Category: Stock Market

The Novonix Ltd (ASX: NVX) share price is leaping upwards today, gaining back its Wednesday losses and then some to mark its highest point in nine weeks.

That’s despite no word having been released by the company since late last month.

Right now, the Novonix share price $3.27, 10.85% higher than its previous close.

For comparison, S&P/ASX 200 Index (ASX: XJO) has lifted 0.87% so far today while the company’s home sector – the S&P/ASX 200 Information Technology Index (ASX: XIJ) – is up 1.28%.

Let’s take a closer look at what might be driving the battery materials and technology share higher on Thursday.

What’s going right for the Novonix share price today?

The Novonix share price is taking off today despite the company’s silence. However, it’s far from alone in its gains.

Many ASX 200 tech shares are following the stock’s lead and rocketing higher today.

The Novonix share price is its sector’s top performer, with that of Life360 Inc (ASX: 360) not far behind having gained 9.68%.

Meanwhile, shares in Block Inc (ASX: SQ2) and Megaport Ltd (ASX: MP1) are up 8.80% and 5.02% respectively.

Their gains follow a strong session overnight on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) that saw the index lift 2.9%. That came amid news that US inflation slowed in July, likely bolstering hopes the Federal Reserve might ease up on rate hikes, as Reuters reports.

On the other end of the market, shares involved in battery metals are leading the S&P/ASX 200 Materials Index (ASX: XMJ). Their strong performance might be rubbing off on the battery-focused tech stock.

It comes amid reports that China saw its best month yet for electric vehicle (EV) sales in June. More than 570,000 EVs went to new homes in the nation over the course of the month, as my Fool colleague Bernd reports.

Still, the Novonix share price’s Thursday rise hasn’t been enough to boost it back into the longer-term green.

Shares in the company have fallen nearly 64% since the start of 2022. It’s also 17% lower than it was this time last year.

The post Why is the Novonix share price leaping 11% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price having such a lousy start to the week?
• These 3 ASX tech shares had a cracking day on the ASX today
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price leaping 12% on Friday?
• Here are the top 10 ASX 200 shares today

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, Inc., Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price is streaking higher today as ASX lithium shares ride a new wave of momentum in August.

At the time of writing, the Vulcan share price is up 8.21% to $9.62. In earlier trading, it reached $9.88 — an 11.1% gain on the closing price yesterday of $8.89.

There’s been no price-sensitive news from Vulcan since its quarterly activities and cash flow reports were released on 28 July.

But everything is positive on the lithium front, with several developments giving investors renewed confidence in the sector this month. And Vulcan is among many ASX shares benefitting from that.

Let’s take a look.

What’s going on with ASX lithium shares?

Well, in short, they’re having a scorcher of a day.

Let’s survey what’s happening with the big names. At the time of writing:

• The Lake Resources NL (ASX: LKE) share price is soaring 17.8%
• The Sayona Mining Ltd (ASX: SYA) share price is charging 10.4%
• The Core Lithium Ltd (ASX: CXO) share price is rising 4.8%
• The Allkem Ltd (ASX: AKE) share price is ascending 2.4%
• The Pilbara Minerals Ltd (ASX: PLS) share price is climbing 5.0%.

What’s spurring this share price growth?

A bunch of things. Let’s start with the latest news pertaining to lithium.

As my Fool colleague Bernd wrote this morning, China has reported record electric vehicle (EV) sales in June and is forecasting 84% growth for the 2022 calendar year.

The latest figures from the China Passenger Car Association (CPCA), as reported by Technode, revealed there were 571,000 EV sales in June, up 141% year over year.

For the full calendar year, CPCA is forecasting 5.5 million EV sales. That’s about a million more than the rest of the world’s EV markets combined.

Of course, lithium is a key ingredient in the batteries powering EVs. So, news like this is going to move ASX lithium share prices. But wait, there’s more.

This week the United States Senate passed a huge spending bill. By huge, we’re talking an eye-watering US$437 billion. But what’s significant is that almost 80% of it is earmarked for climate and energy spending. This includes dumping per-manufacturer limits for the US$7,500 tax credit for new EVs.

News like this supports ASX lithium shares because it’s a big demonstration of climate change action.

This action is allowing emerging sectors such as lithium to grow rapidly.

Vulcan share price snapshot

Over the past 12 months, the Vulcan share price has decreased by 37%. But over the past five years, it’s up — wait for it — 4,272%. No kidding.

Vulcan hopes to become a producer of high-purity lithium hydroxide for European EV manufacturers. Its Zero Carbon Lithium Project aims to produce both renewable geothermal energy and lithium hydroxide from the same deep brine source in the Upper Rhine Valley in Germany.

EV pioneer Elon Musk recently described lithium processing as “a licence to print money” at “software margins”.

The post Why is the Vulcan Energy share price up 8%? appeared first on The Motley Fool Australia.

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More reading

• Why did the Vulcan Energy share price fire 5% higher today?
• Lithium alert: Broker says Vulcan share price could rise by 170%
• Charging up: Vulcan share price lifts 3% as cash balance surges
• Why Myer, South32, Vulcan, and Zip shares are racing higher
• Why is the Vulcan share price charging higher today?

Motley Fool contributor Bronwyn Allen has positions in Allkem 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 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 QBE Insurance Group Ltd (ASX: QBE) share price is in the green today, up 3.7% despite reporting mixed half-year results for HY22. At the time of writing, the insurance giant is trading at $12.60.

The company’s biggest hit came from its investment income amid changes to the risk-free rate that caused large unrealised losses for bond yields.

In other parts of its investment portfolio, unfavourable credit spreads and unrealised losses on equities contributed to its contraction in investment income.

However, the ASX finance share also reported top-line premium growth of 13.78% and a lower combined operating ratio (COR) of 0.42%, suggesting it received more in premiums than it paid in claims from the prior period.

What did QBE report?

• Gross written premiums up 13.78% from HY21 to 11.6 billion
• COR down 0.42% from HY21 to 92.9
• Net profit after tax (NPAT) down 65.75% from HY21 to 151 million
• Net investment income drops 1548.27% to a negative 840 million, down from $58 million
• Adjusted cash return on equity slips to 4.3%, down from 11.9% in HY21

The insurer reported an $840 million loss in investment income for HY22, but excluding the risk-free rate, came in positive at $14 million.

Net profit contracted due to several headwinds, the company said.. These included the impact on its investment portfolio and the reinsuring of North America excess and surplus (E&S) lines.

Despite facing headwinds for its bottom line, QBE Insurance improved its COR, which was helped by an 18% growth of its gross written premiums from 2021.

What else happened in HY22?

QBE reported the highest premium growth in its international operating segment outside of North America and Australia Pacific, growing 18.5%. Results were buoyed by lower catastrophe costs, which helped reduce the impact of war in Ukraine and positive operating leverage.

QBE also mentioned the issue of inflation in its report. It cited that the cost of claim payments was not perfectly correlated with inflation, meaning that QBE believed other factors besides inflation were affecting the cost of its claim payments.

What did management say?

Commenting on the results, QBE Insurance CEO Andrew Horton said: 

Launched in February 2022, we have made pleasing progress against our new strategic priorities. Over the half, we placed significant focus on our North America operations. 

We have materially simplified the business and I am confident we have the right strategy and team in place to drive a sustained improvement in performance.

What’s next?

For the rest of this year, gross written premiums (GWPs) are expected to rise at roughly 10%. The company noted in its outlook that the market could support organic growth with a moderate premium rate increase.

The company also expects to beat the COR of -94% it finished on in FY21.

Over the next 12 months, QBE Insurance will undergo a re-risking process for its investments. The exit total investment return is on track for a -2.8% contraction.

QBE share price snapshot

The QBE share price is up 9.12% over the past 12 months. Shares in the company are beating the S&P/ASX 200 Financials Index (ASX: XFJ) by a convincing margin, as it is currently down 6.27% for the same period.
QBE Insurance’s market capitalisation is $18.6 billion at the latest share price action.

The post QBE share price lifts despite $840 million income hit appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 top ASX dividend shares to buy
• Morgans names 3 more of the best ASX shares to buy in August
• 2 quality ASX dividend shares rated as buys by brokers
• 5 ASX 300 shares this fundie has been buying at bargain prices
• Expert prediction: 3 ASX 200 shares that can ‘do well’ in volatile times

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 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 Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is going nowhere today after the company requested a trading halt. 

The Paradigm share price has rocketed from $1.05 per share on 28 July to $1.99 per share at Wednesday’s close, a gain of 89.5%. 

Across this timeframe, the ASX-listed biopharmaceutical company released its quarterly results for the three months ended 30 June 2022 and announced the results of a major research project.

Before market open this morning, it entered a trading halt pending an announcement relating to a capital raising.

Let’s dive deeper to get up to speed with what’s happening at Paradigm. 

Why is Paradigm in a trading halt?

The Paradigm share price has been frozen today after the company requested a trading halt in relation to a capital raising.

It will remain halted until the start of normal trading on Monday or when the announcement is released to the market, whichever comes first.

The company burned $32 million of cash for FY22 and the cash balance at 31 December 2021 was nearly $55 million. It seems Paradigm wants to solidify its capital base to progress the research initiatives outlined below. 

In its last announcement on Monday, Paradigm reported it will be presenting the results of its drug development to treat the metabolic disease mucopolysaccharidoses (MPS) type I in February next year. 

Paradigm’s long-term goal is to develop an injectable form of pentosan polysulfate sodium (PPS) to treat MPS. Historically, PPS has primarily been used to assist with bladder pain.

In addition, Paradigm is researching the use of PPS for a range of other clinical uses, such as treating pain in patients suffering from musculoskeletal disorders. 

Paradigm share price snapshot

The Paradigm share price is up 45% in the last six months and 87% over the past month. It has also gained 4% this year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has declined by 2% across the last six months and 7% year to date, but is up almost 7% in the past month.

The recent rapid rally in the Paradigm share price has been spurred by some positive developments. However, investors should be aware that Paradigm’s net loss has been on a downward trend from FY17 to FY21.

The recent momentum has driven Paradigm’s market capitalisation to around $450 million.

The post Up 90% in 2 weeks, here’s why the Paradigm share price has been halted appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Imugene, OZ Minerals, and Paradigm shares are charging higher
• Why is the Paradigm Biopharmaceuticals share price up 12% on Monday?
• Why is the Paradigm share price surging 7% today?

Motley Fool contributor Raymond Jang 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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1) US inflation slowed from 9.1% in June to 8.5% in July, a print that was lower than expected.

Cue a big rally in US markets as investors looked ahead to a moderation of the Federal Reserve’s interest rate rises as it attempts to get inflation back under control.

The Nasdaq 100 jumped 2.9%, simultaneously exiting bear market territory and entering a bull market, having risen 20% above its June lows. The index is still 19% below its November 2021 high.

No wonder I’m feeling better about my investments than I was just a few weeks ago. 

And there could be more gains ahead as hedge funds unwind shorts, funds which fled to cash rush to get back into the rising market, and retail investors buy the dip.

As Bloomberg puts it…

“Nobody saw it coming, and now everyone wants in. That’s a nutshell synopsis of how an improbable equity market bounce is threatening to become a melt up.”

2) The S&P/ASX 200 Index (ASX: XJO) has taken somewhat of a lead from Wall Street, although not to the same extent, up a somewhat modest 54 points to 7046 in lunchtime Thursday trade.

No melt up here, sadly, although that shouldn’t be expected given the ASX 200 is dominated by huge banks and mining companies. 

3) Long-suffering Telstra (ASX: TLS) shareholders finally have something to cheer about… the first increase in the total Telstra dividend since 2015.

Outgoing CEO Andy Penn said the increased dividend “recognises the confidence of the Board following the success of our T22 strategy, the ambition in our T25 strategy of high-teens earnings per share (EPS) growth from FY21 – FY25, the strength of our balance sheet and the recognition by the Board of the importance of the dividend to shareholders.”

Given the Telstra share price is largely flat over the past almost 20 years, any investment in the company has long been about the fully franked dividend. 

Despite Mr Penn’s ambitions of turning Telstra into a growth company, it remains a large utility company operating mostly in two very competitive environments – mobile and broadband. From an investing perspective, utility companies are yield plays.

Based on the full year dividend of 16.5 cents, Telstra shares trade on a fully franked dividend yield of 4.1%. Not bad, but in this rising interest rate environment, not as attractive when compared to alternatives, including risk free term deposits. 

Valuation-wise, Telstra shares are off the charts, trading on 28 times earnings. They are anything but risk-free.

4) One dividend stock flying under the radar is one I own, GQG Partners (ASX: GQG), the boutique global investment manager headquartered in the United States.

In what has been a tough period for the sector – hurt by outflows and poor investment performance – funds under management have increased by 2.4% from the previous year. 

Floated in October last year at $2 per share, like most recent IPOs, the GQG share price has traded below its issue price.

Like all fund managers, GQG’s results will largely be driven by its investment performance over the long term, and all strategies are ahead of their benchmarks over a five year period. 

Unlike many fund managers, most of GQG’s revenues in the first half were derived from management fees, and not performance fees. As such, profits are far less volatile than typical fund managers like Magellan Financial Group (ASX: MFG) and Pinnacle Investment Management (ASX: PNI). I also own the latter.

Given GQG’s relatively predictable results, if you extrapolate the roughly US$0.02 quarterly dividend across the full year, converted to Aussie dollars, GQG shares trade on a dividend yield of around 7.1%.

Not bad for a growing company trading on roughly 13 times profit. This $4.7 billion company looks to be flying under the radar of most income investors.

The post Equity markets threaten to “melt up” as Nasdaq enters bull market territory appeared first on The Motley Fool Australia.

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More reading

• ‘We’ve become the piggy bank’: GQG share price jumps on half-year results
• Everything you need to know about the latest Telstra dividend
• Telstra share price higher on earnings beat and surprise dividend increase
• Telstra share price on watch amid strong FY22 result and surprise dividend increase
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bruce Jackson has positions in GQG Partners Inc. and PINNACLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO and Telstra Corporation 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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The S&P/ASX 200 Index (ASX: XJO) is performing strongly this Thursday. At the time of writing, the ASX 200 is up a healthy 0.74% at around 7,045 points. But that’s nothing compared to the BetaShares Nasdaq 100 ETF (ASX: NDQ).

NDQ units have had a cracking day so far. This exchange-traded fund (ETF) has lifted an impressive 1.7% to $29.37 a unit at the time of writing.

NDQ is an ASX-listed index fund. It covers no ASX shares though, instead tracking the 100 largest companies on the US NASDAQ-100 (NASDAQ: NDX). The NASDAQ stock exchange is renowned as the major US exchange that holds most of the US’s famous tech shares. Its largest holdings are the likes of Apple, Amazon.com, Microsoft, Tesla and Alphabet.

It also holds a bevvy of other household tech names, including PayPay, Netflix, Starbucks, Adobe and NVIDIA.

So why is the BetaShares NASDAQ 100 ETF having such a strong showing this Thursday?

What’s boosting the BetaShares Nasdaq 100 ETF (NDQ)?

Well, we need not look any further than the performance of the NASDAQ-100 Index itself.

Last night on the US markets, the NASDAQ had an exceptionally strong showing. It gained a healthy 2.85%, rising from 13,008.16 points to 13,378.32 points.

This was supported by moves like Apple rising 2.62%, Microsoft appreciating 2.43% and Amazon and Tesla both gaining more than 3.5%. And with these companies among the NDQ’s top holdings, the gains are flowing into the NDQ ETF today as well.

But why not as much as the NASDAQ’s gains last night? Aren’t NDQ and the NASDAQ-100 essentially the same thing?

Well, yes. But there are other factors at play too. The US NASDAQ-100 Index is obviously priced in US dollars. But NDQ is an ASX-listed ETF priced in Aussie dollars.

And the Aussie dollar has been on the rise over the past few days. This devalued what US companies are worth in Australian dollar terms, and might explain the more tempered movements of NDQ today compared to its underlying index.

But even so, it’s certainly a strong and pleasing showing from this ETF.

Despite today’s gains, the BetaShares Nasdaq 100 ETF has had a rough time in recent months. NDQ units remain down by almost 20% in 2022 thus far, and by just over 10% over the past 12 months. But they also remain up by more than 130% over the past five years.

The BetaShares Nasdaq 100 ETF charges a management fee of 0.48% per annum.

The post Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today appeared first on The Motley Fool Australia.

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More reading

• 3 rising ASX shares to buy that have passed the bottom: expert
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX All Ordinaries shares rocking new 52-week highs on Wednesday
• Does this signify more bad news for ASX BNPL shares like Zip?
• Here are the top 10 ASX 200 shares today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe Inc., Alphabet (A shares), Amazon, Apple, Microsoft, Nvidia, Netflix, PayPal, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, Netflix, Nvidia, PayPal Holdings, Starbucks, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., short March 2023 $130 calls on Apple, and short October 2022 $85 calls on Starbucks. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Netflix, Nvidia, PayPal Holdings, and Starbucks. 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 Ragusa Minerals Ltd (ASX: RAS) share price is shooting the lights out today, up 55% to 16 cents.

The junior ASX mining company revealed new rock sampling results and plans for its maiden drill program in an announcement this morning.

The news relates to the company’s NT Lithium Project in the Northern Territory. It said a review of historical data plus a recent site visit had confirmed “high-grade lithium prospectivity”.

More than 15 million Ragusa shares have traded hands already today. That’s six times the company’s 90-day average of 2.2 million.

What discovery is causing this ASX mining share to soar?

In its statement, Ragusa said some of the historical exploration works identified “numerous high-grade lithium results from rock chip samples”. This included 8.03% Li2O3 and 7.25% Li2O6, with most others registering more than 2% Li2O (with several >5% Li2O).

Ragusa is using this data and new rock sampling results to determine where to start drilling in its maiden program. The latest results include:

• SM001 – 5.46% Li2O
• SM008 – 2.27g/t Au
• SM009 – 4.59g/t Au

Ragusa said the samples had high-grade lithium in amblygonite. There were also elevated lithium values in mica and significant gold values from quartz/scorodite samples.

Ragusa said: “… the true extent of many of the pegmatites is significant — spanning several kilometres in length, with potential for a significant discovery”.

Then there’s the bowling ball-sized crystal …

Ragusa said that staff stumbled across “a single crystal approximately the size of a bowling ball” during the recent reconnaissance visit. Yep, just sitting on the surface waiting to be picked up.

The company said:

It was found at surface in a scraping adjacent to weathered albite/mica/quartz rubble and outcrop.

Upon investigation, the crystal is thought to be a heavily weathered spodumene based on residual colour, estimated density, prismatic shape, internal striations parallel to the long axis and strongly elevated lithium content, although heavily depleted from weathering.

So, when will Ragusa dig some stuff out of the ground?

Ragusa said it had developed a target generation and drill program design incorporating several “high priority confirmed lithium bearing targets”.

The company said: “Logistics planning and preparation is underway to conduct this planned drilling campaign during the current dry season.”

Ragusa has an approved Mining Management Plan for Exploration (MMP) already in place for 21 RC and diamond drill holes. It’s now seeking permission for more drill holes.

The drilling was “expected to yield definitive results”, the company said.

What did management say?

Ragusa chair Jerko Zuvela said:

The company’s strategic and highly prospective NT Lithium Project, with high grade historical and confirmatory lithium sample results, four granted tenements, approved MMP and upcoming commencement of our maiden drilling program is very exciting and puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high quality lithium district.

We have a significant opportunity to utilise our exploration and development experience to rapidly
progress our NT Lithium Project and realise the massive upside value potential in a Tier 1 jurisdiction
close to major infrastructure at a time of record lithium prices.

Share price review for this ASX mining share

The Ragusa Minerals share price is up 121% over the past year, outperforming the metals and mining benchmark index by a mile.

The S&P/ASX 300 Metal & Mining Index (ASX: XMM) is down 11% over the same period.

The ASX mining share has a market capitalisation of $12.8 million.

The post Guess which ASX mining share is rocketing 55% on a new lithium find appeared first on The Motley Fool Australia.

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More reading

• Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today
• 1 emerging catalyst that Apple investors may have missed
• Why did the Whitehaven Coal share price just hit an 11-year high?
• Brainchip share price powers up another 5% on Thursday
• ‘We’ve become the piggy bank’: GQG share price jumps on half-year 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 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.

Apple Inc. (NASDAQ: AAPL) released fiscal 2022 third-quarter results (for the three months ending June 25, 2022) on July 28, and investors should have been pleased to see an improvement in sales of the iPhone at a time when the overall smartphone market was in the soup.

More specifically, Apple’s iPhone revenue increased to $40.7 billion last quarter from $39.6 billion in the prior-year period. While that isn’t a huge jump, it is worth noting that global smartphone sales dropped 9% year-over-year in the second quarter of 2022, according to market research firm Canalys. Apple’s iPhone shipments, however, reportedly increased 8% year-over-year to 49.5 million units as per Canalys.

Emerging markets were one of the reasons behind Apple’s resilient iPhone sales performance last quarter. CEO Tim Cook said on the latest earnings conference call that Apple witnessed “very strong double-digit growth in Brazil, Indonesia, and Vietnam.” He also added that the company’s revenue in India nearly doubled. That’s something investors should take note of, as the Indian market presents a solid long-term growth opportunity for Apple. Here’s why.

Apple is benefiting from higher smartphone spending in India

Canalys reports that smartphone shipments in India hit 36.4 million units in the second quarter of 2022, an increase of 12% over the prior-year period. That means Apple grew at a much faster pace in the Indian market last quarter.

Though the company didn’t clarify its revenue from the Indian market, estimates suggest that Apple’s revenue from its Indian operations was close to $3 billion in fiscal 2021. The tech giant’s Indian revenue reportedly increased 68% last fiscal year. In fiscal 2022 analysts expect Apple’s top line to increase another 31% in the Indian market, which would bring its revenue over there close to $4 billion.

While that looks like a small amount compared to Apple’s projected revenue of $392 billion in fiscal 2022, the company’s impressive growth in India at a time of high inflation means that consumers are willing to spend on iPhones. More specifically, the average selling price (ASP) of a smartphone in India stood at $211 in the first quarter of the calendar year.

Apple’s entry-level iPhone SE is priced at 43,900 Indian rupees in that market, which translates into roughly $553 at the current exchange rate. So Apple seems to be enjoying solid pricing power in India. This isn’t surprising, as smartphone ASPs are rising in the Indian market thanks to the transition to 5G devices. Counterpoint Research estimates that the ASP of a smartphone in India increased 14% last year.

Apple capitalized on higher smartphone spending in India by cornering a 44% share of the market for devices priced at $400 or higher. Smartphone ASPs can be expected to head higher in India this year as sales of entry-level devices decline, driven by the growing adoption of 5G.

Sales of 5G smartphones reportedly increased 163% year-over-year in the second quarter in India as per CyberMedia Research. Even better, sales of premium (priced between $325 and $630) and super-premium smartphones (priced between $630 and $1,260) increased 80% and 96% year-over-year, respectively.

So the conditions are ripe for Apple to step on the gas in the Indian market, and the company is pulling the right strings to ensure that it doesn’t miss out on the lucrative long-term opportunity present over there.

India could give the tech giant a big long-term boost

According to Ericsson, 500 million 5G smartphones could be sold annually in India by 2027, with the latest wireless standard accounting for 39% of overall mobile phone users in the country. That points toward a huge jump over last year’s 5G smartphone shipments of 64 million units. Additionally, the 5G smartphone penetration rate in India that Ericsson sees in 2027 indicates that this market could keep growing at an impressive pace for a longer period.

Apple’s strong position in the premium end of the Indian smartphone market means that it is well placed to take advantage of this opportunity. Additionally, the company has been shoring up its manufacturing capabilities in India to make its smartphones more accessible to customers over there. Apple started making the iPhone 13 in India earlier this year. It is expected to manufacture the next-generation iPhones as well over there to reduce dependence on China, which could help Apple keep the price of the upcoming devices competitive.

Apple recorded 48% growth in iPhone shipments in India in 2021 to 5.4 million units, cornering a 4.4% share of that market. This year Apple’s share of India’s smartphone market is expected to jump to 5.5%, with shipments increasing to 7.5 million units thanks to an increase in sales of high-end devices. It wouldn’t be surprising to see this number head higher in the long run as 5G adoption improves.

In all, Apple seems to be on its way to becoming a key player in India’s smartphone space, and that could unlock a huge growth opportunity for this tech stock given the market’s projected growth in the coming years.

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

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Harsh Chauhan 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 Apple. 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 recommended Apple. 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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What an unbelievably great year it has been for the Whitehaven Coal Ltd (ASX: WHC) share price.

After briefly touching a year-to-date low of $2.58 in January, the coal producers’ shares haven’t looked back.

During morning trade today, its shares hit an 11-year high to reach $6.63 before profit takers swooped in.

At the time of writing, Whitehaven Coal shares are up 0.94% to $6.43 apiece.

What’s firing Whitehaven shares ahead?

Despite the global economy remaining uncertain, coal prices have continued to surge.

According to Trading Economics, the latest price for the charcoal-coloured rock is fetching at US$398.65 per tonne. This represents a 3.68% increase from the day before and is ultimately boosting the Whitehaven Coal share price.

The IEA released a report on 28 July projecting that global coal demand will return to its all-time high this year.

It noted that this is being driven by rising natural gas prices, which have intensified gas-to-coal switching in many countries.

Subsequently, this is partly offsetting the slow economic growth recorded in China as well as the current tight market conditions. The latter has been exacerbated by Russia’s invasion of Ukraine earlier this year.

Notably, with coal prices continuing to power ahead, Whitehaven Coal is projecting to deliver its strongest ever full year result.

Management is expecting to report an FY22 EBITDA of approximately $3 billion, subject to a final audit.

These results are expected to be released on Thursday 25 August.

Whitehaven share price snapshot

On the back of strong coal prices, the Whitehaven share price has rocketed by more than 146% in 2022.

In comparison, this has outperformed the S&P/ASX 200 Energy (ASX: XEJ) sector which has risen 27% over the same timeframe.

According to ANZ Share Investing, Ord Minnett is bullish on Whitehaven shares, raising its 12-month price target by 14% to $8. Based on where it trades today, this represents an upside of 24%.

Whitehaven commands a market capitalisation of approximately $6.15 billion.

The post Why did the Whitehaven Coal share price just hit an 11-year high? appeared first on The Motley Fool Australia.

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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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The Brainchip Holdings Ltd (ASX: BRN) share price is advancing 4.53% on Thursday.

At the time of writing, the share is swapping hands at $1.155 apiece.

Brainchip has caught a bid today on no news. However, each of the S&P/ASX 200 Information Technology Index (ASX: XIJ) and the S&P/ASX All Technology Index (ASX: XTX) are outpacing peers today.

Both sectors are leading the pack today and have gained around 1.17% and 2.04% on the day respectively.

What’s up with the Brainchip share price?

Inflation data has been the main driver of asset returns in 2022. So with the latest US inflation data from July showing a potential slowdown in core prices, risk assets have caught a bid today.

“US consumer prices did not rise in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for…the past two years,” Reuters reported.

Technology shares – whose valuation and market pricing are sensitive to government bond yields – advanced today following a sharp pullback in the spectrum of US Treasury yields.

The relationship between Treasury yields and the price of tech stocks is abundantly clear in Brainchip’s case, as seen in the chart below looking at these instruments this YTD.

Investors had increasingly been pricing in the prospect of an economic recession in 2022/23 as central banks typically tighten their interest rate policy to combat the surging cost of living.

It does this to achieve price stability, however, it does so at the expense of economic growth in the economy. Each 1% increase in interest rates has an impulse effect downstream in the real economy. It really is a proper balancing act.

Hence, with inflation cooling, investors believe the likelihood of further, aggressive rate hikes is now less and less, which is a net positive for risk assets.

As can be seen, with a pullback in the level of Treasury yields – which look to have peaked in late June – the Brainchip share price has caught a bid, alongside the broad tech sector.

This extends gains to more than 114% for the share over these past 12 months of trade.

The post Brainchip share price powers up another 5% on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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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