Category: Stock Market

The Pilbara Minerals Ltd (ASX: PLS) share price has gone on a great run since the start of 2023. It has already risen by 25% and continues to impress investors.

The ASX lithium share just released its quarterly update for the three months to 31 December 2022. It was able to tell investors about its production, sales price, huge cash pile, and more. The company jumped 13% on the day the update was released.

Let’s have a look at the highlights.

Quarterly update

Pilbara Minerals revealed that spodumene concentrate production was 162,151 dry metric tonnes (dmt), an increase of 10% quarter over quarter. Shipments were up 8% quarter over quarter to 148,627 dmt.

The average realised sales price for the spodumene concentrate was US$5,668 per dmt, up 33% quarter over quarter.

But the unit operating costs declined 5% quarter on quarter to A$579 per dmt.

The ASX lithium share also reported a substantial increase in its cash balance. It rose $851.1 million to $2.23 billion.

Pilbara Minerals pointed to a number of other highlights during the quarter which may have impacted the company’s shares.

It saw improved pricing outcomes after negotiating price reviews with major customers.

The board approved pre-FID (final investment decision) expansion project funding of $38.3 million to maintain the company’s project schedule, with the final investment decision scheduled within the three months to March 2023.

It also announced a formal joint venture with Calix Ltd (ASX: CXL) to support the future development of a mid-stream demonstration project.

A $250 million Australian government debt facility was approved to support the company’s P680 expansion project. This involves processing improvements at the Pilgan plant in Western Australia.

Finally, the ASX lithium share announced a capital management framework, including its first dividend policy.

Are Pilbara Minerals shares a buy?

I think the business has a very promising future. But buying at the right Pilbara Minerals share price could be key to giving investors a margin of safety.

It’s certainly not cheap at the moment. But the average realised selling price in FY23 to date is almost US$5,000 per dmt. Time will tell if the lithium price falls back, but the long-term demand for electric vehicles looks very promising.

At the current lithium price, Pilbara Minerals is making an enormous amount of cash flow, as we can see from how rapidly its cash balance is building.

Looking at the Pilbara Minerals share price of $4.55, it’s valued at nine times FY24’s estimated earnings according to Commsec.

I think it can still be a good long-term buy at this level, particularly with its plans to increase its production and also get more involved with the lithium value chain.

However, after the recent run, it’s a bit more expensive. The ASX lithium share could go both higher or lower, so I think it’s worthwhile expecting volatility. Taking that mentality may make the ride seem less scary.

The post Should I buy Pilbara Minerals shares following the lithium miner’s latest update? appeared first on The Motley Fool Australia.

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More reading

• My top predictions for ASX lithium shares in 2023
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy now
• Why Fisher & Paykel, Pilbara Minerals, Resolute, and Whitehaven Coal are storming higher

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 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 last five years have likely been rough for those invested in ANZ Group Holdings Ltd (ASX: ANZ) shares. The stock has tumbled 14% in that time.

Right now, Each ANZ share will set a buyer back $24.75. However, back in January 2018, the banking stock was trading at $28.88.

That means a near-$5,000 investment five years ago would be worth just $4,281.75 today.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 22% over the last half-decade.

But have the dividends on offer from ANZ made up for its share price’s disappointing performance? Let’s take a look.

ANZ dividends help investors break even despite share price falls

Here’re all the dividends the smallest of the big four banks has paid out since January 2018:

ANZ dividends’ pay date	Type	Dividend amount
December 2022	Final	74 cents
July 2022	Interim	72 cents
December 2021	Final	72 cents
July 2021	Interim	70 cents
December 2020	Final	35 cents
August 2020	Interim	25 cents
December 2019	Final	80 cents
July 2019	Interim	80 cents
December 2018	Final	80 cents
July 2018	Interim	80 cents
Total:		$6.68

An investor who bought $5,000 worth of ANZ shares five years ago, likely would have realised $6.68 per share in dividends over the life of their holding – a total of $1,155.64.

Thereby, their investment would have broken even in the end, even returning around $430.

That leaves the banking stock having posted a return on investment (ROI) of around 8.8%, including both share price movements and dividends.

Additionally, some shareholders might have benefited from franking credits offered by the ASX 200 bank in that time. Nearly all its payouts over the last five years have been fully franked.

ANZ shares currently boast a notable 5.9% dividend yield. And that could be set to grow.

Top broker Citi is tipping ANZ to pay out $1.66 per share in dividends this financial year and $1.76 per share next financial year, my Fool colleague James reports.

The post Bought $5,000 of ANZ shares 5 years ago? Here’s how much passive income you’ve received appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ASX passive income shares to buy next week: analysts
• ANZ’s cheat sheet: How can ASX investors make the most of ‘ample opportunity’ in 2023?
• Dividends, dividends, dividends! 3 ASX 200 bank shares forecasting yields over 8%
• What could we expect for ASX 200 bank shares this earnings season?
• Should I buy ANZ shares before earnings season?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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 S&P/ASX 200 Index (ASX: XJO) is home to many varied businesses. Some are cyclical while others can be consistent and resilient. Amid ongoing fears of a recession, Domino’s Pizza Enterprises Ltd (ASX: DMP) shares could be one option during a possible economic downturn.

With strong inflation and higher interest rates, a recession certainly appears more likely than in the last couple of years.

Domino’s has grown into a global business. It holds the exclusive master franchise rights for the Domino’s brand and network in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Denmark, Malaysia, Singapore, and Taiwan. It’s also acquiring the Cambodia business. The Domino’s brand is owned by Domino’s Pizza Inc, a business listed in the US.

Over the past four months, the Domino’s share price has gained more than 35%. However, in the last year, it’s still down by around 30%. But, this means that it’s now at a lower valuation.

Expert view

The Motley Fool’s Scott Phillips was recently talking to Gemma Dale on the NABTrade podcast, Your Wealth.

He suggested that some ASX (200) shares could do well during a recession, including Domino’s. Phillips said the pizza company’s value range of food could be an attractive deal compared to eating out. As such, the company could be in a sweet spot in the “affordable luxury” space.

Phillips shared some wise advice that long-term winners are “really, really attractive”. If an investment can do moderately well for a really long time, it can compound and be successful.

Domino’s has long-term goals for growth. The company’s goal over the next three to five years is to achieve same-store sales growth of 3% to 6%.

It also has a goal to achieve organic store openings of 8% to 10% of the network annually in the next three to five years.

Certainly, combining same-store sales growth and growing its number of stores could lead to promising earnings growth.

Valuation of the Domino’s share price

Using the estimates on Commsec, the ASX 200 share could be valued at 40 times FY23’s estimated earnings.

But profit is expected to jump over the next two financial years.

In FY24, it could generate earnings per share (EPS) of $2.30, putting the Domino’s share price at 32 times FY24’s estimated earnings.

Then, in the 2025 financial year, it may be able to achieve EPS of $2.74. This would put the pizza business at 27 times FY25’s estimated earnings.

As we can see, the company’s forward price/earnings (P/E) ratio is expected to steadily reduce in the coming years.

The post The ASX 200 share that could thrive in a recession: Scott Phillips appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 2 excellent ASX passive income shares to buy next week: analysts
• How to find undervalued ASX shares to buy now and hold in 2023
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares 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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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 small-cap space could contain some of the market’s next blue chips.

It’s far easier for a business to double in size from $500 million to $1 billion than it is for a company to grow from $50 billion to $100 billion.

I think that smaller ASX shares have a longer growth runway and, therefore, can produce stronger returns over time.

But I only want to consider ideas that are already producing good revenue. I’m not thinking about high-risk biotech names or other similar sorts of categories. So, with that in mind, these are four of my favourite ideas for long-term growth which could help build a portfolio worth $1 million.

Airtasker Ltd (ASX: ART)

Airtasker is a small-cap ASX tech share that provides a platform for people to advertise for free the service they are seeking. Taskers can then offer to do the work — and outline their fees. The type of tasks involved can be almost anything – delivery services, photography, furniture assembly, removals, various handyperson jobs, and so on.

The business is already producing positive earnings before interest, tax, depreciation and amortisation (EBITDA) in Australia. It’s also rapidly growing in the US and the UK too, which are two huge markets.

Airtasker has a very high gross profit margin, which means it’s able to invest a lot of its new revenue back into growth expenditures such as marketing.

Certainly, the company is already showing a desire for geographical expansion. As such, I believe it has a long growth runway with other countries it can expand into, such as Canada and New Zealand.

Volpara Health Technologies Ltd (ASX: VHT)

I think Volpara is one of the most exciting small-cap ASX healthcare shares. It has AI-powered image analysis that enables advanced breast screening, helps healthcare professionals better understand the cancer risk of patients, and enables healthcare providers to streamline work and improve performance.

The business recently announced that in the three months to December 2022, it achieved positive operating cash flow after a 42% increase in cash receipts in constant currency terms.

It continues to grow its annual recurring revenue (ARR) while decreasing its cost base, boosting profitability.

If it can keep selling more of its services to its existing (and growing) customer base, then the average revenue per user (ARPU) will keep improving and this should further boost profit margins.

I think the small-cap ASX share has a very promising future, particularly if it can get a good foothold in Europe.

Healthia Ltd (ASX: HLA)

Healthia is an allied healthcare business. It’s involved in a number of areas including networks of optometry, podiatry, and physiotherapy clinics.

I think this is quite a defensive sector, so its earnings could perform adequately in the period ahead.

The Healthia share price has dropped 40% over the past year, making it much better value. With the Australian population rising, and becoming older, I think there are useful tailwinds for the business.

If it can keep acquiring additional clinics and improve the performance of its existing network, I believe the business is on course for a good future.

I think it looks very reasonably priced, trading at 12 times FY23’s estimated earnings, according to Commsec.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another small cap ASX share that I believe has plenty of potential.

It’s an online retailer of homewares and furniture which has more than 200,000 products on sale.

A lot of the products sold are from third-party suppliers, which are shipped straight to customers. This cuts shipping times, reduces the need for Temple & Webster to hold inventory, and makes that part of the business quite capital-light.

But the company also has a growing selection of private-label products.

If Australia follows the e-commerce trend of the UK then, in the coming years, the company’s online share of the market could rise from mid-teens in Australia to a percentage in the high 20s, according to Temple & Webster.

The business is heavily investing in technology, such as an AI interior design service, and an augmented reality (AR) service which enables people to visualise products in their home space.

With its high level of reinvestment, I think the company can benefit from growing scale and achieve attractive margins in time.

The expansion into the home improvement categories (like painting, plumbing, and flooring) also gives the small-cap ASX share a very large addressable market to aim for.

The post I’d aim for $1 million buying just a few ASX shares appeared first on The Motley Fool Australia.

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More reading

• My top predictions for ASX All Ords shares in 2023
• 3 reasons to buy these top ASX growth shares: experts
• This All Ords share is booming 9% after turning cash flow positive
• Here are 2 excellent ASX growth shares to buy now: experts
• 3 ASX All Ords shares I’m watching like a hawk in January

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 Healthia, Temple & Webster Group, and Volpara Health Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies. The Motley Fool Australia has recommended Healthia 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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If you’re looking for dividend shares to buy this week, then the two listed below could be worth checking out.

Both have recently been named as buys by analysts at Morgans and tipped to provide very attractive yields. Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first dividend share that Morgans is tipping as a buy is this industrial and office property company.

Morgans likes Dexus Industria due to its belief that it is well-placed for growth thanks to strong demand in the industrial market.

The broker currently has an add rating and $3.26 price target on the company’s shares. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.6 cents in FY 2024. Based on the current Dexus Industria share price of $3.03, this will mean yields of 5.4% and 5.5%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy for income investors by Morgans is HomeCo Daily Needs.

HomeCo Daily Needs is a property investment company with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans has an add rating and $1.52 price target on its shares. The broker explained why it is bullish. It said:

HDN’s portfolio is valued at around $4.7bn across +50 assets with exposure to Large Format Retail; Neighbourhood; and Health & Services properties. Over the medium term it expects to reweight towards Neighbourhood. Portfolio metrics are solid: weighted average cap rate 5.3%; weighted average lease expiry 5 years and occupancy 99%. HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to ‘last mile’ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline).

As for dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.31, this will mean dividend yields of 6.3% and 6.5%, respectively.

The post These top ASX dividend shares are buys: Morgans appeared first on The Motley Fool Australia.

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More reading

• Boost your passive income with these buy-rated ASX dividend shares: experts

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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One of the consequences of depressed share markets, like we have seen in the past year or so, is that the tools that people use to invest become underutilised.

ASX shares of investment companies certainly have fallen out of favour in recent times. Investment technology platforms have not lit the world on fire either.

However, at least with those fintech stocks many investors are hoping for long-term growth as they scale up and gain market share.

The three big names in this platform category are Netwealth Group Ltd (ASX: NWL), Hub24 Ltd (ASX: HUB) and Praemium Ltd (ASX: PPS).

Just this week Shaw and Partners portfolio manager James Gerrish was asked on his Market Matters Q&A which of these stocks he would buy right now:

Disappointing results for Netwealth

Unfortunately 2022 ended poorly for all concerned, but it was especially worrying for the biggest player.

“It was a disappointing quarter for all of the investment platform companies and Netwealth was the hardest hit,” Gerrish said.

“While they are still seeing funds under administration (FUA) growth, the $2.1 billion of net inflows fell short of expectations of ~$3 billion.”

The miss in expectations was caused by low general investor sentiment for stock markets.

Considering these hiccups, Gerrish feels, the two larger platform providers still seem overvalued.

The Netwealth share price has dipped 24.5% over the past 12 months, while Hub24 has taken a 12.9% hit.

“Overall, Netwealth is a great business, but like its peers, they need scale to justify the ~39x price to expected earnings,” said Gerrish.

“Hub24 trades on ~35x.”

Last man standing

That leaves the smallest player out of the trio, Praemium.

Compared to its bigger rivals, Praemium shares are going for dirt cheap.

“The smallest of the bunch, Praemium trades on nearly 14x — a discount we don’t believe is justified.”

The company has seen its shares suffer massive discounting relative to Netwealth and Hub24, almost halving in value over the past 12 months.

Gerrish revealed that he overwhelmingly prefers Praemium out of the platform trio. In fact, his team possesses the shares in its emerging companies portfolio.

But he would also become interested in the other two fintech stocks if they suffered a dip.

“We would consider either into a pullback.”

The post Which ASX fintech stock is hot to buy right now? appeared first on The Motley Fool Australia.

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More reading

• 3 all-star ASX 200 shares ECP is going all-in on
• 3 ASX All Ords shares getting hammered on disappointing results
• Why Alumina, Netwealth, Nickel Industries, and Paladin Energy shares are falling today
• 3 ASX 200 shares making big moves following trading updates
• Why HUB24, Lovisa, Redbubble, and Warrego shares are sinking today

Motley Fool contributor Tony Yoo 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 Hub24, Netwealth Group, and Praemium. The Motley Fool Australia has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has recommended Praemium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX lithium shares seem to be one of the market’s most exciting sectors at the moment.

Between 23 June 2022 to 9 November 2022, the Pilbara Minerals Ltd (ASX: PLS) share price went up by around 170%.

However, Pilbara Minerals shares fell by 34% to 3 January 2023. Since 3 January, Pilbara Minerals shares have risen by more than 25%.

Other ASX lithium shares have seen similar patterns, including Allkem Ltd (ASX: AKE), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Sayona Mining Ltd (ASX: SYA), and Mineral Resources Ltd (ASX: MIN).

My thoughts on the lithium sector

Volatility is common on share markets. It doesn’t surprise me when investors regularly shift between euphoria and fear on particular businesses. The wider share market occasionally goes through large bumps as well.

It makes sense that the lithium sector creates a lot of excitement. KPMG has estimated the world will need to manufacture more than two billion electrical vehicles to “accommodate world demand and fully transition away from internal combustion engine vehicles by 2050″.

Of course, electric vehicles are just one use for lithium. Home batteries and large-scale batteries could increase demand too.

More supply is very likely to come online in the coming years, including the Mt Holland project that Wesfarmers Ltd (ASX: WES) is working on in Western Australia.

If lithium prices stay this high for longer, then it will drive more supply.

But it takes time for that supply to appear, so 2023 could still see a very healthy lithium price. Each ASX lithium share has its own customers, contracts, and method of selling its production.

For example, Pilbara Minerals is benefiting from increased prices from its major offtake customers, as well as a much higher price from the Battery Material Exchange (BMX) platform auctions compared to a year ago.

Strong cash flow and demand

I think that the businesses that are already producing lithium are in a really good place. They are producing enormous cash flow and are reaping the benefits. I think that strong cash flow will continue for (at minimum) the majority of the year.

In the three months to December 2022, we saw Pilbara Minerals increase its cash balance by $851 million.

Hopefully, the ones that aren’t producing lithium at the moment will still get to reap the rewards of a good lithium price when they do start producing meaningful output.

In the latest Allkem quarterly update, it said that it expects the average price of lithium carbonate in the third quarter of FY23 to be in line with the second quarter. The ASX lithium share also pointed out:

EV sales growth is expected to remain robust in 2023 given strong order books and potential pent-up demand. Supportive government targets and policies announced globally (including subsidies or tax incentives) continue to ensure strong fundamentals for future growth.

Foolish takeaway

Overall, I think it could be a good year for the ASX lithium share sector as I don’t think enough supply will come online this year to drive down the price substantially.

The post My top predictions for ASX lithium shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy now
• Wesfarmers shares: A potential source of secondary income
• Why Fisher & Paykel, Pilbara Minerals, Resolute, and Whitehaven Coal are storming higher

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 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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As much as you might be a long-term investor, there is no escaping the fact that the stock markets are now not the same as they were four, two or even one year ago.

The Motley Fool’s own chief investment officer Scott Phillips admitted as much this month, when he cited the return of inflation and higher interest rates as changing the way you pick ASX shares to buy.

“Inflation matters because pricing power matters. If you are a business that can’t pass on higher costs, you have no choice but to deliver lower margins, [and] lower profits,” he said on the Your Wealth podcast.

“Rates matter to the price of the assets that I buy…, rates matter to the amount of debt a company can affordably carry and what it can do with that debt; and what my investment thesis looks like with those rates.”

He likened these conditions to a return to the 1980s and the early 1990s. 

Back to the “old normal”, if you will, after leaving behind a decade of near-zero interest rates and inflation.

So there are some ideas about what to seek in a business. But what are the attributes to avoid like the plague in this new era?

Airlie Funds portfolio manager Emma Fisher helpfully had some ideas this week:

Stay away from companies that exhibit these behaviours

Fisher, in an Airlie video, highlighted two traps that she would avoid when picking stocks for this year.

The first is debt.

Fisher cited two reasons why debt is such a negative right now compared to just eight months ago.

“If you’ve got a lot of debt, interest rates have gone up, it’ll cost you more to service that debt — so your profits are going to fall,” she said.

“The second one is around operational flexibility. Ideally, at this point in the [economic] cycle, you want to have a mountain of cash you’re sitting on as a business.”

With recessions likely looming around the world, having that cash buffer will be a huge advantage to any company — especially if competitors are struggling with servicing their loans.

The second red flag to avoid is excessive inventory levels.

“A lot of businesses — particularly retailers and consumer brands — going into the pandemic, demand was elevated and supply chains were tight. So businesses put in huge orders in order to get stock.”

But now all that stock is now sitting there while supply chains have resumed normal operations.

“You’ve got a lot of companies that are sitting on very elevated inventory levels, potentially heading into a softening demand environment,” said Fisher.

“Throw in some debt, and that can be a really toxic combination of factors.”

The post 2 traps to avoid when buying ASX shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• How much profit could Telstra shares make in 2023?
• My top predictions for ASX All Ords shares in 2023
• 2 excellent ASX passive income shares to buy next week: analysts

Motley Fool contributor Tony Yoo 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a decent gain. The benchmark index rose 0.3% to 7,452.2 points.

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

ASX 200 expected to rise gain

The Australian share market looks set to rise again on Monday following a strong finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.45% higher this morning. On Wall Street, the Dow Jones was up 1%,the S&P 500 rose 1.9%, and the NASDAQ jumped 2.65%.

Oil prices rise

It could be a good start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after a solid finish to last week for oil prices. According to Bloomberg, the WTI crude oil price was up 1.3% to US$81.64 a barrel and the Brent crude oil price rose 1.7% to US$87.63 a barrel. Oil prices rose on Chinese demand optimism.

Tech shares on watch

It could be a great session for tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) on Monday after their US peers stormed higher on the Nasdaq Friday. Jeff Kilburg, the founder and CEO of KKM Financial, told CNBC: “You’re seeing more weight go into some of the beat-up technology and because people are becoming a little bit more thoughtful of opportunity in the absolute tech wreck we saw in 2022.”

South32 quarterly

The South32 Ltd (ASX: S32) share price will be on watch today when the mining giant releases its quarterly update. According to a note out of Goldman Sachs, its analysts expects South32 to report copper production of 17kt, met coal production of 1,450kt, alumina production of 1,402kt, and nickel production of 11kt.

Gold price edges lower

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price edged lower on Friday. According to CNBC, the spot gold price fell 0.15% to $1,925.33 per ounce after the US dollar firmed. However, this couldn’t stop the precious metal from recording its fifth successive weekly gain.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• My top predictions for ASX All Ords shares in 2023
• How to find undervalued ASX shares to buy now and hold in 2023
• Guess which ASX energy share has exploded 110% in 2 days?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Altium and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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All Ordinaries Index (ASX: XAO), or All Ords, shares saw plenty of volatility last year and I think 2023 could be another year of big movements.

The All Ords is an index of approximately 500 of the biggest businesses listed on the ASX.

Typically, the index’s performance is heavily influenced by the returns of the biggest companies, because they make up such a large percentage of the All Ords.

I’m talking about names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

Other All Ords ASX shares that have sizeable positions in the index include Woodside Energy Group Ltd (ASX: WDS), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

Here are my thoughts on some of the sectors.

ASX tech shares

While none of the tech names are among the biggest holdings, collectively the way they were punished in 2022 did have an effect on the All Ordinaries. Just look at how far the Xero Limited (ASX: XRO) share price dropped last year.

Higher interest rates may have been the key culprit for hurting the valuations last year. But, I think these heavily hit ASX tech share names could look like opportunities to investors when interest rates finally stop going up, if not before.

Some of the businesses that saw the biggest declines in 2022 could have the best chance of outperformance during the rebound. Names with attractive long-term revenue growth outlooks include Xero, Megaport Ltd (ASX: MP1), Frontier Digital Ventures Ltd (ASX: FDV) and Life360 Inc (ASX: 360).

Resource shares

On Friday I outlined my thoughts in a separate article regarding S&P/ASX 200 Index (ASX: XJO) mining shares.

I suggested that it’s likely to be a good year for many ASX 200 mining shares with China coming out of lockdowns. This could be good news for All Ords ASX shares iron ore miners, copper miners and other commodities if strong Chinese buying returns.

Unless Russian energy production is reintegrated back into the global system in 2023, I can’t see ASX coal shares or ASX energy shares having a bad year either.

The global demand for lithium still seems promising for the coming years, so I think it could be a good year of cash flow for ASX lithium shares.

ASX bank shares

The banking sector is going through rapid change with the Reserve Bank of Australia (RBA) interest rate now much higher than it was a year ago.

All Ords ASX bank shares are increasing interest rates faster for borrowers than savers, so it’s increasing their profitability. I think this has been a good boost for share prices of names like Westpac already.

I think bigger profits and dividends are likely in 2023. I’m not sure if the share prices can rise much more from here. It may depend on when banks start reporting an increase in arrears amid the higher interest rates – a large increase in arrears could worry investors. A small rise could be positive and allay fears.

All Ords ASX retail shares

Some areas of retail are seen as cyclical. People need to keep buying food, but new TVs and new cars may be seen as less essential.

However, the share price reaction is another part of the equation. A number of ASX retail shares have fallen significantly. I don’t believe that retail conditions are going to seem tough forever.

So, I believe names like Temple & Webster Group Ltd (ASX: TPW), Adore Beauty Group Ltd (ASX: ABY), Adairs Ltd (ASX: ADH) and Universal Store Holdings Ltd (ASX: UNI) could be longer-term opportunities.

By the end of 2023, the outlook could be more positive for retailers, compared to today.

Foolish takeaway

Overall, I think it’s going to be a positive year for All Ords ASX shares, particularly when including the dividend income.

I wouldn’t be surprised to see tech as the best-performing sector this year after the difficult year last year.

My investment strategy will continue to be to find ASX shares I think can perform over the long term.

The post My top predictions for ASX All Ords shares in 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy these top ASX growth shares: experts
• How I’d invest $40k in ASX shares and aim for $1 million
• One oversold ASX 300 dividend share (with a 6% yield) to buy now
• 3 ASX All Ords shares getting hammered on disappointing results
• Watch these 2 ASX 200 growth shares take off this year: expert

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 Adairs, CSL, Frontier Digital Ventures, Life360, Megaport, Temple & Webster Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has positions in and has recommended Adairs, Telstra Group, Wesfarmers, and Xero. The Motley Fool Australia has recommended Adore Beauty Group, Frontier Digital Ventures, Macquarie Group, Megaport, Temple & Webster Group, 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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