Author: therawinformant

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) remains suspended following a system upgrade failure at the Australian stock exchange. Prior to the pause, the benchmark index was up a solid 1.2% to 6,484.3 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is down almost 12% to 44.5 cents. Investors have been selling the gold mining and exploration company’s shares after it completed its institutional placement and the institutional component of pro rata accelerated non-renounceable entitlement offer. Aurelia notes that it had strong institutional support, raising approximately $93 million at a discount of 43 cents per share. The proceeds will be used to fund the acquisition of the Dargues Gold Mine.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price is down 2.5% to $2.96 despite there being no news out of the medical device company. This may be due to profit taking after a strong gain on Friday following the release of a positive announcement. That announcement revealed that the US FDA has approved its pivotal trial investigation device exemption.

SKYCITY Entertainment Group Limited (ASX: SKC)

The SKYCITY share price has fallen 4% to $2.84. This morning the casino and resorts operator revealed that its chief executive officer, Graeme Stephens, will retire from the role at the end of the month. He will be replaced by its chief operating officer, Michael Ahearne. No explanation was given for the sudden departure of the chief executive officer.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 0.5% to $3.98. This is despite the release of a strong weekly trading update by the payments company. According to the release, as of 13 November, Tyro had recorded transaction value of $0.889 billion month to date. This was up 15% on the prior corresponding period.

More reading

• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• Why the Polynovo (ASX:PNV) share price up 6% higher today
• Why Elders, Jumbo, Northern Star, & PolyNovo shares are charging higher
• 5 things to watch on the ASX 200 on Friday
• These were the best performing ASX 200 healthcare shares in October

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and Tyro Payments. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Aurelia Metals, PolyNovo, SKYCITY, & Tyro shares are dropping lower appeared first on Motley Fool Australia.

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Magellan Financial Group Ltd (ASX: MFG) is one of the ASX’s most successful fund managers. It has (as of 31 October) just over $103 billion in assets under management, making it one of the largest fundies in Australia as well.

Chief investment officer and co-founder, billionaire Hamish Douglass, is someone that many ASX investors look to for advice and guidance, given the stellar performance of Magellan’s funds. As an example, the unlisted flagship Magellan Global Fund (a managed fund) has returned an average of 15.91% per annum over the past decade.

So here’s a look at the shares that Magellan was buying (and holding) in October.

Magellan in the spotlight

According to the company’s latest updates, the Global Fund is 88% invested in shares, and is holding 12% cash. Magellan lists the top 10 holdings of the Global Fund (in alphabetical order) as follows:

1. Alibaba Group Holding Ltd (NYSE: BABA)
2. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
3. Facebook Inc (NNASDAQ: FB)
4. Microsoft Corporation (NASDAQ: MSFT)
5. Novartis AG
6. Reckitt Benckiser Group
7. Starbucks Corporation (NASDAQ: SBUX)
8. Tencent Holdings (OTCMKTS: TCEHY)
9. WEC Energy Group Inc (NYSE: WEC)
10. Xcel Energy Inc (NASDAQ: XEL)

The Global Fund portfolio typically holds between 20 and 40 stocks, and targets a cash distribution yield of 4% annually. As of October, the fund is positioned with 40% of holdings in US companies, 12% in Western Europe, 19% in China and 17% in other countries.

Let’s turn to Magellan’s High Conviction Fund, which instead aims to hold between 8-12 companies in a concentrated portfolio, and targets a 3% annual cash distribution yield. Magellan tells us that, again, the fund is 88% invested and is holding 12% cash.

The Magellan High Conviction Fund’s top 5 holdings are as follows:

1. Alibaba Group
2. Alphabet
3. Microsoft
4. Starbucks
5. Tencent

This fund is more balanced, geographically speaking, than the Global Fund. 30% of its holdings are in US companies, with another 30% in Chinese companies. Western Europe is at 12%, with other countries at 17%. Unlike the Global Fund (which is unhedged), the High Conviction Fund has the ability to hedge its cash positions against different currencies. The update tells us that the High Conviction Fund’s cash reserves were hedged 17% to the Australian dollar, as of 31 October.

What can we learn from these holdings?

Going off the 2 funds’ portfolios, we can see a number of companies are consistent, large positions across both funds. These are namely ‘big tech’ stocks like Alphabet and Microsoft, as well as the Chinese e-commerce giants Alibaba and Tencent. Consumer staples also feature heavily, with Starbucks’ presence in both portfolios, as well as the Global Fund’s position in Reckitt Benckiser (maker of products like Dettol, Air Wick and Clearasil)

More reading

• 2 ASX dividend shares with yields over 5% today
• Why the Dubber Corp (ASX:DUB) share price is surging today
• Here’s how ASX investors have reacted to a Biden win
• Here are the US shares that CommSec customers are buying
• The 5 best-performing ASX 200 shares so far this year

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) , Starbucks and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Facebook, and Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended Alphabet (A shares) and Facebook. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the shares Magellan has been buying recently appeared first on Motley Fool Australia.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this payments company’s shares to $120.00. The broker believes that the holiday season will be a strong one and is expecting Afterpay’s active customer numbers to surge to 11.9 million. It also believes its partnerships with Stripe and Wix will be a boost in the near future and notes that it has launched a cross-border trade option for merchants. Overall, this has led to the broker bumping its forecasts higher. The Afterpay share price is trading at $101.40 on Monday.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Morgans have retained their add rating and lifted the price target on this retailer’s shares to $12.78. This follows the announcement of an agreement to acquire beeline stores in the European market. The broker notes that the deal is highly favourable for Lovisa, with beeline essentially paying it to take it over. In addition to this, the broker notes that the company’s same store sales are continuing their recovery. In light of the above, Morgans has lifted its earnings forecasts accordingly. The Lovisa share price is fetching $11.60 today.

Ramsay Health Care Limited (ASX: RHC)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted the price target on this private hospital operator’s shares to $73.65. This follows the release of a first quarter trading update last week. The broker notes that Ramsay’s Australian revenue was higher in the first quarter, though this was offset by higher costs. Nevertheless, the broker remains positive on the future and believes it is well positioned for long term growth. The Ramsay share price is changing hands for $67.60 today.

More reading

• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind
• Why does the Afterpay (ASX:APT) share price continue to outperform Zip (ASX:Z1P)?
• Afterpay (ASX:APT) share price lower after responding to ASIC report
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 CSL Limited (ASX: CSL) share price is climbing higher today on news that the global biotech giant will be building a manufacturing facility in Australia.

The CSL share price kicked off the day reaching as high as $315.85. However, before the ASX experienced a technical glitch which halted market trade, CSL shares slightly retreated to $315.04, up 1.8%.

What is driving the CSL share price?

CSL advised that its subsidiary, Seqirus, plans to invest more $800 million in the construction of an influenza vaccine manufacturing facility.

Based in Melbourne, the state-of-the-art factory will produce and supply flu vaccines to Australia and the rest of the world. The decision follows a deal with the Federal Government for a range of life-saving treatments to the Australian population for over 10 years. This includes anti-venoms for Australian snakes, spiders and marine creatures, and influenza pandemic protection.

Under the terms of the deal, the Morrison government will contribute $1 billion over 12 years along with CSL’s Seqirus investment. The Victorian Government is also expected to commit to the project but has yet to announce a support package.

The new facility will be built at a site in the Melbourne Airport Business Park, with construction to start in 2021. Housing innovative cell-based technology to produce these critical vaccines, CSL will also manufacture Seqirus’ MF59 substance. The latter is a formula that is added to improve immune response and reduce the amount of antigen needed for each vaccine.

Final completion is projected to be around mid-2026, with the facility becoming fully operational.

What did the head of CSL say?

Commenting on the opportunity, CSL CEO and managing director Paul Perreault said:

Providing safe and effective influenza vaccines is essential in securing our defences against serious public health threats.

The facility will be an important addition to our global influenza manufacturing supply chain, incorporating the technology platform used in our Holly Springs, North Carolina facility. Cell-influenza vaccine technology offers many advantages over the existing process including being more scalable and offering faster production – particularly important in the case of influenza pandemics.

As a proudly Australian company, we are pleased to make this investment in world- class advanced manufacturing. This decision will ensure the future of 1,000+ Science Technology Engineering & Manufacturing jobs in Victoria and a supply chain of more than $300 million annually.

About the CSL share price

The CSL share price has been on a mini-rollercoaster ride over the past 6 months. Besides reaching today’s new high since May, shares in the biotech company have been up and down alongside COVID-19 and economic  impacts.  

As Australia largest company, CSL has a market capitalisation of $143.3 billion and a price-to-earnings (P/E) ratio of 68.2.

More reading

• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• How to get rich with ASX dividend shares
• 3 fantastic ASX shares to buy next week
• After 8 months, ASX 200 shares are finally out of correction territory

Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the CSL (ASX: CSL) share price is climbing higher today appeared first on Motley Fool Australia.

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Export-heavy shares have been given a boost today after Australia confirmed its participation in the world’s largest ever free trade agreement – the Regional Comprehensive Economic Partnership (RCEP).

In earlier trading, major Australian wine exporter Treasury Wine Estates Ltd (ASX: TWE) share price rose by 3% to $9.46.  Crop protection developer Nufarm Limited (ASX:NUF) is up 2% to $4.07, while copper exporter Sandfire Resources Ltd (ASX: SFR) also lifted 2% to $4.36.

What’s the big deal with RCEP?

RCEP has been billed as the world’s largest ever trade deal, covering more than 30% of global GDP, and 30% of the world’s population. It has been 9 years in the making, and its founding members announced over the weekend include China, Japan, South Korea, 10 members of the Association of Southeast Asian Nations (ASEAN), and of course, Australia.

By participating in this deal, the Australian Government hopes that it can diversify Australia’s export markets, and not become reliant one or two big trading partners. Trade Minister Simon Birmingham emphasised the importance of this diversification by saying that ASEAN nations have a big role to play in this trading bloc. He says:

ASEAN put together is Australia’s second largest trading partner. It includes some of the most dynamic economies in the region, such as Vietnam and Indonesia. Those 10 RCEP nations with enormous diversity are central to the strategic relationship that Australia has with our region.

We see the opportunity for huge economic growth and trade growth between Australia and the nations of ASEAN, but also for integration of supply chains that can give Australian businesses easier and better access and greater diversification over time amongst those countries.

Why is RCEP good for Australian export-driven companies

Analysts have commented RCEP could provide some sort of calm amid the trade tensions between China and Australia, as both countries are members of the new bloc. The trade deal could also reduce Australia’ economic reliance on China, especially since the latter has recently issued investigations into and potential bans on Australian products such as wine, copper, sugar, barley, and others. Exporters of these products will stand to benefit from this latest trade agreement. 

More reading

• Fund manager says Treasury Wine (ASX:TWE) share price is too cheap
• Down then up 10%: What is going on with the Treasury Wine Estates (ASX:TWE) share price?
• Latest 3 “buy” recommendations from top brokers
• ASX 200 Weekly Wrap: US election special
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Having just celebrated my 52nd birthday, I’ve experienced my fair share of market moving events.

But nothing in the 30-plus years I’ve been tracking global stocks compares to these past 9 months.

Well, 9 months minus 4 days.

That takes us back to 20 February, when the S&P/ASX 200 Index (ASX: XJO) closed at 7,162.5 points. An all-time high.

You know what happened next.

Hopes that the coronavirus could be contained to isolated pockets of Australia and the world came unravelled. The once almost unthinkable spectre of global Wuhan-style lockdowns morphed almost overnight into a bitter reality.

With unemployment rising, and forecast to rocket, investors stampeded for the exits. By 23 March, the ASX 200 had shed 37% from its record highs.

Then another reality dawned.

Central banks across the world unleashed new waves of quantitative easing (QE) and slashed interest rates to near zero, often below zero in real (inflation adjusted) terms. And governments rolled out trillions of dollars of stimulus and income support measures.

And investors realised most of the companies that had seen their share price lose 37% or more during the panic selling were now trading for a bargain. That realisation has seen the ASX 200 rebound 43% from its 23 March lows.

In fact, with this morning’s intraday gains, the index is at its highest level since 27 February, just 4 days after the pandemic driven market rout began.

So that’s the history-making past 9 months (minus 4 days) in a nutshell.

But as investors, it’s the next 9 months – and well beyond – that really matter.

So, what should ASX investors expect?

Australia’s grand reopening

To answer that question, we turn to a few market experts.

Stuart Welch is a portfolio manager at Alphinity Investment Management. Noting Australia’s success in containing COVID-19,  he’s bullish on the outlook for ASX share prices (as quoted by the Australian Financial Review [AFR]):

There’s a lot a signs that the gains for the Australian market will continue. What we have seen is earnings stabilise and start to recover. And there’s a lot of evidence that will continue in Australia because we are on the cusp of this grand reopening, which is quite different to other parts of the globe.

Then there’s Bill Ackman, founder of Pershing Square Capital.

Speaking at the virtual Sohn Hearts and Minds investment conference on Friday, Ackman pointed to pent-up demand from consumers emerging from lockdowns and isolation, as well as central bank policies and government stimulus as reasons investors should “go long” in 2021 (quoted by the AFR):

You’ve got low rates, you’ve got likely stimulus, you could see infrastructure spending, you’ve got still very well capitalised banks, you’ve got access to capital. So I think 2021 could be a very, very good year in markets, so go long I would say…

People aren’t eating out, they’re not going on vacation, they’re not driving and by the way, when you keep someone locked down, their next move when they can actually feel safe is going to be to go on a vacation, to go drinking, to go to dinner, to go to a show.

Why the experts like these ASX shares post-COVID

Online retailer Temple & Webster Group Ltd (ASX: TPW) isn’t a share you’ll often hear tipped for the post pandemic rebound.

Despite Temple & Webster’s share price falling more than 62% from February into March, loyal shareholders are sitting on a gain of 285% so far in 2020. And in case you’re wondering, the share price is up 535% from the 24 March lows.

Temple & Webster’s share price was a clear winner in the shift that saw people working and shopping from home. So you might think it could come under pressure as Australia reopens.

Not so, according to Regal Funds Management’s Todd Guyot, who believes the company can still increase its online market presence.

As the AFR reports, Guyot says the fact Temple & Webster is still growing even after the economy is reopening, “demonstrates the impact of repeat customers, which is a direct correlation with the customer experience… If customers get what they want correctly and in a timely manner, they will more than likely come back.”

The Motley Fools own Scott Phillips, was also profiled in the AFR‘s market winners and losers in this new world order article.

Scott explained that he likes the looks of infection control company, Nanosonics Ltd. (ASX: NAN).

Nanosonics has a history of delivering share price gains dating back more than 5 years (though there were obviously some dips during that time). 2020 has been more difficult, with Nanosonic’s share price yet to regain its 14 February all-time highs. Year-to-date, the share price is flat.

Here’s why Scott likes it:

In the current global healthcare climate, the importance of effective sterilisation doesn’t need to be emphasised. Nanosonics is one of our top picks for a post-COVID world because it has found a way to deliver this lifesaving technology using a very lucrative business model.

A more frequently touted pandemic recovery share is Sydney Airport Holdings Pty Ltd (ASX: SYD).

As both domestic and international air travel ground to a halt, Sydney Airport’s share price fell more than 48% earlier this year. Although it’s rebounded strongly from its 19 March lows, the share price remains down 23% from 17 January.

That, according to Jun Bei Liu Tribeca Investment Partners’ Jun Bei Liu, makes Sydney Airport a “quality asset trading at a fraction of its intrinsic value”.

More reading

• 2 top ASX healthcare shares that could be market beaters
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• Temple & Webster (ASX:TPW) share price can double in 3 years, says fundie
• 3 ASX dividend shares rated as buys by brokers
• Vaccine hopes cause ASX 200 to rise on Tuesday

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The ASX shares to shine during AND after the COVID-19 recovery appeared first on Motley Fool Australia.

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Trading on the ASX remains on pause and is currently in an ‘enquire state’ after a tech glitch this morning.

The ‘enquire’ state locks the market and no trading messages or orders can be entered, amended or cancelled. The ASX says it is continuing to investigate the cause and implications of this glitch.

ASX is continuing to investigate the issue causing today’s market outage. Again, we apologise for the disruption and are working to rectify as soon as possible.

— ASX 🏛 The heart of Australia’s financial markets (@ASX) November 16, 2020

https://platform.twitter.com/widgets.js

The issue appears to have occurred after the ASX carried out migration activities for its ‘ASX Trade’ system on Saturday, with go-live scheduled for this morning at 2:25 am.

The ASX explains: 

“The ‘ASX Trade’ is the central system that includes order entry and amendment, trade generation and trade reporting. It also provides the functionality used by ASX Trading Operations to establish and maintain the trading environment.”

It has stated it will notify customers at least 30 minutes in advance of any session change. 

The Motley Fool will continue to provide updates as the situation develops.

More reading

• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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 Alterity Therapeutics Ltd (ASX: ATH) share price has rocketed up 27% this morning after its patent was approved by the United States Patent and Trademark Office. At the time of writing, the Alterity share price is trading up at 3.3 cents.

Approval of US patent 

The new patent is the result of Alterity’s in-house discovery research and is central to its next generation drug development portfolio focused on neurodegenerative diseases. 

Alterity’s lead product, ATH434, is showing potential to treat various forms of atypical Parkinsonism. Parkinsonian disorders are a group of diseases in which individuals experience slowness of movement, stiffness and tremor. They include Parkinson’s disease and Multiple System Atrophy, as well as Alzheimer’s disease. The first disease target selected by Alterity is Multiple System Atrophy, a highly debilitating disease with no approved treatments. 

The US patent confers on Alterity 20 years of exclusivity, providing a strong basis for continued drug development and commercialisation and new compound identification within its extensive drug discovery library to target important neurodegenerative diseases. 

Commenting on the news, Alterity CEO Geoffrey Kempler said the patent established “an excellent foundation for the company to pursue multiple therapeutics across a spectrum of neurodegenerative disease”.

The patent will allow the company to fully prosecute these opportunities with confidence in the coming years to address some of the most devastating brain diseases which currently have few or no treatment options. 

The day the Alterity share price jumped 2000% 

On 1 July 2020, the Alterity share price jumped more than 2000% from 1.7 cents to a peak of 41 cents before closing at 16.5 cents. This followed an announcement from the company that it had received guidance from the US Food and Drug Administration (FDA) in relation to the development pathway for ATH43. 

Alterity met with the FDA following its successful Phase 1 clinical trial and further data analysis. The pre-IND (investigational new drug) meeting was to obtain input on the clinical development plan for ATH434, including feedback on the Phase 2 study design. 

Alterity reached an agreement with the FDA on the non-clinical investigations required to support the Phase 2 study. In parallel with its US strategy, the company also plans to pursue a regulatory pathway in Europe and Australia. 

More reading

• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• Top fundie, Wilson, names ASX shares to buy
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind
• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Why the Elders (ASX:ELD) share price is turning around today

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Alterity Therapeutics (ASX:ATH) share price has surged up 27% today appeared first on Motley Fool Australia.

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It appears as though a system upgrade has failed spectacularly at the Australian stock exchange on Monday. At lunch the index is up 1.2% to 6,484.3 points but has been suspended since 10:24am.

Here’s what else has been happening on the market today:

Afterpay responds to ASIC report.

The Afterpay Ltd (ASX: APT) share price has edged lower after responding to ASIC’s report on the buy now pay later industry. That report shows that 20% of buy now pay later users are missing payments and half of users aged 18 to 29 have cut back on essential items to make repayments. Afterpay responded by pointing out that its differentiated business model is unlike traditional credit or other BNPL providers, with built-in consumer protections that ensure average transaction values remain the lowest. It also notes that its gross loss metric is industry-leading and its own research found no causal link between spending on Afterpay and changes in spending on essentials.

Elders FY 2020 result.

The Elders Ltd (ASX: ELD) share price was trading slightly lower in morning trade following the release of its full year results. The agribusiness company reported a 29% increase in sales revenue to $2,092.6 million and a 71% jump in underlying profit after tax to $109 million. This was driven partly by the acquisition of AIRR and strong demand for products from the recent winter cropping season. Underlying earnings before interest and tax (EBIT) came in at $119.4 million, compared to Goldman Sachs’ estimate of $116 million.

CSL vaccine facility.

The CSL Limited (ASX: CSL) share price was charging higher on Monday before the market pause. This appears to have been in response to news that it plans to invest more than A$800 million in the construction of a new biotech manufacturing facility in Melbourne to supply influenza vaccines to Australia and the rest of the world. This follows an agreement with the Australian Government for the supply over 10 years of influenza pandemic protection for the Australian population, anti-venoms for Australian snakes, spiders and marine creatures, and Q-Fever vaccine.

Best and worst ASX 200 performers.

The best performer on the ASX 200 today prior to the pause was the Unibail-Rodamco-Westfield CDI (ASX: URW) share price with a 9% gain. Investors have been fighting to get hold of the shopping centre operator’s shares since the potential COVID-19 vaccine news broke last week. Investors may be hoping for a swifter recovery in its fortunes. The worst performer has been the SKYCITY Entertainment Group Limited (ASX: SKC) share price with a 4% decline. This follows the release of an update by the casino and resorts company.

More reading

• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind
• Why the Elders (ASX:ELD) share price is turning around today
• Why does the Afterpay (ASX:APT) share price continue to outperform Zip (ASX:Z1P)?
• Afterpay (ASX:APT) share price lower after responding to ASIC report
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Elders Limited and Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility appeared first on Motley Fool Australia.

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Geoff Wilson is known as one of the more successful fund managers on the ASX. The fund managing company Mr. Wilson heads – Wilson Asset Management (WAM) – is known for its listed investment companies (LICs). WAM has a stable of seven LICs, many of which have been around for years, and have a strong performance history. The flagship WAM Capital Limited (ASX: WAM) LIC, for instance, has been around since 1999, and has delivered an average return of 16.1% per annum since then (not accounting for fees and taxes). Evidently, Geoff Wilson is a fund manager who is probably worth paying attention to.

So that’s what we’re here for! Every month, WAM puts out a market update discussing the ASX shares its various LICs are buying and selling. Here are some of the shares that WAM’s LICs were bullish on (as of 31 October).

WAM’s latest ASX share picks

Kicking off with the flagship WAM Capital, and WAM names Nine Entertainment Co Holdings Ltd (ASX: NEC), and Bapcor Ltd (ASX: BAP) as the portfolio’s biggest contributors over the month of October. WAM notes that Nine is, in its view, well positioned to “benefit from increased advertising spending in the lead up to the Christmas period” through its various television, streaming, radio and print assets.

Turning to Bapcor, WAM believes the benefits the car parts provider has enjoyed this year will continue. It notes that the company is cashed up and “well placed to make earnings accretive acquisitions”.

Some more ‘buys’

Bapcor also features in another Wilson LIC’s picks for the month: WAM Research Limited (ASX: WAX). According to WAM, WAM Research is also bullish on Bapcor, as well as fitness club operator Viva Leisure Ltd (ASX: VVA). The managers at WAM Research believe Viva is well positioned to benefit from Victoria’s easing of lockdown restrictions over the coming months.

WAM’s large-cap LIC, WAM Leaders Ltd (ASX: WLE), is focusing on different areas. WAM reports that its favourite ASX shares for the month included BlueScope Steel Limited (ASX: BSL) and Challenger Ltd (ASX: CGF). For BlueScope, WAM expects that global stimulus programs will benefit this steelmaker. Turning to Challenger, WAM is confident this ASX share is undervalued on current pricing. WAM stated “we believe that there is significant value, particularly in the funds management business, that is not appreciated by the market”.

My Fool colleague, Tristan Harrison, covered some of WAM Microcap Ltd (ASX: WMI)’s latest picks this morning. But WAM’s only internationally-focused LIC, WAM Global Ltd (ASX: WGB), is reportedly bullish on Quanta Services Inc (NYSE: PWR) as well as Avantor Inc (NYSE: AVTR). Quanta is an infrastructure company WAM believes is well-placed to benefit from “grid modernisation, renewables growth and 5G rollout” over in the United States. Meanwhile, WAM sees undervaluation and “additional upside” for Avantor, given the company has opportunities surrounding coronavirus vaccine production.

More reading

• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
• These were the worst performing ASX 200 shares last week
• 3 top ASX dividend shares to buy
• 3 ASX shares rated as buys by brokers

Motley Fool contributor Sebastian Bowen owns shares of WAM Research Limited and WAMGLOBAL FPO. The Motley Fool Australia owns shares of and has recommended Bapcor and Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Top fundie, Wilson, names ASX shares to buy appeared first on Motley Fool Australia.

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