Category: Stock Market

The Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) share prices finished in the red today.

Rio Tinto and BHP shares fell 1.37% and 1.44% respectively. For perspective, the S&P/ASX 200 Index (ASX: XJO) jumped 0.23% today.

So what went on with the Rio Tinto and the BHP share prices?

Tough day for commodity prices

Rio and BHP are both copper and iron ore producers among other metals. In global markets overnight, copper fell to US$3.3 a pound. This is the lowest level in 20 months, according to data from trading economics.

COVID-19 BA.5 sub-variant lockdowns in China, the “top consumer” of copper, also appeared to weigh on investors’ minds.

In a research note today, ANZ economist Madeline Dunk said copper “led” the base metals sector lower. She added:

Expectations of another increase in inflation rose ahead of the release of US CPI data. This was exacerbated by further lockdowns in China.

Copper ended the session down more than 3% to hit its lowest level since November 2020.

Goldman Sachs analysts also cut their price target on copper, according to mining.com. Analyst Nicholas Snowdown cited factors including the dollar and global energy squeeze, according to the publication.

Meanwhile, iron ore prices also plunged to US$107.50 per tonne, down 4.44%. China is also a major importer of iron ore. Fears of weaker demand from China appear to have driven down the price.

Share price snapshot

The Rio share price has shed nearly 27% in the past year and lost 6% year to date.

Meanwhile, the BHP share price has lost 18% in the past year and 0.09% year to date.

Both Rio and BHP are big dividend payers, as my Foolish colleague James has highlighted recently.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in a year.

The post Why did the Rio Tinto and BHP share price struggle today? appeared first on The Motley Fool Australia.

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More reading

• Analyst names 3 reasons to be bullish on the BHP share price
• $264 million! The 10 highest-paid CEOs on the ASX
• Investors were seeking out ASX shares in June. Here’s why
• Here’s the outlook for the Rio Tinto share price in FY23
• Where is the BHP dividend heading through to FY25?

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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ASX lithium shares were the darling child of the commodity sector throughout FY22, with prices for the battery metal reaching all-time highs.

Despite a bearish note from Goldman Sachs on its outlook for lithium, prices have remained buoyant. Plus, there’s still talk of lithium demand outweighing supply for some time into the future.

Below is a graph showing some of the best and worst-performing ASX lithium shares of FY22.

Let’s consider them more closely.

Core Lithium (ASX: CXO)

The Core Lithium share price was one of the ASX’s top performers in FY22, posting a triple-digit gain.

The company executed a binding agreement with the electric vehicle juggernaut Tesla last financial year, driving investors’ interest in the share.

The agreement sees Core supply 110,000 tonnes of lithium spodumene concentrate to Tesla from the company’s Finnis project in Northern Territory.

Core Lithium also received final assays from the Finnis project in May and advised that resource drilling had commenced at tenements on the site.

The share has traded down in recent weeks but has still managed to record a 289% gain for the past 12 months.

Pilbara Minerals Ltd (ASX: PLS)

Shares of Pilbara Minerals were also strong performers in FY22. The company’s quarterly results were a standout, with Pilbara noting it had upped production by 54% over the three months to June 2022.

Moreover, its recent Battery Metals Exchange (BMX) saw a lithium price of US$7,000 per dry metric tonne in a digital auction.

This was underscored by strong demand and a “continued healthy outlook into the foreseeable future”, Pilbara management noted.

The share has a buy rating from Ord Minnett, with its analysts valuing Pilbara Minerals shares at $3.50 each. That’s a healthy 48% upside on today’s closing price of $2.36.

IGO Ltd (ASX: IGO)

Diversified miner IGO saw substantial gains in FY22 but these were pared back towards the end of the financial year.

The company’s share price reached a 52-week high of $15 on 4 April and has been trending lower ever since.

After completing its Western Areas Transaction, investors were still keen to sell the company’s shares. They now trade back in line with September 2021 levels.

As such, the IGO share price is down 15% year to date after a bullish run in FY22.

Despite this, it still remains 14% higher for the past 12 months and is well above the returns of the benchmark S&P/ASX 200 Index (ASX: XJO) which dropped around 10%.

Analysts at Macquarie reckon IGO is a buy and value the company at $17 per share. That’s well above its closing price today of $9.72.

Mineral Resources Ltd (ASX: MIN)

At the other end of the spectrum, Mineral Resources left investors searching for more in FY22. The company’s share price started the year at $63.01 and ended at around $46.

It’s trading down 25% in the past 12 months with its most recent downtrend starting on 30 May.

Following the release of the bearish note on the lithium industry from Goldman Sachs, many lithium shares – including Mineral Resources – were swept away.

Gains quickly dried up in the sector but several players were able to either withstand or recover from the slump.

Yet, for Mineral Resources, not so much. It continued to trade south and hasn’t regained support since.

It is down 22% in the past month, extending its losses to 21% this year to date.

The post 3 ASX lithium shares that flew in FY22, and 1 that sank appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Why has the Pilbara Minerals share price shot up 5% today?
• How did the Core Lithium share price gain 300% in the 2022 financial year?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• $264 million! The 10 highest-paid CEOs on the ASX

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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The Chalice Mining Ltd (ASX: CHN) share price finished in the green on Wednesday after a positive update from fellow miner Venture Minerals Ltd (ASX: VMS).

Chalice Mining shares closed 3.66% higher at $3.68 apiece, after hitting an intraday high of $3.70.

Let’s take a look at what was released to the ASX earlier today.

Chalice Mining earns majority interest in South West Project

Investors rallied up the Chalice Mining share price after the company received a 51% stake in Venture Minerals’ South West Project.

According to the Venture Minerals announcement, Chalice Mining received results from its recently completed auger soil geochemistry program at the site, identifying two new Ni-Cu-PGE target areas.

Ni-Cu-PGE stands for a number of different minerals. These are nickel (Ni) and copper (Cu) while PGE represents ‘platinum group elements’. These consist of: palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh), and ruthenium (Ru).

The new targets are supported by underlying geology that is said to be consistent with the presence of ultramafic rocks.

Furthermore, it contains coincident and untested airborne electromagnetic and magnetic anomalies at the Thor target – a 20-kilometre-long magnetic anomaly within the South West project.

Following the auger soil geochemistry program and recently completed maiden drilling program, Chalice Mining met its $1.2 million expenditure requirement to attain a 51% interest.

Should management choose to spend another $2.5 million on exploration activities by July 2024, the Chalice interest will increase to 70%.

Venture Minerals managing director Andrew Radonjic commented:

I am very pleased with the progress made to date at Thor. With Chalice now having met their 51% expenditure milestone ahead of schedule, Venture looks forward to working with Chalice in the future on our South West project.

Chalice Mining share price summary

Over the last 12 months, Chalice Mining shares have dropped almost 50% and are down 60% year to date.

The company’s share price reached a 52-week low of $3.37 in late June before rebounding higher.

Chalice Mining commands a market capitalisation of roughly $1.38 billion.

The post What had the Chalice Mining share price glowing today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Why is the Chalice Mining share price racing higher today?
• Top broker says the Chalice Mining share price can rise almost 200%
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

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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CSL Limited (ASX: CSL) shares continued their recent climb today, up 0.38% to $293.81 at the market close.

The ASX biotech behemoth is up by more than 11% in the past four weeks. That performance is well beyond the S&P/ASX All Ordinaries Index (ASX: XJO), which is down about 1% over the same period.

Let’s take a look at what’s behind this share price movement for CSL.

Is the CSL share price rising on momentum?

CSL hasn’t released any price-sensitive news to the market since 12 May. So it’s certainly not company news that is motivating ASX investors to buy the blue-chip share.

However, CSL has attracted plenty of broker backing over the past month. Perhaps this has inspired new investor confidence.

In addition, the CSL share price has been weak for a while and remains well off its pre-COVID highs.

It was always only a matter of time before investors bought back into CSL, as the impact of COVID dies down.

After all, CSL is the epitome of quality and a quintessential blue-chip darling on the ASX. It’s currently the third-largest company in the ASX 200 with a market capitalisation of $141 billion.

So, maybe investors have decided now is the time?

What are the brokers saying about CSL?

My Fool colleague James reports today that Morgan Stanley has retained its overweight rating on CSL with a share price target of $312. Macquarie also says buy with the same price target.

Citi also has a buy rating with a more ambitious share price target of $330 for CSL.

Citi analysts commented:

With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand. This should lead to strength in the CSL share price.

Last week, fellow Fool Tony Yoo also reported that 12 out of 13 analysts rate CSL a buy, according to CMC Markets. Ten of those 12 call it a strong buy.

The pandemic impact on the CSL share price

CSL is a global biotechnology company that manufactures biotherapies and vaccines.

Overall, CSL was a COVID-19 loser. In the initial pandemic market crash of 2020, CSL shares fell from around $336 in February to about $270 in March. As the pandemic rolled on, CSL shares went lower to about $250 in March 2021. They returned to the same level in February this year.

This happened because CSL relies on blood plasma donations to develop its medicines and vaccines. Lockdowns around the world made this exceptionally difficult. That was a bit of a problem given that CSL’s blood plasma division generates 70% of its revenue.

Things have changed

As my Fool colleague Monica reported in May, plasma collections are now roughly back to pre-pandemic levels. CSL is also using new technology to reduce the time it takes to donate plasma by 30%.

At the moment, CSL is awaiting the finalisation of its acquisition of Swiss giant Vifor Pharma AG.

Vifor is a leading global producer of products to treat kidney disease and iron deficiency. CSL expected to close the $17 billion deal in June but told the ASX in May that there would be a delay.

In a statement, CSL said it “expects the regulatory approval process to take a few more months”.

Regardless, the Vifor deal represents a synergistic expansion that bodes well for the CSL share price.

As we reported, the Vifor acquisition is “expected to be low-to-mid teens NPATA per share accretive in the first full year of CSL ownership, including full run rate cost synergies”.

The post Why is the CSL share price up 11% in a month? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• $264 million! The 10 highest-paid CEOs on the ASX
• What are brokers saying about the CSL share price?
• What’s the outlook for ASX biotech shares in FY23?
• What’s the outlook for ASX 200 healthcare shares in FY23?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in CSL Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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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If you’re wanting to gain exposure to the beaten down tech sector, then it could be worth considering the two ASX tech shares listed below that Goldman Sachs rates as buys.

Here’s what you need to know about these tech shares:

Megaport Ltd (ASX: MP1)

The first tech share that Goldman rates highly is Megaport. It is a leading provider of elastic interconnection services globally. Its analysts remain very positive on the company’s growth outlook and are forecasting a gross profit compound annual growth rate (CAGR) of 36% between FY 2023 and FY 2025.

The broker explained

While we acknowledge near-term channel execution issues (incl. any potential impact from recent mgmt. departures) and mixed signals on enterprise hardware spending, we continue to see the networking benefits and broader cost savings from MP1’s products to sustain a robust growth profile for the company. Combined with FX upgrades (+7% benefit, with MP1 having >78% revenue offshore), our FY22-25 GP estimates are -0 to +3%.

Goldman Sachs has a buy rating and $9.00 price target on Megaport’s shares.

Xero Limited (ASX: XRO)

Another ASX tech share that Goldman Sachs rates highly is Xero. It believes the cloud accounting company is well-placed to deliver strong gross profit growth in the coming years despite the tough operating environment. The broker is forecasting a gross profit CAGR of 22% between FY 2023 and FY 2025.

Goldman Sachs said:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP [to 22%] to reflect FX and higher churn/ARPU growth (price increases).

The broker has a buy rating and $113.00 price target on Xero’s shares.

The post Broker names 2 ASX tech shares to buy in July appeared first on The Motley Fool Australia.

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More reading

• Why Block, Megaport, Navigator Global, and Whitehaven Coal shares are rising
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• This broker sees 30% upside for the Xero share price over the next year
• These were the best (and worst) performing ASX 200 sectors of FY22
• Here’s why Goldman Sachs sees lots of value in the Xero share price

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 MEGAPORT FPO and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 Zip Co Ltd (ASX: ZIP) share price had a positive day on Wednesday.

Especially in comparison to BNPL rival Sezzle Inc (ASX: SZL), which continues its post-merger collapse with a 22% decline today.

At Wednesday’s close, the Zip share price was up 1% to 53.5 cents. This extends its two-day return to a sizeable 8%.

Where next for the Zip share price?

While the market may have responded positively to the termination of the Sezzle merger, one leading broker thinks it’s too soon for investors to get excited.

According to a note out of UBS, its analysts have reiterated their sell rating with a 45 cents price target.

This implies potential downside of almost 16% for investors over the next 12 months from current levels.

What is the broker saying?

While UBS suspects that the merger termination could slow down Zip’s cash burn, it believes its outlook still remains very uncertain.

Especially given how expensive it could be chasing growth in the US market where credit losses could be higher.

In fact, the broker has suggested that Zip might be better off divesting its international operations now the merger is off and focus on the core ANZ business instead.

Time will tell what happens, but it certainly should be an interesting few months for the Zip share price.

The post Is the Zip share price going to take off? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX BNPL shares in FY23?
• Sezzle shares plunge another 16%, now down 60% in a week
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• Are falling BNPL shares pushing the ASX banks higher today?
• Outlook for Zip share price ‘uncertain’ following scrapped merger: UBS

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 ZIPCOLTD FPO. 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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ASX BNPL shares had a shocker run last financial year with the sector incurring heavy losses. That downward momentum has continued in FY23, with the BNPL segment continuing to face multiple headwinds.

The latest news to shake the sector is the breakdown of the Zip Co Ltd (ASX: ZIP) and Sezzle Inc (ASX: SZL) merger, announced yesterday.

So what’s ahead for this troubled sector? Let’s check the outlook for FY23.

BNPL shares to face pressure this financial year

It certainly hasn’t been a good start to the new financial year. Speaking to the Responsible Lending and Borrowing Summit in Sydney this week, federal Financial Services Minister Stephen Jones said the government was cracking down on the BNPL industry.

Jones said he would soon be consulting with industry stakeholders and regulators on how to improve credit regulation in Australia.

He also dismissed arguments that BNPL players aren’t extending credit:

[L]et’s have an end to the silly argument about whether BNPL is credit and get on with the next stage of growth for this emerging industry.

If it walks like a duck and quacks like a duck, it’s a duck.

Meanwhile, Grant Halverson of banking and payments consultancy McLean Roche said Australia has “an enormous bubble” in its BNPL sector. That’s certainly not bullish language.

Halverson told The Australian:

It’s absolutely bizarre that the ASX has 12 listed BNPL stocks … and it is all built on this notion that you can borrow money forever and not pay for it.

I think in 12 months’ time, you’ll have two or three surviving; the rest will all be gone. They’ll either go broke or they’ll be bought very cheaply.

Indeed, on the back of Zip and Sezzle’s failed merger, the Sezzle share price has plummeted, closing the day 21.57% lower at 20 cents a share.

While the Zip share price has fared better since the deal was called off, the ASX BNPL share is now set to face additional headwinds.

In a note to clients, UBS analyst Tom Beadle reiterated this point and said the move would “potentially crimp [Zip’s] ability to turn a profit”.

He said the UBS team was surprised by the announcement and that macroeconomic headwinds are also plaguing the BNPL sector’s outlook.

Certainly, it appears the future is murky for BNPL shares such as Zip and Sezzle, but other players are on the slab too.

Whilst Zip has crashed 93.5% into oblivion, names such as Laybuy Group Holdings Ltd (ASX: LBY) and EML Payments Ltd (ASX: EML) are also down more than 91% and 71% in the past 12 months respectively.

The post What’s the outlook for ASX BNPL shares in FY23? appeared first on The Motley Fool Australia.

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More reading

• Why Galileo Mining, Platinum, Sezzle, and Woodside shares are dropping
• FY22 was a lousy period for ASX fintech shares. Here’s why
• Sezzle shares plunge another 16%, now down 60% in a week
• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• Is FY23 going to be a winning year for ASX fintech shares?

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 positions in and has recommended EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. 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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Wednesday was a wobbly one for S&P/ASX 200 Index (ASX: XJO) shares as energy stocks weighed on the market. The index finished today’s session 0.23% higher at 6,621.60 points.

However, investors may have breathed a sigh of relief as the ASX 200 traded relatively flat today following Wall Street’s disappointing session overnight.

The S&P 500 fell 0.92% in Tuesday’s session overseas while the Dow Jones Industrial Average lost 0.62%. The tech-heavy NASDAQ Composite also slumped 0.95% as most of Australia slept.

Interestingly, ASX 200 tech shares posted a decent session today, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) closing in the green.

Oil prices plunged more than 7% overnight amid a stronger US dollar, concerns regarding COVID-19 restrictions in China, and fears of an economic slowdown, reports Reuters.

Brent crude oil plunged 7.1% to US$99.49 a barrel overnight while the US Nymex crude price slid 7.9% to US$95.84 a barrel.

Perhaps unsurprisingly, the S&P/ASX 200 Energy Index (ASX: XEJ) was the market’s worst performing segment today, falling more than 1.5%.

At the end of Wednesday’s trade, seven of the ASX 200’s 11 sectors were higher.

So, which ASX shares outperformed all others today? Let’s take a look.

Top 10 ASX shares countdown

Taking out the crown as the best performer among ASX’s 200 biggest companies by market capitalisation is lithium giant Pilbara Minerals Ltd (ASX: PLS).

Read what Pilbara Minerals has been up to lately, here.

Today’s top 10 biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$2.365	5.58%
Zimplats Holdings Ltd (ASX: ZIM)	$23.92	5.33%
Whitehaven Coal Ltd (ASX: WHC)	$5.36	3.88%
Chalice Mining Ltd (ASX: CHN)	$3.685	3.8%
Qantas Airways Limited (ASX: QAN)	$4.395	3.66%
Meridian Energy Ltd (ASX: MEZ)	$4.40	3.53%
New Hope Corporation Limited (ASX: NHC)	$4.03	3.33%
Coronado Global Resources Inc (ASX: CRN)	$1.595	3.24%
Boral Limited (ASX: BLD)	$2.60	3.18%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$71.15	3.16%

Data as at 3:59pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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

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More reading

• Why has the Pilbara Minerals share price shot up 5% today?
• Why Block, Megaport, Navigator Global, and Whitehaven Coal shares are rising
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why has the Aristocrat share price increased 17% in two months?
• These were the 5 top performing ASX energy shares of FY22

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Some of the biggest businesses in Australia are S&P/ASX 200 Index (ASX: XJO) bank shares. Indeed, financials make up more than a quarter of the ASX 200.

There are plenty of recognisable names within the ASX 200 banking sector, such as: Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), Suncorp Group Ltd (ASX: SUN), Bank of Queensland Limited (ASX: BOQ), and Bendigo and Adelaide Bank Ltd (ASX: BEN).

The earnings of each are somewhat different, with differing levels of exposure to non-lending earnings as well as various levels of exposure to different Australian states.

But something that they’re all exposed to is rising interest rates and how this may affect their lending.

ASX 200 bank shares take a dive

Interest rates can have an impact on asset valuations. On top of that, banks are particularly affected within their operations.

So, are rising interest rates a good or bad thing for banks? Interestingly, the market has sent share prices lower since the Reserve Bank of Australia (RBA) move to increase interest rates by 50 basis points, or 0.5%. Remember, share prices are meant to be forward-looking.

Looking at the big four ASX banks since 3 June 2022, the CBA share price has fallen more than 10%, the Westpac share price has dropped 16%, the ANZ share price is down 10%, and the NAB share price has dropped just under 10%.

On the one hand, it is believed that higher central bank interest rates will lead to improved lending margins. This is called the net interest margin (NIM) where the lending rate is compared to the funding costs (such as interest paid to savers using savings accounts). Certainly, savings account interest rates are not rising as quickly as the interest rate on loans.

Broker thoughts on the sector

In FY23, brokers such as Macquarie believe that the ASX 200 bank share NIMs will rise. However, higher interest rates could also come with a problem – higher bad debts. Some households may not be able to cope with the higher interest payments, leading to rising arrears and then loan impairments.

Time will tell whether the profit boost from a higher NIM outweighs the (predicted) higher bad debts or not.

For Macquarie, NAB is its preferred big four ASX bank, with CBA being the least preferred.

Macquarie rates CBA as ‘underperform’ with a price target of just $78 – that implies a mid-teen fall of the CBA share price in percentage terms. NAB is rated as ‘outperform’, with a price target of $29.50.

The broker is ‘neutral’ on ANZ with a price target of $23.50, while the Westpac rating is also ‘neutral’ with a price target of $22.

However, the broker is expecting growing dividends over FY22 and FY23 for the big four ASX banks.

Macquarie is ‘neutral’ on Bendigo Bank, with a price target of $10. The broker has a ‘outperform’ rating on BOQ with a price target of $8. The broker also has an ‘outperform’ rating on Suncorp, with a price target of $15.

The post What’s the outlook in FY23 for ASX 200 bank shares? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: ANZ confirms MYOB talks, energy shares fall
• ANZ share price drops amid MYOB takeover talks
• $264 million! The 10 highest-paid CEOs on the ASX
• Investors were seeking out ASX shares in June. Here’s why
• Are falling BNPL shares pushing the ASX banks higher today?

Motley Fool contributor Tristan Harrison 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 Bendigo and Adelaide Bank Limited. 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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It’s been a very bumpy day of trading for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 is up by just 0.13% after swinging between gains and losses all trading day. But it’s been a far better time for the Pilbara Minerals Ltd (ASX: PLS) share price.

Pilbara shares are having a corker of a day today. This ASX 200 lithium stock is currently enjoying a 4.91% surge to $2.35 a share after closing at $2.24 a share yesterday. Not only that, but Pilbara is also the ASX 200’s most traded share by volume so far this Wednesday, as we covered this afternoon.

So what’s behind this market-beating performance from Pilbara?

Why is the Pilbara share price having such a corker today?

Well, unfortunately for lovers of certainty, we don’t exactly know. There hasn’t been any news or announcements out of Pilbara today. Or indeed this week. 

However, we are seeing something of a trend emerge on the ASX today. It’s not just Pilbara shares that are outperforming the market. It’s been a fairly successful day for many of Pilbara’s peers in the ASX lithium stock space.

Take the Core Lithium Ltd (ASX: CXO) share price. It’s currently up a healthy 1.17% at 86 cents per share. Or Liontown Resources Limited (ASX: LTR). Liontown shares are up 0.75% at 94 cents each. 

Allkem Ltd (ASX: AKE), formerly known as Orocobre, is also enjoying a 1.5% boost. Topping all of these shares is the Vulcan Energy Resources Ltd (ASX: VUL) share price, which has gained an impressive 7.06% so far today to $5.61 a share.

So clearly investors are in the mood for buying ASX lithium shares today. This appears to be the most likely reason why the Pilbara share price has enjoyed such a positive trading day this Wednesday.

At the current Pilbara Minerals share price, this ASX 200 lithium stock has a market capitalisation of $7 billion, with a price-to-earnings (P/E) ratio of 83.33.

The post Why has the Pilbara Minerals share price shot up 5% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Is this a good time to go digging for ASX 200 mining shares for FY23?
• Can the Pilbara share price charge up returns in FY23?

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

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