The Lynas Rare Earths Ltd (ASX: LYC) share price has lost a quarter of its value over the past four weeks.

The ASX rare earths share finished the session on Friday at $6.33, up 0.64% for the day.

A month ago it was trading around the $8.50 mark.

So, what’s happened?

Why is the Lynas share price tumbling?

The Lynas share price has reset its 52-week low seven times this month.

The newest low came yesterday when Lynas shares dipped to $6.18 in intraday trading.

Lynas’ fall began in early February when it was trading up around the $9.70 mark.

There has been a series of challenges.

In early February, Lynas’ Malaysian licence was renewed, but with an environmental condition that means Lynas will have to close its cracking and leaching plant at the end of FY23 if it can’t get an exemption.

The company has launched an appeal and time will tell us the outcome.

In late February, Lynas revealed a 32% cost increase in its 1H FY23 results, which of course the market didn’t like. Down the Lynas share price went.

A few days later, electric vehicle (EV) giant Telsa Inc announced it won’t use rare earths in its next-generation electric vehicles.

The market panicked, sending ASX rare earths shares tumbling. The Lynas share price dropped 6.8%.

Many experts said this was an overreaction, but as we all know, that sort of thing is common in markets! Negative sentiment and confusion can easily send share prices south.

What else is going on for Lynas?

The only price-sensitive news out of Lynas this month is actually positive. The company reported a $200 million investment by the Japanese Government on 7 March.

Not much else is going on, although yesterday Lynas did update the ASX on the holdings of its CEO Amanda Lacaze.

The notice revealed that Lacaze exercised some performance rights on Wednesday. This resulted in the acquisition of 147,433 Lynas shares through her family trust.

The post Why is the Lynas share price down 25% in a month? 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

• The Lynas share price has clocked five 52-week lows this month. Broker tips 25% upside
• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• Lynas share price resets 52-week low twice in one week
• Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
• Lynas share price rebounds on $200m Japanese Government investment

Motley Fool contributor Bronwyn Allen 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 Tesla. 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/ShEPC1X

The S&P/ASX 200 Index (ASX: XJO) slipped lower on Friday, falling 0.19% to close at 6,955.2 points. That leaves the index 0.57% lower week on week.

It came on the back of rate hikes in the United Kingdom, Switzerland, and Norway overnight.

 Leading the ASX 200’s downturn on Friday was the S&P/ASX 200 Financials Index (ASX: XFJ). It dropped 1.1%.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) slumped 0.2% amid a disastrous performance from the Block Inc (ASX: SQ2) share price. The stock dumped 18.4% following a short seller attack.

Outperforming all others was the S&P/ASX 200 Utilities Index (ASX: XUJ), which jumped 0.7%.

But which ASX 200 share ended the week by posting the index’s biggest gain? Let’s take a look.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was Brainchip Holdings Ltd (ASX: BRN). It gained 6.1% to close at 43.5 cents despite only silence from the neuromorphic computing company.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Brainchip Holdings Ltd (ASX: BRN)	$0.435	6.1%
AGL Energy Limited (ASX: AGL)	$7.45	5.97%
Lake Resources NL (ASX: LKE)	$0.48	5.49%
Liontown Resources Ltd (ASX: LTR)	$1.49	4.2%
Perseus Mining Limited (ASX: PRU)	$2.33	4.02%
Imugene Limited (ASX: IMU)	$0.13	4%
Pilbara Minerals Ltd (ASX: PLS)	$3.56	3.79%
Ramelius Resources Ltd (ASX: RMS)	$1.115	3.59%
Core Lithium Ltd (ASX: CXO)	$0.785	3.29%
Evolution Mining Ltd (ASX: EVN)	$2.95	2.79%

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.

(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

• Is the AFIC share price a standout investment right now?
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher
• Passive income hack: 3 simple steps to help you get rich and retire early
• Investing in ASX 200 shares? Don’t bank on an RBA rate pause in April
• The first-ever Pilbara Minerals dividend is being paid today. Here’s what to expect

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 Block. The Motley Fool Australia has positions in and has recommended Block. 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/dqYIOc0

Australian Foundation Investment Co Ltd (ASX: AFI) (AFIC) has seen its share price fall more than 4% since 9 March 2023.

While that’s not exactly a major plummet, it adds to the decline the listed investment company (LIC) has seen over the last 12 months. It’s now down by close to 13%.

When an attractive business falls more than 10%, I think it’s worthwhile considering whether that investment is now good value.

While it is cheaper, I think investors also need to pay attention to how the AFIC share price is valued compared to its net tangible assets (NTA).

NTA premium?

A LIC’s job is to invest in other shares and assets. But, the value of its portfolio may not be the same as what the share price is trading at.

Imagine a LIC owns a portfolio of shares worth $100 million. The market capitalisation of the LIC could be $90 million, suggesting that it’s valued at a 10% discount to its assets. Or the market capitalisation could be $110 million – a 10% premium. The premium would mean people are buying a basket of shares for more than they buy those individual investments separately.

Sometimes we can see premiums or discounts in the LIC world of more than 20%, though that doesn’t happen with AFIC.

However, the latest update indicated that the AFIC share price for February was trading at a premium of around 5%. That’s one of the lower monthly premiums since the start of COVID-19, but it’s still a premium.

Sometimes investors may decide that it’s worthwhile to pay a premium for the NTA if they think the investment returns are going to outperform the share market.

But, at February 2023, AFIC’s net asset per share growth, plus dividends and franking, had underperformed the S&P/ASX 200 Accumulation Index (ASX: XAOA), including franking, by 2.7% over the prior year and 0.7% over the prior decade. The last three and five years showed an underperformance of the benchmark of 0.2% per annum.

However, the index returns don’t include management expenses or tax, which may be applicable if an investor chooses an exchange-traded fund (ETF) focused on the ASX 200 (or something similar).

What about the dividends?

LICs have the ability to smooth out dividend payments, in contrast to the potential volatility of distributions from ASX shares.

AFIC’s annual ordinary dividend had been 24 cents per share for a number of years. But, it decided to increase the FY23 interim dividend by 10% to 11 cents per share. So, that’s a positive.

It has been a consistent dividend payer for many years. There aren’t many ASX shares that have achieved that level of consistency.

How much is a consistent dividend worth? For investors in the accumulation phase of their life, I’d suggest it’s not an integral factor. But, for retirees, it’s a useful attribute.

Is the AFIC share price a good buy?

It owns a portfolio of ASX blue chip shares that may be able to deliver suitable total returns, including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL), Macquarie Group Ltd (ASX: MQG), Transurban Group (ASX: TCL), Wesfarmers Ltd (ASX: WES) and so on.

I think its returns could continue to be pretty similar to the ASX 200 Accumulation Index while paying a resilient dividend.

But, with investors being able to buy individual ASX shares or an ETF for the actual cost rather than a premium, I don’t think it’s the best choice for total return growth.

The post Is the AFIC share price a standout investment right now? 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

• Passive income hack: 3 simple steps to help you get rich and retire early
• Investing in ASX 200 shares? Don’t bank on an RBA rate pause in April
• 5 things to watch on the ASX 200 on Friday
• Telstra shares: Bull vs. Bear
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. 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/mIlcu8o

BHP Group Ltd (ASX: BHP) might not be the first share one thinks of when it comes to sustainability.

But the S&P/ASX 200 Index (ASX: XJO) iron ore giant is taking a leap towards lowering its value chain emissions. It announced yesterday it’s considering building an electric smelting furnace (ESF) pilot plant in Australia.

The Big Australian has signed with engineering firm Hatch to design a demonstration facility capable of producing steel using renewable energy and hydrogen rather than coal.

Let’s take a look at what the news might mean for Pilbara-mined iron ore.

The BHP share price is $43.63 at the time of writing.

BHP moves to make steelmaking more sustainable

Own BHP shares? You might be interested in the monolith’s latest sustainability move – a planned ESF plant capable of lowering emissions associated with Pilbara iron ore’s journey to becoming steel.

The company is aiming to build a demonstration plant to test and optimise iron production from the ESF.

It hopes the small-scale plant will be used to collaborate with steel producers and technology providers, ultimately helping to speed up the scale-up of ESF plant designs.  

The technology is able to produce steel from renewable energy sources when combined with a direct reduced iron (DRI) step.

The ESF allows for greater flexibility in raw materials – a barrier to the adoption of other lower emissions production methods. It also has the potential to be integrated into a steel plant’s existing downstream production units, BHP noted.

It’s estimated that, by switching to the technology, conventional steelmakers – like many of BHP’s customers – could reduce their emissions by more than 80%.

BHP will consider several Australian locations for the facility.

News of the move comes as the ASX 200 giant works to reach net zero operational and value chain emissions by 2050. It also comes alongside news that iron ore rival Fortescue Metals Group Ltd (ASX: FMG) has made progress in producing ‘green iron’.

Commenting on the agreement, BHP chief commercial officer Vandita Pant said:

We see the ESF process as a critical breakthrough in significantly reducing the carbon emissions intensity of steel production and one that provides an opportunity for iron ore from our Pilbara mines. 

BHP share price snapshot

This year has been a rough one so far for the BHP share price.

The stock has fallen around 4% since its first close of 2023. Though, it’s trading relatively flat over the last 12 months.

Comparatively, the ASX 200 is trading flat year to date and has fallen 6% since this time last year.

The post Own BHP shares? Here’s how the iron ore giant is cleaning up steelmaking’s act 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 is the BHP share price in the red today?
• Out with coal, in with nickel: Could BHP shares soon face a flurry of M&A activity?
• The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share?
• Here’s how much I’d need to invest in BHP shares to generate a $250 monthly income
• Could buying BHP shares under $44 make me rich?

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.

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