Category: Stock Market

The Seek Ltd (ASX: SEK) share price is under pressure on Tuesday.

In morning trade, the job listings giant’s shares are down 7% to $22.58.

Why is the Seek share price sinking?

Investors have been selling down the Seek share price today after the company released a trading and guidance update this morning.

According to the release, the company expects to fall short of its revenue guidance for continuing operations in FY 2023. This is due to continued moderation of job ad volumes.

Based on trading momentum for the third quarter, management revealed that it expects its revenue for FY 2023 to be approximately $15 million lower than the guidance provided with its half-year results in February.

It is now forecasting revenue of approximately $1,245 million for the 12 months.

However, the good news is that the company’s costs are expected to be lower than forecast and help offset this lower revenue.

As a result, Seek has been able to reaffirm its earnings guidance for FY 2023 (excluding significant items).

It continues to guide to earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $560 million and net profit after tax of $250 million. This implies year on year earnings growth of 10% and 1.8%, respectively.

Longer term targets

Seek may have disappointed with its FY 2023 revenue guidance update, but its longer term aspirations could raise some eyebrows.

Management revealed that it is targeting $2 billion in revenue by FY 2028, which is 60% greater than FY 2023’s guidance and implies a compound annual growth rate of 10% per annum. Goldman Sachs notes that this is meaningfully higher than its estimate ($1.83bn) and consensus estimates ($1.73bn).

However, it hasn’t been enough to stop the Seek share price from falling today.

The post Seek share price sinks 7% on guidance update appeared first on The Motley Fool Australia.

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More reading

• Morgans names the best ASX shares to buy in April
• 6 ASX 200 shares with ex-dividend dates in the next week
• Top ASX 200 tech shares to buy right now: Morgans

Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Seek. 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 Westpac Banking Corp (ASX: WBC) share price has fallen to below $22. That represents a fall of 8% from mid-February. Could the ASX bank share represent a great business to buy for wealth creation?

For starters, I think it’s important to acknowledge where a lot of the returns are likely to come from with this potential investment.

I believe that a majority of the returns are going to come from dividends. ASX bank shares typically aren’t strong growth names, and Westpac is already a large business with a market capitalisation of $76 billion according to the ASX. It gets quite hard to grow a business at that level.

What dividend income could Westpac shares pay in FY23 and beyond?

According to Commsec, Westpac could pay an annual dividend per share of $1.38 in FY23.

Then, this could grow to $1.46 in FY24.

By FY25, the ASX bank share might pay an annual dividend per share of $1.50 per share.

Translating these potential payments into dividend yields, the FY23 grossed-up dividend yield could be 9%.

The FY24 grossed-up dividend yield could be 9.5%.

With the FY25 dividend, the grossed-up dividend yield might be 9.8%.

I think that’s a very attractive level of dividend income. If the Westpac share price were to deliver that level of return as well then I think it would handily outperform the S&P/ASX 200 Index (ASX: XJO).

But, I don’t think Westpac’s dividend alone will make investors rich from here even though it’s a very good dividend yield.

If Westpac’s earnings per share (EPS) can be maintained and grow, then I think dividends can continue to grow from here.

Investors often like to value the share price based on how much profit it’s expected to make in the short-to-medium term.

Will earnings growth fund capital growth?

Westpac is currently benefiting from two different tailwinds. It’s getting more net interest income because Australia’s official cash rate has gone up, which is helping the banks earn more profit.

The ASX bank share is also working on cutting costs from the business, which has a natural boost for earnings.

I’m not sure where Westpac’s net interest margin (NIM) is going in the short-term or the longer-term, but I think the business could be priced cheaply enough that it doesn’t really matter that much, as long as there isn’t a large increase in bad debts.

According to Commsec, the Westpac share price is valued at under 11 times FY23’s estimated earnings and under 10 times FY25’s estimated earnings. I think the Westpac share price could easily rise by 10% and it would still be at an appealing price.

So, I’m not saying Westpac is the next Apple, but I do think it can outperform from here.

The post Could buying Westpac shares at under $22 make me rich? appeared first on The Motley Fool Australia.

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More reading

• 3 Warren Buffett tips on how to invest in ASX 200 banks
• Buy these ASX 200 shares for massive dividends: analysts
• Why was the Westpac share price sold off in March?
• Does the Westpac share price fall make it a no-brainer buy?
• Guess which ASX 200 bank stock UBS says is the most over-priced right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Westpac Banking. 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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Putting your money to work in the share market is a great way to earn a passive income. Especially given the potential yields on offer from some ASX 200 shares.

Woodside Energy Group Ltd (ASX: WDS) shares, for example, have been tipped to reward shareholders with some very big fully franked dividend yields in the near future thanks to the successful merger with the petroleum operations of mining behemoth BHP Group Ltd (ASX: BHP) and strong oil prices.

But what would it take to earn $500 of monthly passive income from Woodside shares?

Passive income from Woodside shares

According to a recent note out of Citi, its analysts are forecasting fully franked dividends of $2.66 per share in FY 2023 and then $2.60 per share in FY 2024.

Based on the current Woodside share price of $34.23, this implies yields of 7.8% and 7.6%, respectively.

If we wanted to generate enough to provide us with $500 of passive income each month, we would need to receive $6,000 of dividends a year.

This would mean we would need to own approximately 2,256 Woodside shares this year and 2,308 shares next year, based on Citi’s forecasts.

This isn’t chump change unfortunately. It would require an investment of approximately $77,222 in FY 2023. Investors would then need to put a further $1,780 into Woodside shares in FY 2024 to keep generating the desired level of income.

But it certainly could be worth it if you have the funds available. After all, investing that $77,222 into a 12-month term deposit is likely to yield almost half as much based on the current rates being offered by the big four banks.

And there’s no potential for capital gains with term deposits. Whereas analysts at Ord Minnett currently have an accumulate rating and $44.50 price target on Woodside’s shares.

This implies potential upside of 30% for investors from current levels. Which would turn that $77,222 investment into just over $100,000.

The post How much would I need to invest in Woodside shares for a $500 monthly income? appeared first on The Motley Fool Australia.

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More reading

• Why EOS, Lake Resources, Tyro, and Woodside shares are racing higher today
• Why are ASX 200 energy shares off to such a great start on Monday?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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March was a turbulent month for the Qantas Airways Limited (ASX: QAN) share price.

As the chart below shows, the stock took off to coast at a new multi-year high of $6.87 early on in the peace before diving 10% over seven sessions to a low of $6.185 in the middle of last month.

Fortunately, it managed to pull itself out of its spiral. It ended March 3% higher than it was at the end of February, trading at $6.62.

For comparison, the S&P/ASX 200 Index (ASX: XJO) slumped 1% over the same period.

So, what went right, then wrong, then right again for the flying kangaroo in March? Let’s take a look.

Qantas updates on acquisition, growth, and biofuels

The Qantas share price put on a turbulent, but ultimately rewarding performance last month despite no price-sensitive news having been released by the airline operator.

Indeed, the last time the market heard such news from the ASX 200 giant was on the release of its first-half earnings in February. That saw the stock dump nearly 7% despite the company posting a $1.4 billion profit.

However, investors were given plenty of insight into the company’s growth plans and its intended acquisition of Alliance Aviation Services Ltd (ASX: AQZ) in recent weeks.

The takeover hit a bump last month when the Australian Competition & Consumer Commission (ACCC) delayed its review of the deal. It was pushed back to 20 April.

Meanwhile, Qantas revealed its plan to create more than 8,500 new high-skill jobs in Aussie aviation and hire 30,000 frontline people over the coming 10 years. It will also establish a new training pipeline for aviation engineers – the Qantas Group Engineering Academy.

Further, the airline tips its domestic capacity to surpass 100% in the April quarter. It also intends to grow both its international and domestic flying capacity by 15% over the coming six months.

And finally, the national carrier put its money where its mouth is on biofuels last month.

Qantas, alongside Airbus, will invest $2 million into the early-stage development process of creating a biofuel production facility in Queensland.

Qantas share price outperforms ASX 200 over longer-term

The Qantas share price has soared above the market in recent months, gaining 13% year to date.

The stock is also currently 30% higher than it was this time last year.

Comparatively, the ASX 200 has gained 4% since the start of 2023. Meanwhile, it has fallen 4% over the last 12 months.

The post Why did the Qantas share price soar higher than the ASX 200 in March? appeared first on The Motley Fool Australia.

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More reading

• Qantas shares in the green amid sweet $2m investment
• Why I think the Qantas share price can keep soaring higher
• Beach and bling: 2 ASX 200 shares Firetrail is loving right now
• Refuelled with profits, how ASX 200 favourite Qantas plans to stick the landing on growth
• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Alliance Aviation Services. 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 ASX growth stock Pinnacle Investment Management Group Ltd (ASX: PNI) has fallen heavily since its recent highs. But I think it can reach new heights in time. I think a bull market is on the way, we just don’t know whether it will start next month, next year or another time.

It’s down 26% from its 2023 high in mid-January and it’s down over 50% from November 2021.

There aren’t too many ASX shares with a market capitalisation of over $1 billion that have fallen harder than Pinnacle has.

For investors that haven’t heard of this business before, it’s a company that makes investments in talented fund managers that are building their own fund management outfit. Pinnacle can help in several areas, including seed funds under management (FUM), working capital, distribution and client services, middle office and fund administration, compliance, finance, legal, technology and other infrastructure.

Some of its investments include Hyperion, Plato, Resolution capital, Solaris, Antipodes, Spheria, Metrics, Firetrail and Coolabah.

In FY19, before COVID-19 impacts, the Pinnacle continued operations’ earnings per share (EPS) increased by 28% to 18.3 cents.

However, in the latest result, being the FY23 half-year report, EPS dropped 27% to 21.5 cents. Its momentum has really shifted.

The cause of the profit decline was a 28% fall in the share of Pinnacle affiliate’s net profit after tax. This was impacted by a large decline in performance fees after tax, with Pinnacle’s share falling 86% to just $0.9 million. That was a big hit for the ASX growth stock.

Why I think the Pinnacle share price can rebound

I think it was inevitable that performance fees would fall as asset prices declined, as fund managers often have a ‘high watermark’. That basically means if share prices fall, the value of the fund needs to recover that previous level before it can earn a performance fee again.

Active fund managers also found it tricky to outperform in a rising interest rate environment, where growth and defensive names were hurt, while banks and energy businesses outperformed.

But, I think that interest rates are very close to the peak. This could prove to be a catalyst for the ASX growth stock and for investment money to return to fund managers, like Pinnacle’s affiliates. It could also be a spur for share prices to climb again.

I think Pinnacle’s core profit, meaning excluding performance fees, can rise once interest rates stop going up. Growth of FUM can be a very useful boost for the business.

Not only could its existing fund managers and strategies rebound, but those fund managers occasionally launch a new fund or strategy. Pinnacle is also slowly increasing its portfolio by investing in new fund managers, including a recent Canadian expansion called Langdon.

Pinnacle sees offshore opportunities as compelling because there is the ability to export its model.

ASX growth stock valuation

I think we need to think about the long-term when investing, so let’s look at the longer-term valuation and projections, which I believe are appealing.

According to Commsec, the Pinnacle share price is valued at 16 times FY25’s estimated earnings. I think it’s a great time to consider the business after the recent share price fall. It could also come with a grossed-up dividend yield of 7.25% in FY25.

The post A bull market is coming: One ASX growth stock down over 50% to buy and hold appeared first on The Motley Fool Australia.

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More reading

• Why I think these 2 ASX 200 dividend shares offer excellent buying right now
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. 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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Passive income may be a key goal for many investors that want to generate a lot of dividends each year.

I think there’s a reason why the phrase ‘it pays dividends’ is a positive saying. I think they’re great. Receiving cash for doing no work is a really nice benefit, in my opinion. We can receive a share of the company’s profits each year, while it (hopefully) re-invests the rest for more growth.

Receiving dividends year after year is one of the best benefits of owning ASX dividend shares. Another great benefit is that ASX dividend shares can deliver growth as well – that’s potential capital growth and dividend growth.

The answer we’re after is how much investors need to have invested to generate $800 per month. The answer is: it depends.

Dividend yield

It all depends on how much of a dividend yield the portfolio is going to pay.

For starters, receiving $800 per month translates into annual dividends of $9,600. That’s a very healthy amount of money.

But, it all depends on what the dividend yield is for and how much passive dividend income it could make.

If the ASX share portfolio had a dividend yield of 1%, then investors would need $960,000 to be invested. That’s a lot – almost $1 million.

A 2% dividend yield from a portfolio, but wanting an average of $800 per month, would need a portfolio size of $480,000.

If the portfolio paid a 4% dividend yield, then investors would need a portfolio worth $240,000.

Looking at a 6% dividend yield, we’re talking about a portfolio size of $160,000.

An 8% dividend yield from the portfolio means investors would only need to invest $120,000.

Finally a 10% dividend yield would mean that investors need a $96,000 portfolio.

Which ASX shares pay dividends?

Many of the ASX’s biggest businesses pay dividends to investors such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL).

Different businesses have different dividend yields, depending on how much of the profit they pay out each year (called the dividend payout ratio) and the multiple of earnings that a business is trading at (which is called the price/earnings (P/E) ratio).

Let’s look at what a few dividend yields are expected to be in FY23, according to Commsec’s projections.

Telstra Group Ltd (ASX: TLS) shares might pay a grossed-up dividend yield of 5.75%.

National Australia Bank Ltd (ASX: NAB) shares could pay a grossed-up dividend yield of 8.8%.

Coles Group Ltd (ASX: COL) shares are projected to pay a grossed-up dividend yield of 5.1%.

Sonic Healthcare Ltd (ASX: SHL) shares might pay a grossed-up dividend yield of 4.2%.

By mixing and matching different yielding businesses together, we can create a good portfolio for passive income. But, I wouldn’t suggest just going for the highest-yielding options – they might be risky and come with less growth.

The post Passive income: How much to invest to get $800 per month appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Brokers say Telstra and this ASX 200 dividend shares are buys
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• 3 Warren Buffett tips on how to invest in ASX 200 banks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended Sonic Healthcare. 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 S&P/ASX 200 Index (ASX: XJO) started the week on a strong note, closing Monday up 0.5%.

Still, the benchmark index remains down 4.6% since the closing bell on 3 February.

Which begs the question, is now the time to invest in ASX 200 shares for their passive income?

ASX 200 shares offer attractive passive income potential

ASX 200 dividend shares can set investors up with some handy passive income streams.

Particularly those that provide franking credits, which credit investors with the taxes the companies have already paid on the profits they’re sharing out.

Getting the most passive income from your ASX 200 share requires buying the stock at the lowest possible price.

Now, timing the market with any kind of precision is all but impossible to do. Especially with consistency.

And, of course, you don’t want to invest in a company that’s losing share value because of operational or other sector-specific issues that are likely to see management cut future dividend payments.

But today we see many companies trading below their February levels simply due to broader macroeconomic factors, like global banking concerns and stubbornly high inflation.

Those macro issues will resolve themselves in due time. And high-quality ASX 200 companies should see their share prices rebound accordingly.

If their dividends remain on track, that means investors buying at today’s more subdued prices will realise higher yields come payout time.

So, is now a good time to hunt for blue-chip bargains to build up some handy passive income?

In my opinion, that’s a clear yes.

But do bear in mind that macro forces may not be done pressuring shares yet before they post a sustained recovery.

One way to tackle that concern is by dollar cost averaging your investments into any promising ASX 200 dividend shares. That can help smooth your returns and reduce the risk of going all in right before the broader market posts a sharp correction.

With history as our guide, we know there’ll be plenty of ups and downs yet from today’s levels.

We also know that in time the ASX 200 will almost certainly blow past February’s recent highs, offering some outsized passive income potential to investors who begin to dollar cost average today.

The post The ASX 200 is down 5% since February. Time to pounce for passive income? appeared first on The Motley Fool Australia.

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• Why did the Fortescue share price smash the ASX 200 in March?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• Why did the Telstra share price beat the ASX 200 in March?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Brokers have been busy in recent weeks adjusting their forecasts and recommendations to reflect updates that were given during earnings season.

Two ASX dividend shares that have fared well are listed below. Here’s why brokers think income investors should be buying these shares:

ANZ Group Holdings Ltd (ASX: ANZ)

The first ASX dividend share for income investors to look at is banking giant ANZ.

The team at Citi are very positive on ANZ and believes it is the bank to buy right now. The broker currently has a buy rating and $29.25 price target on its shares.

It was pleased with ANZ’s first-quarter update and believes its earnings are currently ahead of expectations. More of the same is expected in the future thanks to “lending momentum, particularly in institutional.”

As for dividends, Citi is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. Based on the current ANZ share price of $23.22, this will mean yields of 7.1% and 7.6%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that could be a buy for income investors is the Healthco Healthcare and Wellness REIT.

As you might have guessed from its name, this property company has a focus on health and wellness assets. These are properties such as hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Morgans is positive on the company and is expecting some big dividend yields in the coming years.

For example, Morgans is expecting in dividends per share of 7.5 cents in FY 2023 and 7.8 cents FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.34, this will mean yields of 5.6% and 5.8%, respectively.

Morgans has an add rating and $2.06 price target on its shares.

The post Brokers say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• 3 Warren Buffett tips on how to invest in ASX 200 banks
• Why did the ANZ share price crash 7% in March?
• Why Appen, Harvey Norman, Healthco, and Lake shares are dropping today
• Guess which ASX 200 bank stock UBS says is the most over-priced right now
• ASX 200 bank stocks: ‘No different’ or ‘extremely strong’?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After a strong start to 2023, the S&P/ASX 200 Index (ASX: XJO) has now fallen almost 4% since 8 February.

That means there could be some bargains to be bought during this particular dip.

Here are two buy suggestions from the experts this week:

‘One of the most innovative companies’

It has not been a pleasant ride for those who hold shares in US payments giant and Afterpay owner Block Inc CDI (ASX: SQ2).

The share price has plummeted a shocking 43.5% over the past 12 months, as the market has abandoned fintech stocks like it was a burning building.

However, Sequoia Wealth senior wealth manager Peter Day rates it as a buy at its current price.

“The share price of this buy now, pay later provider can be rapidly volatile in either direction,” Day told The Bull.

“We view Block Inc as one of the most innovative companies in payments.”

He admitted that those buying Block shares need to have the stomach for wild fluctuations in stock price.

“The stock suits investors with an appetite for risk,” said Day.

“On March 22, the shares closed at $115.15. On March 24, the stock closed at $88.94. The shares were trading at $99.28 on March 30.”

17 out of 18 analysts can’t be wrong?

Despite an outstanding year for the energy sector in 2022, Seneca Financial Group investment advisor Tony Langford is bullish on Santos Ltd (ASX: STO) for this year.

“Production is forecast to grow, as demand for products is expected to remain strong.”

He noted Santos’ pleasing reporting season figures.

“The energy giant reported a full year 2022 net profit after tax of US$2.112 billion, up 221% on the prior corresponding period,” said Langford.

“Free cash flow of US$3.641 billion was up 142%. Gearing was reduced to 18.9%. Higher oil and LNG prices contributed to the result.”

For an energy giant, the Santos share price hasn’t lit the world on fire over the past 12 months, actually falling more than 10%.

This mediocrity could point to a golden buying opportunity.

Quite a few of Langford’s peers agree. According to CMC Markets, a remarkable 17 out of 18 analysts currently rate Santos as a buy.

The post ‘Strong demand’: The 2 ASX 200 shares to pounce on right now appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 energy shares off to such a great start on Monday?
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher
• Why Jervois Global, Mincor, Newcrest, and Santos shares are dropping today

Motley Fool contributor Tony Yoo has positions in Block. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Ltd (ASX: FMG) share price managed to do very well in March 2023 compared to the S&P/ASX 200 Index (ASX: XJO).

Shares in the ASX mining company lifted by more than 5% last month, while the ASX 200 dropped by 1%.

Considering Fortescue’s large market capitalisation of $69.25 billion as of Monday’s close of trade, that’s a fair amount of outperformance.

There are two different things that may explain why the miner was such a standout performer for the month.

Why the ASX 200 declined

The ASX 200 is dominated by two industry segments – mining and ASX bank shares.

If one of those sectors sees a negative performance over the month, then it can hurt the overall ASX share market’s return.

Looking at the ASX bank returns in March 2023, shares in ANZ Group Holdings Ltd (ASX: ANZ) and the National Australia Bank Ltd (ASX: NAB) dropped a hefty 7% and 7.6%, respectively. Meanwhile, the Westpac Banking Corp (ASX: WBC) share price fell 3.9%, and the Commonwealth Bank of Australia (ASX: CBA) was down 2.3%.

While other ASX 200 sectors had their own impacts on the index, banking shares were leading contributors to the month’s decline amid the problems for Silicon Valley Bank (SVB) and Credit Suisse.

What helped the Fortescue share price outperform?

Reporting season was in February 2023, so it wasn’t the result that was the main headline news for the company over March.

The ASX mining share went ex-dividend at the end of February 2023, so that wasn’t a major factor either.

The iron ore share price was largely flat over the month, though the commodity did increase as the month ended.

Fortescue’s strong finish to the month occurred after an update regarding its Iron Bridge project update.

The company advised that the first production for its Iron Bridge project had been revised to the second half of April 2023.

Fortescue said the project continued to make “significant progress while managing the impacts of weather on activity at the site and associated infrastructure”.

It also said that commissioning activities were “well progressed on dry processing line A”, and water commissioning of the wet plant was “near completion”.

Fortescue added that the entire steel concentrate and return water pipelines had been welded and buried and that the Canning Basin raw water pipeline was completed and undergoing final testing.

The iron ASX share also said that water commissioning has commenced on line A at the concentrate handling facility at Port Hedland.

The miner reminded investors that it would produce 22 million tonnes per year of “high grade 67% of Fe magnetite concentrate”.

Fortescue share price snapshot

Since the start of 2023, the Fortescue share price has climbed by 8%. The ASX 200 has lifted by 4% in the year to date.

The post Why did the Fortescue share price smash the ASX 200 in March? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• 7 ASX 200 stocks smashing new 52-week highs on Monday
• 2 ASX 200 mining directors buying up their company shares in the past week
• Why did the Telstra share price beat the ASX 200 in March?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. 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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