Author: therawinformant

It’s no secret that the gender gap in the top echelons of the S&P/ASX 200 Index (ASX: XJO) remains disappointingly wide. Incremental progress over the past few decades has been there, to be sure. It wasn’t too long ago when it was unheard of for a woman to be running an ASX company.

But a new report out today outlines just how far we have to go before there’s true gender equality on the ASX 200.

More worryingly, the progress that the last few years has seen looks to be stalling.

The Chief Executive Women group publish an annual report of gender diversity in the ASX 200, and the report for 2020 is now public.

Report lays bare ASX 200 inequality

Some of its key findings are as follows:

• out of 25 new ASX 200 CEO appointments in the past year, just one was a woman. Only 3 out of 50 appointments in the past 3 years have been women
• just 5% of ASX 200 companies (or 10 out of 200) have a female CEO, down from 6% last year.
• 15% of ASX 200 companies have executive leadership teams (ELTs) consisting of 40-60% women, up from 12% in 2019.
• around 65% of ASX 200 companies have no women on their ELTs.
• just 1 ASX 200 company has no men in its ELT.
• the telco sector has the highest proportion of women in ELTs at 24%.
• in industries with a female-dominant workforce (e.g. health care), there is massive under-representation in roles with profit and loss responsibility, with only 5% of leadership line roles in health care companies in the ASX 200 filled by women. This is down from 15% 4 years ago.

Chief Executive Women president Sue Morphet had this to say on these numbers:

We know that if businesses take immediate action to remove systemic barriers for women, particularly in career-forming years, they will see the most talented and qualified people appointed to senior positions which will benefit their company performance, and their bottom line.

We need business to unleash the largely untapped resource that highly educated, experienced and capable women are, leading to better performing businesses at a time when every job counts more than ever.

The solution?

Following these numbers, the group is calling for a number of actions from the ASX 200, including accountability on diversity targets and pay inequality, clear succession planning, and increasing availability and ‘normalcy’ of flexible and part-time work for all employees.

In some good news, it appears many investors aren’t taking these numbers lying down. According to reporting in the Australian Financial Review (AFR), Debby Blakey, chief executive of superannuation fund HESTA, says the fund will increasingly use its $54 billion worth of ASX voting power to “make boards more accountable for poor progress on gender diversity”. Hopefully, other institutional investors follow HESTA’s lead and put their money where their mouths are.

Foolish takeaway

It’s clear and obvious that gender inequality continues to plague the ASX, and it is worrying to see some trends going the wrong way in 2020. In my view, it’s the responsibility of all shareholders, as the ultimate owners of ASX 200 companies, to push for equality in our companies. Hopefully, we can do better in 2021 than the dismal numbers we see today.

More reading

• Why the lagging Worley (ASX:WOR) share price could be at COVID turning point
• Why the Fortescue (ASX:FMG) share price is underperforming its peers today
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 1%, SEEK (ASX:SEK) jumps 9%
• Meet the ASX sector that is cum-consensus upgrade for FY21

Motley Fool contributor Sebastian Bowen 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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In today’s market, there are many opportunities to pick up ASX growth shares that were considered pricey at the start of the year. Quality ASX growth shares like Nanosonics Ltd. (ASX: NAN) and Jumbo Interactive Ltd (ASX: JIN) have seen their share price plummet and, I believe, now present great value. However, I think the following three ASX growth shares will provide investors will the best returns for years to come.

3 ASX growth shares to consider buying now

Altium Limited (ASX: ALU)

Former market darling, Altium, has lost nearly 20% of its market value since COVID-19. The Altium share price was trading at an all-time high of $42.76 in February this year and now, at the time of writing, is just $34.37. While this ASX growth share reported a decent FY20 result, investors were hoping Altium would achieve its US$200 million revenue target. The tech company just fell short, achieving US$189.1 million, and in-turn was heavily sold off in the weeks following.

I think that despite the challenging conditions our global economy faces, Altium is a ready-made winner. This ASX growth share has an impressive client list and is well positioned to dominate the market. The need for its 3D printed circuit boards has been rapidly rising in an estimated $2 trillion electronics industry size.

Bubs Australia Ltd (ASX: BUB)

Casting out of A2 Milk Company Ltd‘s (ASX: A2M) shadows, is Australian-made infant formula, Bubs. In recent times, the ASX growth share has caused investors concern due to rising geopolitical tensions between Australia and China. Bubs’ biggest market is in the Asian superpower, accounting for 66% of total group revenue in its FY20 result. China is the largest and fastest growing infant formula market in the world, valued at $55 billion.

Furthermore, Bubs recently undertook a capital raise which further diluted its shareholder value. The funds were used to bolster its balance sheet and acquire an ownership stake in the Beingmate manufacturing facility in China.

I believe the strategic move is a way for Bubs to strengthen its ties to China amidst the political minefield. In light of this, I think the Bubs share price is trading at an attractive level and could reach higher in the near future. At the time of writing, the Bubs share price is 79 cents, up 0.6% today.

Nearmap Ltd (ASX: NEA)

Another ASX growth share that I would pick up today is Nearmap. The aerial imagery specialist announced a capital raise late last week to accelerate its growth opportunity. In response, shareholders tore the Nearmap share price apart, causing it to fall over 20% in the space of a week. At the time of writing, the Nearmap share price is $2.37, down 4%.

Through its capital raise, the company is seeking to increase its investment in sales and marketing initiatives in North America. In addition, the roll-out of its HyperCamera3 systems is expected to expand coverage at higher fidelity and enable expansion into new geographical markets.

In my opinion, I would strongly consider buying Nearmap at its current share price. I feel that this ASX growth share is grossly undervalued and could soar in the coming years.

More reading

• Why City Chic, Fortescue, Nearmap, & Zip shares are dropping lower today
• ASX 200 down 0.8%: Fortescue (ASX:FMG) tumbles, Afterpay (ASX:APT) sinks lower
• Why you should invest $5,000 into these ASX shares right now
• ASX 200 up 0.7%: Afterpay (ASX:APT) higher, QBE Insurance (ASX:QBE) lower on UK update
• 2 top ASX shares to buy for income and growth

Aaron Teboneras owns shares of Jumbo Interactive Limited and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and Jumbo Interactive Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Nanosonics Limited and Nearmap 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.

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Victoria is only now slowly emerging from lockdown. And social distancing rules remain in place across the rest of Australia.

With that in mind, the results on Australia’s unemployment rate from the Australian Bureau of Statistics (ABS) August Labour Force report are surprisingly upbeat.

The ABS data, released this morning, indicated that seasonally adjusted employment between July and August rose 0.9%. That means 110,000 more people were working, although not all of them were working as many hours as they’d like. Nationally, hours worked increased by 0.1%.

Women led the charge in cutting Australia’s unemployment rate.

ABS Labour Statistics head Bjorn Jarvis said the large increase in seasonally adjusted employment coincided with a large decrease in unemployment of 87,000 people, around 55,000 of whom were females.

Lockdown damage revealed

Not surprisingly, Victoria’s labour force is the most hampered, due to the state’s Stage 4 COVID-19 lockdown laws.

Jarvis said hours worked fell by 4.8% in Victoria, compared to a 1.8% increase across the rest of Australia. He added:

The August data provides insights into the labour market impacts from the Stage 4 restrictions in Victoria. In addition to the large fall in hours worked, employment in Victoria also decreased by 42,400 people and the unemployment rate increased to 7.1%.

The biggest labour market winner

Nationally, Australia’s unemployment rate was 6.8% in August. While down 0.7% from July, that’s still 1.6% above the August 2019 unemployment figures.

The ABS also revealed that unemployment rates decreased in every state and territory with the exception of Victoria where it increased 0.4%, and Tasmania, where it rose 0.3% to reach 6.3%. The Northern Territory was the biggest labour market winner, with unemployment falling 3.3% to 4.2%.

Despite a drop in Australia’s overall unemployment rate, the labour participation rate only nudged up 0.1% to reach 64.8%. That’s still 1.1% lower than in March this year.

The underemployment rate – people who are employed but not working as many hours as they’d like – stayed steady at 11.2%. That’s 2.4% higher than in March this year and 2.7% higher than in August 2019.

A final useful metric, the under-utilisation rate, combines the unemployment and underemployment rates. Under-utilisation declined by 0.7% to 18.0%. That’s heading in the right direction, but still 4.7% higher than it was in March.

More reading

• ASX 200 gender inequality lets the team down
• 3 ASX growth shares I’d buy right now
• ASX dividend share WAM Leaders (ASX:WLE) flags dividend boost
• Telstra (ASX:TLS) share price hits a 52-week low: Is this a buying opportunity for investors?
• Temple & Webster (ASX:TPW) share price hits record high after broker lifts its price target

Motley Fool contributor Bernd Struben 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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ASX dividend share and listed investment company (LIC) WAM Leaders Ltd (ASX: WLE) has only been around since 2016. But since that time, this LIC has quickly developed a robust reputation as a solid ASX dividend share delivering income for its investors. In a year that has seen absolute carnage on the ASX dividend landscape, this has been a welcome oasis.

The company has already announced two dividend payments for its shareholders this year — an interim dividend of 3.25 cents per share (cps) that was paid out in April, and a 3.25 cps final dividend that will hit investors’ bank accounts on 30 October.

That gives WAM Leaders shares an expected yield for 2020 of 5.51% (or 7.87% grossed-up with WAM Leaders’ full franking).

But today, WAM Leaders has gone one step further and issued guidance for its upcoming dividends in 2021. According to an ASX announcement today, the company’s management is flagging that, for the 2021 calendar year, the company will be paying an interim dividend of 3.5 cps, which would be a 7.7% increase on 2020’s interim (and final) payout.

However, WAM Leaders notes that this guidance is “subject to no material change in market conditions”, so don’t go out and book a holiday just yet. According to the company, WAM Leaders has made this (rather unusual) announcement partly “in response to shareholders’ enquiries” and partly to “provide clarity to all shareholders participating in the share purchase plan”.

If WAM Leaders pays out two dividends of 3.5 cps each next year, it would give the shares a forward dividend yield of 5.93% on current pricing (8.47% grossed-up).

Is WAM Leaders a buy today for dividend income?

As an LIC, WAM Leaders has the advantage of being able to hoard profits so it can pay a smooth dividend over time. The company tells us that it has enough cash in its profit reserve to fund dividends for at least the next 2.6 years, which I think is attractive in a year that has seen many dividends dry up on the ASX.

Looking at WAM Leaders’ investment portfolio, I think this is a good option for anyone who wants exposure to the ASX’s largest companies and who appreciates a hefty dividend. As of 31 August, WAM Leaders’ top holdings include CSL Limited (ASX: CSL), BHP Group Ltd (ASX: BHP) and Goodman Group (ASX: GMG).

As such, I think this LIC is a solid investment for income-seeking investors. The 2021 dividend guidance is a great move to give investors certainty and flags (in my opinion) that this company will continue to be a hefty income-generating investment well into the future.

More reading

• Is the Westpac share price a buy for future dividends?

Sebastian Bowen 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 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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It has been another disappointing day of trade for the Telstra Corporation Ltd (ASX: TLS) share price on Thursday.

The telco giant’s shares have continued their decline and dropped 1.5% to a 52-week of $2.81.

This means the Telstra share price is now down almost 29% from its 52-week high.

Why is the Telstra share price at a 52-week low?

Investors have been selling Telstra’s shares since the release of its full year results in August.

While Telstra’s result was largely in line with expectations, its FY 2021 guidance was weaker than expected due to coronavirus impacts.

This spooked investors because, as it stands, Telstra’s guidance for the year ahead implies that a dividend cut will be necessary.

Some analysts have suggested 12 cents per share will be the dividend it pays in FY 2021, which has led to its shares falling accordingly.

Is this a buying opportunity?

I believe this is a fantastic buying opportunity and remain optimistic that a dividend cut will be avoid.

This could be achieved if Telstra changes its dividend policy from an earnings-based one to a free cash flow-based policy.

Last week, James Gerrish from Shaw and Partners explained on LiveWire Markets why he believes the company’s dividend can be sustained.

Mr Gerrish explained: “On an earnings basis, the 16c dividend is not sustainable given TLS will likely generate around 14c EPS in FY21 & FY22 before rising from there, however TLS have shifted their dividend focus to be more heavily aligned with free-cashflow (FCF). In terms of that number, which seems to now be the key for the dividend, it’s expected to be around 23c in FY21 & FY22 and rising from there.”

Clearly, with 23 cents per share of free cash flow expected in FY 2021, it would be more than enough to fund a 16 cents per share dividend.

Mr Gerrish added: “Given the rhetoric around free-cash-flow that we saw at the recent result, it seems likely that the market is too bearish on the sustainability of the TLS dividend given its being anchored to EPS, not FCF.”

I completely agree with this view and would be a buyer of Telstra’s shares ahead of rival TPG Telecom Ltd (ASX: TPG).

More reading

• Interest rates to stay low for years? Buy these ASX dividend shares
• 2 top ASX dividend shares I would buy for income this week
• 3 retirement myths you can’t afford to believe
• The best ASX blue chip shares to buy after the market selloff
• Are telco shares winners now that everyone’s staying home?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 Telstra (ASX:TLS) share price hits a 52-week low: Is this a buying opportunity for investors? appeared first on Motley Fool Australia.

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The Temple & Webster Group Ltd (ASX: TPW) share price has been on form again on Thursday.

In morning trade the online furniture and homewares retailer’s shares stormed almost 5% higher to a record high of $10.35.

Why did the Temple & Webster share price storm higher?

As well as getting a lift this week from news that fellow online retailer Kogan.com Ltd (ASX: KGN) continued its meteoric sales growth in August, Temple & Webster’s shares were given a boost today from a broker note out of Goldman Sachs.

According to the note, the broker has retained its buy rating and lifted its price target to $11.50 from $9.70.

This price target implies potential upside of over 16% from its last close price.

Why is Goldman Sachs bullish on the company?

Goldman Sachs has been looking at the ecommerce market and believes both Temple & Webster and Redbubble Ltd (ASX: RBL) are well-positioned for growth in the coming years.

Its analysts commented that both companies: “have some similar characteristics: strong market positions in their respective verticals, negative working capital beneficiaries, limited (TPW) to no (RBL) inventory risk, well-established supply and logistic networks accommodate the recent rapid acceleration in online commerce and large potential addressable markets.”

The broker believes that both companies will benefit for three key reasons.

It explained: “We believe both business will continue to benefit from structural tailwinds: (1) migration to online commerce, a trend we believe will continue unabated even as economies return to “normal” post-Covid, (2) strong market positions in their categories based on a multi-year lead they have against competitors that should be sustained provided they keep reinvesting in their business, and (3) growth to be materially greater than Australia GDP over our forecast period which should provide ongoing operating leverage.”

“These underpin the retention of our Buy rating on both stocks, noting we believe the potential long-term upside for RBL could be substantially greater if its execution becomes more consistent,” it concluded.

Goldman Sachs has a buy rating and $5.20 price target on Redbubble’s shares.

More reading

• Why De Grey, Scentre, Splitit, & Temple & Webster shares are pushing higher
• 3 ASX tech shares that are still in the buy zone
• Redbubble (ASX:RBL) and this ASX share have more than doubled in 2020
• 2 of the best ASX tech shares to buy and hold until 2025
• 3 ASX shares for beginners to buy

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended 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.

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The Splitit Ltd (ASX: SPT) share price is trading higher today as the company announced a partnership with competing buy now, pay later (BNPL) provider QuickFee Ltd (ASX: QFE). The Splitit share price is currently trading 0.97% higher at $1.56.

Meanwhile, QuickFee has entered a trading halt after announcing a $17.5 million capital raising to fund its ‘interest free’ partnership with Splitit.

Splitit is a somewhat unique play on BNPL, providing credit card based instalment solutions to businesses and retailers. Conversely, QuickFee offers a payment platform for professional services firms, allowing clients to pay by instalment while the firms receive payment in full. Hence, working in largely the same way as BNPL provider Afterpay Ltd (ASX: APT).

Splitit partners with QuickFee

The Splitit share price is moving higher as the company announced the QuickFee deal would enable the clients of accounting and law firms in the US and Australia to pay their fees on credit cards using Splitit’s instalment solution.

Splitit will be integrated directly to QuickFee’s payments portal, complementing the existing finance offering to clients and firms. Through the new product offering using Splitit technology, QuickFee has an opportunity to expand its customer base to include smaller firms that typically fall outside its credit risk framework. This could grow its addressable market for the new interest free product by 650,000 accounting and law firms in the US alone.

QuickFee share price halted

QuickFee has entered the strategic agreement with Splitit to expand its addressable market. QuickFee is funding the rollout through a placement to raise $15 million, and a share purchase plan that aims to raise a further $2.5 million.

The funds raised will substantially scale up the customer acquisition team, predominantly in the US, to fund the significant anticipated growth of the receivables book with the Splitit opportunity. There will also be money spent on research and development for future product releases.

The new interest free product broadens QuickFee’s product suite in line with the company’s strategy of becoming a market leader in the advice now, pay later market.

What now for the Splitit share price

At this point, it’s difficult for Splitit to determine the economic benefits of the QuickFee partnership due to the contingent nature of results. As such, we can assume the move is an effort to catch up and potentially differentiate itself from BNPL giants Afterpay and Zip Co Ltd (ASX: Z1P). The Splitit share price has been on a tear this year, gaining more 130%, driven by huge revenue growth.

More reading

• Why City Chic, Fortescue, Nearmap, & Zip shares are dropping lower today
• ASX 200 down 0.8%: Fortescue (ASX:FMG) tumbles, Afterpay (ASX:APT) sinks lower
• Why De Grey, Scentre, Splitit, & Temple & Webster shares are pushing higher
• Is the Openpay (ASX:OPY) share price a bargain?
• 5 things to watch on the ASX 200 on Thursday

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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Before 2020, infrastructure investments were all the rage for ASX dividend investors.

Cast your mind back to 2019 and interest rates were being dropped to (what was then) record lows. The ASX was exploding, partly as a result. Investors were beginning to gobble up dividend-paying ASX shares in an attempt to replace the government bonds and term deposits that were quickly becoming impotent as true, inflation-beating investments.

And among the favourite dividend shares being gobbled up were infrastructure companies. These companies were some of the ‘safest’ dividend shares on the market, or so many investors believed. As such, these were the shares in the hottest demand from dividend investors. These investors believed the kinds of cash flows these companies offered were far more robust than other ASX dividend shares like Commonwealth Bank of Australia (ASX: CBA). From end to end in 2019, Transurban Group (ASX: TCL) shares rose roughly 30%, as did Sydney Airport Holdings Pty Ltd‘s (ASX: SYD).

What kind of world would we live in where people weren’t using Transurban’s tolled-roads, or flying in and out of Sydney Airport, investors might have asked. I wrote an article back then describing how many investors saw these companies as ‘bond proxies’, or companies with dividends so safe they could be treated as a fixed-income investment.

Well, 2020 has given that answer and broken this thesis in the most brutal of fashions.

Dividend heroes to zeroes

The coronavirus pandemic has comprehensively destroyed the notion that any company’s dividend can be regarded as ‘safe’ or bond-like. Transurban has been forced to slash its dividend payouts in 2020. Sydney Airport has cancelled its interim dividend entirely.

But that in turn begs the question: what role can infrastructure shares play at all in a 2020 dividend portfolio? After all, it’s not just Transurban and Sydney Airport that have cut their dividend in 2020. A range of other former ASX dividend heavyweights have also slashed shareholders’ payouts (as I alluded to earlier). That includes all four of the major ASX banks, Ramsay Health Care Limited (ASX: RHC), Woolworths Group Ltd (ASX: WOW), BHP Group Ltd (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL).

So it’s not like infrastructure shares are alone in this conundrum. Still, investors have always been attracted to infrastructure companies because of the dividend safety discussed earlier, as well as the perception of these companies owning ‘real assets’ that offer additional perks like inflation-hedging.

Holding infrastructure investment shares in 2020

So what place do infrastructure investments have in a 2020 portfolio? Well, I think there’s still merit in this area for a post-COVID world. Although many infrastructure companies have been buckling under the pandemic, others have been doing just fine. Gas pipeline owner APA Group (ASX: APA) is one such example. It has managed to deliver to its investors a dividend increase this year. That’s not a feat many other companies can boast of.

If you’d like a well-rounded portfolio of infrastructure shares instead of trying to pick one or two winners, there’s a couple of solutions. The Vanguard Global Infrastructure Index ETF (ASX: VBLD) is one such option. It’s an exchange-traded fund (ETF) that holds 139 infrastructure shares from around the world. It offers a trailing dividend yield of 3.37% on current pricing and holds energy retailers, railroad companies, airports, and ports, among others.

The Magellan Infrastructure Fund (ASX: MICH) is another option. It’s an actively managed fund that holds between 20 to 40 shares and offers a trailing yield of 4.19%.

If it’s infrastructure investment you want, either of these funds would make a nice, balanced option, in my view.

More reading

• 3 retirement myths you can’t afford to believe
• The ASX shares set to gain from government’s gas-led recovery
• 5 things to watch on the ASX 200 on Wednesday
• Is the Sydney Airport (ASX:SYD) share price a cheap buy?
• 5 things to watch on the ASX 200 next week

Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited. The Motley Fool Australia owns shares of APA Group, Transurban Group, and Woolworths Limited. The Motley Fool Australia has recommended Magellan Infrastructure Fund and 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a sizeable decline. At the time of writing the benchmark index is down 0.95% to 5,898.9 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are dropping notably lower:

The City Chic Collective Ltd (ASX: CCX) share price has dropped 7% lower to $3.15. Investors have been selling the fashion retailer’s shares after it was unsuccessful acquiring the ecommerce assets of US-based plus-size retailer Catherines. These assets were being sold off following the bankruptcy of Ascena Retail Group. City Chic was in pole position to acquire the assets but was ultimately outbid.

The Fortescue Metals Group Limited (ASX: FMG) share price has sunk almost 6% lower to $16.33. The catalyst for this was a pullback in the iron ore price overnight. According to CommSec, the spot iron ore price fell 3.4% to US$124.20 a tonne on Wednesday night. In addition to this, a broker downgrade by Morgan Stanley last week is being covered in the media today and could be weighing on sentiment.

The Nearmap Ltd (ASX: NEA) share price has dropped 3.5% lower to $2.38. As well as being caught up in general tech sector weakness, this morning the aerial imagery technology and location data company announced the opening on its share purchase plan. Nearmap is aiming to raise $20 million at the lower of the institutional placement price of $2.77 or a 2.5% discount to the five-day volume weighted average price on 5 October.

The Zip Co Ltd (ASX: Z1P) share price has fallen over 5% to $6.10. Investors have been selling Zip and other tech shares today after the Nasdaq rebound ran out of steam overnight. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down a disappointing 1.7%.

More reading

• 3 ASX growth shares I’d buy right now
• Why the Splitit (ASX:SPT) share price is on the move today
• ASX 200 down 0.8%: Fortescue (ASX:FMG) tumbles, Afterpay (ASX:APT) sinks lower
• Why the Fortescue (ASX:FMG) share price is underperforming its peers today
• 3 ASX tech shares that are still in the buy zone

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 Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nearmap 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

After reviewing the adverse event that caused AstraZeneca plc (NYSE: AZN) to pause the clinical trials of its coronavirus vaccine, AZD1222, an independent review determined there’s nothing to worry about.

Or at the very least, there’s not enough evidence to determine whether there is something to worry about.

“After independent review, these illnesses were either considered unlikely to be associated with the vaccine or there was insufficient evidence to say for certain that the illnesses were or were not related to the vaccine,” the clinical trial organizers for the phase 2/3 U.K. clinical trial wrote in the participant-information sheet, which was updated on Friday.

The volunteers developed “unexplained neurological symptoms including changed sensation or limb weakness,” which is a little more descriptive than simply calling it an “unexplained illness,” as AstraZeneca did when it acknowledged that the clinical trials had been paused last week.

The U.K. clinical trials testing AZD1222 have restarted, but the 30,000-participant U.S.-based clinical trial remains on hold while the drugmaker waits for the monitoring committee for that study to sign off on restarting the study.

During its investor-day presentation yesterday, Pfizer Inc. (NYSE: PFE) said that there hadn’t been any pauses in the clinical trials of its coronavirus vaccine, BNT162b2, which it is developing with BioNTech SE (NASDAQ: BNTX). Pfizer continuously monitors the safety data, and an independent data-monitoring committee (DMC) reviews the data weekly. Pfizer isn’t privy to whether adverse events are in patients given the active vaccine or placebo, but the DMC gets unblinded data, so they can eliminate adverse events in patients receiving placebo as obviously not caused by the active vaccine.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• AstraZeneca resumes UK clinical trials of its coronavirus vaccine after a safety pause
• Pfizer says it could know if its COVID-19 vaccine candidate works in October
• The surefire vaccine winner following AstraZeneca’s COVID-19 trial pause
• What if more than one company wins the coronavirus vaccine race?
• Coronavirus vaccine race: 7 key things you’ll want to know

Brian Orelli, PhD and 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 Coronavirus vaccine trial adverse event was probably unrelated to treatment appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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