Category: Stock Market

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Friday.

This is because Australia’s oldest bank has just released its first quarter update.

Westpac share price on watch

Investors will be watching the Westpac share price closely today after the banking giant’s first quarter update was released to the market.

Unfortunately, the banking giant’s update isn’t as thorough as the one from rival National Australia Bank Ltd (ASX: NAB) on Thursday and doesn’t include any profit details.

However, it does provide a few metrics that gives investors an idea of how Westpac is performing right now.

What did Westpac report?

Westpac’s update provided details on its credit quality, capital position, and funding and liquidity.

In respect to credit quality, Westpac reported that its 90+ day mortgage delinquencies were down five basis points to 0.7%.

It also revealed that its provisions to total committed exposure (TCE) edged slightly higher to 40 basis points from 39 basis points. Though, this is still lower than the prior corresponding period.

As for its capital position, Westpac reported a CET1 ratio of 11.13% and an 0.6% or $2.8 billion increase in risk weighted assets (RWA) to $480.4 billion. The latter was driven by higher lending.

Finally, the banking giant provided investors with a funding and liquidity update, which revealed that both measures have strengthened during the quarter.

Westpac’s liquidity coverage ratio (LCR) was up 7 percentage points to 139%, its net stable funding ratio (NSFR) was up 1 percentage point to 122%, and its deposit to loan ratio came in 1.1 percentage points higher at 84%.

The Westpac share price is down 3% over the last 12 months.

The post Westpac share price on watch following Q1 update appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why CBA, Corporate Travel Management, Treasury Wine, and Westpac shares are dropping
• 3 catalysts for Westpac shares to take off in 2023
• Westpac share price higher amid latest BNPL moves
• 3 of the best ASX 200 shares to buy now: broker

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

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Despite the buoyant stock market so far in 2023, it’s confusing to investors to know which ASX shares to pick up right now.

That’s because much uncertainty still abounds. 

Regardless of the opinions you hear, no one truly knows how the economy, inflation, interest rates, geopolitics, and earnings will turn out this year.

In this environment, it might help to see where professional investors have their money parked.

The Firetrail Small Companies Fund this week revealed three S&P/ASX 200 Index (ASX: XJO) shares that it’s “overweight” in, and the rationale behind the investments:

Outlook remains strong for this hammered stock

The Incitec Pivot Ltd (ASX: IPL) share price has started the year poorly, dropping more than 6% so far.

Firetrail analysts put this down to the “falling European gas price and rising Australian dollar”. 

“An unusually warm European winter resulted in lower gas demand than expected,” read their memo to clients.

“With the price of ammonia largely driven by the cost of marginal European production, the warm winter has been negative for global fertiliser companies.”

But the team is happy to buy up Incitec shares while they’re cheap, as “energy-exposed” businesses are a favoured theme at the moment.

“We view these [headwinds] as temporary. The medium-term outlook for Incitec Pivot’s fertiliser business remains strong.”

Demand for EV materials will continue

Lynas Rare Earths Ltd (ASX: LYC) shares have risen more than 6% to kick off 2023, although they’re still 12% down from a year ago.

The post-COVID reopening of the Chinese economy plus a positive performance update helped.

Businesses that produce materials that go towards electric vehicles are winners for the Firetrail team. As such, it will stick with its Lynas shares. 

“December quarter production of Lynas’ main rare earth product NdPr [neodymium and praseodymium] improved 44% on the September quarter, as water outages in Malaysia were successfully rectified.”

US housing downturn not as bad as first thought

Another theme Firetrail analysts currently like is “globally exposed cyclicals”.

This rationale is behind its backing of plumbing equipment supplier Reliance Worldwide Corporation Ltd (ASX: RWC).

The stock has rocketed 17.5% up so far this year.

“Reliance Worldwide outperformed in January. US market sentiment improved following [US] Fed chair Jerome Powell’s less hawkish comments at the January FOMC meeting.”

The great tailwind for Reliance is that the duration and severity of a housing downturn in the US could be “less pronounced than expected”. 

“Reliance Worldwide has 20% of revenue linked to new housing construction, and 80% linked to repair & replace (R&R) activity.”

The post 3 ASX 200 shares Firetrail Small Companies fund is overweight in right now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 stocks marching higher following earnings updates
• Here are the top 10 ASX 200 shares today
• Buy Lynas shares now for 25% upside: UBS
• Lynas share price marching higher on licence update
• Lynas share price sinks 8% amid license concerns

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 Reliance Worldwide. The Motley Fool Australia has recommended Reliance Worldwide. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) returned to form and stormed higher. The benchmark rose 0.7% to 7,410.3 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Friday despite it being a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 7 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is down 0.4%, the S&P 500 is down 0.4% and the NASDAQ index has dropped 0.5%. A hot inflation report but a decline in jobless claims showed the US economy is holding up despite the Federal Reserve’s rate hikes. This sparked fears that more are coming.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$78.40 a barrel and the Brent crude oil price is down 0.35% to US$85.11 a barrel. A stronger US dollar weighed on prices.

NAB rated a buy and Westpac’s Q1 update

The National Australia Bank Ltd (ASX: NAB) share price is great value according to analysts at Goldman Sachs. In response to its first quarter update, the broker retained its buy rating with a $35.42 price target. It commented: “NAB has released its 1Q23 trading update, with unaudited cash earnings from continuing operations of A$2.15 bn, up 18% on the previous period average, run-rating 3% above what is implied by our current 1H23E forecasts.” Elsewhere, fellow ASX 200 bank Westpac Banking Corp (ASX: WBC) is scheduled to release its first quarter update.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,854 an ounce. Strong US economic data put pressure on the precious metal.

QBE full year results

The QBE Insurance Group Ltd (ASX: QBE) share price will be one to watch on Friday when the insurance giant releases its full year results. Goldman Sachs is expecting a net profit of $676.1 million and a 25 cents per share dividend. However, it is QBE’s guidance that the broker thinks will be the more important aspect of the result. It believes the company could surprise with FY 2023 underlying insurance margin guidance close to 12%, compared to consensus estimate of 11.5%.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the ASX 200 leap higher on rising unemployment data?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are Newcrest shares slipping on Thursday?
• 2 ASX 200 shares soaring over 9% on strong results

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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The Evolution Mining Ltd (ASX: EVN) share price closed the session on Thursday down 2% to $2.97.

The ASX gold mining share opened at $2.86 today, down 5.6%, after the company released its 1H FY23 results shortly before the market open.

The Evolution Mining share price sank quickly to an intraday low of $2.82, a drop of 6.9%, before recovering over the session.

The price drop was likely related to news the miner is cutting its interim dividend by 50% this year.

This is despite a 13% increase in its earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Let’s see what the company had to say.

Evolution share price punished for 50% dividend cut

Evolution Mining declared a fully franked interim dividend of 2 cents per share for 1H FY23.

This compares to the 3 cents per share paid for 1H FY22 — a 50% cut for shareholders.

In a statement, the company said the dividend “balances capital investment and balance sheet management with investor returns”.

According to the statement:

The Company’s dividend policy is, whenever possible, to pay a dividend based on Group cash flow generated during a year.

The Directors assess the Group cash flow and outlook for the business with the intention to return excess cash to shareholders and targeting a level around 50% of Group cash flow.

The level of capital invested in growth projects, predominantly at Cowal and Red Lake, significantly reduced the Group cash flow for the period.

However, these projects will move to commercial production in the second half of the year which will lead to increased operating cash flow and a significant reduction in the level of major capital investment.

The ex-dividend date will be 28 February and the payment date will be 2 June.

What were Evolution Mining’s results for 1H FY23?

Here are the highlights for the six months ending 31 December 2022:

• Statutory net profit after tax (NPAT) of $101 million (H1 FY22: $91 million)
• Underlying NPAT of $103 million (H1 FY22: $100 million)
• EBITDA up 13% to $446 million (H1 FY22: $393 million)
• Sector-leading EBITDA margin of 39% (H1 FY22: 44%)
• Mine operating cash flow of $477 million (H1 FY22: $396 million)
• Net mine cash flow of $86 million (H1 FY22: $120 million) after $302 million of planned investment in major growth projects
• Cash position of $313 million (30 June 2022: $572 million) as at 31 December 2022
• Full-year production and cost guidance maintained.

What’s next?

Evolution Mining said its mineral resources estimate is higher compared to 1H FY22.

It reported 30.3 million ounces of gold and 1.8 million tonnes of copper. This is an increase of 724,000 ounces of gold (2%) and 322,000 tonnes of copper (22%) on the prior corresponding period (pcp).

Evolution reported an ore reserves estimate of 10 million ounces of gold and 661,000 tonnes of copper. This is a decrease of 360,000 ounces of gold (4%) and an increase of 21,000 tonnes of copper (3%) pcp.

Evolution produced 327,502 ounces of gold at an all-in sustaining cost of US$876 per ounce (AU$1,307 per ounce).

Evolution Mining share price snapshot

The Evolution Mining share price is down 27% over the past 12 months.

This compares to a 1.6% increase for the S&P/ASX 200 Index (ASX: XJO).

The post Evolution Mining share price dives after 50% cut to dividend appeared first on The Motley Fool Australia.

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More reading

• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bronwyn Allen 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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If you’re not overly keen on stock picking, then exchange traded funds (ETFs) could be a good alternative. That’s because ETFs allow investors to buy large groups of shares through a single investment.

But which ETFs could be worth considering? Three quality ETFs to look at are listed below, here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to look at is the BetaShares NASDAQ 100 ETF. If you want to buy many of the highest quality companies in the world in one fell swoop, then this ETF allows you to do it. That’s because the BetaShares NASDAQ 100 ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. This means you’ll be owning shares in giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, and Tesla.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ETF for investors to look at is the iShares Global Consumer Staples ETF. With interest rates rising across the globe, there are concerns that a global recession could be around the corner. The good news is that even if one does occur, the companies included in this ETF are likely to remain well-placed to navigate the crisis. That’s because this ETF gives investors exposure to many of the world’s largest global consumer staples companies such as Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart. Demand for their products is relatively consistent whatever is happening in the economy.

iShares S&P 500 ETF (ASX: IVV)

A third and final ETF for investors to look at is the iShares S&P 500 ETF. This ETF gives investors access to 500 of the top listed U.S. companies. This means you’ll be buying a slice of companies such as Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa. This is a more diverse group of shares compared with the tech-heavy Nasdaq 100 ETF. So, if you’re not overly bullish on the tech sector, this ETF could be a great alternative.

The post Here are 3 quality ETFs for ASX investors to buy right now appeared first on The Motley Fool Australia.

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More reading

• Does the BetaShares Nasdaq 100 ETF share price fall make it a no-brainer buy?
• These top ETFs could be great options for beginner ASX investors
• Top ASX ETFs to buy in February 2023
• 2 fantastic ETFs for ASX investors to buy and hold
• The smartest ASX shares to buy with $20 right now

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended iShares S&p 500 ETF. 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 BrainChip Holdings Ltd (ASX: BRN) share price finished the session on Tuesday up 8.82% to 55.5 cents.

This is a big turnaround from yesterday when the ASX tech share lost 15% during trading to reach a new 52-week trough of 50 cents.

The dramatic drop prompted an official ASX price query but BrainChip said it could not explain the crash.

What’s driving the BrainChip share price rise?

There is no news from the company today. Thus, it’s safe to assume that today’s 9% gain is a reaction from traders ‘buying the dip‘ on the BrainChip share price for a potential short-term gain.

We often see this sort of volatility in speculative small-cap shares, especially those in the tech sector. BrainChip also operates in the artificial intelligence (AI) space, which is still in its infancy.

Brainchip has developed the world’s first commercial neuromorphic processor, called Akida. It can be integrated into computer chips to deliver AI reasoning and conclusions from sensor-captured data. 

BrainChip shipped its first production chips in 2021 and is now seeking to manufacture at volume.

Take a look at what the BrainChip share price has done over the past year in the chart below.

Great day for ASX tech shares

BrainChip may have also benefitted from a great day on the market for ASX tech shares.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) was the second-best performer of the 11 market sectors today, up 2.71% at the market close.

ASX tech nano cap Revasum Inc (ASX: RVS) was the top-performing tech share today, up by 45.46%.

ASX tech shares and ASX consumer discretionary shares moved the most today after the Australian Bureau of Statistics announced that the unemployment rate rose from 3.5% to 3.7% last month.

The post BrainChip share price rebounds 9% following speeding ticket appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the BrainChip share price crashing 15% on Wednesday?
• BrainChip shares: The bull and bear case
• Could 2023 be the year these ASX AI stocks come roaring back?
• Why has the BrainChip share price crashed 19% in 2023?

Motley Fool contributor Bronwyn Allen 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) bounced back with a bang on Thursday, rising 0.79% to close at 7,410.3 points.

It came amid the release of the Australian Bureau of Statistics’ latest employment data, finding unemployment rose to 3.7% in January. That’s likely good news for those wishing inflation to ease.  

Leading the market higher today was the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ). The sector leapt 2.7% today.

It was also a good day for S&P/ASX 200 Information Technology Index (ASX: XIJ) stocks – the tech sector rose 2.7%.

However, fans of ASX 200 energy shares were likely left disappointed. The S&P/ASX 200 Energy Index (ASX: XEJ) slumped 0.7% as coal shares weighed amid earnings from Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC).

The coal producers also responded to the NSW Government’s price cap and coal reservation policy today.

So, with all that in mind, let’s take a look at the 10 shares that outperformed all others on Thursday.

Top 10 ASX 200 shares countdown

Today’s biggest gain on the ASX 200 came from Orora Ltd (ASX: ORA) shares. They surged 15% to close at $3.33 on the back of the company’s first-half earnings.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Orora Ltd (ASX: ORA)	$3.33	14.83%
Sonic Healthcare Limited (ASX: SHL)	$33.20	14.25%
Corporate Travel Management Ltd (ASX: CTD)	$17.32	9.97%
Block Inc (ASX: SQ2)	$122.10	9.25%
BrainChip Holdings Ltd (ASX: BRN)	$0.555	8.82%
Megaport Ltd (ASX: MP1)	$6.44	8.78%
GUD Holdings Limited (ASX: GUD)	$9.61	7.49%
Abacus Property Group (ASX: ABP)	$3.06	7.37%
Healius Ltd (ASX: HLS)	$3.02	7.09%
Magellan Financial Group Ltd (ASX: MFG)	$10.05	6.35%

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.

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More reading

• Why did the ASX 200 leap higher on rising unemployment data?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX 200 tech stocks like Xero having such a cracking run today?
• Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher
• 2 ASX 200 shares soaring over 9% on strong results

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 positions in and has recommended Block and Megaport. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Corporate Travel Management, Megaport, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is up 0.76% late today, receiving a midday surge following news from the Bureau of Statistics that Australia’s unemployment rate increased from 3.5% to 3.7% in January.

It appears the rise in unemployment is being interpreted by some investors as a potential signal that interest rate rises are starting to slow the economy, which is necessary to tame inflation.

And inflation is the sole reason the Reserve Bank has been raising interest rates so rapidly.

RBA Governor Dr Philip Lowe has already indicated that another two 25-basis point rate rises are almost certain in 2023. He told a Senate committee yesterday that inflation remains “way too high”.

Why are ASX 200 shares going up?

Right now, any news indicating that interest rate rises are working is good for the share market. It means we’re getting closer to the point when the Reserve Bank will back off and pause rates.

The bank isn’t going to do that until there’s enough evidence that inflation is falling. In order for inflation to fall, certain things have to happen, like lower consumer spending and business investment.

The prices of everyday goods will come down when supply bottlenecks clear and consumers rein in spending.

The share market likes today’s news because inflation is bad for most businesses. Put simply, it raises their input costs. Then rising interest rates increase their debt costs.

The impact is especially seen in ASX consumer discretionary shares.

When inflation is rising, discretionary businesses face rising input costs as well as fewer customers. Most discretionary businesses can’t raise their prices to offset the effect, so it’s a real triple whammy.

So, it’s little wonder that today’s jobs data is pushing up ASX 200 consumer discretionary shares the most.

The S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is the top riser of the 11 market sectors today, up 2.81% in late afternoon trading.

Among the biggest ASX 200 movers in the sector today are Corporate Travel Management Ltd (ASX: CTD) shares up 9.8%, Bapcor Ltd (ASX: BAP) shares up 5.3%, and ARB Corporation Limited (ASX: ARB) shares up 5.2%.

Following behind is the S&P/ASX 200 Information Technology (ASX: XIJ) sector, up 2.4%.

ASX tech shares have also been hit hard by rising interest rates, as Australia’s tech sector is pretty young and thus in growth mode, and ASX growth stocks typically have higher debt ratios than the blue chips.

Among the biggest ASX 200 tech movers are Block Inc CDI (ASX: SQ2) shares up 8.9% and Life360 Inc (ASX: 360) shares up 4.7%.

Economists cautious on jobs data

According to reporting in The Australian, economists are cautious about today’s jobs data for a number of reasons.

One of them is that the data relates to January, which is typically a month in which people switch jobs. Those in the switch period are technically counted as unemployed at the time of the survey.

RBC Australia chief economist Su-Lin Ong said the labour market “is likely past peak strength” but will not sustainably weaken until 2H FY23.

Ong said:

We doubt if today’s labour force will derail RBA hikes in the coming months.

Goldman Sachs Australia chief economist Andrew Boak says the labour market likely remains robust.

Boak said:

Overall, the weakness in the headline data bears watching, but we caution against placing too much weight in today’s report.

The post Why did the ASX 200 leap higher on rising unemployment data? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why are ASX 200 tech stocks like Xero having such a cracking run today?
• Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher
• Bapcor share price surges 5% on record half
• 2 ASX 200 shares soaring over 9% on strong results

Motley Fool contributor Bronwyn Allen 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 ARB Corporation, Block, Goldman Sachs Group, and Life360. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended ARB Corporation, Bapcor, and Corporate Travel Management. 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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Fans of ASX coal shares might have woken up optimistic today. But any hopes of Thursday gains have since turned sour.

The market’s leading coal producers are each trading deep in the red right now despite a deluge of outwardly impressive earnings. Here’s how they’re trading:

• Shares in Whitehaven Coal Ltd (ASX: WHC) are currently down 2.9% at $7.95
• Those in New Hope Corporation Limited (ASX: NHC) have dumped 4% to trade at $5.50
• Stock in Yancoal Australia Ltd (ASX: YAL) has fallen 2.6% to reach $5.62

And the NSW Government is likely behind at least some of their downturns.

Let’s take a closer look at what seems to be going wrong for ASX coal shares on Thursday.

Right now, the S&P/ASX 200 Index (ASX: XJO) is up 0.8% while the All Ordinaries Index (ASX: XAO) has gained 0.83%.

ASX 200 energy giants post earnings

Let’s start at the beginning.

Whitehaven kicked off the coal-related news today, posting its earnings for the first half of financial year 2023. The company posted $3.8 billion of revenue for the period and quadrupled its interim dividend to 32 cents per share.

That was followed by New Hope’s quarterly activities report, released shortly after the market opened. It revealed it expects to deliver $1 billion of earnings before interest, tax, depreciation, and amortisation (EBITDA) for the first half but noted a slump in both coal production and sales.

ASX coal shares fall as companies respond to NSW policy

Come midday, however, other news was catching the market’s attention.

The Yancoal share price tumbled after it warned investors to “exercise caution in dealing in [its] shares” after it received advice on the NSW Government’s intended price cap and coal reservation policy.

The policy will be in effect from 1 April 2023 until 30 June 2024 and will see producers forced to put aside a portion of production to sell to domestic power generators. In Yancoal’s case, that portion would be up to 395,000 tonnes of coal each quarter.

The coal put aside would then be subject to a price cap of $125 a tonne for 5,500 kilocalorie coal, energy adjusted. For comparison, Whitehaven achieved an average coal price of $553 a tonne last half.

Treasurer and Minister for Energy Matt Kean commented on the change, also announced by the government today, saying:

Where possible, coal mines will be required to provide power stations with the amount of coal they have supplied in the past, and export-focused mines will be required to provide additional coal needed to meet any difference.

Yancoal said the government confirmed producers won’t be compensated for the difference between market rates and the capped price.

Though, it noted compensation may be available under some circumstances, such as if costs exceeded the capped price. The government says producers can apply for a higher price cap if the proposed cap doesn’t cover costs.

Whitehaven also updated the market on the changes, saying it would be compelled to put the lower of 200,000 tonnes or 5% of each of its mines’ expected saleable thermal coal production towards the scheme, unless volumes were under contract prior to 19 January.

New Hope also addressed the changes in its quarterly report, saying its 80% owned Bengalla operation won’t be impacted by the price cap until the first quarter of 2024 due to existing contracts.

The post What’s going so wrong for ASX coal shares today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• New Hope share price tumbles 6% despite surge in earnings
• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• Everything you need to know about the monster Whitehaven dividend
• Whitehaven Coal share price sinks despite 423% profit jump

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 love is back on for the S&P/ASX 200 Index (ASX: XJO) this Thursday! After experiencing some post-Valentine’s Day blues yesterday, the ASX 200 is back in the green so far this session.

At the time of writing, the Index has recorded a healthy gain of 0.82%, which has dragged the ASX 200 back up to over 7,410 points once more.

So time now to dig a little deeper into these share price rises by taking stock of the ASX 200 shares that are topping the share market’s trading volume charts right now, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Sayona Mining Ltd (ASX: SYA)

Our first share worth a look at this Thursday is the ASX 200 lithium stock Syaona mining. So far today, a notable 25.47 million Sayona shares have changed brokerage accounts. We haven’t seen any fresh news out of Sayona itself this session.

So this volume looks like a consequence of the eye-catching rises we have seen in the Sayona share price. At present, Sayona has gained a pleasing 3.3% to 22.2 cents a share, but rose as high as 23 cents earlier this morning (up more than 5.5%).

With gains like these, no wonder so many shares have been flying around.

Whitehaven Coal Ltd (ASX: WHC)

Next up we have the ASX 200 coal miner Whitehaven. Today’s trading session has seen a hefty 27.32 million Whitehaven shares change hands as it currently stands. Whitehaven is seeing a bit of a different situation to Sayona today.

The ASX 200 energy giant has lost a nasty 3% over today’s trading to the current price of $7.94 a share. It fell as low as $7.17 today, a drop of 12.5%. This comes after the company posted its latest half-year results this morning. Investors don’t seem impressed, despite the company posting a whopping 423% rise in after-tax profits.

AMP Ltd (ASX: AMP)

Finally this Thursday, let’s take a squiz at ASX 200 financial services stalwart AMP. AMP has had a sizeable 36.9 million of its shares bought and sold on the markets thus far. And it looks like another share price casualty after earnings that is to blame here.

The AMP share price has cratered today. The company is currently down a horrendous 14.35% at $1.12 a share, which is almost certainly why AMP is topping our most-traded share list today. 

Again, it seems investors did not appreciate AMP’s earnings report this morning. The company announced that its underlying after-tax profits had fallen by 34% to $184 million. In a spot of good news though, the company has returned to paying dividends to shareholders.

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

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More reading

• The AMP dividend is back! Here’s what you need to know
• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• 2 ASX 200 shares soaring over 9% on strong results
• AMP share price dives 12% on earnings miss
• Everything you need to know about the monster Whitehaven dividend

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.

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