Category: Stock Market

If you’re looking for options in the mining sector, then read on. The team at Morgans recently named some of their top picks from this side of the market.

Listed below are two of the mining shares that the broker has on its best ideas list:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a mining share to buy according to Morgans. Its analysts like BHP due to its strong balance sheet and the diversity of its operations across both commodities and geographies. Morgans feels this makes BHP a relatively low risk option for investors in the space. It explained:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has an add rating and $48.00 price target on BHP’s shares.

South32 Ltd (ASX: S32)

Another option for investors to consider in the mining sector according to Morgans is South32. Its analysts also like this BHP-spinoff due to the diversity of its operations.

South32 also gets a thumbs up for the work management has done reshaping its portfolio and boosting its ESG credentials. The broker explained:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX- listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings- linked dividend policy.

Morgans currently has an add rating and $5.50 price target on South32’s shares.

The post Morgans names the best ASX mining shares to buy appeared first on The Motley Fool Australia.

More reading

• ASX 200 iron ore miners rally as market rebounds on Tuesday
• Down 14% in a month, what’s next for the BHP share price?
• 5 things to watch on the ASX 200 on Tuesday
• Why BHP, Costa, Link, and Syrah shares are dropping
• BHP share price dips 4% in miserable Monday for ASX 200 miners

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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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.

What happened

Shares of Tesla, Inc. (NASDAQ: TSLA) were trading up over 4% earlier this morning before giving back some of those gains by early afternoon. By market close, the EV stock was up 2.51%.

What probably got the market off on a positive note was a small pullback in interest rates at the start of trading on Tuesday. Long-term U.S. Treasury rates have more than doubled year to date, which has pressured the valuations of expensive growth stocks like Tesla.

However, later in the morning, Reuters reported that Tesla planned to hold production at its Shanghai plant below full capacity. The market is trying to figure out what this might mean for Tesla’s business.

So what

Ongoing semiconductor shortages, resulting in many completed cars having to wait on chips before they can finish production, has been a big problem for car manufacturers. The chip shortage is expected to last into 2023, causing Honda Motor to cut 40% of its production recently, according to reports.

Reuters reported that Tesla plans to hold production at its Shanghai plant at 93% of capacity. Whether this signals production challenges or a lack of consumer demand is anyone’s guess at this point. What is certain is that the recent rise in interest rates is making it more expensive to purchase new vehicles, but this might not be a problem for high-income individuals who are interested in Tesla’s cars.

Now what

In July, CEO Elon Musk expressed optimism about the second half of the year, noting the potential for “record-breaking” results after achieving production records at the Fremont and Shanghai plants during the second quarter. Of course, that was before more data came out showing that inflation is still running too high. The Federal Reserve recently raised the fed funds rate again, with more rate hikes likely on the way.

Analysts expect Tesla to report record deliveries of 350,000 units for the third quarter. Investors will get new information about demand trends when the company releases the next update on deliveries, which should come out by Oct. 2.

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

The post Why Tesla stock surged higher today appeared first on The Motley Fool Australia.

More reading

• 2 high-growth electric vehicle stocks to consider buying (other than Tesla)
• This stock market investment strategy made money 100% of the time over the last century
• Are you attracted to ASX losers?
• Is Tesla stock recession-proof?
• This bold move could give Tesla an edge in battery production

John Ballard 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 Tesla. 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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If you are looking to bolster your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below that have been tipped as buys by Goldman Sachs.

Here’s what it is saying about these ASX 200 shares:

Goodman Group (ASX: GMG)

Goodman could be a blue chip ASX 200 share to buy right now according to analysts at Goldman Sachs.

The broker is a big fan of the global integrated commercial and industrial property company and was impressed with its performance in FY 2022.

Those results saw Goodman report a 25.3% increase in operating profit to $1,528 million. It also revealed that its development work in progress was up 28% to $13.6 billion.

Goldman Sachs is confident that this strong form can continue thanks to the strong outlook for industrial property. It commented:

GMG continues to demonstrate its strong platform and positioning as evident in today’s result, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space. We expect solid rental growth as demand for high quality logistics space continues to outpace available supply.

Goldman has a buy rating and $25.40 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX 200 share that could be a buy right now according to Goldman Sachs is property listings company REA Group.

It is of course the owner over the realestate.com.au website, which over the last decade has built a dominant position in the ANZ market.

This dominance means that in FY 2022 the company averaged 12.7 million unique visits each month to its flagship website. This represents 62% of Australia’s adult population and led to total average monthly visits of 124.1 million, which is almost 3.4x greater than its nearest rival.

Goldman notes that despite this impressive performance, its shares have not pushed higher. In light of this, it thinks investors should be snapping them up. It said:

Shares are trading back in-line with pre-result levels, despite having a solid FY22 result with core Australia EBITDA +2% vs. GSe, and outlook commentary that was very positive, particularly around expectations for delivering sustained double digit yield growth through the cycle, including in FY23E.

Goldman Sachs has a buy rating and $164.00 price target on the company’s shares.

The post 2 ASX 200 blue chip shares that Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 blue chip ASX 200 shares to buy now
• Here are the top 10 ASX 200 shares today
• Here are 2 ASX 200 blue chip shares that experts rate as buys
• Experts name 2 outstanding ASX 200 shares to buy right now
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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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, Auscap Asset Management portfolio manager Tim Carleton urges investors to create a ‘buy list’ to take advantage of cheap valuations.

Investment style

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

Tim Carleton: My name’s Tim Carleton and I am a portfolio manager and founder of Auscap Asset Management. And we are an Aussie equities manager with a value and quality bias. So we’re trying to buy best-of-breed businesses when we get an opportunity at a price that we find attractive, and then we try to hold those investments for a long time. 

Really, the only reasons that we look to sell is if the price gets to a level that we just can’t justify, irrespective of the quality of the business, or if we’ve realised that we’re incorrect in some way, in relation to the analysis that we did on that particular business. 

But you tend to find that that happens thankfully infrequently — so that the stocks that we hold tend to be in the portfolio for quite some time.

MF: If you have a value tilt, how have you gone in the last 12 months?

TC: We had a very, very strong 2021. The fund was up a little over 43% net.

And then we’ve had a bit of a pullback, which is not that unsurprising, in the context of what equity markets have obviously done this year. But from our perspective, that’s an opportunity because… we have probably about 8% cash as we sit here today. So we’re sitting here with a buy list and I think some of the valuations that you see at the moment are getting into attractive territory. 

So we’re well aware of what the market’s concerned about, but at the end of the day, investing is about investing in individual companies. And I think these sort of sell-offs give you opportunities because the baby gets thrown away with the bath water and this is when you find that the high quality stocks are trading well below where they historically trade, given the quality of the earnings and growth that you anticipate in the company over the coming years and decades.

MF: How do you see the market at the moment and where it’s headed?

TC: We don’t have a strong view in relation to markets. We try to learn from history. Obviously, the market’s very concerned about inflation and what that means for interest rates. But when the market is already pricing in a reasonably bearish scenario, then quite often the odds are tilted in your favour for investing at those moments because the market’s already assuming a somewhat pessimistic outlook.

As we sit here today, we think inflation has most likely peaked in the US. And I think interest rates will respond to whatever happens in the US. We’ve started to see [inflation] fall. It hasn’t fallen very much at this point in time. And obviously, most central banks globally are still talking a reasonably bearish outlook in the sense that they are raising rates relatively quickly. But if inflation continues to decline, potentially at an accelerating rate, then a lot of that talk may well abate.

At the moment you’ve seen a reasonable sell-off. It may continue for the new term. I’m not sure. That’s why we focus more on knowing what we want to buy at various prices and then simply executing if the stocks get to those prices — because to do anything else is to try to presume that you can forecast where the market’s likely to go in the short or medium term. I don’t think anyone has successfully done that historically. 

So we would rather have a shopping list of stocks that we want to add to, or we want to buy into, and having targets as to where we would allocate capital if stocks got to those prices.

I think that’s a far more sustainable approach to making sure that you are adding to your exposure when the market’s down, because it’s the one thing that people tend not to do. You want to buy more stocks when they’re on sale and less when they’re fully priced. Well, they’re on sale when everyone’s worried about typically macroeconomic concerns. And that’s what we’re certainly experiencing at the moment.

MF: It’s funny how the human mind works, isn’t it? Everyone will buy jeans when they’re half price, but when shares are at half price, for some reason investors are more reluctant.

TC: It’s just bizarre. 

If someone told you that the house next door was selling at 50% of what you thought your house was worth, then if you’re going to the bank and saying, “Can I stretch myself and buy next door because this is a screaming bargain!”. 

And yet, you’re right, the same approach is adopted by very few in equity markets. I think that’s just because people have less experience in dealing with value in companies and they’re also a little bit less tangible than a property. So there’s a combination of factors that result in eliciting a different response from investors than they take in other situations.

The post If the house next door was selling for 50% off, wouldn’t you buy it? appeared first on The Motley Fool Australia.

More reading

• Macquarie vs NAB shares: Which bank is the better buy right now?
• 5 things to watch on the ASX 200 on Wednesday
• Broker names 2 high yield ASX 200 dividend shares to buy
• Bitcoin price rallies 6% to leap back over US$20,000
• Here’s why experts are tipping these ASX shares as buys for October

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

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With interest rates steeply rising over the past four months, ASX shares representing banks have been on the nose.

Even though higher rates can mean more revenue through fatter net interest margins, they also increase the likelihood of reduced loan demand and repayment defaults.

Out of the major banks, two of the most tempting buys at the moment are National Australia Bank Ltd (ASX: NAB) and Macquarie Group Ltd (ASX: MQG).

NAB shares were flying high at $33.60 in April before the Reserve Bank started its inflation fight. They’re now trading more than 12.8% lower.

Last November, Macquarie’s market capitalisation had ballooned to the point that it pushed Australia and New Zealand Banking Group Ltd (ASX: ANZ) out of the big four.

Macquarie shares then lost almost a quarter of their value since January.

So which one is the better investment if you were to buy in right now?

Banks are better placed for this downturn than the past

Shaw and Partners portfolio manager James Gerrish gave his thoughts on the dilemma in a Q&A in his Market Matters newsletter.

Firstly, he reckons that if the economy falls into a recession, the situation could be much better for banks compared to previous downturns.

“Banks generally struggle in a recession as bad debt [rises] — a result of people losing their jobs and not being able to service mortgages & other debts,” said Gerrish.

“This recession would be different. A lack of workers is creating a headwind for growth while household savings rates are very high, with the majority of homeowners well ahead on their mortgages thanks in part to government assistance through COVID.”

Another tailwind is that banks are “incredibly well capitalised”.

“Those are the positives. One of the biggest negatives would be asset values, which generally come down during a recession — & Macquarie is most exposed here.”

Macquarie share price is more likely to discount further

Despite this, because it’s wise to buy shares when prices fall, Gerrish’s team would be more likely to buy Macquarie shares in the near future.

“Macquarie is a higher beta stock than NAB, which means it will have greater moves relative to the market on both the upside and downside.”

Having said this, Gerrish’s team would still dip into NAB shares if the stock price fell to an even lower level.

“We do see ourselves buying NAB as well into further weakness given we have some cash up our sleeve.”

Both companies are currently handing out healthy dividends. NAB’s yield is at 4.8% while Macquarie pays out 3.8%.

The post Macquarie vs NAB shares: Which bank is the better buy right now? appeared first on The Motley Fool Australia.

More reading

• Why did the Macquarie share price trail the other ASX 200 banks today?
• Brokers name 2 blue chip ASX 200 shares to buy now
• Down 14% in a month, what’s next for the BHP share price?
• Analysts name 2 ASX dividend shares to buy today
• Does ANZ really have the best profit margins of the big four bank shares?

Motley Fool contributor Tony Yoo has positions in Macquarie Group Limited. 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 Macquarie Group 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form after recent weakness and pushed higher. The benchmark index rose 0.4% to 6,496.2 points.

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

ASX 200 expected to fall

The Australian share market looks set to gove back yesterday’s gains on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.65% lower this morning. On Wall Street, the Dow Jones dropped 0.4%, the S&P 500 fell 0.2%, and the Nasdaq edged 0.25% higher.

Oil prices rebound

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 2.3% to US$78.50 a barrel and the Brent crude oil price has risen 2.5% to US$86.14 a barrel. This was driven by supply cuts in the Gulf.

Westpac rated as a buy

The Westpac Banking Corp (ASX: WBC) share price remains great value according to analysts at Goldman Sachs. This morning the broker has retained its conviction buy rating with an improved price target of $27.08. Goldman believes that “product profitability suggests consensus NIM forecasts remain conservative given higher rates.” This has led to the broker bumping its Westpac NIM estimate by 3 basis points and cash earnings per share by 2.1% in FY 2024.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,636.7 an ounce. A cooling US dollar boosted the gold price.

ASX annual general meeting

The ASX Ltd (ASX: ASX) share price dropped to a 52-week low on Tuesday. Shareholders will no doubt be hoping that management has something positive to say at its annual general meeting today to get the stock exchange operator’s shares heading in the right direction once again.

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

More reading

• Why did the Macquarie share price trail the other ASX 200 banks today?
• Woodside share price rebounds as energy stocks surge on Tuesday
• Down 15% in a month, could rate hikes bring more pain for the Beach Energy share price?
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Woodside share price tumbling 5% on Monday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Corporation. 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 good news for income investors is that there are a large number of dividend shares for investors to choose from on the Australian share market.

Two that have done enough to impress analysts at Morgans are listed below. Here’s why they have been rated as buys:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share that has been tipped as a buy by Morgans is Super Retail. It is the retail conglomerate behind brands such as Macpac and Supercheap Auto.

Morgans recently retained its add rating on the retailer’s shares with an improved price target of $13.00.

The broker was pleased with Super Retail’s full year results and remains positive on its prospects in the first half of FY 2023. It notes that there are “no signs yet that the consumer is pulling back in Australia.”

In light of this, the broker is forecasting some big dividend yields in the coming years. Morgans expects fully franked dividends per share of 56 cents in FY 2023 and 58 cents in FY 2024. Based on the latest Super Retail share price of $9.24, this will mean yields of 6.1% and 6.3%, respectively.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX dividend share that is highly rated by Morgans is coal miner Whitehaven Coal.

Morgans believes that sky high coal prices could lead to “supercharged returns” for shareholders in the coming years. At present, the broker has an add rating and $8.60 price target on the company’s shares.

And while this is close to where the Whitehaven Coal share price trades today, Morgans does see scope for it to trade even higher. It notes that “thermal coal futures pricing currently sits well above our “super-bull” price scenario, which supports an NPV towards $11.00ps.”

As for dividends, Morgans is forecasting some mouth-watering yields in the near term. It is expecting dividends per share of 100 cents in FY 2023 and 64 cents in FY 2024. Based on the latest Whitehaven Coal share price of $8.45, this will mean yields of 12.5% and 8%, respectively.

The post Broker names 2 high yield ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Whitehaven share price leaps 8% amid ASX 200 coal rally
• Why are ASX 200 coal shares smashing it out of the park on Tuesday?
• ‘Largest exposure’: Why this expert is still bullish on red-hot ASX coal shares
• Why is the Whitehaven share price wilting 10% on Monday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group 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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It has been a surprisingly good day for the Bitcoin (CRYPTO: BTC) price.

Earlier today, the cryptocurrency broke out of its narrow trading range and rose above the US$20,000 level after an almighty rebound. At the time of writing, the Bitcoin price is up 4.9% to US$20,121.

At one stage, it was up 6% to its highest level in over a week. And that was despite US stocks just slumping to their lowest levels of 2022.

Though, it is worth noting that the world’s largest cryptocurrency is still trading in the range of US$18,000 and US$25,000 that it’s been stuck in since June.

What’s happening with the Bitcoin price?

One expert believes that traders have been scrambling to buy Bitcoin on the belief that it could have reached a bottom.

Vijay Ayyar, the vice president of corporate development and international at crypto exchange Luno, notes that Bitcoin and the US dollar have a tendency to move inversely. This means a strong greenback is negative for Bitcoin.

However, Ayyar told CNBC that he suspects the rampaging US dollar could be close to peaking, which “would mark a potential bottom for bitcoin.”

“Traders hence might also be positioning themselves accordingly,” Ayyar said.

This could make for some interesting trading sessions for the Bitcoin price in the coming days.

The post Bitcoin price rallies 6% to leap back over US$20,000 appeared first on The Motley Fool Australia.

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More reading

• Bitcoin isn’t as ‘smart’ as Ethereum… and that’s why I hold it
• Check out this US stock if you’re worried about crypto and chip shortages
• Soy boy and bitshaming: Here’s your guide to crypto slang
• How will the Ethereum merge impact the Bitcoin price?
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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 positions in and has recommended Bitcoin. 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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With a new month approaching, what better time to look at making some new additions to your portfolio.

Two ASX shares that could be worth considering in October are listed below. Here’s what analysts are saying about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to consider in October is Aristocrat Leisure.

Analysts at Morgans are recommending this gaming technology company and have an add rating and $43.00 price target on the company’s shares.

This compares favourably to the latest Aristocrat share price of $33.39.

Morgans likes Aristocrat due to its attractive valuation and strong long term growth outlook. The latter could be boosted by a planned expansion into real money gaming in the near future.

It commented:

The underperformance [of its shares] means, however, that ALL’s 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Objective Corporation Limited (ASX: OCL)

Another ASX share that could be worth considering in October is Objective Corp.

It is a software company that provides content, collaboration, and process management solutions for the public sector in Asia Pacific, the USA and Europe.

After delivering a 15% increase in annualised recurring revenue (ARR) in FY 2022, the team at Goldman Sachs is expecting the strong form to continue. In fact, it expects Objective Corp’s ARR growth to accelerate to 18% in both FY 2023 and FY 2024.

Goldman has a buy rating and $18.40 price target on its shares. This compares to the current Objective Corp share price of $13.21.

The broker commented:

We are attracted to management’s track record of growth and margin expansion and see upside being driven from 1) new products including Build and RegWorks; and 2) expansion in the US over time. When adjusting for OCL’s conservative accounting (100% of R&D expensed), robust growth outlook, defensive end markets and high franchise quality, we see valuation appeal compared to SaaS peers and believe the shares can outperform in a more challenging macro environment.

The post Here’s why experts are tipping these ASX shares as buys for October appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX growth shares that Morgans rates as buys
• Here are 3 top ASX growth shares that analysts rate as buys
• ‘Bullish sign’: Expert names 2 rising ASX shares to buy right now
• Aristocrat share price defies the selloff thanks to bullish brokers

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 positions in and has recommended Objective Corporation Limited. 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 Macquarie Group Ltd (ASX: MQG) share price fell into negative territory again today.

At one point, shares in Australia’s fifth largest bank were trailing as much as 1.71% to an intraday low of $160.72.

However, a slight recovery towards the backend of the day has the share finish 0.92% lower to $162.01 on Tuesday.

For context, the S&P/ASX 200 Financials (ASX: XFJ) also headed south by 0.3% to 5,933.6 points.

Evidently, this dragged down shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

They retreated by 0.19%, 0.34%, and 0.57%, respectively.

On the other hand, it is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price that closed in the green, up 0.48%.

Let’s take a look at why Macquarie shares lagged behind the other ASX 200 banks today.

Why did Macquarie shares fare worse than the other ASX 200 banks?

A catalyst for Macquarie shares performing worse than its peers today appeared to be the company’s asset management arm shutting down its listed Asian equities business.

According to The Australian, the investment bank has closed down the unit due to the gloomy economic outlook.

Last week, Macquarie Asia New Stars No. 1 Fund stopped accepting applications and redemptions with management fees no longer charged.

The capital that was accumulated before this time is set to be distributed to investors over several instalments.

Ratings investment house, Zenith, felt let down by the outcome, saying:

Despite the longevity of the Macquarie Asia New Stars No. 1 Fund being a key concern, we remain disappointed with the termination of the product, as we held a high opinion of the experienced investment team.

This comes after the Macquarie Asia New Stars No. 1 Fund recorded a poor performance amid a challenging economic environment. Returns came at a loss of 20.4% for the year ended August 31.

While the closure is in response to prevailing market conditions, it is believed that this won’t have any effect on Macquarie’s broader equities business.

Macquarie share price snapshot

Adding to Tuesday’s losses, it’s worth noting that Macquarie shares are now down more than 6% in a week.

On top of the already tough month, the Macquarie share price is down 21% in 2022.

Based on today’s price, the company commands a market capitalisation of roughly $63.2 billion.

The post Why did the Macquarie share price trail the other ASX 200 banks today? appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 blue chip ASX 200 shares to buy now
• Down 14% in a month, what’s next for the BHP share price?
• Analysts name 2 ASX dividend shares to buy today
• Does ANZ really have the best profit margins of the big four bank shares?
• Why has the Macquarie share price been thrashed 10% in a fortnight?

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 recommended Macquarie Group Limited and Westpac Banking Corporation. 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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