Category: Stock Market

ASX mining share Mincor Resources NL (ASX: MCR) is soaring ahead today amid a takeover offer.

Mincor shares are exploding 42% and are currently fetching $1.478. For perspective, the S&P/ASX 200 Index (ASX: XJO) benchmark is lifting 1.3% today.

So what could be ahead for this ASX mining share?

Nickel explorer explodes more than 40%

Mincor shares are surging today after Andrew Twiggy Forrest’s privately owned Wyloo Metals launched a $760 million takeover bid for the company.

Wyloo owns 19.9% of Mincor’s shares already and is the company’s largest shareholder.

Shareholders were offered $1.40 cash per share in an announcement to the market this morning, 35% more than Mincor’s last closing price. However, Mincor’s share price is now trading higher than the offer price.

Commenting on the offer, Wyloo Metals said:

Wyloo believes that the offer represents attractive value to Mincor shareholders, particularly given the current risks and uncertainties associated with remaining a Mincor shareholder in the face of prevailing economic and equity market risks.

Bank of America and Clayton Utz have been engaged by Wyloo to advise on the potential today.

What’s next?

Despite today’s takeover offer, there could be counterbids on the horizon. Where would these come from?

Nickel miner IGO Ltd (ASX: IGO) and BHP Group Ltd (ASX: BHP) could be potential bidders, the Financial Review reported today. BHP has previously held talks with Mincor about a takeover in the past, according to the publication.

BHP, via Nickel West, produces and exports nickel to global markets for use in electric vehicle (EV) batteries. The mining giant is already proposing to take over 100% of Oz Minerals Ltd (ASX: OZL) shares via a scheme of arrangement. Mincor provides BHP with nickel under an agreement.

IGO is a nickel producer in Western Australia with multiple operations in production including Nova and Forrestania. The company also explores copper, lithium and rare earth elements. In 2022, the company acquired nickel miner Western Areas via a scheme of arrangement.

In a presentation today, IGO said it is “committed to downstream integration in both nickel and lithium”.

IGO said new nickel supply will be needed from 2026 as “EV demand exceeds supply”.

Mincor share price snapshot

The Mincor Resources share price descended 29% in the last year and nearly 2% year to date.

This ASX mining share now has a market capitalisation of nearly $792 million based on the current share price.

The post The Mincor Resources share price is skyrocketing 42%, what could be next for this ASX mining share? appeared first on The Motley Fool Australia.

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More reading

• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m
• Here’s how much I’d need to invest in BHP shares to generate a $250 monthly income
• Could buying BHP shares under $44 make me rich?
• Is it time to buy ASX 200 iron ore shares right now?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Monica O’Shea 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 Bank of America. 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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By now, most ASX investors would be familiar with the runs that most ASX lithium shares have been on over the past year or two. Although the past few weeks have cruelled these companies’ share prices somewhat, the fact remains that long-term investors are still sitting on some tidy profits. 

Take the ASX 200’s largest lithium share, Pilbara Minerals Ltd (ASX: PLS). Yes, Pilbara shares have fallen more than 30% over the past two months or so, going from over $5 a share to the $3.52 we see today.

But this company still remains up 23% over the past 12 months, and up by an extraordinary 2,250% over the past three years:

It’s a similar story with Core Lithium Ltd (ASX: CXO), Sayona Mining Ltd (ASX: SYA), Mineral Resources Limited (ASX: MIN), Liontown Resources Ltd (ASX: LTR) and Allkem Ltd (ASX: AKE). To varying degrees though, of course.

For example, since the start of 2021, Sayona shares have gained an eye-watering 2,000%, rising from 1 cent per share to the 21 cents per share the company is currently going for. But Allkem shares have risen by ‘only’ 130% or so over the same period, going from $4.47 to the $10.28 we see today.

But after the jitters of the past few weeks, many investors might be getting spooked and tempted to take their profits off the table. So which ASX lithium shares are still worth holding today?

Well, one ASX broker has given its answer to that question.

Broker UBS names its favourite ASX lithium shares

As reported in the Australian Financial Review (AFR) today, ASX broker UBS is predicting a difficult time for lithium shares going forward.

UBS reckons that new lithium supply coming online from both China and Latin America could see the supply of the future-facing metal double between 2022 and 2025.

As anyone who’s studied economics would know, increased supply usually leads to lower prices. And that’s not good news for the lithium companies who sell this industrial metal.

But don’t panic, not all is lost, according to UBS. The broker still maintains a buy rating on several ASX lithium shares. That’s due to an expectation that “the recent collapse in lithium prices may have bottomed out”.

So which lithium shares does the broker rate?

Well, it has maintained buy ratings on Allkem, Mineral Resources, and Liontown Resources. That’s in addition to IGO Ltd (ASX: IGO) and Wesfarmers Ltd (ASX: WES).

Wesfarmers is not a pure-play lithium company. But the industrial and retailing conglomerate has increased its exposure to lithium in recent years.

Meanwhile, UBS has given Pilbara Minerals shares a neutral rating, in contrast to the shares named above.

So this might come as some comfort for ASX lithium investors today. But let’s see what the next few months and years bring to this popular corner of the ASX.

The post These ASX lithium shares are a buy despite explosive supply forecast: UBS appeared first on The Motley Fool Australia.

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More reading

• Buy Pilbara Minerals and this high yield ASX dividend share: analysts
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Buy these ASX growth shares this week: experts
• Leading brokers name 3 ASX shares to buy today
• Invested $5,000 in Wesfarmers shares 5 years ago? Here’s how much passive income you’ve earned

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Wesfarmers. 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) has returned to form on Tuesday and is storming higher. In afternoon trade, the benchmark index is up 1.3% to 6,987.2 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 2% to $5.81. Concerns over tough trading conditions in China may have been weighing on its shares. And with the infant formula company’s on-market share buyback now complete, shareholders can’t rely on that to support its share price in the near term.

Accent Group Ltd (ASX: AX1)

The Accent share price is down 4% to $2.17. This is despite there being no news out of the footwear and fashion retailer today. However, analysts at Morgans have reiterated their hold rating and $2.30 price target on its shares this morning. The broker commented: “Since the result, we have become a little more cautious on the outlook for near term consumer spending in the footwear category.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2% to $11.60. This appears to have been driven by profit taking after some strong gains in recent sessions. Thanks to a strong rise by the gold price, Northern Star’s shares have risen almost 12% since the start of the month.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is down 5% to $3.94. This follows the release of a business update from the almond producer. This morning, management revealed that its 2023 almond crop volume is expected to be lower than initially forecast. Select Harvests also revealed that its banking facility re-negotiations have progressed and should not be affected by this news.

The post Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Breaker, Healius, Northern Star, and Tietto Minerals shares are charging higher
• ASX 200 gold shares are starting the week with a bang. Here’s why
• A2 Milk share price slides amid $139 million buyback completion
• 5 things to watch on the ASX 200 on Monday

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 recommended A2 Milk and Accent 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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S&P/ASX 200 Index (ASX: XJO) investors beware.

The UBS bailout and takeover of Credit Suisse engineered by the Swiss government is an anomaly.

The deal, which favours the defunct bank’s shareholders over its bondholders, has investors wondering if the law of the jungle now applies to their portfolios, rather than long-held market laws.

ASX 200 investors would line up behind bondholders in case of bankruptcies

If an ASX 200 company were to go bankrupt, its shareholders would be last in line to reclaim any remaining assets.

A long-held market rule is that corporate bondholders, while potentially still losing some or all of their investment if a company they’ve lent money to goes insolvent, get first crack at those remaining assets.

But that’s not what’s happening with Credit Suisse.

As we reported yesterday, UBS will acquire Credit Suisse in an all-share transaction worth about CHF3 billion (AU$4.8 billion) in a deal backstopped by the Swiss government and Swiss central bank.

Credit Suisse stock investors will get one UBS share for every 22.48 Credit Suisse shares they own.

But the bank’s Additional Tier 1 bondholders will get nothing, with some CHF16 billion worth of Credit Suisse bonds likely to become worthless.

Opposition to UBS acquisition of Credit Suisse rising

The Swiss government’s solution to the Credit Suisse crisis, hammered out over the weekend, isn’t sitting well with regulators and central bankers from other nations.

The Bank of England (BoE) sounded off on the issues, saying shareholders should bear any losses ahead of AT1 bondholders.

The Swiss solution is not meant to be the case.

And, as would likely be the situation with ASX 200 shares, it won’t be the case if a similar scenario arises in the United Kingdom.

“Holders of such instruments should expect to be exposed to losses in resolution or insolvency in the order of their positions in this hierarchy,” the BoE said (courtesy of Reuters).

The European Central Bank (ECB) also waded into the controversy.

According to the ECB (quoted by The Australian Financial Review):

Common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. This approach has been consistently applied in past cases and will continue to guide the actions [of the ECB] … in crisis interventions.

Among the concerns raised by analysts is that the Swiss government’s unconventional solution could make it harder for banks (potentially including ASX 200 banks) to acquire funding at a time when the global financial sector is reeling.

According to investment director at abrdn Plc Luke Hickmore (quoted by Bloomberg):

The AT1 market will be shut now for new issuance for a while. We will all be parsing which securities in AT1 space have a similar trigger to CS’s and which don’t, which banks need to issue AT1s and which don’t.

While UBS reported it expects the deal to be complete before the end of the year, that may be a premature assumption.

As the AFR reports, global law firm Quinn Emanuel Urquhart & Sullivan is speaking to Credit Suisse AT1 bondholders about potential legal options.

The law firm said it’s “already in discussions with a number of holders of Credit Suisse’s AT1 capital instruments … about possible legal actions that may be available to them”.

Swiss MPs are also considering whether parliament might review parts of the controversial bailout.

The post ASX 200 investors beware, Credit Suisse bailout is an anomaly appeared first on The Motley Fool Australia.

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More reading

• Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping
• The Vulcan Energy share price has crashed 45% in a year. What’s next?
• Want to invest $10,000 in great ASX shares? I’d pick these 3
• 1 reason to avoid the stock market, and 3 great reasons to invest today
• Why is the Woodside share price on the move today?

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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The Vulcan Energy Resources Ltd (ASX: VUL) share price has struggled in recent times. It’s fallen nearly 45% since this time last year to trade at $5.78 at the time of writing.

Could the worst be over for the zero-carbon European lithium hopeful? Let’s take a look at what the future might hold for the S&P/ASX 300 Index (ASX: XJO) stock.

Own Vulcan Energy shares? Here’s what the future might hold

The Vulcan Energy share price has tumbled since this time last year as the company’s short interest continues to grow. Indeed, the stock is one of the ASX’s most shorted, with close to 7% of its shares being shorted at last count.

Weighing on the market’s sentiment might be concerns about the price of lithium, allegations brought about in a short seller attack last year, or general disdain for unprofitable outfits.

It might even have something to do with the well-publicised pushback that faced Rio Tinto Ltd (ASX: RIO)’s European Jadar lithium mine in late 2021.

However, Vulcan Energy managing director and CEO Francis Wedin is optimistic the company could be a major beneficiary of the European Union’s (EU’s) moves to decarbonise.

The recently revealed Critical Raw Materials Act aims to see 10% of the EU’s consumption of critical materials extracted from within its borders by 2030. Meanwhile, strategic projects would see shorter regulatory permit timeframes and better access to finance.

Vulcan Energy is behind the Vulcan Zero Carbon Lithium Project, located in Germany. Wedin recently said, courtesy of The Australian:

Obviously we are expecting to be front and centre of this as it’s the largest lithium resource and project in Europe by far.

A definitive feasibility study for the project’s first phase tipped it to produce 24,000 tonnes of lithium hydroxide each year. The project’s capital expenditure is expected to be around $2.4 billion, with payback targeted within three and a half years. The study’s release last month saw the Vulcan Energy share price tumble 7%.

Interestingly, the company might not be developing the project alone. There may soon be news of a partner capable of helping on both technical and financial fronts.

Wedin told the publication that while the company’s resources are abundant, its growth is “capital and people constrained”. Thus, it might hunt “a big partner in with a big balance sheet which is looking to decarbonise”.

The post The Vulcan Energy share price has crashed 45% in a year. What’s next? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares this week
• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources. 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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The ASX share market is presenting lots of opportunities to invest in during this volatile period. I think there are some great opportunities to pursue with $10,000.

It’s not often that we get to invest at times of great market distress, so I think it’s good to jump on those ideas while they’re there.

Buying at a good price gives us a larger margin of safety to make pleasing returns. Investing at a good price can also boost the dividend yield if it’s an ASX dividend share.

With that in mind, here are some of the names that look very attractive to me if I were investing $10,000.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a significant e-commerce player in the furniture and homewares segment of retailers. It actually sells over 200,000 products from hundreds of suppliers. This model allows for faster delivery times and reduces the need for the ASX share to hold inventory, enabling a larger product range. The company does have a private label range as well, which comes with higher margins.

The Temple & Webster share price has dropped around 50% over the past year, meaning it’s now much cheaper than it was. I’m still very optimistic about the company’s future. Short-term growth wasn’t likely to keep going as strongly as during the COVID boom, particularly as inflation and interest rates bite.

But, the company is seeing positive signs for its earnings before interest, tax, depreciation and amortisation (EBITDA) margin and it’s targeting an EBITDA margin of over 15% in the longer term.

Scale benefits are expected in a number of areas including with suppliers, private label, logistical efficiencies and other fixed costs.

By 2030, I think the ASX share could be making a lot more profit than the market is currently pricing.

Frontier Digital Ventures Ltd (ASX: FDV)

This business invests in, and has stakes in, leading online marketplaces in emerging markets.

For example, it is invested in the number one property portals in Uruguay, Paraguay, Bolivia, Chile, Colombia, Pakistan, Sri Lanka, Myanmar and Nigeria. It’s also invested in the leading general marketplace in Central America, Morocco and Tunisia. This ASX share has stakes in the leading auto portal in Chile, Myanmar, the Philippines and Morocco.

In the company’s recent FY22 result, it said that its full-year revenue, on an ownership basis, grew by 37% to $82.3 million. The underlying EBITDA also increased by $4.6 million to $6.5 million. It also said that, excluding one-off restructuring expenses, all three regions of Latin America, Asia and Middle East and North Africa (MENA) were operating cash flow positive.

The ASX share pointed to cost optimisation initiatives to benefit FY23 and beyond.

This company’s founder and CEO was the general manager at REA Group Limited (ASX: REA) who helped it become the powerhouse in Australia that it is today.

The Frontier Digital Ventures share price is down around 50% over the past year.

Pacific Current Group Ltd (ASX: PAC)

This ASX share describes itself as a global multi-boutique asset management business that partners with “exceptional investment managers”. It invests and helps with its capital, with custom-made economic structures and with strategic business development to help businesses grow.

It’s invested in a number of fund managers including Nereus, Proterra, Astarte, Carlisle, ROC Partners, Victory Park and GQG Partners Inc (ASX: GQG).

The company’s fund managers continue to see a rise in funds under management (FUM), while also experiencing ongoing positive net flows.

It’s expecting “strong continued growth” of both management fees and performance fees. The larger the FUM grows, the more management fees the fund managers should generate. The ASX share is expecting to make additional investments in the FY23 second half.

Using the last two declared dividends, it has a grossed-up dividend yield of around 8%.

The Pacific Current share price is down around 20% from 26 October 2022.

The post Want to invest $10,000 in great ASX shares? I’d pick these 3 appeared first on The Motley Fool Australia.

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More reading

• 2 undervalued ASX shares to buy this month: expert
• Brokers name 3 ASX shares to buy now
• 3 ASX growth stocks down 40%-65% to buy now and hold
• Why Atlantic Lithium, Pushpay, St Barbara, and Temple & Webster shares are rising
• Temple & Webster share price higher on $30 million share buyback

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 Frontier Digital Ventures and Temple & Webster Group. The Motley Fool Australia has recommended Frontier Digital Ventures, REA Group, and Temple & Webster 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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Rising inflation and interest rates, the possibility of a global recession, fears of more bank failures, falling company profits, and experts saying there’ll be little capital growth in ASX shares over the next decade.

Add share price volatility to this mix, with S&P/ASX 200 (ASX: XJO) shares up 7.6% in January, then down 2.9% in February, and now down 3.8% in March so far.

It’s understandable that investors might see the stock market as non-fertile ground right now!

Is it safe to invest in the stock market today?

‘Safe’ is a difficult word in relation to investing, because investing inherently involves some risk. Whether you’re buying ASX shares, bonds, mutual funds, or bricks-and-mortar real estate, things can go wrong.

Your choices are to leave your money in cash, or invest and mitigate the risks as much as possible.

Examples of good mitigation strategies include buying ASX 200 blue-chip shares only, and diversifying across the 11 market sectors. But the big one is time. Investing success requires time to allow your investments to deliver great returns that reliably grow your wealth for retirement.

Investing for most amateurs should involve long-term thinking. We’re not traders; we’re investors.

The classic way to go with ASX 200 shares investing is simply buying and holding. Buy high-quality ASX 200 shares and hold them through thick and thin — for decades.

Take your dividend payments as cash to supplement your income, or ideally, reinvest them automatically through dividend reinvestment plans (DRPs) and let compounding do its thing over time.

If you have that approach, then arguably, it’s pretty safe to invest at any time. But that’s only if you’re investing funds you don’t need.

That means you have to set up your emergency fund before you start investing with other spare cash.

1 reason to avoid the stock market

Not having an emergency fund in place first is a good reason to avoid ASX shares investing.

As explained in our ‘Investing for Beginners’ Education Hub, almost all of us will face periods of financial hardship, and it’s a great idea to have a nice amount of cash sitting in an account when you do.

The last thing you want to be dealing with when under financial pressure is having to sell your ASX shares to free up cash. You may end up having to sell at a loss, which will cause you even more stress.

Depending on your circumstances, three or six months’ worth of living costs is a good guide as to how much you should have in your emergency fund before starting to invest in ASX shares.

It’s a good idea to keep your emergency monies in a high-interest savings account or a home loan offset account. That way, your funds are doing something for you while sitting there waiting for an emergency.

3 great reasons to invest in ASX 200 shares today

Inflation, yield, and capital growth

Due to high inflation right now, leaving spare funds in cash is like guaranteeing yourself a negative return in real terms.

Annual inflation in Australia is currently running at about 7%. Over this past year, you might have received 2% to 3% interest. See the disparity? It’s a negative return.

Also, remember that cash has no prospect of capital growth. It’s a yield play only.

Let’s compare your interest received on cash last year to the returns of some top 10 ASX 200 shares.

In 2022, National Australia Bank Ltd (ASX: NAB) shares delivered 4.2% capital growth and paid a 5.4% fully franked dividend yield.

BHP Group Ltd (ASX: BHP) shares increased by 10% and paid a dividend yield of 9%.

Of course, each ASX 200 share will perform differently. But you get my drift.

If you choose high-quality and reliable dividend-paying ASX 200 shares, you’ll likely get a better yield than cash in the bank. At least for now, while inflation is very high.

And in the good years, you’ll likely pick up some capital gains, too.

ASX 200 share prices are down

The ASX 200 has lost about 6.2% since the start of 2022. That’s when people worldwide began worrying about rising inflation and interest rates.

Now, 6.2% doesn’t sound like much but remember that’s the average over 200 stocks. Some ASX shares have been hit harder by the macroeconomics, with some share prices down by 30%, 40%, 50%, or more.

The best time to buy ASX 200 shares is when they’re trading low. That means being brave and buying in uncertain times when the market is volatile. Psychologically, that’s hard. But you can potentially make it more palatable by only buying ASX large-cap shares.

These are long-established blue-chip companies that have made it through tough economic periods many times before. Even if market sentiment drags their share prices down now and then, these underlying businesses are very likely to remain strong and simply carry on.

Share price falls are only short-term paper losses if you’re holding your ASX shares for the long term. And you keep getting your dividends in the meantime.

The average 10-year return of the ASX 200, including dividends, is 8% per annum.

For advice on how to choose ASX shares, click here.

You won’t miss out on the next bull run

No market downturn can last forever. Economies and markets are cyclical, which means you’ll have challenging years like we’re in now, followed by good years, followed by challenging years.

The factor of time smoothes all this volatility out. Holding for the long term is very easy, and staying in the market during challenging years means you’ll be sitting pretty for the next bull run.

Click on the five-year button below to get a good look at the bull run that followed the COVID-19 market crash in 2020. Also click on the 10-year button to see the bull run that followed the downturn in 2018.

Starting your investment portfolio during a challenging market (i.e., today’s) can give you a head start on long-term investing success. But we don’t know how long current market conditions might continue, nor whether a global recession will eventuate this year.

If you’re starting your investment journey today, be mindful that it might be a rocky road for a while. You need to be able to grit your teeth and ride it out.

The post 1 reason to avoid the stock market, and 3 great reasons to invest today appeared first on The Motley Fool Australia.

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• Why is the Woodside share price on the move today?
• 5 things to watch on the ASX 200 on Tuesday
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Motley Fool contributor Bronwyn Allen has positions in BHP 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 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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The Woodside Energy Group Ltd (ASX: WDS) share price is in the green today.

At the time of writing, Woodside shares are up 1.95% to $31.60 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.24% so far today.

So what is lifting the Woodside share price on Tuesday?

What’s happening?

Woodside is not the only energy share on the rise today. Santos Ltd (ASX: STO) shares are currently 1.26% higher, in line with the benchmark index. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.97% at the time of writing.

Woodside shares are rebounding today following a tough couple of weeks. Since market close on 7 February, Woodside shares have sunk 16% amid falling oil prices.

However, today is a different story. As my Foolish colleague James reported this morning, the WTI crude oil price jumped 1.3% overnight to US$67.61 a barrel, while the Brent crude oil price rose 1.1% to US$73.79 a barrel.

In a research note this morning, ANZ senior economist Catherine Birch was optimistic about the outlook for oil demand. She said:

Crude oil price recovered as risk appetite improved following regulators’ moves to shore up confidence.

Commodity traders, including Citadel and Trafigura, believe the recent banking sector turmoil is likely to be limited in duration with only minimal damage to the wider economy.

This should see crude oil demand remain on an upward trajectory.

The oil price had fallen to its lowest level in 15 months in recent days amid the banking scare in the US and Europe. Commenting on this trend, Price Futures Group analyst Phil Flynn told Reuters there is a lot of “fear-based movement” in oil prices, adding:

We’re not moving at all on supply and demand fundamentals, we’re just moving on the banking concerns.

Despite lifting overnight, the WTI oil price is now down 0.35% to US$67.40 a barrel, while Brent crude is sliding 0.14% to US$73.69 a barrel. Natural gas is up 0.99% to US$2.25 per MMBtu, according to Bloomberg.

Woodside is due to dish out a US$1.44 per share dividend on 5 April after the company delivered a record underlying NPAT of US$5.23 billion in the 2022 calendar year.

Woodside share price snapshot

The Woodside share price has slid 0.06% in the last 12 months but nearly 11% in 2023 to date.

For perspective, the ASX 200 has dropped 4% in the past 12 months.

Woodside has a market capitalisation of about $60 billion based on the current share price.

The post Why is the Woodside share price on the move today? appeared first on The Motley Fool Australia.

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More reading

• Want to buy Woodside shares for dividends? You need to know this
• 5 things to watch on the ASX 200 on Tuesday
• Why did the Woodside share price slide today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• What Goldman Sachs new oil price forecast could mean for ASX 200 oil shares in 2023

Motley Fool contributor Monica O’Shea 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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As most of us would be aware, the last week or two on the share market has been a wild time for ASX shares. The S&P/ASX 200 Index (ASX: XJO) is in one of those moods where it seems to swing dramatically most days, either to the upside (or more commonly it seems), to the downside.

Today, thankfully, it’s the former scenario. But the fact remains that over the past two weeks, the ASX 200 has lost a meaningful 5.2%.

It’s never fun seeing the value of your investments move around like this. But I try and use volatility to my advantage, and accelerate my purchases of shares when the prices are moving around like this. So last week, I topped up my portfolio. Let’s discuss the two shares that I bought.

Well, they weren’t exactly ASX shares, although they represent an investment in ASX shares. I actually toped up two of my exchange-traded fund (ETF) positions last week.

I bought these two ASX shares last week

The first was the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF is the most popular on the ASX by far. It represents an investment in the largest 300 companies on the ASX.

That’s everything from Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG) to Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Limited (ASX: HVN).

This ETF is a cornerstone of my portfolio, so I was happy to nab some of its units at one of the cheapest prices we have seen in months last week. I like the diversity this fund brings, along with the exposure to some of the best-run businesses in Australia. This ETF also pays out quarterly dividend distributions, which come with franking credits too.

The Vanguard Australian Shares ETF has returned an average of 8.95% per annum since its inception in 2009. That’s a historical return I’m happy to hitch a wagon to.

The second ETF I bought last week is actually a very similar one to the first. It was the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). The Vanguard Australian Shares ETF is great, but it is a fund that is heavily exposed to the big four banks and large miners that dominate our share market.

But the Vanguard Small Companies ETF focuses on the smaller end of the ASX. As such, it has far more even exposure to other sectors like consumer discretionary and real estate.

Some of its current top holdings are names like Carsales.com Ltd (ASX: CAR), Lynas Rare Earths Ltd (ASX: LYC) and Cleanaway Waste Management Ltd (ASX: CWY).

Over the past three years, this ETF has averaged a return of 9.82% per annum. The fund also pays out hefty dividends every quarter. So for these reasons, I was also happy to top up my position in this ETF last week.

The post I bought these two ASX shares last week, here’s why appeared first on The Motley Fool Australia.

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More reading

• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF
• 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Does the Vanguard Australian Shares Index ETF (VAS) hold the ticket to building long-term wealth?
• Top ASX ETFs to buy in March 2023

Motley Fool contributor Sebastian Bowen has positions in Telstra Group, Vanguard Australian Shares Index ETF, and Vanguard Msci Australian Small Companies Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool Australia has recommended Carsales.com. 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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A little-known ASX lithium share is setting the bar high today.

While the All Ordinaries Index (ASX: XAO) is enjoying a strong rebound, up 1.1%, the ASX lithium company rocketed 9.3% on open to 29.5 cents per share.

The ASX lithium share is currently trading for 29 cents per share, up 7.4%.

Any guesses who?

If you said Azure Minerals Ltd (ASX: AZS), go to the front of the class.

What’s driving investor interest in the ASX lithium share?

Investors are bidding up the Azure Minerals share price after the company reported some strong lithium exploration results at its joint venture Andover Project, located in the West Pilbara region of Western Australia.

Azure holds a 60% interest in Andover while privately held resources company Creasy Group holds the other 40%.

According to the release, ongoing lithium-focused pegmatite sampling across the project is continuing to uncover very high grades of lithium in the outcrop.

The latest assay results returned samples grading above 1% Li2O. Thirteen samples from returned lithium grades were over 3.80%, with one sample grading as high as 4.67% Li2O.

Commenting on the results sending the ASX 200 lithium share higher today, Azure managing director Tony Rovira said:

The identification of abundant outcropping spodumene-rich pegmatites containing high grades of lithium at numerous prospects across Andover confirms the potential for this project to host substantial lithium resources.

Rovira added, “The company is very confident that the drilling we’re currently undertaking will identify and define substantial lithium mineralisation and potentially resources.”

Diamond drilling at Andover is continuing. Azure Minerals reported that it has visually identified spodumene-rich pegmatites in the first two completed drill holes.

Azure Minerals share price snapshot

As you can see in the chart below, the ASX lithium share has had a very strong run in 2023. With today’s intraday gains factored in, the Azure Minerals share price is up 26% since the closing bell on 30 December.

The post Guess which ASX lithium share just leapt 9% on ‘very high grade’ results appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs is bullish on the Telstra share price
• Ex-Tesla Australia boss sentenced 2.5 years for insider trading ASX lithium shares
• New Hope share price rockets 6% as half-year profits double
• This ASX 200 share is charging higher on $2.5bn asset sale news
• Guess which ASX All Ords mining share Fortescue’s Twiggy Forrest is eyeing off for $760m

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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