Author: therawinformant

The S&P/ASX 200 Index (ASX: XJO) has shaken off fears over a second wave of coronavirus infections to record a substantial 1.9% gain last week. The uplift in investors’ sentiment saw the flagship ASX 200 index climb back over the psychologically important (but practically impotent) 6,000 points threshold. This line in the sand has been flirted with on numerous occasions over the past 2 months, so we’ll have to see if investors’ confidence holds this time.

Back in February, the ASX 200 was above 7,000 points, which it had hit for the first time in history in January 2020. But the emergence of the coronavirus pandemic saw the ASX 200 (along with global markets) subsequently crater to just above 4,500 points by mid-March — a loss of close to 40%.

Despite this dramatic collapse, the ASX 200 quickly recovered in April and May, and first crossed back over the 6,000 points line back in early June. But gyrations across the global economy as well as the unpredictable nature of the pandemic have seen investors play jump rope with this line ever since.

But I digress.

ASX blue chips and miners see big gains

So the last week saw some interesting developments on the ASX boards. ASX blue chip shares had an extremely strong week across the board. The big four ASX banks, Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) pushed higher. Coles Group Ltd (ASX: COL) even hit a new all-time high of $18.32 during the week.

But once again it was the ASX resources sector that really got investors’ blood pumping. The ‘Big Australian’ BHP Group Ltd (ASX: BHP) was up nearly 5% last week, as was Rio Tinto Limited (ASX: RIO) with a 6.3% gain. But, as we’ve become accustomed to in 2020, it was Fortescue Metals Group Limited (ASX: FMG) that again stole the show. Fortescue shares rose an astonishing 10.37% over the week and even set a new all-time high of $16.66 just after market open on Friday.

In contrast, ASX gold miners and buy now, pay later shares like Afterpay Ltd (ASX: APT) –  the market darlings of the week prior – were the party poopers last week. Afterpay is firmly back under $70 as of Friday after an incredible run in recent months to its current high watermark of $76.62. And some steam-letting in the gold price also saw ASX gold miners like Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) give back some of their recent gains as well.

How did the markets end the week?

To put it concisely, as the ASX 200 started the week at 5,919.2 points and finished up at 6,033.6 points, we can put the gains for the week at 1.93%. Despite this healthy green number, it wasn’t a week of smooth sailing. Monday did see a 0.98% gain to start the week off. But Tuesday saw the ASX 200 shed 0.6% on coronavirus fears. Then Wednesday saw a jubilant 1.9% rise on the share market as a galloping iron ore price assuaged the previous day’s concerns. Thursday saw a 0.7% cool off, but Friday’s 0.4% return to form made sure the ASX 200 could bank a week in the green.

Meanwhile, the All Ordinaries (INDEXASX: XAO) also saw a week of mild turbulence amid its rise from 6,036.3 to 6,144.9 points to cement a 1.8% gain.

Which ASX 200 shares were the biggest winners and losers?

Well, it’s time for the Foolish gossip pages — so let’s sit back and have a gander at last week’s best and worst performers. As always, we’ll start with the losers:

Worst ASX 200 losers	% loss for the week
Avita Therapeutics Inc (ASX: AVH)	(19%)
Mesoblast Limited (ASX: MSB)	(9.5%)
PolyNovo Ltd (ASX: PNV)	(7%)
Megaport Ltd (ASX: MP1)	(6.9%)

Former Australian of the Year Fiona Wood’s company Avita claims last week’s wooden spoon. The substantial 19% drop came after the skin treatment company delivered a sales update which saw revenues grow by around 160%. Clearly investors wanted even more than this and sent a big downgrade Avita’s way.

Fellow medical company Mesoblast was also on ASX 200 investors’ hit list. After coming in on last week’s winner’s list with a 9% gain, we can probably attribute this week’s comedown as some healthy profit taking.

Another medical company (I’m sensing a theme here) in Polynovo takes out the bronze medal. With no major news out of the company, it again just looks as though investors were keen to get some house money off the table with this one.

Now with the losers out of the way, let’s check out the winners:

Best ASX 200 gainers	% gain for the week
Alumina Limited (ASX: AWC)	12.5%
Credit Corp Group Limited (ASX: CCP)	10.8%
Cooper Energy Ltd (ASX: COE)	10.5%
Fortescue Metals Group Limited (ASX: FMG)	10.4%

As we flagged earlier, ASX resources shares were the ASX’s primary breadwinners last week. First cab off the rank is aluminium producer Alumina. Investors seemed to like what they saw with the company’s recent quarterly earnings report. Despite the positive moves for Alumina, the company is still down around 22% year to date.

Debt collector Credit Corp also had a top week after it released an update of its own. I’m sure the 10.8% gain will be appreciated by Credit Corp’s investors, who are still enduring a 45.6% loss for the year so far.

Oil company Cooper also joined in the party, along with the previously-discussed Fortescue Metals.

What is this week looking like for the ASX 200?

After last week’s gains amidst a rising tide of coronavirus infections in Victoria, who knows what this week might bring to the table. It seems to this writer that the ASX 200 and global markets in general are starting to become desensitised to bad news, whilst still embracing any piece of good news that comes along – not a bad market to be a part of in circumspect (at least for now).

With earnings season now around the corner, investors will also no doubt be turning their attention to any potential surprises that might get thrown up in that arena. Given the current economic climate, I’m sure there are going to be some depressing numbers in the mix.

So before we go, here is a look at how the major ASX 200 blue chip shares are looking as we prepare for the new week:

ASX 200 company	Trailing P/E ratio	Last share price	52-week high	52-week low
CSL Limited (ASX: CSL)	44.67	$283.42	$342.75	$215.24
Commonwealth Bank of Australia (ASX: CBA)	13.17	$72.60	$91.05	$53.44
Westpac Banking Corp (ASX: WBC)	13.43	$17.89	$30.05	$13.47
National Australia Bank Ltd. (ASX: NAB)	16.24	$18.10	$30.00	$13.20
Australia and New Zealand Banking Group Limited (ASX: ANZ)	12.57	$18.47	$28.79	$14.10
Woolworths Group Ltd (ASX: WOW)	19.34	$38.86	$43.96	$32.12
Wesfarmers Ltd (ASX: WES)	24.13	$46.53	$47.42	$29.75
BHP Group Ltd (ASX: BHP)	14.24	$37.92	$41.98	$24.05
Rio Tinto Limited (ASX: RIO)	14.88	$104.14	$107.79	$72.77
Coles Group Ltd (ASX: COL)	20.42	$18.15	$18.32	$13.10
Telstra Corporation Ltd (ASX: TLS)	19.96	$3.46	$4.01	$2.87
Transurban Group (ASX: TCL)	164.87	$13.94	$16.44	$9.10
Sydney Airport Holdings Pty Ltd (ASX: SYD)	30.57	$5.47	$9.30	$4.37
Newcrest Mining Limited (ASX: NCM)	31.48	$32.78	$38.87	$20.70
Woodside Petroleum Limited (ASX: WPL)	39.24	$20.64	$36.28	$14.93
Macquarie Group Ltd (ASX: MQG)	14.72	$125.18	$152.35	$70.45

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 6,033.6 points
•     All Ordinaries (XAO) at 6,144.9 points
•     Dow Jones Industrial Average at 26,671.95 points after falling 0.23% on Friday night (our time)
•     Gold (Spot) swapping hands for US$1,809.55 per troy ounce
•     Iron ore asking US$105.59 per tonne
•     Crude oil (Brent) trading at US$43.04 per barrel
•     Crude oil (WTI) going for US$40.51 per barrel
•     Australian dollar buying 69.99 US cents
•    10-year Australian Government bonds yielding 0.86% per annum

Foolish takeaway

After a healthy week of gains last week, investors will no doubt be hoping for a double-up this week. I’m keeping my eye on the infection rate trajectory down in Victoria this week.

If signs emerge that the second round of lockdowns is working, it could well lead to the ASX 200 pushing higher and even testing its post-March high of 6,148 points. But as always, we’ll have to wait and see how things come to fruition. So fellow Fools, stay safe, stay rational and stay Foolish!

More reading

• 4 ASX 200 shares to buy with $4,000
• 5 things to watch on the ASX 200 on Monday
• 2 high yield ASX dividend shares I would buy
• Buy these strong ASX shares for your retirement portfolio
• Top brokers name 3 ASX shares to buy next week

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, CSL Ltd., MEGAPORT FPO, and POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Avita Medical Limited and MEGAPORT 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.

The post ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points appeared first on Motley Fool Australia.

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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) remains the most shorted share on the Australian share market with short interest of 12.2%. The department store operator looks likely to be negatively impacted by the pandemic and the accelerating shift to online shopping.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7%. This communications satellite technology provider’s shares are still suspended as it sorts out its bankruptcy. Short sellers look set to win big from this bet.
• Webjet Limited (ASX: WEB) has seen its short interest jump to 11.2%. It looks as though short sellers are targeting the online travel agent due to its valuation and concerns that the coronavirus outbreak in Victoria could delay the domestic travel market’s recovery.
• Inghams Group Ltd (ASX: ING) has 9.6% of its shares held short, which is up slightly week on week once again. Earlier this year the poultry company warned that the pandemic had negatively impacted its sales mix. This could mean Inghams disappoints with its full year result in August.
• Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.1%. Short sellers appear to be closing their positions after the Nearmap business model held up during the pandemic. Demand for the aerial imagery and location data technology company’s services has been robust during the crisis.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest remain flat at 8.1%. Earlier this year the regional bank released a soft half year result and warned of tough times ahead.
• Galaxy Resources Limited (ASX: GXY) has 8% of its shares held short, which is flat week on week. Galaxy and fellow lithium miners have come under pressure again this year due to the sustained weakness in the price of the battery making ingredient.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest rise slightly to 8%. This biopharmaceutical company’s lofty valuation may be attracting short sellers.
• FlexiGroup Limited (ASX: FXL) is a new entry in the top ten with short interest of 7.6%. While the financial services company’s buy now pay later offering may be growing quickly, short sellers appear concerned over the rest of the business.
• Orocobre Limited (ASX: ORE) has seen its short interest rise to 7.2%. As with Galaxy, short sellers have been going after Orocobre due to ultra-low lithium prices.

More reading

• ASX 200 flat: Westpac class action, Rio Tinto Q2 update, travel shares sink
• Why outperforming ASX retail stocks could be running out of puff
• ASX 200 flat: Big four banks and travel shares push higher, Breville tumbles lower
• Why PointsBet, Recce Pharmaceuticals, Vocus, & Webjet shares are storming higher
• Where to invest your first $500 into ASX shares

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended FlexiGroup 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.

The post These are the 10 most shorted shares on the ASX appeared first on Motley Fool Australia.

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Each week I pick an ASX share that I think could be a good idea for both the short-term and the long-term. This week I’m going for Vitalharvest Freehold Trust (ASX: VTH) at today’s share price.

Some of my previous picks have been shares like Brickworks Limited (ASX: BKW), A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB).

Overview of Vitalharvest

Vitalharvest is an agricultural real estate investment trust (REIT). The REIT says that its objective is to provide investors with exposure to real agricultural property assets whose earnings profile and underlying value are exposed to the growing global agricultural demand for nutritious, healthy food. The current assets comprise one of the largest aggregations of berry and citrus farms in Australia and are leased to Costa Group Holdings Ltd (ASX: CGC) – Australia’s leading horticulture company and largest fresh produce supplier. These assets provide agricultural diversification by way of crop type, climatic region, water source and product end markets.

The ASX share earns rent in two main ways. It earns a fixed rental return. It also receives variable rent from Costa in the form of a share of the profit generated from the farms. That variable rent has been disappointing in recent times due to issues such as the drought, fruit flies near a citrus farm and crumbly berries. The drop in variable rent has been a major cause of the Vitalharvest share price falling to $0.79 today.

A new manager

A month ago it was announced that asset manager Primewest Group Ltd (ASX: PWG) had acquired the manager of Vitalharvest so that it would take over management. Primewest has also acquired an 11.8% stake in Vitalharvest and a right of first refusal over a further 6.2% interest.

Primewest currently manages over $4 billion of assets spanning multiple asset classes.

The REIT ASX share is going to expand its investment targets from more than just farms. It’s also going to look for other assets that are critical to the agricultural supply chain like processing and manufacturing facilities for food, food and beverage packaging facilities and storage facilities related to food.

It will be targeting high quality locations throughout Australia and New Zealand with long-term leases to tenants on attractive terms.

Why Vitalharvest is my pick this week

There are several reasons why I think Vitalharvest is a buy at this share price. The first is that it’s trading cheaply compared to its assets. At 31 December 2019 it had a net asset value (NAV) of $0.95 per unit. If we assume the NAV hasn’t changed since then, the Vitalharvest share price is trading at a 17% discount.

I think Costa’s reported results will improve over the next 12 months, which should hopefully increase Vitalharvests’ earnings and distributions.

The market may warm up to the Primewest strategy once investors get a look at some of the assets that are potentially going to be acquired.

COVID-19 is still a factor for the share market and the economy. I think it will be ASX shares like agricultural businesses that are able to deliver growth over the next six to twelve months regardless of what direction the economy goes. I think the end of the worst part of the drought will have a positive impact for farming shares as well.

Finally, a good reason to think about Vitalharvest is that it pays out most of its earnings as an annual distribution. At the current Vitalharvest share price it’s trading with a trailing distribution yield of 6%.

Foolish takeaway

Vitalharvest is unlikely to deliver incredible returns – REITs aren’t tech shares – but I think there’s potential for solid share price growth over the next 12 months, plus a yield higher than what the market offers.

More reading

• 3 ASX shares now trading at crazy cheap prices
• 2 ASX shares I’d love to buy right now
• Fund managers have been buying Costa and this ASX 200 share
• Why the Afterpay share price zoomed to a new record high today
• 3 ASX shares that could make a big turnaround

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, and COSTA GRP FPO. The Motley Fool Australia owns shares of A2 Milk. 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 My ASX share of the week appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is home to a large number of shares which I believe can beat the market over the 2020s.

Four of the best ASX 200 shares that I would buy with $4,000 are listed below. Here’s why I think they are quality investment options:

a2 Milk Company Ltd (ASX: A2M)

The first ASX 200 share to consider buying is a2 Milk Company. I believe that a2 Milk Company would be a great ASX share to own due to the increasing demand for its infant formula in China and its growing fresh milk footprint. Another positive is its substantial cash balance, which could be used to accelerate its growth through new product launches and acquisitions.

Altium Limited (ASX: ALU)

Another ASX 200 share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Over the last decade Altium has carved out a leading position in the electronic design market. This is a big positive given the proliferation of electronic devices, which is likely to lead to increasing demand for its software for many years to come. I expect this to drive the Altium share price notably higher over the 2020s.

CSL Limited (ASX: CSL)

I feel CSL could be the best share to own on the ASX 200. I’m a big fan of the biotherapeutics giant thanks to the increasing demand for immunoglobulins, its growing plasma collection network, and its pipeline of potentially lucrative products. And with the CSL share price down almost 18% from its 52-week high, now could be an opportune time to invest.

Nanosonics Ltd (ASX: NAN)

A final ASX 200 share to consider buying is Nanosonics. It is an infection prevention company which I believe has very strong long term growth potential. This is due to the sizeable market opportunity of its industry-leading trophon EPR disinfection system for ultrasound probes and the upcoming launch of new products. These products are targeting other unmet needs in a market where infection control is becoming increasingly important.

More reading

• 5 things to watch on the ASX 200 on Monday
• Want to beat the market? Try these 3 ASX growth shares
• Top brokers name 3 ASX shares to buy next week
• 3 things that will impact on ASX shares this reporting season
• How to rebalance your average ASX share portfolio

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 Altium, CSL Ltd., and Nanosonics Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Nanosonics 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 4 ASX 200 shares to buy with $4,000 appeared first on Motley Fool Australia.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a solid note. The benchmark index climbed 0.3% to 6,033.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 set to edge higher.

The ASX 200 looks set to edge higher this morning after a mixed end to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 2 points higher. On Wall Street the Dow Jones fell 0.2%, the S&P 500 rose 0.3%, and the Nasdaq pushed 0.3% higher.

Oil prices edge lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red. According to Bloomberg, the WTI crude oil price fell 0.4% to US$40.59 a barrel and the Brent crude oil price dropped 0.5% to US$43.14 a barrel. Traders were selling oil amid uncertainty over fuel demand.

Gold price rises.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise on Monday after the gold price strengthened. According to CNBC, the spot gold price rose 0.5% to US$1,810 an ounce. A spike in coronavirus cases globally supported the price of the precious metal.

South32 update.

The South32 Ltd (ASX: S32) share price will be on watch today when it releases its latest production update. The mining giant is likely to reveal just how much the COVID-19 outbreak impacted the production of its manganese and coal operations in South Africa.

SEEK shares given neutral rating.

Analysts at Goldman Sachs appear to believe the SEEK Limited (ASX: SEK) share price has peaked. According to a note out of the investment bank, its analysts have put a neutral rating and improved price target of $20.20 on the job listings company’s shares. This price target implies potential downside of 7.3%. While the broker is positive on SEEK’s future growth prospects, it isn’t a fan of its current valuation.

More reading

• 4 ASX 200 shares to buy with $4,000
• 3 things that will impact on ASX shares this reporting season
• These were the worst performing ASX 200 shares last week
• How I’d build a $100,000 ASX portfolio of growth shares
• ASX 200 finishes up 0.4%, Rio Tinto grinds higher

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK 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 5 things to watch on the ASX 200 on Monday appeared first on Motley Fool Australia.

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