Category: Stock Market

The Qantas Airways Limited (ASX: QAN) share price hit some significant turbulence in June.

To be fair, it was a difficult month for many S&P/ASX 200 Index (ASX: XJO) shares, with the benchmark index closing the month down 8.9%.

But the Qantas share price fell much further, down 18.9% from the closing bell on 31 March.

Here’s what impacted the flying kangaroo in June.

What headwinds dragged on the Qantas share price in June?

The first six trading days in June saw Qantas shares closely track the benchmark performance, losing 1.5% by the close on 8 June.

The next seven trading days didn’t go as well, with the Qantas share price tumbling another 19.7% by the close on 17 June.

News of significant ground staff shortages may have spooked some investors.

On 9 June news broker that Qantas had asked for volunteers from its front office managers to assist overwhelmed ground crews. Qantas is facing reduced staff numbers following the airline’s pandemic workforce reductions, just as domestic travel returns to pre-pandemic levels.

While domestic air travel has rebounded rapidly, COVID-19 continued to drag on international routes in June, with a range of differing travel restrictions remaining in some foreign destinations.

And then there’s the cost of jet fuel.

If you filled up your car in June, you’ll have noticed you’re paying a premium, thanks in large part to Russia’s ongoing war in Ukraine. You likely haven’t had to fill up a jet plane, but those costs have also rocketed.

Qantas is responding to the higher costs by raising ticket prices and reducing the number of flights, working to fly with planes closer to capacity.

But those rocketing fuel costs certainly were a strong headwind for the Qantas share price in June.

On the plus side of the ledger

It wasn’t all doom and gloom last month though.

The Qantas share price enjoyed a few big boosts during June, and gained 2.5% from 17 June through to yesterday’s closing bell.

ESG investor interest, in particular, was piqued on 20 June, when the airline announced a US$200 million partnership with Airbus to spur a domestic sustainable aviation fuel industry, with the goal of significantly reducing aircraft emissions.

The airline also released a fairly bullish update on 24 June, reporting that it was on track to hit its earnings guidance. Qantas forecast earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $450 million to $550 million for the second half of the financial year.

And the Qantas share price lifted 4.3% on 27 June after one of its aircraft made the first direct commercial flight between Australia and Europe over the prior weekend, flying from Perth to Rome.

How has the Qantas share price performed longer-term?

After a rough month in June, the Qantas share price is now down 13% in 2022. That’s right in line with the 13% year-to-date loss posted by the ASX 200.

Shares are up 90% since the 20 March 2020 pandemic sell-off lows.

The post Why did the Qantas share price plunge 19% in June? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why this smaller ASX travel share is locking horns with Qantas over regulation
• Own Qantas shares? Here’s why the $5K staff bonus could be up in the air
• Qantas share price climbs as first direct flight to Europe touches down in Rome
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Qantas share price takes off following market update

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

from The Motley Fool Australia https://ift.tt/rvFanPW

As we leave a volatile FY22 behind us, many investors will be hoping for a calmer trading environment in the new financial year. Will the ASX share market gain fresh momentum? For their thoughts, we asked our Foolish contributors to compile a list of the ASX shares they reckon could deliver wealth in the years ahead. Here is what the team came up with.

9 best ASX shares for July 2022 (smallest to largest)

• Airtasker Ltd (ASX: ART), $118.8 million
• Kogan.com Ltd (ASX: KGN), $309 million
• Adairs Ltd (ASX: ADH), $329.7 million
• BUBS Australia Ltd (ASX: BUB), $379 million
• Rural Funds Group (ASX: RFF), $994.5 million
• Deterra Royalties Ltd (ASX: DRR), $2.31 billion
• NIB Holdings Limited (ASX: NHF), $3.41 billion
• ResMed Inc. (ASX: RMD), $12.45 billion
• BHP Group Ltd (ASX: BHP), $216.5 billion

(Market capitalisations as of 30 June 2022)

Why our Foolish writers love these ASX shares

Airtasker Ltd

What it does: Airtasker owns an online local services platform that enables people who need a task completed to connect with people who want the work. Examples of task categories include furniture assembly, removalists, website design, handyman services and accounting. 

By Tristan Harrison: Volatility in the Airtasker share price has seen it fall more than 60% in 2022. I think this makes the company an attractive investment opportunity when we consider its ongoing growth and potential. 

In the FY22 third quarter, Airtasker saw revenue rise by 21.2% to $8.6 million, while also generating $1 million of positive operating cash flow.

It’s rapidly growing internationally, opening up large potential markets. Third-quarter gross marketplace volume in the United Kingdom jumped 138% year-on-year, while posted task growth in the United States rose 90% quarter-on-quarter. 

With a gross profit margin of more than 90%, I think this business can become very profitable as it realises scale benefits and doesn’t need to heavily invest for growth. 

Motley Fool contributor Tristan Harrison does not own shares of Airtasker Ltd.

Kogan.com Ltd

What it does: Kogan is an online retailer with operations across Australia and New Zealand including brands such as Dick Smith, Matt Blatt, and Mighty Ape. The company has grown to be a one-stop shop for the online consumer – offering electricity plans, mobile plans, consumer goods, etc.

By Mitchell Lawler: Anyone who has held shares in Kogan over the past 12 months knows the pain – I’m one of them. It has been a journey to a high of $25 apiece and back down again to the current sub-$3 level.

As with much of the market, the prior exuberance from ‘decades of online adoption’ being brought forward has worn off and the fears of an impending recession have driven investors away from the consumer discretionary sector.

However, since 2018, Kogan has come a long way. Now boasting more than 4 million active customers, the online brand has become somewhat of a staple among shoppers. At a price-to-sales multiple of 0.4 times, the selling might be overdone. 

Motley Fool contributor Mitchell Lawler owns shares in Kogan.com Ltd.

Adairs Ltd 

What it does: Adairs is a home furnishings retailer boasting more than 170 stores across Australia and New Zealand.  

By Brooke Cooper: The Adairs share price has struggled through 2022 so far, tumbling nearly 50% year to date to trade around the $2.00 mark.  

While the company suffered amid COVID-19 outbreaks earlier this year, its paid loyalty program continued to grow. Linen Lovers was closing in on a million members at the end of the first half, having increased 10% over the 12 months prior.  

And the future for the retailer’s stock looks bright. My Fool colleague James reported Morgans slapped the stock with a $3.50 price target in early June. 

Additionally, following recent turbulence, Adairs shares offer an impressive dividend yield of around 9%. 

Motley Fool contributor Brooke Cooper does not own shares of Adairs Ltd.

BUBS Australia Ltd

What it does: Founded in 2006, Bubs produces and sells infant formula, organic baby food and cereals in Australia and overseas markets.

By Aaron Teboneras: The Bubs share price has continued to defy the recent slump of the S&P/ASX 200 Index (ASX: XJO). For context, the company’s shares are up almost 25% in the past month while the benchmark ASX 200 index is down around 6%.

The current supply shortage of infant formula across the United States is providing Bubs with a unique opportunity to boost revenue. Bubs recently signed a deal with the United States government to deliver at least 1.25 million tins of baby formula.

In addition, the company has been busy expanding its footprint in the country through new supply agreements with major retailers.

In light of this, broker Citi believes that Bubs is poised to grow significantly over the coming year.

According to ANZ Share Investing, the broker raised its price target by 29% to 76 cents for Bubs shares. This implies an upside of roughly 24% based on today’s closing price of 61 cents.

Motley Fool contributor Aaron Teboneras does not own shares in BUBS Australia Ltd.

Rural Funds Group

What it does: Rural Funds is an agricultural real estate investment trust (REIT) that holds a portfolio of farmland assets.

By Sebastian Bowen: There aren’t too many shares on the ASX that give an investor pure exposure to farmland and agricultural assets. But that’s exactly what Rural Funds does. This REIT owns almond orchards, macadamia orchards, vineyards, as well as cattle and crop farmlands. Rural Funds has a policy of increasing its dividend distributions by roughly 4% per year.

This Rural Funds has managed to do very consistently in recent years, growing its annual payouts from 9.3 cents per share in 2016 to 11.5 cents per share last year. With a dividend yield of more than 4.5% on recent pricing, Rural Funds Group could be a great place to look for a portfolio-diversifying, dividend-paying share this July.

Motley Fool contributor Sebastian Bowen does not own shares of Rural Funds Group.

Deterra Royalties Ltd 

What it does: Deterra is a mining share with a difference. It doesn’t conduct any physical mining or the like. Instead, Deterra manages and grows its portfolio of royalty assets, and distributes the cash flow back to shareholders via dividends.

By Zach Bristow: A dividend play for investors to consider, Deterra operates as a royalty business model that oversees a portfolio of mining and commodity royalties. Its model claims to have a lower risk, and higher-margin exposure to the resources sector. 

Deterra’s strategy is to pay 100% of its net profit after tax (NPAT) back to shareholders by way of dividends.

In FY21, it printed $94 million of NPAT and has a trailing dividend per share (DPS) of 23 cents. It confirmed royalty receipts of $59 million last quarter.

The share is evenly rated with five brokers each saying it’s a buy or a hold right now, according to Bloomberg data. From this list, the consensus price target is $4.70 per share. 

Motley Fool contributor Zach Bristow does not own shares of Deterra Royalties Ltd.

NIB Holdings Ltd

What it does: NIB Holdings is a leading Australian insurance company, and the first private health fund to list on the ASX back in 2007.

By Bernd Struben: NIB currently provides more than 1.6 million Aussies and Kiwis with health and travel insurance. And its market share continues to slowly expand, growing from 9.0% of the Australian resident health insurance market in 2019 to 9.3% in 2022.

The insurance sector is also one of the few that can thrive in higher interest rate environments. Insurers are required to hold plenty of secure debt to cover their policies, and as bond yields rise, so too does their passive income.

NIB shares are up 16% over the past 12 months. The company is also a reliable dividend payer, currently paying a 3.4% trailing dividend yield, fully franked.

Motley Fool contributor Bernd Struben does not own shares in NIB Holdings.

ResMed Inc.

What it does: ResMed is a provider of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders such as sleep apnoea and chronic obstructive pulmonary disease (COPD).

By James Mickleboro: ResMed had a positive month in June and materially outperformed the ASX 200 index. Despite this, I don’t believe it is too late to make an investment, particularly given that its shares are still down meaningfully year to date despite last month’s gains.

This is because I believe the company is well-placed to continue its strong sales and earnings growth long into the future, thanks to its leadership position in a massive (and growing) market.

ResMed estimates that globally, more than 900 million people suffer from sleep apnoea and more than 380 million people live with chronic obstructive pulmonary disease (COPD). However, the vast majority have yet to be diagnosed due to a lack of awareness among both the medical community and the general public. However, ResMed’s serviceable addressable market grows each year as awareness gradually increases.

And while at 30x estimated FY 2023 earnings, its shares are not cheap, I believe the premium is justified due to its positive long-term growth outlook.

Motley Fool contributor James Mickleboro does not own shares of ResMed Inc.

BHP Group Ltd

What it does: BHP is one of the world’s largest diversified miners. While it is a major supplier of iron ore, it also produces metals like copper and nickel that are essential for the global energy transition towards renewables, including the manufacture of batteries.

By Brendon Lau: The Big Australian has been battered by worries about a global recession and waning demand for commodities. But too much bad news is priced in the shares with broker Macquarie Group reiterating its ‘outperform’ recommendation on the shares.

Higher diesel and power costs have forced some miners to downgrade their production guidance, but the broker noted that these higher costs would accelerate the transition to green energy. BHP’s minerals, such as copper, are essential ingredients in this transition.

Macquarie also pointed out that BHP was trading on an attractive FY23 free cash flow yield of 16% using its forecasts and ~15% at spot prices. The broker’s 12-month price target on the BHP share price is $51 a share.

Brendon Lau owns shares of BHP Group.

The post Best ASX shares to buy in July 2022 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX 200 shares with enough pricing power to battle inflation: Expert
• How have ASX 200 mining shares fared over June?
• Is the Adairs share price outlook brightening for July?
• Broker rates these 2 top ASX 200 shares as buys in July
• Here are 2 top ASX 200 dividend shares to buy right now according to experts

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO, Kogan.com ltd, and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited and ResMed. The Motley Fool Australia has positions in and has recommended ADAIRS FPO, Kogan.com ltd, RURALFUNDS STAPLED, and ResMed Inc. The Motley Fool Australia has recommended BUBS AUST FPO, Macquarie Group Limited, and NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/g0UPOlf

While there are a good number of quality blue chip options on the Australian share market, two that could be in the buy zone are listed below.

Here’s why analysts at saying these ASX blue chip shares are buys right now:

REA Group Limited (ASX: REA)

The first blue chip to look at is REA Group. It is the dominant player in real estate listings in the Australian market with its realestate.com.au website.

The team at Citi appear to see recent weakness in the REA share price as a buying opportunity. The broker recently put a buy rating and $153.50 price target on its shares.

Its analysts were pleased with what management said at its recent investor day event and appear confident that the company’s growth can continue despite the slowing housing market.

The broker said:

While we do not expect the Investor Day to change sentiment on the stock in the short term given the slowing house market, it did highlight the levers (especially new products and price) in the core listings business to drive growth in the near term, while India and potential direct monetisation of the consumer through Property.com.au presents long-term growth potential.

Woolworths Group Ltd (ASX: WOW)

Another ASX blue chip share that could be in the buy zone is retail giant Woolworths.

It could be a top option for investors according to analysts at Goldman Sachs. This is due to the broker’s belief that the company’s operations are of the highest quality and capable of delivering solid sales and earnings growth even in the current environment.

Goldman has a buy rating and $41.70 price target on the company’s shares. It commented:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

The post Here are 2 blue chip ASX shares analysts rate as buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How does the Woolworths dividend compare to Wesfarmers over the last 5 years?
• Here’s why ASX 200 tech shares are taking a beating on Wednesday
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX shares today
• Here’s why I think the REA Group share price is a buy right now

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.

from The Motley Fool Australia https://ift.tt/1qTwVsK

Lynas Rare Earths Ltd (ASX: LYC) is reportedly the target of a social media campaign promoting pro-China narratives.

Lynas shares have surged 51% in a year and are currently trading at $8.73. For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost 10% in a year.

So what are the details of this cyber campaign said to be targeting Lynas?

Lynas received high level attention

American cybersecurity company Mandiant says Lynas is being targeted by a social campaign known as Dragonbridge. Thousands of social media accounts linked to this group are reportedly promoting the pollical interests of China.

Mandiant said the campaign “targeted the Australian rare earths mining company Lynas Rare Earths”.

The social media posts are calling for protests against the planned Lynas’ rare earths processing facility in Texas.

The United States Department of Defense (DOD) on Tuesday said it appreciated Madiant’s diligence exposing this campaign. The DOD said:

The Department of Defense is aware of the recent disinformation campaign, first reported by Mandiant, against Lynas Rare Earth Ltd., a rare earth element firm seeking to establish production capacity in the United States and partner nations, as well as other rare earth mining companies. 

The department has engaged the relevant interagency stakeholders and partner nations to assist in reviewing the matter.

Lynas on its website, states it is the only significant producer of separated rare earth materials outside China. The company has multiple agreements with the US Government. On 14 June, Lynas revealed it has signed a US$120 million follow-on contract with the United States Department of Defense (DOD) for a commercial heavy rare earths separation facility. In January 2021, Lynas signed a deal with the US Government for a light rare earths separation facility.

Commenting on the social media campaign, Lynas told the Australian Financial Review this is the first time it has seen evidence of direct links between “fake social media accounts” spreading disinformation and political agendas. Lynas added:

The report shows evidence of direct and mutual engagement between the pro-China Dragonbridge social media accounts and the Malaysian anti-Lynas activists.

Lynas share price snapshot

Lynas shares have lost 14% in the year to date, while they are down nearly 7% in the past month. In the last week, the company’s share price has jumped 4%.

Lynas has a market capitalisation of about $7.9 billion based on the current share price.

The post Own Lynas shares? Here’s the latest challenge faced by the rare earths miner appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them
• Guess which ASX 200 mining shares these experts are backing
• How is the Lynas share price performing against its sector this month?
• Top brokers name 3 ASX shares to buy today
• 3 ASX 200 shares stretching higher on Wednesday

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.

from The Motley Fool Australia https://ift.tt/K5JheUi

It was a month to forget for the S&P/ASX 200 Index (ASX: XJO) in June after rate hikes, recession fears, and rising inflation weighed on investor sentiment. Over the period, the benchmark index dropped 8.9% to finish at 6,568.1 points.

Fortunately, some shares were able to avoid the market selloff. Here’s why these were the best performers on the ASX 200 in June:

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price was the best performer on the ASX 200 in June with a 15.1% gain. This was driven by news that the gambling company has settled its Racing Queensland litigation for $150 million. This settlement was conditional on the commencement of legislation that will implement proposed reforms by the Queensland Government relating to the wagering taxation and racing industry funding model. These reforms are expected to be a very big boost to Tabcorp’s business.

Atlas Arteria Group (ASX: ALX)

The Atlas Arteria share price was a strong performer with a 12.1% gain during the month. The catalyst for this was news that IFM Global Infrastructure Fund picked up a 15% stake in the toll road operator with a view of making a takeover proposal. However, the company wasn’t biting and revealed that it denied a request from IFM for access to non-public information to help it form a proposal.

Iress Ltd (ASX: IRE)

The Iress share price was on form and rose 9.9% in June. This was despite there being no news out of the financial technology company or broker notes during the month. However, one fund manager that was buying shares last month was DNR Capital. It popped up with a 5.01% stake on 21 June. Its release shows several large purchases of shares during the month.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price had a good month and climbed 7.5%. All of this gain and more came in the final week of the month following the release of the KFC restaurant operator’s FY 2022 results. For the 12 months ended 1 May, Collins Foods delivered an 11.1% increase in revenue to $1,184,5 million and a 25% jump in underlying net profit after tax to $59.7 million. This was driven by growth across the business. A number of brokers responded positively and have tipped its shares to keep rising.

The post These were the best performing ASX 200 shares in June appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These were the worst performing ASX 200 shares in June
• ASX 200 healthcare shares provided some pain relief today. Here’s why
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How did ASX energy shares perform in June?

Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Y8XQkKT

The Santos Ltd (ASX: STO) share price went cold today, down 1.59% to $7.42 at the closing bell on Thursday.

This ended a three-day winning streak and a 5.13% bump for the ASX oil & gas share between Monday and Wednesday.

Today’s dip comes amid the Australian Energy Market Operator (AEMO) releasing its 30-year plan for energy investment to “efficiently enable” the transition to renewables.

The 2022 Integrated System Plan (ISP) outlines key priorities to support the National Electricity Market (NEM) into the future.

Gas to ‘play a crucial role’ in future energy supply

AEMO consulted 1,500 stakeholders, including energy industry representatives, to create the ISP. It says the report is “based on rigorous economic and engineering analysis”.

In the investment roadmap, AEMO says “gas-fired generation will play a crucial role as coal-fired generation retires” in Australia.

For now, this bodes well for the Santos share price and other ASX oil & gas stocks.

AEMO says:

[Gas-fired generation] will complement battery and pumped hydro generation in periods of peak demand, particularly during long ‘dark and still’ weather periods.

It will help cover for planned maintenance of existing generation and transmission. And it will provide essential power system services to maintain grid security and stability, particularly following unexpected outages or earlier than expected generation withdrawal.

Gas-fired power needed through to 2050

AEMO says:

This critical need for peaking gas-fired generation will remain through the ISP time horizon to 2050, and older and less efficient peaking plants may need to be replaced.

Additional and earlier peaking gas-fired generation would add resilience against potential shortfalls in VRE, storage, DER or transmission.

Over time, gas-fired generation emissions will need to be offset elsewhere if the economy is to reach net zero emissions, and natural gas may be replaced by net zero carbon fuels such as green hydrogen or biogas.

AEMO wants investment in gas-fired power generation

AEMO CEO, Daniel Westerman, said: “Australia is experiencing a complex, rapid and irreversible energy transformation” and essential transmission investments are needed to “efficiently enable low-cost, firmed renewable energy to replace exiting coal generation”.

Westerman added:

To maintain a secure, reliable and affordable electricity supply for consumers through this transition to 2050, investment is required for a nine-fold increase in grid-scale wind and solar capacity, triple the firming capacity (dispatchable storage, hydro and gas-fired generation) and a near five-fold increase in distributed solar.

Santos share price summary

The Santos share price has risen 12.6% in 2022. Disrupted international supply chains have encouraged many investors to buy ASX energy stocks this year.

Over the past 12 months, the Santos share price is up 5.1%.

Santos will report its FY22 full-year results during the upcoming earnings season on 17 August.

The post Santos shares go cold despite energy regulator outlining ‘crucial’ role gas will play for decades appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How did ASX energy shares perform in June?
• 5 things to watch on the ASX 200 on Thursday
• Why are ASX 200 energy shares surging today?
• 5 things to watch on the ASX 200 on Wednesday
• Own Santos shares? This analyst expects gas prices to grow through to 2025

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.

from The Motley Fool Australia https://ift.tt/csA1ieW

The S&P/ASX 200 Index (ASX: XJO) had a month to forget in June. Rate hikes, recession fears, and rising inflation led to the benchmark index losing 8.9% of its value to finish at 6,568.1 points.

While a large number of shares fell with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 in June:

Zip Co Ltd (ASX: ZIP)

The Zip share price was the worst performer on the ASX 200 in June with a disappointing 52.2% decline. There were a number of catalysts for this buy now pay later (BNPL) provider’s share price collapse. One was news that tech giant Apple has announced the launch of its BNPL service. The service works with any merchant that already supports Apple Pay and does not require a new payments terminal. This means that merchants don’t even need to offer BNPL for consumers to transact with them with this payment method. In addition, weakness in the tech sector and concerns over rising interest rates weighed on Zip’s shares.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price had a terrible month and sank 49% lower during June. This was despite the lithium developer’s shares being added to the ASX 200 index during the period. Investors were selling the company’s shares following the sudden exit of its CEO. Not only did Steve Promnitz exit the company with immediate effect and without comment, he also promptly sold all of his 10.2 million shares the next day.

Novonix Ltd (ASX: NVX)

The Novonix share price wasn’t far behind with a 44.3% decline over the month. This was despite there being no news out of the battery technology company. Though, it is worth noting that a number of higher risk shares fell heavily during the month as investor sentiment soured. In addition, one of the company’s largest shareholders sold 7.6 million shares in the middle of the month.

St Barbara Ltd (ASX: SBM)

The St Barbara share price was sold off and dropped 40.9% during the month. This was driven by news that the gold miner has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.

The post These were the worst performing ASX 200 shares in June appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 healthcare shares provided some pain relief today. Here’s why
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How did ASX energy shares perform in June?
• How have ASX 200 mining shares fared over June?

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.

from The Motley Fool Australia https://ift.tt/0tEherL

The S&P/ASX 200 Index (ASX: XJO) was back in the red today, weighed down by utilities and energy shares. At the closing bell, the index was 1.97% lower at 6,568.1 points.

It made for the second consecutive session of losses for the local market following weak trade on Wall Street overnight.

The S&P/ASX 200 Utilities Index (ASX: XUJ) lead the ASX 200’s downturn, falling 2.1% despite news that Brookfield appears to have snapped up a 2.5% stake in AGL Energy Limited (ASX: AGL).

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) suffered amid lower oil prices, which fell between 1.5% and 1.8% overnight.

Iron ore futures also slipped again, falling 0.1% to trade at US$130.11 a tonne.

But not all was dire today. The S&P/ASX 200 Health Care Index (ASX: XHJ) lifted 0.2%.

And there were plenty of gainers among the mix.

Let’s take a look at which ASX shares outperformed all others on Thursday.

Top 10 ASX shares countdown today

ASX industrials share APM Human Services International Ltd (ASX: APM) bested the rest today, taking out the top spot among the ASX’s 200 biggest companies by market capitalisation. It gained 4.3% today. Read up on APM here.

Next best was financials stock BSP Financial Group Ltd (ASX: BFL). It lifted nearly 4% on Thursday. Find out more about BSP Financial Group here.

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

ASX-listed company	Share price	Price change
APM Human Services International Ltd (ASX: APM)	$2.87	4.36%
BSP Financial Group Ltd (ASX: BFL)	$4.95	3.99%
Lottery Corporation Ltd (ASX : TLC)	$4.53	2,49%
Graincorp Ltd (ASX: GNC)	$9.58	1.7%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$68.40	1.56%
Ventia Services Group Ltd (ASX: VNT)	$2.475	1.43%
Yancoal Australia Ltd (ASX: YAL)	$5.37	1.32%
Carsales.com Ltd (ASX: CAR)	$18.49	1.32%
Sonic Healthcare Limited (ASX: SHL)	$33.23	1.22%
James Hardie Industries Plc (ASX: JHX)	$31.86	1.18%

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.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These were the worst performing ASX 200 shares in June
• ASX 200 healthcare shares provided some pain relief today. Here’s why
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How did ASX energy shares perform in June?
• How have ASX 200 mining shares fared over June?

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, Sonic Healthcare Limited, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/VJluAG2

A number of ASX shares in the S&P/ASX 200 Health Care Index (ASX: XHJ) outperformed the broader market today.

The benchmark S&P/ASX 200 Index (ASX: XJO) backtracked yet again, ending Thursday’s session 1.97% lower at 6,568.1 points.

In contrast, the healthcare sector was the best performer on the ASX today, falling just 0.19% after spending much of the day in the green.

What’s happening in the ASX 200 healthcare sector?

The biggest and most heavily weighted share price within the ASX 200 healthcare sector is CSL Limited (ASX: CSL).

The global biotech outperformed the ASX 200, closing just 0.27% lower at $269.06. Much like the healthcare index, it was in positive territory for most of the day before retreating late in the session.

However, it was the smaller cap companies such as Paradigm Biopharmaceuticals Ltd (ASX: PAR) and Recce Pharmaceuticals Ltd (ASX: RCE) that led the charge. They gained 10.29% and 9.88%, respectively.

Paradigm reported a positive release before market open, stating it had received official acceptance of an Australian patent application. However, there was no fresh news out of Recce Pharmaceuticals.

Meanwhile, the Race Oncology Ltd (ASX: RAC) share price gained 4.84% after the company released the latest interim results from its preclinical cardioprotection program.

While the ASX 200 Health Care index has rebounded 3.2% this week, it’s still down 12% year-to-date.

The ASX has been hit hard in recent weeks following high inflation levels and aggressive rate hikes.

During the March quarter, inflation rose by 5.1%, the highest increase in many years. This led the Reserve Bank of Australia to ramp up the official cash rate by 0.5% to 0.85%.

Foolish takeaway

Investing in an ASX-index tracking fund is considered a much safer alternative than picking an individual company.

This is because the sector is relatively impervious to wild swings from any one share price.

Furthermore, it’s worth noting that an index has historically provided long-term stable growth.

It is often the most boring investments that reap the largest rewards.

The post ASX 200 healthcare shares provided some pain relief today. Here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How did ASX energy shares perform in June?
• How have ASX 200 mining shares fared over June?
• These 3 ASX gold mining shares are digging new 52-week lows today
• What’s the outlook for the CSL share price in July?

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 positions in and has recommended CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/gOIyRE0

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is one of the oldest shares on the ASX. In fact, Soul Patts shares, with origins in the pre-Federation 19th century, predates the ASX itself.

The company initially grew out of a pharmacy. But these days, Soul Patts is well-known for its Listed Investment Company-like approach to managing its shareholders’ wealth. The company functions more like a Listed investment Company these days than a traditional company.

Its primary business is investing in a large portfolio of assets on behalf of its investors. Most of these assets are ASX-listed shares, in which Soul Patts has amassed large stakes in.

Many of these holdings aren’t controversial. They include (as of the March half-year update) the company’s 43.3% stake in Brickworks Limited (ASX: BKW), the 12.6% share of TPG Telecom Ltd (ASX: TPG) and the 25.4% chunk of Tuas Ltd (ASX: TUA).

Soul Patts or Coal Patts? Here’s what the company owns in coal…

But this hasn’t come without some consternation from some investors. For another of Soul Patts’ significant holdings is a 39.9% stake in ASX 200 coal miner New Hope Corporation Limited (ASX: NHC). New Hope is a pureplay coal miner, which of course makes it a controversial asset to hold for any investment manager in today’s climate.

So how much of Soul Patts’ portfolio is exposed to coal miner New Hope?

Well, as of 31 January 2022, Soul Patts had a net asset value of $9.042 billion. That’s including its multiple share portfolios, as well as its property assets.

Of this, $9.042 billion, $4.125 billion is housed in the company’s strategic portfolio. This is made up of the stakes in the companies listed above, but excludes the large-cap shares Soul Patts acquired from its acquisition of Milton Corporation last year.

So on today’s pricing, New Hope has a market capitalisation of $3.03 billion. Soul Patts’ 39.9% stake in this company means it would have approximately $1.21 billion worth of New Hope shares right now.

That would equate to 13.37% of Soul Patts’ entire investment portfolio (on the 31 January numbers), and just over 14% of Soul Patts’ entire market capitalisation today.

So that’s something to keep in mind if you own Soul Patts shares today.

The post Own Soul Patts shares? Here’s how much of its portfolio is exposed to coal appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX shares today
• ‘Extremely cheap’: expert names 3 ASX shares hot to buy now
• Here are the top 10 ASX shares today
• Why are ASX 200 coal shares bouncing back on Tuesday?
• This is what I’d do with these 3 battered ASX shares: fund manager

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rKtd5PX