The Fortescue Metals Group Limited (ASX: FMG) share price increased almost 3% today amid news out of China.

Fortescue shares closed at $21.40 apiece on Tuesday, up 2.84%. That was well above the S&P/ASX 200 Index‘s (ASX: XJO) gain of 0.47%.

As one of the world’s biggest iron ore miners, sentiment about the company is susceptible to changes in the iron ore price. In turn, this can be impacted by changes in the relationship between supply and demand, or even the perceived future changes.

China is the key buyer of iron ore globally, so anything happening within the borders of the Asian superpower can have a large impact on the Fortescue share price.

What’s happening in China?

According to reporting by the Australian Financial Review, China is focusing more stringently on environmental impacts and regulations once again.

The AFR reported that China’s leading lithium production hub, known as Yichun, was ordered to “halt output” as investigators probed alleged environmental infringements at lithium mines, according to Bloomberg. This accounts for between 8% to 13% of global lithium supply.

The newspaper also reported that iron prices dropped after Chinese authorities ordered steel output to be reduced at the Tangshan production hub with forecasts of “heavy air pollution”. Lower production of steel could mean that iron ore demand falls.

Is this going to happen more regularly?

Senior commodity strategist at ANZ Group Holdings Ltd (ASX: ANZ) Daniel Hynes was quoted by the AFR:

Traders in the lithium market are becoming increasingly concerned about a supply shock.

It does appear that Beijing is re-focusing on environmental issues again following a period of weak industrial activity due to COVID lockdowns. With China’s reopening now ramping up, though, these crackdowns are likely to become more common.

The iron ore price dropped 3% overnight to US$122 per tonne.

Why is the Fortescue share price rising?

Sometimes the market movements of shares don’t quite make sense.

Keep in mind that the 3% rise in the Fortescue share price today follows the 7% fall on Monday after the company went ex-dividend. Going ex-dividend means new investors are no longer entitled to the announced dividend.

The Fortescue dividend that’s going to be paid to shareholders is 75 cents per share. That payment is due on 29 March 2023.

So, over the two days, the Fortescue share price has dropped 4.6%.

Also, it’s worth keeping in mind that Fortescue is investing billions of dollars into decarbonising its business. That could mean that its ‘green’ iron is more likely to tick the box for Chinese authorities and may end up being worth more of a premium than if it wasn’t ‘green’.

The post Fortescue share price rebounds on possible China supply restrictions appeared first on The Motley Fool Australia.

(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

• Why Appen, Downer, Fortescue, and Invocare shares are crashing today
• Why is the Fortescue share price sinking 8% today?
• Why are ASX 200 mining shares ending the week in the red?
• 7 ASX 200 shares with ex-dividend dates next week
• Hoping to bag the next Fortescue dividend? You’d better hurry

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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/XM5Rw4z

The Lynas Rare Earths Ltd (ASX: LYC) share price is hurting as the ASX mining share goes through another dip.

It has been a volatile last 12 months for the business, with the share price going through a series of bumps. We’re currently sitting at a low point for one of those bumps.

With the volatility of updates, investment sentiment and resource prices, it’s understandable why the Lynas share price is moving about so much.

After the latest decrease, it’s worth considering whether the ASX mining share is a buy or not.

Expert views on the Lynas share price

According to reporting by The Australian, some of the leading brokers in Australia have had their say on whether the rare earth miner is a buy or not.

JPMorgan has decided to increase its rating on the business to neutral. JPMorgan’s price target on the business is $8.60 – a price target implies where the broker believes the share price could be trading in 12 months from the date that the target is issued.

This means that JPMorgan is suggesting that the Lynas share price could increase by around 6%.

The broker UBS is less positive on Lynas than it used to be, with a cut of the rating to neutral. The price target was reduced, to $9. So, it still sees a decent upside for the Lynas share price from here – a possible rise of 11%.

Is this a good time to buy?

Unless my crystal ball starts working, it’s hard to know what the Lynas share price is going to do next.

Lynas seems to be doing what it needs to do to achieve growth in its operations, even if it can’t control the price of rare earths.

In the FY23 half-year result, it reported that revenue rose 17.5% to $370 million, but net profit after tax (NPAT) fell 4.3% to $150.1 million. A key part of the decline came about after a rise of almost 32% of cost of sales.

Lynas suffered from “significant” production challenges due to water supply issues in the first quarter and the start of the second quarter as well as “rapid increases in costs, particularly for chemical inputs.”

The ASX rare earth miner said that construction activity on the Kalgoorlie rare earths processing facility accelerated, with recruitment of the operational leadership team now complete.

Lynas said the Kalgoorlie facility is important for business continuity as well as growth. The company said:

Its importance is highlighted following the announcement of the renewal of the Lynas Malaysia operating licence with conditions prohibiting the import and processing of lanthanide concentrate from 1 July 2023. If not removed, these conditions would require the closure of the Malaysian cracking and leaching plant. Due to the inherent unpredictability of commissioning, Lynas continues to plan for several potential ramp up scenarios.

The company also said that the Mt Weld expansion project is “progressing well”, while it continues to make progress on the development of a US rare earths separation facility.

If I were looking to buy a piece of the miner, I think this is a good Lynas share price to do it at. I like its plans to grow, and it seems to be a strategically important business for the US to diversify the country’s source of supply of rare earths.

The post Are Lynas shares a buy following Monday’s 6% dive? appeared first on The Motley Fool Australia.

(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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Lynas share price slips as costs jump 32%
• 4 ASX 200 mining shares to buy for takeover potential: expert
• Investing in Lynas shares? Here’s why Malaysia may reconsider its licence restrictions
• Here are the best ASX shares to buy for the coming decade: Firetrail
• 3 ASX 200 shares Firetrail Small Companies fund is overweight in right now

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/SwAhL4C

The S&P/ASX 200 Index (ASX: XJO) regained some of its Monday losses today, closing 0.47% higher at 7,258.4 points.

Leading the charge were energy stocks, with the S&P/ASX 200 Energy Index (ASX: XEJ) gaining 1.5% with the Woodside Energy Group Ltd (ASX: WDS) coming in as its best performer.

The energy giant posted its full-year earnings – detailing a US$5 billion profit – yesterday.

The S&P/ASX 200 Materials Index (ASX: XMJ) also posted a strong session’s trading, gaining 1.5% following yesterday’s 3.15% tumble.

On the other hand, the S&P/ASX 200 Utilities Index (ASX: XUJ) slumped 1.3% on Tuesday, weighed down by the 1.7% fall in the Origin Energy Ltd (ASX: ORG) share price.

So, with all that in mind, which ASX 200 share outperformed all others to post today’s biggest gain? Let’s take a look.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 stock was De Grey Mining Limited (ASX: DEG). It gained 7.7% to close at $1.395 amid a positive note from a top broker.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
De Grey Mining Limited (ASX: DEG)	$1.395	7.72%
Lake Resources NL (ASX: LKE)	$0.625	6.84%
Telix Pharmaceuticals Ltd (ASX: TLX)	$6.98	6.24%
Gold Road Resources Ltd (ASX: GOR)	$1.47	5.76%
West African Resources Ltd (ASX: WAF)	$0.925	5.71%
Chalice Mining Ltd (ASX: CHN)	$6.36	5.47%
Regis Resources Ltd (ASX: RRL)	$1.74	5.14%
Capricorn Metals Ltd (ASX: CMM)	$3.79	4.99%
Downer EDI Ltd (ASX: DOW)	$3.16	4.64%
Link Administration Holdings Ltd (ASX: LNK)	$2.29	4.57%

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 ten ASX 200 shares today appeared first on The Motley Fool Australia.

(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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why De Grey, Kogan, Mayne Pharma, and Mesoblast shares are charging higher
• 3 ASX 200 shares making big moves on earnings announcements
• Why did the CSL share price outperform the ASX 200 in February?
• 5 things to watch on the ASX 200 on Tuesday

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 Link Administration. 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/7tboRPV

With a new month upon us, what better time to look at your portfolio and see if there’s room for a new addition or two.

If you’re a fan of exchange traded funds (ETFs), then listed below are three that could be worth getting better acquainted with.

Here’s what you need to know about these ETFs:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. As its name suggests, this ETF provides investors with exposure to the leaders in the growing global cybersecurity sector. Among the companies you’ll be buying a slice of are cybersecurity giants Accenture, Crowdstrike, Okta, and Palo Alto Networks. These companies appear well-positioned for growth over the coming decade thanks to increasing demand for cybersecurity services as more infrastructure shifts to the cloud and cyber attacks increase.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF could be another ETF for investors to consider in March. This very popular ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world such as Amazon, Alphabet, Apple, Facebook, Microsoft, Netflix, Nvidia, and Tesla. And with the ETF down 14% from its 52-week high, this could make it an opportune time to invest with a long term view.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third and final ETF for ASX investors to look at in March is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to a portfolio of the largest companies involved in video game development, hardware, and eSports. Among the tech companies that you’ll be owning a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. These companies all look well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 ETFs for smart ASX investors in March appeared first on The Motley Fool Australia.

(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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why I’m not investing in ASX index ETFs (yet)
• 2 ASX ETFs I’d buy as a beginner investor
• 2 ASX ETFs I’d buy for my child for the long term
• Buy these ETFs for passive income and growth
• 3 top tech ETFs for ASX investors to buy right now

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Vectors Video Gaming And eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/1nubtP6