Category: Stock Market

Mining stocks absolutely carried the S&P/ASX 200 Index (ASX: XJO) last year.

And even though western economies are struggling, China’s post-COVID resurgence has many experts betting that there will be renewed thirst for raw materials.

Fairmont Equities managing director Michael Gable this week picked out two ASX shares in the resources sector that would make handsome buys at the moment:

Now is the buying opportunity for metals producer

The South32 Ltd (ASX: S32) share price has fallen almost 15% since 3 March.

“In our view, this can be considered a buying opportunity for this diversified mining company trading at a discount,” Gable told The Bull.

He’s not the only one thinking along those lines. According to CMC Markets, ten out of 19 analysts are currently rating South32 as a strong buy.

The analysts at Citi were certainly pleased with what they saw over reporting season.

“1H FY23 profit of US$560 million was better than expected,” reported The Motley Fool’s James Mickleboro.

“Importantly, FY23 production and cost guidance was maintained. FY24 production guidance points to modestly higher output in FY24.”

In rating South32 as a buy, the Citi team predicted that it has plenty of upside to come.

“We believe S32 has not yet run to full valuation levels trading on FY24E EV/EBITDA of 4x vs peers at >5x.”

Gable points to the upside in commodity prices forecast for the rest of this year.

“Low inventories in base metals should lead to a spike in prices,” he said.

“We expect increasing demand for base metals in later 2023.”

Gold will conquer the world

Gold is considered a safe haven asset for troubled times, and that’s no different in 2023 for Gable.

“We’ve been positive on gold stocks for the past few months, and still believe Newcrest Mining Ltd (ASX: NCM) is a buy at current levels.”

Newcrest shares have rocketed in sync with gold prices, with the stock gaining more than 62% since late September.

Gable likes the momentum.

“The share price has been trending higher since September 2022 and we expect it to continue moving forward,” he said.

“Any fall in the US dollar will be positive for gold prices.”

Another catalyst could come in the form of an acquisition.

“Potential exists for a new takeover bid after Newcrest rejected an offer from Newmont Corporation (NYSE: NEM) in February.”

The team at Firetrail is also a fan, last month nominating Newcrest shares as a stock to hold for the next decade.

They believe that the US dollar will lose its status as the world’s reserve currency, thus pushing gold into prominence.

“Gold was the world’s reserve currency for 5,000 years. It was only usurped by the US dollar 40 years ago following the breakdown of the gold standard,” Firetrail analysts said in a memo to clients.

“A greater role in world finance will put upward pressure on the gold price to the benefit [of] low cost, long life gold miners such as Newcrest Mining.”

The post ‘Increasing demand’: Expert picks 2 ASX 200 mining shares to buy (not BHP) appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Where I would go hunting for defensive ASX 200 shares with upside
• ASX 200 gold shares are starting the week with a bang. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX 200 gold shares reverse the charge higher to tumble today. Here’s why

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.

from The Motley Fool Australia https://ift.tt/KwqWXUT

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Capital H Management portfolio manager Harley Grosser tells us the two hottest small-cap ASX shares to buy right now.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Harley Grosser: Our team manages the Capital H Inception Fund, which is a value-focused, bottom-up stock picker specialising in small and microcap ASX-listed stocks. 

What we try to do is find situations where the upside is large and the downside’s relatively small. It tends to be in the smaller companies where you can find those, so that’s where we focus. 

The final one is we only buy businesses that we think we understand and at prices that we think are well below what we think they’re worth.

MF: The last 12 months for small caps haven’t been great. Where do you think the market is now and where do you think it’s heading?

HG: My honest answer on where the market’s going is that I don’t know, and we don’t spend much time trying to figure that out. 

As you mentioned, it has been a difficult market for small caps. So what we do know is there’s a whole lot more value in Aussie small caps now than there was 12 months ago. We’ve been pretty much buying some stocks every day for the last six months or so. We spend our time just sifting through everything and trying to find one or two good ideas a year, really. 

Over the really long term, markets will move higher but in the short term, they can do anything. So we just try to block out the noise and focus on finding good opportunities.

MF: Would it be fair to say you buy stocks with a reasonable investment horizon?

HG: Yeah, we want to be invested in the business as long as the company’s executing and the valuation stays reasonable. So the longer that is, the better. When we’re buying a stock, we’re buying it on what we think is [its] earnings in 12 or 18 months, not what it’s earning today or yesterday. 

We’re happy to take advantage of the short-term ups and downs, but we try to take a long-term focus on the actual investment.

Hottest ASX shares

MF: What are the two best stock buys right now?

HG: One is Environmental Group Ltd (ASX: EGL), which we’ve been in for a while. It’s a provider of integrated waste management and environmental solutions. 

They’ve had a really good 12 months at an operational level but as you mentioned, most small-cap stocks are down. So they’ve upgraded a few times over the last year through FY22, and we think there’s good prospects of earnings momentum continuing into FY24, given their deal pipeline. 

It’s a really well-run business. It’s run by someone who the market knows well, and it’s in the right space with billions of dollars going to be spent on waste and environmental solutions in coming years, regardless of inflation, or recession risk, or base collapsing. It’s a little bit recession-proof there. 

What we think will get the market excited in the new term is their opportunity in PFAS [chemical pollutants], which looks like it’s starting to come together. So I think it’s probably just one that investors should keep an eye on because we think it’s close to an inflection point, potentially.

MF: These small caps, they can go down a fair magnitude, but when the market picks up again, they go up significantly compared to the larger stocks, don’t they?

HG: For sure. And when they do go up, they go up very quickly, and often on relatively low volume. So it’s hard to buy them when they’re moving. You’ve got to take a view, get set, and hope your work proves you’re correct. 

We’re not trying to be too smart and trade each year around the edges. We just held the position, and if the stock goes nuts, we’ll of course manage the position and sell what we need to, but it’s a long-term hold for us. And the management’s executing, so we can’t really fault them.

MF: Great, and your other ASX share to buy?

HG: Final one is Sequoia Financial Group Ltd (ASX: SEQ). They’re a financial services group. They’ve just announced they’ve agreed to sell 80% of one of their businesses for $40 million of cash. 

The stock’s trading on a silly valuation of three times EV [enterprise value] to EBIT [earnings before interest and tax]. The catch there is that the market doesn’t yet fully believe the sale will complete, at least based on what the share price is. 

But the buyer is coming out saying publicly that they’ve got the funding, so we just got to wait and see.

We think it’s an investment with relatively little downside. If the deal doesn’t complete, we don’t lose much. If it does complete, then it looks really, really cheap. We’ll probably make a good return. 

The first key date there would be the 20th of March for investors to watch. Pencil that date in because that’s when the first payment of about $10 million comes in. And we think as each payment comes in, there’s three payments totalling $40 million, then the stock will re-rate. 

It’s not without risk there. The deal might not complete, but we think it’s a reasonable chance it does and the stock looks cheap on that basis.

MF: That’s a pretty huge transaction for a company with a current market cap of only $72 million.

HG: Oh, massive. I mean if it does complete, they’ve got $45 million of cash, they’ll still be doing say $8,  $9 million of operating EBITDA a year. 

I think the market was shocked, in a good way, by what price they got for Morrison’s. But because the structure of the deal is cash payments over a relatively long time, the market’s not going to price it in until the cash’s actually in the account, which is fair enough.

The post This $70 million ASX company just pulled off a $40 million deal: fundie appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘High margin business’: Expert names 2 ASX 200 shares to buy now at sharp discount
• 5 things to watch on the ASX 200 on Tuesday
• Brokers name 2 small cap ASX shares to buy now
• I’d target just a handful of ASX shares to aim for a million!
• Why did the Woodside share price slide today?

Motley Fool contributor Tony Yoo has positions in Environmental 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.

from The Motley Fool Australia https://ift.tt/LezVh3f

Regardless of what the economic conditions are, it’s wise to back businesses that have some unique competitive advantage.

With interest rate rises starting to depress consumers and businesses, that boost is even more important in 2023.

Shaw and Partners investment advisor Jed Richards this week named two S&P/ASX 200 Index (ASX: XJO) shares he would buy right now — one with a near-monopoly in its industry and the other with a massive portfolio of assets:

‘A good buying opportunity’ for market leader

Amid all the talk about ASX shares, one can easily forget that the stock exchange itself is a publicly listed company.

With very little competition for trading volumes in Australia, ASX Ltd (ASX: ASX) is playing in a league of its own.

And the stock is going for dirt cheap at the moment.

“The share price [is] significantly down from its August 2022 highs,” Richards told The Bull.

“This represents a good buying opportunity, as the ASX is a market leader with limited competition.”

ASX Limited shares traded for as much as $93.75 in late 2021, but has cooled off to around the $66 mark after its technology replacement project failed last year.

But from here it’s all gravy for the stock exchange operator.

“Our analysis shows ASX is a high margin business that’s grown earnings at a modest but consistent rate over time,” said Richards.

“We like the recent grossed up dividend yield of about 5% and defensive characteristics in today’s market conditions.”

A retailer undervalued for its real estate

Physical retailers may not be in fashion in modern times, but Richards likes what he sees in Harvey Norman Holdings Limited (ASX: HVN).

But it’s actually not the retailing that’s captured his attention.

“In our view, the market is underestimating the value of Harvey Norman’s property portfolio, which represents a large portion of the company’s entire market capitalisation.”

This anomaly has become more accentuated over the past year as the share price has fallen almost 32%.

Richards urges investors to not be distracted by the latest numbers out of reporting season.

“The recently reported 2023 first half profit was down on the prior corresponding period. However, excess sales during the pandemic skew these numbers,” he said.

“The company is trading on a solid fully franked dividend yield.”

Indeed, Harvey Norman shares are currently handing out a fat dividend yield of 8.2%.

The post ‘High margin business’: Expert names 2 ASX 200 shares to buy now at sharp discount appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• I’d target just a handful of ASX shares to aim for a million!
• Buy Macquarie and this high yield ASX dividend share: brokers
• Warren Buffett rakes in $9 billion in annual dividend income. Should I buy ASX dividend shares right now?
• These 3 ASX 300 shares are dividend dynamos!
• Gerry Harvey just bought $8 million worth of Harvey Norman shares. Should you buy?

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 Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/u0LshJ8

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day deep in the red. The benchmark index fell 1.4% to 6,898.5 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 50 points or 0.7% higher. In late trade in the United States, the Dow Jones is up 1.15%, the S&P 500 is up 0.8%, and the NASDAQ is up 0.3%.

Oil prices recover

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a better day after oil prices recovered a touch overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$67.61 a barrel and the Brent crude oil price is up 1.1% to US$73.79 a barrel. Traders appear to believe that oil prices were oversold.

Telstra rated as a buy

The Telstra Group Ltd (ASX: TLS) share price is great value according to analysts at Goldman Sachs. Following a review of the telecoms sector, the broker has reiterated its buy rating and $4.60 price target on its shares. It commented: “We continue to prefer Telstra (Buy) within the ANZ Telecoms sector, given its defensive low risk earnings (and dividend) growth.”

Gold price edges lower

It could be a softer day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,987.6 an ounce. Improving risk sentiment appears to have softened demand for the safe haven asset.

Incitec Pivot divestment

The Incitec Pivot Ltd (ASX: IPL) share price will be one to watch after the chemicals company announced the sale of its Waggaman operation in the United States to CF Industries for almost $1.9 billion. As part of the deal, the company has signed a 25-year ammonia supply agreement. The net cash proceeds from the sale are intended to be allocated in line with its capital allocation framework.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Forget term deposits and buy these ASX 200 dividend shares: analysts
• Where I would go hunting for defensive ASX 200 shares with upside
• ASX 200 gold shares are starting the week with a bang. Here’s why

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/J4eR6nr

Wanting some ASX small caps in your portfolio? If you are, check out the two listed below that brokers rate as buys.

Here’s what the broker is saying about these small caps:

Acrow Formwork and Construction Services Ltd (ASX: ACF)

The first ASX small cap share that could be a buy is Acrow Formwork and Construction Services.

Acrow is a growing provider of engineered formwork, scaffolding, and screen systems solutions to the construction sector.

Morgans likes the company enough to have it on its best ideas list. This is due to its belief that it is well-placed to benefit from growing civil infrastructure activity across the east coast. It also notes its attractive valuation. It said:

ACF is a well-managed business with leverage to growing civil infrastructure activity over the long term, especially on the east coast. Momentum remains strong with two earnings upgrades so far in FY23. We believe the valuation remains attractive (~7x FY24F PE and ~5% yield) with potential positive catalysts from further meaningful contract wins.

The broker has an add rating and 95 cents price target on its shares.

Maas Group Holdings Ltd (ASX: MGH)

Another small cap ASX share to consider buying is Maas. It is a growing construction material, equipment and service provider.

Goldman Sachs is a fan of Maas and believes it could be a top option right now. This is thanks to its ongoing transition, which it believes will support higher quality earnings. It explained:

We believe MGH is in a transition phase and will see higher quality real estate income become the largest source of earnings in the next 3-5 years. We believe the market is mispricing how MGH’s civil and construction capabilities support the property development business to deliver best-in-class margins and asset turnover. In our view the value created through the development of quality annuity revenue from Build-to-Rent (BTR), Land Lease (potentially generating a 4.5x ROIC annuity income stream) and commercial real estate projects could re-rate the stock.

Goldman has a buy rating and $4.00 price target on its shares.

The post Brokers name 2 small cap ASX shares to buy now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 6 ASX shares to pounce on from a boom reporting season: Morgans
• The obscure ASX share with 45% upside one small-caps expert is backing right now

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.

from The Motley Fool Australia https://ift.tt/J5uayfg

I’m sure most of us share the aspiration of having a $1 million ASX share portfolio. The whole reason why we invest in ASX shares is to harness the power of compound interest – it’s a lot easier to get to $1 million by investing in shares than a savings account, after all.

Here at the Fool, we like to encourage investors to build a portfolio of between 15 and 25 different shares. This is important to harness the benefits of diversification. But the reality is that if you make it to a $1 million portfolio, it will probably be only thanks to a handful of shares.

That’s why picking the best companies you can is so important. Different companies can serve different roles in a portfolio.

You might have one share for its defensive, recession-resistant qualities that can protect your capital. You might have another one for high dividend income. A third choice might be a moonshot growth stock that you hope can turn out to be a 100-bagger.

So what kind of qualities should an investor look for in their own investments?

Well, to answer that, let’s turn to one of the greatest investors of all time, Warren Buffett.

Some Buffett wisdom for $1 million of ASX shares

Buffett is a master stock picker. He has had more than 90 years on this planet to hone his craft, and he has certainly done so, turning Berkshire Hathaway Inc into a US$644 billion company over the course of his career.

The lion’s share of Berkshire’s (and thus Buffett’s) returns have only come from a handful of shares though. Buffett said as much in his most recent letter to the shareholders of Berkshire:

In 58 years of Berkshire management, most of my capital-allocation decisions have been no better than so-so. In some cases, also, bad moves by me have been rescued by very large doses of luck …

Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.

So what does Buffett look for in a winner? Well, luckily, some of his other letters from years gone by paint a pretty detailed picture. Here’s some of what he said in 1993:

Both Coke and Gillette have actually increased their worldwide shares of market in recent years.

The might of their brand names, the attributes of their products, and the strength of their distribution systems give them an enormous competitive advantage, setting up a protective moat around their economic castles.

The average company, in contrast, does battle daily without any such means of protection

He then expanded on this in his letter this following year:

Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph.

We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong.

So there you have it. Of course, finding these Buffett-approved shares is easier said than done. And you also make sure you pay the right price for them.

For example, one of my favourite ASX shares, one that I expect will help me get to $1 million one day, is Washington H. Soul Pattinson And Co Ltd (ASX: SOL). But I am hoping for a cheaper share price to add to my position than what the market is currently asking.

However, there are others that I think look like better value. Those include Adairs Ltd (ASX: ADH), Harvey Norman Holdings Limited (ASX: HVN) and JB Hi-Fi Ltd (ASX: JBH). I hope Buffett would approve.

The post I’d target just a handful of ASX shares to aim for a million! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today
• Here are the 10 most shorted ASX shares this week
• Is it a trap? 3 ASX shares with ultra-high dividend yields
• Buy Macquarie and this high yield ASX dividend share: brokers
• 2 ASX 300 shares trading ex-dividend on Monday

Motley Fool contributor Sebastian Bowen has positions in Adairs, Berkshire Hathaway, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, Berkshire Hathaway, Harvey Norman, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Adairs, Harvey Norman, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NSK1fvP

The Woodside Energy Group Ltd (ASX: WDS) share price dropped 2.94% in trading on Monday.

The S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed on Friday trading for $31.94 per share. Shares finished Monday’s session trading at $31 apiece.

It’s not just the Woodside share price that was under pressure today, mind you.

The ASX 200 fell 1.38% today. And energy stocks broadly underperformed, as witnessed by the 3.01% fall in the S&P/ASX 200 Energy Index (ASX: XEJ).

So, what’s going on?

What are ASX 200 energy investors considering?

The Woodside share price slipped amid another retrace in crude oil prices over the weekend.

Brent crude oil is down 0.80%, currently trading for US$71.03 per barrel. That’s the lowest level seen since December 2021.

Oil has had virtually the opposite reaction as gold has to the uncertainty embroiling the global financial sector over the past week and a half, with ASX 200 gold shares rocketing higher today.

Atop the banking crisis – sparked by the collapse of Silicon Valley Bank and the emergency takeover of Credit Suisse by rival UBS – the oil price has been under pressure on several other fronts.

First, investors remain concerned about a potential global recession knocking the stuffing out of energy demand.

Second, Russia has, against all odds, managed to maintain its oil exports despite a range of international sanctions in place to protest its invasion of Ukraine.

What’s next for the Woodside share price?

A range of factors will determine how well, or poorly, the Woodside share price performs over the coming months.

And the oil price will be a key component.

On that front, most analysts continue to forecast significantly higher crude oil prices for the second half of 2023.

Goldman Sachs just revised its own oil forecast down from USS$100 per barrel Brent heading into 2024.

However, the broker still sees Brent crude trading for US$94 per barrel. That 32% upside from current prices would certainly help support Woodsides moving forward.

Woodside share price snapshot

Pressured by falling energy prices, the Woodside share price has dipped into the red, down 1.18% over the past 12 months.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What Goldman Sachs new oil price forecast could mean for ASX 200 oil shares in 2023
• With oil below $75 per barrel, what’s next for the Woodside share price?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 oil stocks are tanking. Is now the time to buy?
• Why Bendigo and Adelaide Bank, BHP, IPH, and Woodside shares are dropping

SVB Financial provides credit and banking services to The Motley Fool. 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 positions in and has recommended SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/8oYq2fa

The S&P/ASX 200 Index (ASX: XJO) tumbled to its lowest close of 2023 on Monday, falling 1.38% to end the session at 6,898.5 points.

But the news taking the market by storm came from across the seas. Aussies woke up to word that embattled banking giant Credit Suisse will be acquired by rival UBS for around $4.8 billion.

Interestingly, it wasn’t the S&P/ASX 200 Financials Index (ASX: XFJ) leading the Aussie bourse’s falls today. Though, the sector did dump 1.7%.

Instead, it was the S&P/ASX 200 Energy Index (ASX: XEJ) that came in as the index’s worst-performing sector. It plummeted 3% after oil prices ended last week with a fizzle.

Brent crude oil fell 2.3% on Friday to finish last week nearly 12% lower than it started at US$72.97 a barrel. Meanwhile, US Nymex crude oil price dropped 2.4% on Friday to US$66.74 a barrel – marking a 13% week-on-week fall.

But not all was dire on the bourse today. The S&P/ASX 200 Communications Index (ASX: XTJ) lifted 0.4%.

These 10 top-performing ASX 200 stocks also ended the day in the green. Let’s take a look.

Top 10 ASX 200 shares countdown

A strong performance from gold prices, potentially driven by instability alarm bells, likely helped Gold Road Resources Ltd (ASX: GOR) come in as the ASX 200’s top-performing share on Monday.

The stock leapt nearly 11% to close at $1.67, taking the lead from many of its peers.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Gold Road Resources Ltd (ASX: GOR)	$1.67	10.96%
Evolution Mining Ltd (ASX: EVN)	$2.84	10.08%
Perseus Mining Limited (ASX: PRU)	$2.32	9.43%
De Grey Mining Limited (ASX: DEG)	$1.575	9%
Northern Star Resources Ltd (ASX: NST)	$11.82	8.54%
Healius Ltd (ASX: HLS)	$3.01	8.27%
Regis Resources Ltd (ASX: RRL)	$1.89	7.69%
Silver Lake Resources Ltd (ASX: SLR)	$1.155	6.45%
Capricorn Metals Ltd (ASX: CMM)	$4.73	6.29%
Newcrest Mining Ltd (ASX: NCM)	$25.65	5.95%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Where I would go hunting for defensive ASX 200 shares with upside
• 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
• Why this ASX All Ords healthcare share is defying the market weakness and zooming higher

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.

from The Motley Fool Australia https://ift.tt/wv16VH0

Well, it’s been a pretty lousy start to the trading week for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far this Monday. At the time of writing, the ASX 200 has tumbled yet again. The Index is currently down by another 1.21%, putting it very close to dropping under 6,900 points.

The ASX 200 has now lost more than 6% since 7 March. Ouch.

But rather than letting this set the tone for the week, let’s distract ourselves by instead taking a look at the ASX 200 shares that are at the top of the share market’s trading volume charts at present, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Monday

Pilbara Minerals Ltd (ASX: PLS)

First up this Monday is the ASX 200 lithium share Pilbara Minerals. So far today, a notable 14.96 million PIlbara shares have traded owners on the ASX. There’s been no fresh news out of Pilbara itself that might explain this volume. So let’s turn to the Pilbara share price itself for a possible explanation here. Indeed, Pilbara has had a big day, and not in a good way.

This lithium leader is currently nursing a painful 4.63% loss today, putting the company down to $3.50 a share at present. That’s despite Pilbara initially opening in positive territory this morning and rising as high as $3.71 a share. This volatility and big share price loss are probably why we are seeing so many Pilbara share flying around.

Evolution Mining Ltd (ASX: EVN)

Next up is another miner in ASX 200 gold share Evolution. So far this Monday, a significant 15.94 million Evolution shares have charged across the ASX boards. We have seen some news from this company today. This morning, Evolution informed investors that underground mining and production at its Cowal project has commenced ahead of schedule.

This has presumably combined with a spike in gold prices to lead the Evolution share price to more than 11% higher so far today, with the miner currently asking $2.86 a share. No wonder we are seeing high trading volumes here.

Sayona Mining Ltd (ASX: SYA)

Another ASX 200 lithium share rounds out our list today in Sayona. So far this session, a whopping 29.35 million Sayona shares have been bought and sold. This looks like a very similar situation to that of Pilbara. Despite no fresh news out today, Sayona shares have still had a shocker.

The miner is presently down by a nasty 5.91% at 21 cents each, despite a positive open this morning. With a fall of that size, it’s no surprise to see a boatload of Sayona shares trading on the share market.

The post Here are the 3 most heavily traded ASX 200 shares on Monday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy these ASX growth shares this week: experts
• Where I would go hunting for defensive ASX 200 shares with upside
• ASX 200 gold shares are starting the week with a bang. Here’s why
• AMP share price dips despite $337m sale win
• Why I’d be happy to invest in these ASX 200 bank shares today

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 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.

from The Motley Fool Australia https://ift.tt/5V69dPz

S&P/ASX 200 Index (ASX: XJO) oil shares are broadly trailing the benchmark index today.

At the time of writing, the ASX 200 is down 1.23%.

As for the big oil and gas stocks, the Santos Ltd (ASX: STO) share price has dropped 2.53% while Woodside Energy Group Ltd (ASX: WDS) shares are currently down 3.07%.

This comes amid another leg down for the oil price over the weekend.

On Friday, Brent crude oil was trading for US$74.70 per barrel. Today that same barrel is worth US$72.91, down 2.4%.

ASX 200 oil shares, as you’d expect, are greatly impacted by the price of the black gold they pump from the ground.

And the past few weeks haven’t been kind to global oil prices, which have been hammered to 15-month lows in the wake of a series of banking collapses in the United States and Europe.

Which brings us to the latest crude oil price forecast from Goldman Sachs.

Where to now for ASX 200 oil shares?

Goldman Sachs had been forecasting Brent crude prices to rise to US$100 per barrel towards the latter half of 2023.

But with the recent bank turmoil and sharp retrace in crude prices, the broker has scaled back that prediction.

“Oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows,” Goldman stated (courtesy of Bloomberg).

”Historically, after such scarring events, positioning and prices recover only gradually, especially long-dated prices.” 

Goldman Sachs’ analysts are now forecasting that Brent crude will hit US$94 per barrel over the coming 12 months and US$97 per barrel in the second half of 2024.

While that’s a significant downward revision, the broker still expects the oil price to increase by some 29% over the year. Which should offer ASX 200 oil shares some heady tailwinds.

Santos and Woodside share price snapshots

With the oil price in retreat in retreat in 2023, both ASX 200 oil shares have dipped into the red in the new year.

As you can see in the charts below, the Santos share price is down just over 5% since the closing bell on 31 December while Woodside shares have fallen 12.3%.

But if Brent crude prices rebound to US$94 per barrel as Goldman Sachs expects, the story could be quite different come Christmas time.

The post What Goldman Sachs new oil price forecast could mean for ASX 200 oil shares in 2023 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• With oil below $75 per barrel, what’s next for the Woodside share price?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 oil stocks are tanking. Is now the time to buy?
• Why Bendigo and Adelaide Bank, BHP, IPH, and Woodside shares are dropping

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.

from The Motley Fool Australia https://ift.tt/NPgO5dt