Category: Stock Market

Own ASX 200 telco shares? Here’s the latest following the Optus hack
The Optus breach, which saw nearly 10 million customer records stolen by an anonymous hacker last Thursday, has left ASX 200 telco shares reeling to avoid future cyber incursions.

TPG Telecom Ltd (ASX: TPG) is one of them. As a chief rival to Optus, the company is reviewing its security practices and consulting with the federal government to avoid becoming the next victim.

What did the ASX 200 telco share say?

A spokesperson for ASX 200 telco share TPG recently outlined the company’s cybersecurity process in a bid to assure investors that it has the situation under the control, as reported by The Australian.

The spokesperson said:

In light of the recent Optus breach, we have been working closely with our cyber security partners and the relevant government agencies to increase our checks and ensure our systems remain robust and secure.

We also have in place our Cyber Defence and Response Centre which provides around-the-clock, event monitoring, threat protection and intelligence, to help protect our customer’s data and our services against online security threats.

TPG has comprehensive processes and procedures in place to securely store customer data and protect it from unauthorised use, access, modification or disclosure. These include implementing both physical and electronic security measures such as data encryption.

The TPG share price is currently up 3.16% to $4.89 in today’s trading.

Former Telstra boss weighs in

Meanwhile, former Telstra Corporation Ltd (ASX: TLS) chief executive David Thodey also weighed in on the Optus breach. He reminded the market the attack “could happen to anyone,” the Australian Financial Review reported yesterday evening.

Thodey said:

It is the reality of the world in which we live. You’ve got to be incredibly vigilant. I feel for Optus, it’s a difficult situation and I think they’re responding as best they can. Because it’s going to happen to all of us at some point, and then it’s what you do with it or how you respond.

Cybersecurity [is] for all of us, it doesn’t matter if you’re a small or big business, it is enormously high risk and we all need to be very vigilant about it because it could happen to any of us.

At the time of writing, the Telstra share price is up 1.18% to $3.865.

Singtel’s shares plummet

Shares of Singtel, which acquired Optus in August 2001, also took a beating amid the attack and the follow-up attempt at blackmail from the hackers.

Trading as Singapore Telecommunications Limited (SGX: Z74), Singtel’s share price dipped 1.12% lower when its subsidiary announced the data breach and continued to fall amid news the hackers sought a $1 million ransom not to dump all of Optus’s stolen records.

But the worst of it could be over for Optus stakeholders, as the hackers have allegedly abandoned their plans to hold the data hostage by calling it a “mistake” to publish the stolen records.

The post Own ASX 200 telco shares? Here’s the latest following the Optus hack appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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 Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. 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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29 September 2022
3 ASX All Ords shares rocketing higher on good news today
The All Ordinaries Index (ASX: XAO) is finally getting some reprieve today.

Following a positive lead from Wall Street overnight, the ASX All Ords index is sitting in the green. At the time of writing, it’s climbed 1.6% to 6,765 points.

But there are some ASX All Ords shares gaining a lot more than most.

Let’s take a look at three ASX All Ords shares charging higher today on positive developments.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is flying today after the ASX retailer handed in its FY22 results. At the time of writing, Premier shares have soared 13% to change hands at $23.35 apiece.

Despite Premier’s stores being closed for a combined 42,675 trading days in FY22, the group managed to deliver nearly $1.5 billion of sales, up 5.2% from the prior year.

Underlying earnings before interest and tax (EBIT) grew at a faster clip, lifting 10.2% to $335 million. But perhaps even more impressively, this figure has doubled from the pre-COVID period of FY19.

On the back of these results, Premier announced a slew of capital management initiatives.

It declared a fully franked final dividend of 54 cents, representing a 17% hike from the prior year.

As a bonus for shareholders, the retailer also declared a fully franked special dividend of 25 cents.

Plus, Premier will be delivering further returns to shareholders via a 12-month on-market share buyback of up to $50 million.

29Metals Ltd (ASX: 29M)

Next up, the 29Metals share price is also charging higher today. At the time of writing, 29Metals shares have surged 11.2% to $2.29.

For those unfamiliar, 29Metals is a base and precious metals miner with a focus on copper. It currently has a market capitalisation of around $1.1 billion.

The 29Metals share price is lighting up today after the company revealed it has secured a key contract renewal.

It’s extended its underground mining services agreement with Byrnecut for a further five years at the Golden Grove mine.

Golden Grove is a high-grade copper, zinc, and precious metals mining operation in Western Australia.

29Metals noted the contract is on “substantially the same terms” as the existing contract and covers development and production in the Gossan Hill and Scuddle mines at Golden Grove. The new contract will commence on 1 October 2022.

Predictive Discovery Ltd (ASX: PDI)

Last but not least, Predictive Discovery is another ASX All Ords share running hot today.

At the time of writing, the Predictive Discovery share price has raced 9.1% higher to sit at 18 cents. On the back of this rise, the company’s market cap now sits just above $300 million.

Predictive Discovery is a gold exploration company. Its flagship project is the Bankan Gold Project, a tier 1 gold asset in Guinea with an inferred mineral resource estimate of 4.2 million ounces (oz) of gold.

The Predictive Discovery share price is shining today after the company announced a new set of drilling results at its Bankan Gold Project.

These results include a total of 1,266 holes for 42,877 metres, drilled between April and mid-September 2022. A variety of drilling methods were used across diamond drill (DD), reverse circulation (RC), near-mine air core (AC), and power auger (AG).

The company noted that the deeper DD results demonstrate further continuity of gold mineralisation and grade outside of the current resource.

Meanwhile, the near-mine AC and AG drilling results have provided additional shallow and near-term deposit targets. These have the potential to add additional resource ounces to the Bankan Gold Project.

Commenting on the results, managing director Andrew Pardey said:

The drill results reported today are a combination of targeting the high-grade zone beneath the NE Bankan optimised resource pit shell, combined with the RC grade control drilling program adding to and improving the quality of Bankan’s 4.2Moz inferred Resource.

We remain on track to deliver on the 60,000m RC and DD campaigns and have commenced the work on the detailed Scoping Study due to be completed in the second half of 2023.

The post 3 ASX All Ords shares rocketing higher on good news today appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments Limited. 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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29 September 2022
ASX lithium mania: Sayona Mining share price rocketing 8% today
The Sayona Mining Ltd (ASX: SYA) share price is off to the races today, up 7.6%.

The ASX lithium share closed yesterday trading for 23 cents and is currently trading for 24 cents.

There’s no fresh price-sensitive news out to directly impact Sayona Mining. But there’s certainly plenty of investor interest. More than $17 million worth of trades have gone through today already.

What are ASX investors considering?

Sayona Mining looks to be benefiting from a strong, broader run higher amongst most ASX lithium shares today.

Lithium, a lightweight conductive metal, is a core element in lithium-ion batteries. And with global battery production booming amid the transition to EVs and grid storage, lithium prices remain near all-time highs.

After closing down 2.2% yesterday, the Sayona Mining share price may also still be receiving some tailwinds from Tuesday’s update on its North American Lithium operation.

The miner reported the project is progressing toward production. Drilling and blasting work will kick off next month. The first lithium carbonate/hydroxide production is forecast for the first quarter of 2023.

Sayona Mining share price snapshot

Sayona Mining has been a stellar performer in 2022, with shares up 73%. That compares to a year-to-date loss of 15% posted by the All Ordinaries Index (ASX: XAO).

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

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29 September 2022
Here’s why I only invest in ASX dividend-paying shares
My preferred style of investment is to look at ASX dividend shares. In fact, every ASX share that I own in my portfolio pays a dividend.

I’m not trying to say that dividend-paying shares will produce better returns than ones that don’t. I also don’t think that every company that pays a dividend is a suitable fit for my portfolio – just because it pays money to shareholders doesn’t mean it’s a good investment.

However, dividend-paying shares suit me for how I’m trying to invest and the outcomes I’m trying to achieve. They also help me see opportunities and stay invested for the long term.

Consistency of investment income cash flow

The share market is notoriously volatile.

Just look at the last three years for how much the valuation of businesses can go up and down. The panic at the start of the COVID-19 pandemic created a huge sell-off (and a big buying opportunity). This year there has been another big decline for many stocks, largely spurred by inflation and higher interest rates.

I only buy long-term ASX (dividend) shares where I’d become more excited by a lower share price and want to buy more. That way, I can feel very confident that a decline – such as this year – represents an attractive buying opportunity for my holdings rather than raising uncertainty for me.

A company has much more control over its dividend than its share price.

Assuming it has a sufficient profit reserve and cash balance, the board of directors can decide on the appropriate level of the dividend. This is useful for my philosophy because companies can pay a consistent dividend, and even grow it, during harder times.

By focusing on the investment income from my ASX dividend shares, I can ignore the noise of the market gyrations.

The difficulty of selling

I think buying investment is pretty easy, but deciding when to sell is tough.

One of the most useful pieces of investment advice is to “hold onto your winners”. There aren’t too many ASX shares that do very well over the long term. Investors that bought names like Apple, Altium Limited (ASX: ALU) and Microsoft many years ago would have done well by simply holding onto those great businesses.

But how is an investor meant to benefit from the growth of the value and profit of those companies? I don’t want to reduce my ownership of great businesses, I want to keep owning them. I don’t want to trigger capital gains tax events every time I want some money from my portfolio. It could be disappointing to (need to) sell at a time when share prices have slumped.

It can also be tricky knowing when to sell if things go wrong with a growth company’s plans. Is it a temporary blip and worth holding? Or is it a permanent setback, the thesis is broken and it’s better to move on to something else?

Should investors hold onto a business until its industry becomes obsolete or perhaps a competitor takes over?

Some of those are hard questions to answer. I think it’s easier with certain ASX dividend shares.

Are businesses better off by retaining profit?

People could say to me that it’s better for a good business to retain its money and re-invest it for more growth, rather than paying dividends.

The financial needs of each company are different. It could be possible to pay out a third or a half of its profit and still grow as much as it would have had it retained all of its money. Maybe investing all of the profit each year would lead to reducing returns on those investments, leading to a lower return on equity (ROE) and other financial measures.

But, there are some great examples of businesses doing well and not paying a dividend, such as Berkshire Hathaway and Xero Limited (ASX: XRO).

For Australian-based companies, it can make sense to pay dividends because of the franking credits that they generate. ASX dividend shares that pay fully franked dividends can unlock some of those franking credits for investors, providing stronger after-tax returns. The boost of franking credits often isn’t captured in the returns quoted about ASX shares.

My long-term goal

I am hoping that one day, long before I reach 65, I’m able to build a portfolio of dividend-paying shares that sends me more cash annually than I’d want to spend annually in retirement.

When that happens, I can theoretically retire (if I want to) and just live off the dividends. Hopefully, my dividend income will keep growing from that point and I can spend more each year.

In another article, I’ll write in detail about some of the ASX dividend shares that I’m investing in to grow my dividend income (and will also hopefully grow in value). But, two of the names that I’m going to write about include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Rural Funds Group (ASX: RFF).

The post Here’s why I only invest in ASX dividend-paying shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Altium, RURALFUNDS STAPLED, 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 Altium, Apple, Microsoft, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended RURALFUNDS STAPLED, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended Apple. 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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29 September 2022
Why is the De Grey share price leaping 8% today?
The De Grey Mining Limited (ASX: DEG) share price is shining on Thursday.

At the time of writing, shares in the gold miner are ascending 8.21% to $1.055. This means the share is now up more than 13% since the start of the week.

Let’s take a look at what’s catapulting the company’s shares today.

Why are De Grey shares in fine form today?

The sharp acceleration of gold prices overnight has boosted investor sentiment leading investors to snap up De Grey shares.

Gold prices recovered lost ground on Wednesday as the US dollar fell from its highest valuation since May 2002.

In addition, US bond yields retraced with the 10-year note sinking more than 25 basis points to 3.75%.

This has sparked confidence in the yellow metal as the Federal Reserve could slow down its aggressive monetary tightening policy.

The US central bank is cautious not to induce a recession to tackle the runaway inflation, particularly after 3 consecutive rate hikes.

However, this is dependent on the economic data that gets released from here until the start of November.

If inflation gets too hot, then the US Fed won’t have much of an option but to raise interest rates again.

Should this happen, the price of the precious metal will get dragged down.

Currently, the price of gold has rebounded toward US$1,657 an ounce, an increase of almost 1.63% in the past day.

The Fed Reserve is scheduled to meet on 1-2 November to decide if interest rates remain the same or are elevated.

What do the brokers think of the De Grey share price?

A number of brokers rated the De Grey share price with different price points earlier this month.

According to ANZ Share Investing, the team at UBS raised its 12-month price target by 4.5% to $1.15 apiece.

Based on the current share price, this implies an upside of 9% for investors.

On the other hand, Macquarie and Bell Potter both had a bullish outlook on De Grey shares.

The brokers bumped up their price targets by 3.1% to $1.65, and 9.4% to $1.97, respectively.

From where De Grey trades today, this implies an upside of around 56% and 86%.

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Motley Fool contributor Aaron Teboneras 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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29 September 2022
Here’s why the Arafura share price is rebounding 10% today
The Arafura Resources Limited (ASX: ARU) share price is back on form on Thursday after recent weakness.

At the time of writing, the rare earths explorer’s shares are up 11% to 34 cents.

However, despite this strong gain, the Arafura share price is still down 10% since this time last week.

Why is the Arafura share price storming higher?

Today’s gain by the Arafura share price comes despite there being no news out of the company today.

Though, it is worth noting that it is not alone in recording a strong gain today.

Fellow rare earths companies Iluka Resources Limited (ASX: ILU) and Lynas Rare Earths Ltd (ASX: LYC) are both pushing higher today. The latter is up 4.5% in afternoon trade.

Investors have been buying these and other ASX materials shares after investor sentiment improved greatly following a strong night of trade on Wall Street.

This has seen the S&P/ASX 200 Materials index rise a sizeable 2.5% today, which compares favourably to the S&P/ASX 200 Index (ASX: XJO) and its 1.5% gain.

Following today’s gain, Arafura’s shares are now up a sizeable 45% since the start of the year. Though, they are still 32% below the 52-week high of 50 cents that they reached in early June.

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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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29 September 2022
The 10-year treasury yield just topped 4%: what it means for you
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The bear market in stocks has made portfolio values drop sharply so far in 2022. But for many investors, the bigger surprise this year has come from the terrible performance of the bond market, which has seen its worst losses in decades. Many had turned to bonds as a more conservative investment than stocks, and so the steep declines even in what are considered to be ultra-safe Treasury bonds have been especially painful.

Inflation has prompted the Federal Reserve to boost short-term interest rates aggressively, and that has had an impact on many longer-term bonds as well. On Wednesday morning, the yield on the 10-year Treasury briefly moved above 4% for the first time since 2008. That has significant implications for both stocks and bonds that investors need to consider in making investment decisions.

The big rise in Treasury rates

The most difficult aspect of what’s happened in the bond market is that the rise in rates has come so fast. Near the beginning of the COVID-19 pandemic in early 2020, the Fed sharply cut interest rates, sending 10-year Treasury yields down to around 0.5%. Even as the economy started to rebound, yields remained below 2% for a prolonged period of time. Just a year ago, the yield was at 1.5%.

^TNX data by YCharts. NOTE WELL: Index values represent the yield in percentage points multiplied by 10.

It was only once inflation reared up in early 2022 that bond investors started to lose their nerve, and the brief move above 4% represented yields that were 2.5 times where they started the year.

Rising yields mean falling prices for bonds, and the damage has been severe. Even ordinary bond index ETFs have seen massive losses, with the popular iShares Core U.S. Aggregate Bond (NYSEMKT: AGG) and Vanguard Total Bond Market (NASDAQ: BND) both down 15% year to date. Bond funds with a bias toward longer-maturity bonds have seen even bigger declines, with iShares 20+ Year Treasury (NASDAQ: TLT) down nearly 30%. Even bonds that were supposed to protect against inflationary pressures have seen price declines, with iShares TIPS Bond (NYSEMKT: TIP) down 18% from where it started 2022.

What consumers and investors should expect

Already, the impact of higher Treasury yields is working its way through the broader economy. Mortgage rates tend to correlate with 10-year yields, so rates on 30-year mortgages have also hit new highs above 6.5% recently. That is making homes less affordable for would-be homebuyers, as monthly payments on new mortgages for a given amount of debt are far higher than they were earlier this year.

Nor can stock investors entirely ignore the impact of yield increases. Many companies raised their debt levels when interest rates were lower, taking advantage of cheap financing to bolster their growth efforts. Those companies that can pay back that debt as it matures should be in good shape, but those that had hoped to refinance their debt to delay having to pay it back face the prospect of sharply higher interest payments in the future. Given that the companies most likely to want to refinance are also often the ones that are least able to afford higher financing costs, investors need to watch closely to ensure that the companies whose stocks they own aren’t facing potential problems.

Higher rates do have a silver lining, though. For those with cash who want to lock in a certain return, buying individual Treasury bonds now will give them interest payments at a level they haven’t been able to get in years. Admittedly, 4% isn’t enough to make a wholesale shift out of stocks. But for those who have found that the stock market volatility of the past year has made them uncomfortable with their asset allocation strategy, higher yields make now a better opportunity to invest in bonds than investors have seen in a long time.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
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Dan Caplinger 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 Vanguard Total Bond Market ETF. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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29 September 2022
Why is the Woodside share price on the rise today?
The Woodside Energy Group Ltd (ASX: WDS) share price is steaming ahead today.

The energy producer’s shares are rising 3.67% and are currently trading for $31.84, having reached $32.35 soon after open. For perspective, the S&P/ASX 200 IndexÂ (ASX: XJO)Â is lifting 1.52% today.

So why is the Woodside share price having such a good day?

Woodside lifts as oil and gas prices rise

Woodside shares are rising today, but they are not alone among oil and gas producers. The Santos Ltd (ASX: STO) share price is lifting 2.55% today, while Beach Energy Ltd (ASX: BPT) shares are climbing 1.74%.

The benchmark S&P/ASX 200 Energy IndexÂ (ASX: XEJ) is rising 2.79% today.

Oil prices rose overnight following an unexpected decline in US crude and fuel reserves and a slightly weaker US dollar. Brent crude futures jumped 3.5%, while WTI crude futures leapt 4.65% higher. One analyst quoted by Reuters suggested the oil price will continue to be volatile.

CIBC Private Wealth US senior energy trader Rebecca Babin said:

I do think we are bottoming, but it is going to continue to be exceptionally volatile, and continue to be keeping easy speculative money away from this market.

Meanwhile, European natural gas also made gains overnight amid supply risk. ANZ analyst Madeline Dunk, in a research note, said the energy market was rattled after damage to the Nord Stream pipelines.

“The threat of disruptions to pipeline gas puts more reliance on LNG imports,” she said.

Woodside recentlyÂ signed a flexible sale and purchase agreementÂ with German energy supply Uniper amid the European energy crisis. Woodside will apply 12 cargoes of LNG per year to Europe from January 2023 for a term up to 2039.

Woodside CEO Meg O’Neill said the deal would “provide a new source of LNG for consumers in Europe seeking alternatives to Russian gas”.

Woodside share price snapshot

The Woodside share price has soared 45% in the year to date, while it has risen 35% in the last year.

In contrast, the ASX 200 has shed 12% in the year to date and 9% in the past year.

Woodside has a market capitalisation of about $60.7 billion based on the current share price.

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

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29 September 2022
Own Medibank shares? You’re getting paid today
The Medibank Private Ltd (ASX: MPL) share price is sitting pretty today as the S&P/ASX 200 Index (ASX: XJO) lights up green.

At the time of writing, Medibank shares have climbed 0.29% to trade at $3.50 apiece.

But there’s more good news for Medibank shareholders. Today is dividend payday.

It’s payday for Medibank shareholders

Last month, Medibank pulled back the curtain on its FY22 results. In doing so, the ASX 200 private health insurer declared a fully franked final dividend of 7.3 cents.

Medibank shares went ex-dividend for this payment back on 7 September. So, any Medibank shares bought on or after this date won’t be able to claim today’s payout.

Since the company doesn’t have a dividend reinvestment plan (DRP), shareholders will be receiving this dividend in cash.

Medibank declared a final dividend of 6.9 cents in FY21. So, today’s payment represents a 6% uplift from the prior year.

This dividend hike was supported by a 9% growth in underlying net profit after tax (NPAT), which came in at $435 million.

Announcing the company’s full-year results, CEO David Koczkar said:

Today we have delivered another strong result driven by continued policyholder growth, double-digit growth in Medibank Health and remaining disciplined in how we grow and run our business.

Medibank highlighted its customer growth as a standout during the year. The number of resident policyholders grew by 3% or nearly 61,000 over the 12-month period. What’s more, the company’s customer retention over the past two years is higher than at any point in the prior decade.

Across the financial year, Medibank declared total dividends of 13.4 cents, fully franked. Based on current prices, Medibank shares have a trailing dividend yield of 3.8%. Including franking credits, this yield dials up to 5.4%.

Looking ahead, broker Citi is forecasting Medibank to raise its dividends by 19% in FY23 to 15.9 cents per share. At the moment, this implies a prospective forward dividend yield of 4.5%.

Medibank share price snapshot

Medibank is one of the rare ASX 200 shares to sit in the green this year.

In fact, Medibank shares have gained an impressive 14% over the last six months. Meanwhile, the ASX 200 index has backpedalled by a similar amount.

Fellow ASX 200 health insurer NIB Holdings Limited (ASX: NHF) has matched Medibank with similar share price gains this year.

ASX insurance shares can outperform in periods where inflation and interest rates are on the rise.

As explained by the team at Wilsons, insurers “benefit from higher premiums due to the rising inflation environment and higher interest income on policyholders’ funds.”

It seems health insurance companies, in particular, have been the pick of the bunch so far in 2022.

Other ASX 200 insurance shares, such as QBE Insurance Group Ltd (ASX: QBE) and Insurance Australia Group Ltd (ASX: IAG), have outperformed the market. But not by nearly as much as Medibank and NIB.

Both IAG shares and QBE shares are relatively flat over the last six months.

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Motley Fool contributor Cathryn Goh 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 Insurance Australia Group Limited. The Motley Fool Australia has recommended NIB Holdings Limited. 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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29 September 2022
3 ASX lithium shares having a stellar run on Thursday
ASX lithium shares have been among the top performers over the past year. This comes as the booming growth in global EV markets has seen demand for the battery-critical metal surge.

While most lithium stocks are enjoying another good run today, these three are leading the pack.

So, without further ado, here’s what investors are considering today.

What’s piquing ASX investor interest?

The first ASX lithium share shooting higher today is Anson Resources Ltd (ASX: ASN).

The Anson Resources share price is up 12.28% in early afternoon trade.

Shares are surging after the company reported the discovery of “multiple new lithium-rich zones” at its Paradox Lithium Project in the US state of Utah. The lithium intersections were hit in its recently completed resource definition drilling at the Cane Creek 32-1 well.

The miner said that drilling is now complete at Cane Creek, with multiple assays pending that it expects will deliver a “significant further JORC Resource upgrade”.

The second ASX lithium share rocketing higher today is Global Lithium Resources Ltd (ASX: GL1). The Global Lithium share price is up 6.98%.

Investors are bidding up shares after the company reported it had signed a non-binding memorandum of understanding (MOU) with Korean battery manufacturer SK On Co., Ltd (SKO) “to explore a range of future business opportunities”.

Commenting on the MOU, Global Lithium’s managing director Ron Mitchell said:

The scope of this partnership has the potential to strengthen and diversify the future of Global Lithium’s projects in Western Australia both in the near term and in the years ahead… The lithium and EV markets have experienced significant growth over the past two years and this expansion is only set to accelerate as demand for lithium-ion batteries increases.

This brings us to the third ASX lithium share leaping higher, De Grey Mining Limited (ASX: DEG). The De Grey Mining share price is up 6.36% today.

With no fresh price-sensitive news out today, De Grey looks to be cashing in on the broader bullishness surrounding the lithium market.

How have these ASX lithium shares been tracking?

All three of these ASX lithium shares have beaten the 10% loss posted by the All Ordinaries Index (ASX: XAO) over the past 12 months.

The De Grey share price has gained 12%, the Anson Resources share price is up 250%, and the Global Lithium share price has surged almost 500% since this time last year.

The post 3 ASX lithium shares having a stellar run on Thursday appeared first on The Motley Fool Australia.

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

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29 September 2022