 2 ASX 200 dividend shares to buy this month appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in October 2022
• Experts name 2 ASX 200 dividend shares to buy now

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.

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If you are looking to bolster your portfolio with some ASX tech shares, you may want to look at the two listed below that have been tipped as buys by Goldman Sachs.

Here’s what the broker is saying about these ASX tech shares:

Readytech Holdings Ltd (ASX: RDY)

The first ASX tech share that Goldman Sachs has named as a buy is Readytech.

It is a leading provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

Goldman is very positive on the company’s outlook and is forecasting stellar growth in the coming years. So much so, its analysts believe Readytech will deliver on its FY 2026 revenue target of $140 million to $160 million a year earlier than planned in FY 2025. This will be a big jump from FY 2022’s revenue of $78.3 million.

In light of this strong growth potential, Goldman Sachs has put a buy rating and $4.30 price target on its shares.

Xero Limited (ASX: XRO)

Another ASX tech that Goldman Sachs rates as a buy right now is Xero.

It is a cloud-based accounting platform provider to small and medium sized businesses globally.

Thanks to the popularity of its offering, the stickiness of its platform, and its global expansion, Xero has been growing its top line and subscriber numbers at a strong rate for years.

The good news is that Goldman notes that even with 3.3 million subscribers, it is still only scratching at the surface of its globally market opportunity. It is partly because of this “compelling global growth story” that Xero is the broker’s “preferred large cap technology name in ANZ.”

Goldman Sachs currently has a buy rating and $111.00 price target on Xero’s shares.

The post Goldman Sachs names 2 quality ASX tech shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• These 3 ASX shares have halved this year. I’d buy 2 of them: advisor
• The Xero share price just hit a new 52-week low. Is it time to buy?
• Here are 3 top ASX growth shares that analysts rate as buys
• What’s the outlook for ASX 200 tech shares in the second quarter?
• Could ASX 200 shares represent a ‘phenomenal opportunity’ right now?

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 positions in and has recommended Readytech Holdings Ltd and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) coal shares were big winners on the market today.

ASX 200 coal shares Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Ltd (ASX: NHC) were both trading well in the green, up 4.59% and 7.69% respectively at Friday’s close.

Yancoal Australia (ASX: YAL) also finished the week on a high note. The All Ordinaries Index (ASX: XAO) player was trading 5.87% higher at the close of trade.

Let’s examine why ASX coal shares had such a top run on Friday.

Coal price optimism

According to trading economics, the coal price is up 0.24% to US$391.95 a tonne. As a company’s share price movement typically reflects its corresponding commodity’s price movement, this might be one reason for boosted investor sentiment towards ASX coal shares today.

Another could be that Whitehaven and Yancoal shared positive news in their quarterly reports released to the market this week.

Yancoal last night advised it achieved a 211% boost in the average realised coal price year to date.

Yancoal highlighted “record high coal prices” of $364 a tonne in the first nine months of 2022. The company achieved a $481 per tonne average realised coal price in the September quarter.

Commenting on the results, Yancoal CEO David Moult said:

The company will achieve a record financial performance in 2022 and this performance to date has enabled the payment of over A$1.6 billion in dividends in 2022 and debt repayments of US$2.3 billion over the past 12 months.

Whitehaven Coal also delivered good news on the coal price in its quarterly report, released this week.

Whitehaven reported a record average coal price of $581 a tonne in the third quarter, up from $514 a tonne in the last quarter. The average realised coal price has soared 207% from the $189 a tonne Whitehaven fetched in the prior corresponding period.

Whitehaven CEO and managing director Paul Flynn said:

With demand for high quality coal continuing to outstrip global supply, coal prices set another record in the September quarter and continue to be well supported.

Meanwhile, New Hope updated the market yesterday, advising it has received a water licence for stage three development at the New Acland coal mine in Queensland. New Hope said it now had all the primary approvals needed to restart operations at the mine.

New Hope chair Robert Millner described the grant of this licence as a “defining moment for the company”.

Share price snapshot

It’s certainly been a boom period for ASX coal shares this year. Whitehaven shares have exploded 252% in the past 12 months, while New Hope shares have soared 216%. Yancoal shares have leapt 78% in the past year.

In comparison, the ASX 200 has lost almost 10% in the last year.

The post Why did ASX 200 coal shares have such a cracking Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Whitehaven Coal share price smashing it on Friday?
• Why Adairs, Life360, Siteminder, and Whitehaven Coal shares are racing higher
• Hoping to dig into the monster New Hope dividend? Here’s what you need to know
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Monica O’Shea 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.

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The S&P/ASX 200 Index (ASX: XJO) ended the week in the red once more. The index fell 0.8% to 6,676.8 points on Friday. That leaves it 1.21% lower than it finished last week’s trade.

It followed a rough Thursday for New York-listed stocks, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 0.4%, the S&P 500 Index (SP: .INX) dropping 0.8%, and the Nasdaq Composite Index (NASDAQ: .IXIC) slipping 0.6%.

Back home, the S&P/ASX 200 Energy Index (ASX: XEJ) was the only sector to post a notable gain, lifting 2% despite a mixed night for oil prices.

The Brent crude oil price fell less than 0.1% to US$92.38 a barrel while the US Nymex crude oil price rose 0.5% to US$85.98 a barrel.

The S&P/ASX 200 Materials Index (ASX: XJO) traded comparatively flat, slipping 0.3% after a steady night for both gold and iron ore.

But there was plenty of pain to be felt elsewhere. The S&P/ASX 200 Utilities Index (ASX: XUJ) plunged 2.3% while the S&P/ASX 200 Real Estate Index (ASX: XRE) fell 1.8%.

But not all ASX 200 shares suffered amid the market’s downturn. These 10 stocks raced higher to finish the week in the green.

Top 10 ASX 200 shares countdown

The Telix Pharmaceuticals Ltd (ASX: TLX) share price was the index’s top performer on Friday, gaining close to 13%.

There was no news from the biotechnology company today. Though, it did release its quarterly report yesterday.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Telix Pharmaceuticals Ltd (ASX: TLX)	$6.76	12.67%
New Hope Corporation Limited (ASX: NHC)	$7.42	7.69%
Perseus Mining Limited (ASX: PRU)	$1.72	5.85%
Chalice Mining Ltd (ASX: CHN)	$2.06	5.37%
Whitehaven Coal Ltd (ASX: WHC)	$10.49	4.59%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$14.12	3.52%
Core Lithium Ltd (ASX: CXO)	$1.375	3.38%
Mineral Resources Limited (ASX: MIN)	$74.10	3.07%
Champion Iron Ltd (ASX: CIA)	$4.90	2.94%
Woodside Energy Group Ltd (ASX: WDS)	$35.47	2.63%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the Whitehaven Coal share price smashing it on Friday?
• Why Adairs, Life360, Siteminder, and Whitehaven Coal shares are racing higher
• Brokers name 5 ASX lithium shares to buy now
• Is the Core Lithium share price at risk following Tesla’s disappointing earnings?

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 Scott Phillips.

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The Insurance Australia Group Ltd (ASX: IAG) share price tumbled on Friday on news of the company’s annual general meeting (AGM) and the impact of ongoing floods.

IAG CEO and managing director Nick Hawkins told the AGM the insurance company had experienced inflationary pressures and natural disasters as it anticipates higher reinsurance costs. To counter such impacts, it’s increasing some of its premiums.

The IAG share price was 2.16% lower, trading at $4.75 on Friday’s market close.

For context, the S&P/ASX 200 Index (ASX: XJO) was down 0.80% at the close. The S&P/ASX 200 Financials Index (ASX: XFJ) also underperformed on Friday, dumping 1.22%.

Let’s take a closer look at what might be weighing on the IAG share price today.

Inflation and reinsurance costs pressure IAG

The IAG share price is in the red after the company’s management outlined the new financial year 2023 guidance and flagged ongoing weights impacting its bottom line.

As previously announced, IAG expects to post mid-to-high single-digit growth in gross written premium this fiscal year. Its reported insurance margin is tipped to come in at between 14% and 16%.

Today, Hawkins said the company’s upcoming results would benefit from the pre-tax $360 million reduction in the COVID-19 business interruption provision. He also noted its retention rates remained strong.

However, the insurer is once again helping Australians through natural disasters. It comes after IAG’s extreme weather claims doubled in the 2022 financial year.  

Major floods have also hit New South Wales, Victoria, and Tasmania more recently and have yet to ease in some parts.

Meanwhile, the Bureau of Meteorology warns a low-pressure system could bring more heavy rainfall to parts of Victoria, New South Wales, and Tasmania from this afternoon. That has the potential to cause further flooding.

Under the weather

Hawkins said the insurer had received around 2,000 claims from the weather event so far, adding:

Like all businesses and our customers, we continue to experience the inflation which is a key feature of the Australian and New Zealand economies. And we have seen further natural disasters.

In response to these pressures, and in anticipation of higher reinsurance costs, we have been increasing our premiums across home, motor, and our commercial insurance classes.

You will see greater earn-through of that in the second half as policies are renewed.

Hawkins concluded by addressing issues previously facing the company. He said:

Some of the issues we’ve been forced to confront have been challenging for us. We’ve had to re-evaluate how we run and manage our company.

We’re confident those issues are behind us. We’ve fundamentally improved how we manage risk and I’ve set up my leadership team to ensure there is clear accountability going forward.

IAG share price snapshot

Fortunately, today’s tumble hasn’t been enough to send the IAG share price into the longer-term red.

The stock has gained 6% through 2022 so far. Though, it is 6% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 12% year to date and 10% over the last 12 months.

The post Why did the IAG share price get smashed today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why have Medibank shares just been suspended from trading on the ASX?
• Buffett: Why a market crash can be an investor’s best friend
• Yes, buy ASX shares now. Don’t wait like everyone else: expert
• 5 things to watch on the ASX 200 on Friday

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 positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s proving to be a bit of a sad end to the trading week for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Friday. Backing up yesterday’s losses, the ASX 200 has lost another 0.82% so far this session, dragging the index back down to around 6,675 points.

But let’s not let that cast a shadow over the upcoming weekend. So instead, it’s time to take a look at the shares currently topping the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Pilbara Minrals Ltd (ASX: PLS)

Our first share to take stock of today is ASX 200 lithium star Pilbara Minerals. Pilbara has had a noteworthy 12.1 million shares traded so far this Friday. There’s been no news from the company itself that might explain this volume.

However, the Pilbara share price is bucking the mood of the broader markets and has added a healthy 1.6% this session to $5.05 a share. Perhaps some love from ASX brokers is helping here. Either way, this market defiance has probably sparked these kinds of volumes.

South32 Ltd (ASX: S32)

Next up we have ASX 200 mining company South32. So far today, a decent 14.13 million South32 shares have been dug up and sold to a new home. Here we have another ASX share that is enjoying some rare gains this Friday.

At present, the South32 share price has inched up by 0.54% to $3.69 a share. We haven’t had any news out from the company either, save for a routine share buyback notice. This, along with the gains we see, is the likely explanation for this elevated trading volume.

Core Lithium Ltd (ASX: CXO)

Last but certainly not least in terms of volume, we have another ASX 200 lithium stock in Core Lithium. Today’s session has seen a large 22.01 million Core Lithium shares swap hands as it currently stands. Core has posted a notice today of its 2022 annual general meeting.

Perhaps this has gotten investors excited (although it might also be rising on Pilbara’s coattails). Nevertheless, Core Lithium shares have bounced a healthy 2.26% to $1.36 each at the time of writing after a shaky start this morning. That might be the explanation we are looking for in terms of the high volume of shares flying around.

The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

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More reading

• Brokers name 5 ASX lithium shares to buy now
• Why have Medibank shares just been suspended from trading on the ASX?
• Is the Core Lithium share price at risk following Tesla’s disappointing earnings?
• If I’d bought $5,000 of Pilbara Minerals shares at the end of June, here’s how much I could bank right now
• Buffett: Why a market crash can be an investor’s best friend

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 Scott Phillips.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgans, its analysts have retained their add rating on this mining giant’s shares with a trimmed price target of $47.00. This follows the release of a mixed quarterly update from the Big Australian. One positive, though, was that BHP has reaffirmed its production and cost guidance for the full year despite the tough operating environment. Overall, the broker remains positive and continues to rate BHP as one of the best options in the sector. The BHP share price is trading at $38.11 today.

Santos Ltd (ASX: STO)

A note out of Citi reveals that its analysts have retained their buy rating and $10.70 price target on this energy producer’s shares. Citi was pleased with Santos’ performance during the third quarter and notes its strong realised prices. Overall, the record result was ahead of expectations and its strong free cash flow was a major highlight. The Santos share price is fetching $7.61 on Friday.

Transurban Group (ASX: TCL)

Analysts at JP Morgan have upgraded this toll road operator’s shares to an overweight rating with a $15.00 price target. According to the note, the broker has been pleased to see that traffic continues to increase on the company’s roads. This bodes well for its earnings and distributions, particularly given how toll prices are increasing. The Transurban share price is trading at $12.40 this afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Broker names the ASX dividend shares to buy now
• Here are the top 10 ASX 200 shares today
• Here’s what Goldman Sachs is saying about the BHP share price after the miner’s update
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Santos share price lifts following US$1 billion quarter

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.

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The Bitcoin (CRYPTO: BTC) price is trading right about where it was this time yesterday, at US$19,112 (AU$30,463).

The world’s first and top-valued crypto remains down 60% in 2022, and down some 72% from the all-time highs BTC reached on 10 November last year.

With the Bitcoin price down so dramatically so quickly, it’s little wonder that many retail investors have lost their appetite for the digital token and its fellow altcoins.

But, as Justin Arzadon, head of digital assets at Betashares, pointed out to Livewire, institutional investor interest remains relatively robust. And that could bode well for Bitcoin and the wider world of cryptos in the year ahead.

Why institutional investors could spur the Bitcoin price into a new bull run

Citing data from Cointree, Arzadon noted that retail investor sentiment in crypto assets, based largely on the Bitcoin price and “other large cryptocurrencies”, is in the “extreme fear” part of Cointree’s Fear and Greed Index.

But he said the smart money, or institutional funds, aren’t nearly as timid.

“Looking at the price and action of Bitcoin and the rest of the crypto market over the last year, it looks like the institutional money is following Warren Buffett’s advice, ‘Be fearful when others are greedy, and greedy when others are fearful,’” he said.

Stressing there are no assurances in life, let alone when it comes to crypto investors hoping the Bitcoin price will soar to new heights, Arzadon added:

Some of the largest institutional managers in the world are getting involved in, or deeper into, the crypto economy. This makes me believe that they are not only going to be major beneficiaries of the next bull run, but they are also laying down the infrastructure that could help make it happen.

Institutional adoption has arrived

Global asset manager BlackRock is just one of the major firms to enter the crypto space in 2022.

Blackrock announced the launch of its Bitcoin private trust for its institutional clients in early August. That gives ‘the smart money’ direct exposure to the movements in the Bitcoin price.

According to Blackrock:

Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities.

Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients.

So, when might investors expect the next bull run in the Bitcoin price?

“For the next bull run to occur, I have been adamant that three things are needed. Adoption from both institutional and retail segments, regulatory clarity, and real-world use cases,” Arzadon said.

“The use-cases continue to develop, regulations are slowly being put into place and are expected to become clearer in 2023-24, but it is evident that institutional adoption has arrived,” he added.

The post Could the next bull run be coming for the Bitcoin price? appeared first on The Motley Fool Australia.

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More reading

• How has the Bitcoin price responded to the network’s latest hiccup?
• Crypto surges: Is now the time to buy Bitcoin and Ethereum?
• I’ve already made 158% on Bitcoin. Here’s why I keep holding
• Is Google now joining the crypto party following its latest move?
• Why is the Bitcoin price outperforming for Australian crypto investors?

Motley Fool contributor Bernd Struben 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 Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wesfarmers Ltd (ASX: WES) share price is trading in the red today, currently swapping hands at $43.71 apiece.

Zooming out, and Westfamers shares have been on a downward trajectory across the past 12 months.

After testing 52-week highs of approximately $60 per share roughly five to six times in late FY21, the share broke away to the downside, as seen on the chart below.

It has continued on this path since and continues to drift towards the company’s 52-week low of $41.16 on 17 June.

Wesfarmers ready for a comeback?

In order for a reversal in the Wesfarmers share price from the long-term downtrend, there needs to be support from both fundamental factors and valuation.

Wesfarmers currently trades at a price-to-earnings (P/E) ratio of 21.2 times, or 20.5 times on a forward P/E basis.

Both of these are in front of the GICS Consumer Cyclical median scores of 20.7 times and 16.5 times, respectively.

In addition, it is priced at almost 17.5 times cash from operations, and this looks to reduce to 12.2 times by the next 12 months based on consensus data from Refinitiv Eikon.

What this means for the Wesfarmers share price we won’t know for some time. However, there look to be some challenges ahead at the valuation level.

Brokers are constructive on the Wesfarmers share price too, with six analysts rating the share a buy, per Refinitiv. This is coupled with a consensus price target of $49.07, suggesting a small amount of upside from its current market price.

In particular, those at investment house Morgans reckon Wesfarmers is set to deliver strong upside growth over the next year or so.

“Wesfarmers possesses the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks,” it said in a recent note.

“The company is run by a highly regarded management team and the balance sheet is healthy.”

Those at Morgans also reckon there is good reason to enter or size up a position on this volatility.

“We see the pullback in the share price as a good entry point for longer-term investors,” it added.

Alas, whether the company is a buy or not remains to be seen. However, time will certainly tell.

In the meantime, the Wesfarmers share price is down 21% in the past year and 26% this year to date.

The post Is the Wesfarmers share price due to make a comeback in FY23? appeared first on The Motley Fool Australia.

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More reading

• Wesfarmers shares could be one of the best options on the ASX 200: Morgans
• These ASX 200 dividend shares have been named as buys by analysts
• Top ASX dividend shares to buy in October 2022
• Is the Wesfarmers share price in the buy zone ahead of this month’s AGM?
• Down 9% in a month, is the Wesfarmers share price a bargain buy for dividends?

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 positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AMP Ltd (ASX: AMP) share price might be giving the company’s latest update a lukewarm reception, but it’s still better than what it could be.

In afternoon trade, shares in the wealth management business are swapping hands for $1.165 — roughly flat with yesterday’s closing price. However, the AMP share price did sneak a little higher, reaching $1.175, earlier in the day.

The paltry performance possibly isn’t worth writing home about. Though, it’s a darn sight better than the 0.48% fall put on by the S&P/ASX 200 Index (ASX: XJO) today.

Let’s unpack the announcement helping AMP shares outperform on Friday.

What’s helping the AMP share price today?

While most ASX financial shares are getting the boot today, the AMP share price is catching a bid from investors.

It appears the market is content with the figures posted by AMP in its third-quarter assets under management (AUM) and cash flows update.

According to the release, AMP experienced positive inflows and growth across much of its operations. For example, the company’s banking division — AMP Bank — recorded growth of 1.4 times above system. In turn, the bank’s loan book increased by $0.6 billion to $23.3 billion despite market headwinds.

Furthermore, the company’s financial platform offerings — categorised under the ‘Platforms’ division — witnessed net cash inflows of $363 million during the quarter. Notably, the ‘North’ platform captured $483 million in inflows from independent financial advisers — increasing by 45% from the prior corresponding period.

Another improvement was the reduction in net cash outflows from the Australian Wealth Management (AWM) segment. Specifically, net outflows were reduced to $0.8 billion from $1.9 billion in the prior corresponding period.

However, not all third-quarter numbers were as rosy. For example, assets under management through AWM tumbled to $121.4 billion, down from $125.1 billion. Nonetheless, it looks like investors aren’t too worried about the decrease considering the AMP share price gain.

What did management say?

AMP chief executive, Alexis George, provided her commentary on the Q3 numbers, stating:

We have made strong progress in the third quarter, which is reflected in the cashflows we’ve announced today. While challenging investment markets continued to have an impact on assets under management, we have seen a significant improvement in our cashflows as more customers choose to join or stay with AMP.

Additionally, George dished out some points on what AMP is up to so far in the fourth quarter:

In the fourth quarter, we have already launched our digital mortgage and unique-to -market retirement offer. These are important strategic deliverables that will support AMP’s longer-term growth and deliver on our purpose to help people create their tomorrow

The AMP share price is up 16.5% so far in 2022. For reference, this exceeds the performance of all of the big four banks.

The post Why is the AMP share price beating the ASX 200 today? appeared first on The Motley Fool Australia.

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More reading

• This is what will get ASX shares rising again early 2023: economist
• Is the company’s buyback helping boost the AMP share price?
• ASX investors, STOP reading economic forecasts: economist
• Under pressure: 3 reasons to be bullish on ASX shares
• Why is AMP doing a share buyback but not paying dividends?

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 Scott Phillips.

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