Category: Stock Market

Interest rates have now jumped an astounding 125 basis points in just nine weeks.

In May, many homeowners had never ever seen their home loan repayments rise. But after the Reserve Bank of Australia increased rates on Tuesday for the third consecutive month, there are now plenty of Australians feeling acute financial pain.

The RBA has a job to do in bringing inflation under control. Otherwise the country could find itself in irreparable long-term trouble.

But will the Australian people become collateral damage, with rising rates degrading consumer morale so much that the country slips into recession?

Shaw and Partners portfolio manager James Gerrish said it’s certainly not out of the question.

“Arguably the main issue facing everyone today is never before in history has the RBA started hiking rates when consumer confidence was already so depressed.”

In normal times, just a slight pullback in real estate prices is enough to curb Australians’ enthusiasm.

But 2022 ain’t normal.

“This year there’s a multitude of factors weighing on us all — including soaring fuel, food and everyday living costs before we even consider lingering COVID & geopolitical tensions,” said Gerrish in his Market Matters newsletter.

“Leading economic indicators are already suggesting that the US has entered a recession… Australia feels likely to follow suit, although our strong labour market and commodities exports should help the downturn.”

Gerrish’s team suspects the RBA will start cutting rates in “late 2023” to give the economy a breath of life. But clearly there’s a long way to go before that can happen.

Meanwhile, everyone may have to deal with a recession. And there are certainly some ASX shares to buy that could fare much better than others during such times.

The ASX shares best placed to withstand an economic downturn

According to Gerrish, the sectors that best survive a recession are utilities, consumer staples, telecommunications, health, and gold.

The areas to avoid are industrials, diversified financials, resources, and real estate.

Packaging supplier Orora Ltd (ASX: ORA) is one that Gerrish likes at current prices.

“We believe Orora is reasonable value trading on an estimated PE [price to earnings ratio] of 17.7x for 2022 while its 4.2% unfranked yield is a useful top-up for performance.”

The Orora share price has risen more than 3% year-to-date during a period when most stocks have taken a tumble.

“The company is growing in North America while inflation has been navigated by timely price increases — i.e. the business has pricing power,” said Gerrish.

“For good measure, sustainability trends are aiding demand for Orora’s cans and fibre packaging solutions. While it stays ahead of the curve in this department things look solid for Orora.”

Coles Group Ltd (ASX: COL) shares are more expensive, but the supermarket giant is another reliable name to get through tough times, according to Gerrish.

“The stock is not particularly cheap trading on an estimated PE of 23.9x for 2022 but a sustainable 3.4% fully franked yield makes it relatively easy to be patient if concerns are growing towards much of the ASX.”

Gerrish added that Coles “delivered a solid result” last quarter with “sales growth driven by accelerating inflation”.

“Everything looks solid over the next year or two with Coles but it will need population growth to expand meaningfully moving forward.”

His third pick, and perhaps with the least conviction of the three, is alcohol and hospitality provider Endeavour Group Ltd (ASX: EDV).

“Our main concern [is] whether the stock’s close to being fully priced,” said Gerrish.

“The stock’s not cheap, trading on an estimated PE for 2022 of 27.8x — richer than Coles for a similar amount of revenue growth. However, margins are better and profitability is growing at a higher clip which could justify the premium multiple.” 

The idea here is that demand for alcoholic drinks, whether bought for home or at a pub, is maintained through economic downturns.

“People are partial to a drink during tough times and the owners of Dan Murphy’s and BWS are clearly well-positioned for this trend,” Gerrish said.

“The group [enjoys] online sales In excess of $1 billion with 40% of its sales now digitally influenced.”

One caveat with recession busters

When picking recession-busting defensive ASX shares to purchase, Gerrish cautioned investors to watch the price they pay.

“We must be mindful that investors have been migrating their portfolios towards defensives for many months,” he said.

“Hence don’t expect any bargains… For example, so far in 2022 the utility stocks are all up while retail is all down.”

The post 3 ASX shares that could survive a recession: expert appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX dividend shares to buy next week
• How did the Coles share price stay positive in June while the ASX 200 slumped?
• 2 excellent ASX dividend shares that experts rate as buys this week
• The ASX share I hold to ‘sleep really well at night’: fund manager
• Here are 2 ASX 200 dividend shares to buy according to analysts

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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.

If there’s a perfect word to sum up the first six months of 2022 for the investing community, I believe it’s “Yuck!” As of the closing bell on June 30, 2022, the U.S. stock market delivered its worst first-half return in 52 years. 

Since hitting their respective all-time closing highs between mid-November and the first week of January, the widely followed Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth-stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC), respectively plunged by as much as 19%, 24%, and 34%. You’ll note these figures firmly entrench the S&P 500 and Nasdaq in a bear market, with the iconic Dow Jones just one bad day away from joining its peers. 

But the big question on the minds of Wall Street professionals and investors is very simply, “How far could the stock market fall?” The answer may lie with two key indicators.

Valuation comes into focus during bear market declines

When the benchmark S&P 500 falls into a bear market, it’s not uncommon for equities to experience multiple compression. In other words, price-to-earnings (P/E) ratios, price-to-sales ratios, and so on, decline to reflect a general wave of pessimism throughout the investing landscape and broader economy.

What you might not realize is that this pessimism has resulted in the S&P 500’s forward-year P/E ratio falling into a similar range during significant pullbacks. During the coronavirus crash in the first quarter of 2020, the fourth-quarter pullback of 2018, and the end of the dot-com bubble in 2002, the S&P 500’s forward P/E bottomed out between 13 and 14 each time. 

As of the end of June 2022, the S&P 500’s forward P/E ratio stood at 15.8. If the S&P 500’s forward P/E ratio were simply to fall to the median of its historic pullback range (i.e., 13.5), the index would decline by an additional 14.55% from where it closed on Thursday, June 30. This would imply a bottom of around 3,235 on the S&P 500.

Of course, this calculation only holds merit if the “e” component, earnings, doesn’t change. With the nation’s central bank rapidly increasing interest rates to bring historically high inflation under control, there’s a high likelihood that corporate earnings revisions are in the offing.

FINRA Margin Debt data by YCharts.

Margin debt is an ominous indicator for the broader market

The other key indicator that can be helpful in identifying how much further the stock market could plunge is outstanding margin debt. Margin debt being the amount of money borrowed from brokerages by investors, with interest, to purchase or short-sell securities.

As a general rule, it’s perfectly normal for the amount of outstanding margin debt to grow in-step with the aggregate value of the equity markets over time. What sounds the warning bells is when margin debt skyrockets over a short period. History has shown time and again that rapid increases in risk-taking end poorly.

Since the beginning of 1995, there have been three instances where margin debt increased by 60% or more in a 12-month period. It first occurred between March 1999 and March 2000, and pretty much marked the top of the dot-com bubble. The ensuing bear market was the longest on record (929 calendar days) and wiped out nearly half of the S&P 500’s value.

It next occurred between June 2006 and June 2007, which was just a few months prior to the financial crisis taking shape. The S&P 500 shed 57% of its value by the time March 2009 rolled around.

Lastly, margin debt soared again between March 2020 and March 2021. If history serves as a guide, the S&P 500 could lose half its value. This would put the bottom a long way off at around 2,400. 

Patience pays off handsomely

According to these two indicators, which have proved fairly accurate over the past quarter of a century, the S&P 500 is unlikely to find a bottom until somewhere between 2,400 and 3,235. For context, it ended the first half of 2022 at 3,785.

However, no indicator is foolproof. If there was a surefire index or indicator that told investors when to buy, we’d all be using it by now to get rich.

While the prospect of additional downside in the near-term might be unnerving to some investors, I’d again point to history as your guide. That’s because every single stock market crash, correction, and bear market throughout history (excluding the current bear market) has eventually been cleared away by a bull market rally. In short, it pays to be both patient and optimistic.

With the Nasdaq and S&P 500 in bear market territory, and the Dow Jones mired in a steep correction, now is the ideal time for long-term investors to put their money to work.

Arguably one of the smartest investing strategies to employ when market volatility picks up is dollar-cost averaging. Dollar-cost averaging involves putting your money to work at specific time intervals, regardless of where a stock happens to be trading. It’s a great way to remove some of the emotional aspects of investing in a down market. 

A plunging stock market is also an excellent time to buy dividend stocks. Publicly traded companies that regularly pay a dividend are usually profitable and time-tested. Having navigated tough times before, these are just the type of companies we’d expect to increase in value over long stretches. 

The point being that now is not the time to run for cover. Rather, it’s the time to consider putting some of your available cash, which won’t be needed for bills or emergencies, to work. 

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

The post How far could the stock market fall? 2 indicators may hold the answer appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX dividend shares that analysts are tipping as buys in July
• Top broker picks two ASX 200 tech shares for today’s economy
• Flight Centre completes turbulent journey in FY22
• Here’s why the St Barbara share price shone 8% brighter today

Sean Williams 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. 

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

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.25% to 6,629.3 points.

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

ASX 200 expected to fall

The Australian share market looks set to tumble on Wednesday following a volatile night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 1% lower this morning. On Wall Street, the Dow Jones fell 0.4%, the S&P 500 rose 0.2%, and the Nasdaq climbed 1.75%. The S&P 500 was down as much as 2% at one stage before rebounding.

Oil prices crash

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a very tough day after oil prices crashed. According to Bloomberg, the WTI crude oil price is down 8.15% to US$99.59 a barrel and the Brent crude oil price has sunk 9.3% to US$103.03 a barrel. Growing recession fears are to blame for this sharp decline.

GrainCorp goes ex-dividend

The GrainCorp Ltd (ASX: GNC) share price is likely to trade lower on Wednesday. This is due to the grain exporter’s shares trading ex-dividend this morning for its latest dividend. Eligible shareholders can now look forward to receiving its bumper 24 cents per share fully franked interim dividend later this month on 21 July.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 1.9% to US$1,766.4 an ounce. A strong US dollar weighed on the safe haven asset.

Copper price sinks

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could have a tough day after a number of commodities sank into the red amid recession fears. One of the worst performers was the price of copper, which fell by almost 5% to US$3.436 a pound. The chances of a US recession are now 38%, according to the latest forecasts from Bloomberg Economics.

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

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• Why did the Rio Tinto share price hit the brakes in FY22?
• Here are the top 10 ASX shares today
• What’s going on with ASX 200 bank shares on Tuesday?
• Why the ASX 200 is rallying after the RBA’s rate hike today
• Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday?

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

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Earlier today the Reserve Bank increased the cash rate by 50 basis points to 1.35%. While this is looking a lot more attractive to income investors, it is still a long way from the yields you’ll get from the buy-rated ASX dividend shares listed below.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share that analysts rate highly is the Charter Hall Long Wale REIT.

It is a property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on very long term leases (hence its name).

Citi is a fan of the company due to its defensive qualities and has a buy rating and $5.71 price target on its shares. It explained that “we retain our Buy rating, given the appeal of secure income in uncertain times, the >6% dividend yield, and upside to FY22 guidance.”

In respect to dividends, the broker is forecasting dividends per share of 31 cents in FY 2022 and FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.37, this will mean yields of ~7.1%.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that has been rated as a buy by analysts is Telstra.

A number of brokers are feeling bullish on Telstra due to its much-improved outlook thanks to the successful execution of its transformative T22 strategy.

In addition, Telstra expects the upcoming growth-focused T25 strategy to support mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

One of those bullish brokers is Morgans. It currently has an add rating and $4.56 price target on the company’s shares. Its analysts have been pleased with its transformation and note that “under the hood it’s looking good.”

In addition, the broker continues to expect the telco to pay fully franked dividends per share of 16 cents for both FY 2022 and FY 2023. Based on the current Telstra share price of $3.89, this implies yields of 4.1%.

The post 2 ASX dividend shares that analysts are tipping as buys in July appeared first on The Motley Fool Australia.

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More reading

• The Telstra share price outperformed the ASX 200 in June
• Could July be a good month for the Telstra share price?
• Telstra share price slides as Optus exec ramps up calls for TPG deal to be canned
• 4 ASX dividend shares to buy that aren’t banks or miners: expert
• Here are 2 top ASX 200 dividend shares to buy right now according to experts

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 positions in and has recommended 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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Technology shares have borne the brunt of the ASX 200 sell-off in 2022.

The S&P/ASX All Technology Index (ASX: XTX) has lost 35% in value year to date.

This compares with a 12.6% decline in the S&P/ASX 200 Index (ASX: XJO).

Macro-economic forces including rising inflation and interest rates are worrying investors.

In such conditions, consumers tend to tighten their belts to ensure they can pay their bills, make their mortgage payments, and buy essential items.

This means there’s every chance of a tough time ahead for the Australian economy.

This makes investors nervous and growth shares have fallen out of favour as a result.

Tech shares, in particular.

But top broker Citi says some ASX 200 tech shares are likely to withstand the choppy waters ahead better than others.

Which ASX 200 tech shares are Citi’s picks?

According to reporting in The Australian, Citi says the two ASX 200 tech shares likely to navigate a softened economy and demand weakness best are NextDC Ltd (ASX: NXT) and WiseTech Global Ltd (ASX: WTC).

Citi has told clients in a note that tech multiples are “now trading well below pre-Covid levels”.

Citi said its own portfolio of 200 global shares in software, internet, and fintech service providers is now below the long-term average on a growth-adjusted enterprise value to revenue (EV/R) basis.

According to the note: “While valuation and cost pressures have been the key focus to date, we see
potential risk in the near-term from rebasing of revenue growth expectations.”

Why does Citi like NextDC and WiseTech?

For data centre operator NextDC, Citi sees the contracted backlog underpinning FY23 estimated earnings, according to the article.

However, the broker does see risk to NextDC’s FY24 earnings if material contract wins do not eventuate in FY23.

The NextDC share price dipped by 0.37% today to finish the session at $10.91.

For cloud software solutions business Wisetech, Citi said slowing freight volumes were a headwind.

However, customer wins and wallet expansion through the adoption of new modules are likely to drive strong growth, the broker said.

“Further, there is potential for further cost out as WiseTech integrates all of its acquisitions,” said Citi.

The WiseTech share price finished 5.17% higher today at $40.70.

The post Top broker picks two ASX 200 tech shares for today’s economy appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting
• Why analysts say investors should buy these top ASX shares
• What on earth happened to ASX 200 tech shares in June?
• Behind the ASX share: What makes WiseTech tick?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price was rangebound today after completing a turbulent flight path in FY22.

At the close on Tuesday, it finished at $17.63 apiece, a more than 28% decline from its 52-week closing high of $24.43 on 5 October 2021.

In broad market moves, the benchmark S&P/ASX 200 Index (ASX: XJO) is 55 basis points higher on the day at 6,648.

Flight Centre share price on a trip down south

Travel shares were punished across the entire spectrum of companies in FY22.

Investors were particularly hard in June 2022, driving the Flight Centre share price down from $20.67 to $17.20 in an almost vertical fashion.

Thankfully, a huge recovery after the company’s FY21 results and annual report from August saw the share surge to its yearly highs.

These prior gains have helped the share retain an 11% gain in the past 12 months of trade.

Flight Centre shares also benefitted from a rebound in travel activity in 2021. This was bought on by the reopening of international travel borders and relaxing of COVID-19 restrictions.

Australians in particular were relieved to fly in and out of the country on lax terms for the first time since the restrictions began.

Investors certainly regained confidence too. However ongoing uncertainties around the virus, the geopolitical situation in Europe, and the market meltdown of 2022 have compressed the Flight Centre share price.

It now trades 45 basis points in the red this year to date, or 15% down in the past month.

Flight Centre is also Citi’s worst ASX 200 travel buy at the moment. The broker outlined several headwinds it could face from international travel in a recent note.

The post Flight Centre completes turbulent journey in FY22 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 recommended Flight Centre Travel 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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The St Barbara Ltd (ASX: SBM) share price soared today amid speculation of a merger with fellow gold explorer Genesis Minerals Ltd (ASX: GMD).

St Barbara shares surged 8.49% today to close at 89.5 cents. The Genesis Minerals share price also gained 1.25%. For context, the  S&P/ASX 200 Index (ASX: XJO) rose 0.25% today.

So what could be going on?

St Barbara merger speculation emerges

Investors appear to be buying up St Barbara shares amid speculation other gold miners could be interested in gaining exposure to the company.

St Barbara operates the Gwalia mine and processing plant in the Leonora region of Western Australia, near Kalgoorlie.

On Monday, Genesis Mining revealed to the market it is in discussions with St Barbara. However, The Australian reported there is a risk other competitors may also be interested.

St Barbara achieved gold production of 61,819 ounces in the third quarter of FY22.

Genesis released news of its talks with St Barbara as part of an announcement regarding a takeover offer of Western Australian explorer Dacian Gold on Monday.

The company highlighted it has restarted talks with St Barbara regarding “further consolidation in the Leonora District”. Genesis said:

There can be no assurance, however, that these discussions will lead to a transaction being concluded with St Barbara.

Meantime, St Barbara yesterday confirmed it is in talks with Genesis. St Barbara noted the discussions relate to possible synergies in the Leonora region of Western Australia. However, it said these discussions are unrelated to Genesis’ merger with Dacian Gold Limited. St Barbara added:

These discussions are regarding a potential business combination aimed at consolidation of the Leonora Province and the unlocking of operating and development synergies in the region and are independent of the potential transaction and capital raise referred to by Genesis.

St Barbara share price snapshot

St Barbara shares lost nearly 52% in the past year, while they have shed nearly 39% year to date.

In contrast, the S&P/ASX 200 Index has lost about 9% in the past year.

St Barbara has a market capitalisation of about $730 million based on the current share price.

The post Here’s why the St Barbara share price shone 8% brighter today appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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• 5 things to watch on the ASX 200 on Friday
• Here’s why this ASX 200 gold share is tumbling 15% to a 7-year low

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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The Rio Tinto Limited (ASX: RIO) share price had a volatile ride during the 2022 financial year.

The miner’s shares finished at $126.64 on 30 June 2021 and recently closed at $102.70 at the same time this year.

This represents a fall of around 19% for shareholders who kept holding on.

In contrast, shares in BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) backtracked 15% and 25%, respectively.

At the time of writing, Rio Tinto shares are trading at $100.89, up 0.15% for the day.

What’s impacted Rio Tinto shares during FY22?

There are a few factors as to why the Rio Tinto share price fell into a funk in FY22.

First and foremost, the wild swings in iron ore prices heavily weighed on the company’s margins. The steel making ingredient rose to record highs in July 2021 brought on upon supply constraints caused by the COVID-19 outbreak in China.

However, a slowdown in Chinese demand amid political pressure led iron ore prices to tumble to a 52-week low in November.

Regarded as a key commodity in Rio Tinto’s portfolio, this is particularly important given a majority of its revenues come from the steel making ingredient.

In the financial year ending 31 December 2021, iron ore accounted for 62% of the total group sales revenue.

More recently, Rio Tinto shares dropped off again in early March this year following the Russian war in Ukraine.

The miner stated that it was cutting all ties with the former Soviet Republic.

Consequently, the mining outfit’s share sank to just above the $100 mark.

In addition, the S&P/ASX 200 Resources (ASX: XJR) index has also headed south, posting a loss of around 5% in FY22.

The sector represents 48 of the largest companies in the ASX 200 that are members in the energy, metals and mining industry.

This came off the back of a gloomy economic outlook due to soaring inflation levels and interest rate hikes.

The extreme market volatility led to a negative shift in investment sentiment across the index.

Rio Tinto share price summary

A challenging year has brought upon many surprises for the Rio Tinto share price.

While down 20% since this time last year, and flat in 2022, its shares have produced strong returns over the long term.

For context, Rio Tinto shares are up 150% since the start of 2016.

The company has a price-to-earnings (P/E) ratio of 5.33 and commands a market capitalisation of roughly $37.40 billion.

The post Why did the Rio Tinto share price hit the brakes in FY22? appeared first on The Motley Fool Australia.

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More reading

• What is the outlook for the Rio Tinto share price in July?
• Why did the Rio Tinto share price plunge 11% in June?
• ASX 200 midday update: Regis Resources jumps, BHP and Rio Tinto drop
• These ASX 200 mining shares are digging a deeper hole on Friday
• How have ASX 200 mining shares fared over June?

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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S&P/ASX 200 Index (ASX: XJO) shares performed well on Tuesday as the Reserve Bank of Australia (RBA) hiked rates for a third consecutive month. The index was 0.25% higher at 6,629.30 points at market close.

The RBA lifted the offical cash rate 50 basis points to 1.35% this month. Unlike last month, the central bank suggested August could bring a steadying of the cash rate, my Fool colleague Brendon Lau reports.

The ASX 200 was led by energy shares today, likely on the back of higher oil prices. The Brent crude price rose 1.7% to US$113.50 a barrel overnight while the US Nymex crude price lifted 2.1% in after-hours trade to reach US$110.66 a barrel.

That saw Woodside Energy Group Ltd (ASX: WDS) among the leaders of the pack. Its share price boasted a 5.3% gain at its intraday high.

The tech sector also performed well on Tuesday, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) gaining 1.8%.

At the end of the session, nine of the ASX 200’s 11 sectors were in the green, with only the industrial and real estate sectors languishing.

So, let’s get to the most exciting part. Here are the ten shares that bested the rest on Tuesday.

Top 10 ASX shares countdown today

Taking out the crown as the top performer among the ASX’s 200 biggest companies by market capitalisation is – drumroll please – WiseTech Global Ltd (ASX: WTC). Read more about the ASX 200 tech share here.

Next best was WAM Capital Limited (ASX: WAM). Find out what’s been going on with the stock here.

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

ASX-listed company	Share price	Price change
WiseTech Global Ltd (ASX: WTC)	$40.765	5.34%
WAM Capital Limited (ASX :WAM)	$1.905	4.67%
Paladin Energy Ltd (ASX: PDN)	$0.595	4.39%
Seek Limited (ASX: SEK)	$22.045	4.18%
Magellan Global Fund (ASX: MGF)	$1.395	4.1%
Magellan Financial Group Ltd (ASX: MFG)	$12.18	4.01%
Woodside Energy Group Ltd (ASX: WDS)	$32.49	3.94%
Pro Medicus Limited (ASX: PME)	$44.46	3.83%
REA Group Limited (ASX: REA)	$117.805	3.69%
Domain Holdings Australia Ltd (ASX: DHG)	$3.185	3.41%

Data as at 4:00 pm AEST time.

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

• What’s going on with ASX 200 bank shares on Tuesday?
• Why the ASX 200 is rallying after the RBA’s rate hike today
• Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday?
• The surprising ASX shares to buy as interest rates rise: expert
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

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 Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia has recommended REA Group Limited and SEEK 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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Are you interested in adding some more ASX shares to your portfolio this week?

Two ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is a leading printed circuit board (PCB) design software provider. Thanks to its leadership position in a market growing rapidly thanks to the Internet of Things and AI trends, management has set itself some bold growth targets over the coming years. This includes more than doubling its revenue to US$500 million by 2026 and market domination.

Bell Potter is a fan of the company and has put a buy rating and $34.00 price target on its shares. It dismissed concerns that Altium could miss its guidance in FY 2022.

We do not, however, believe this [missing guidance] is the case as: 1. 1HFY22 revenue growth was strong; 2. Altium narrowed the revenue guidance range towards the upper end in late February knowing it would implement these marketing initiatives in Q4; 3. The strong momentum in Octopart in 1HFY22 is likely to continue into 2HFY22 and offset any weakness in China (due to lockdowns) and Russia.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. Aristocrat has been growing at a strong rate in recent years thanks to continued pokie machine market share gains and the strong form of its digital business, Pixel United. The latter continues to grow strongly and generate significant recurring revenues from its hugely popular portfolio of games. Combined with its share buyback and potential expansion into the real money gaming market, this bodes well for its earnings per share growth in the coming years.

Morgans is a fan of the company. It has an add rating and $43.00 price target on its shares. It said:

It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles.

The post Analysts name 2 ASX growth shares to buy this week appeared first on The Motley Fool Australia.

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More reading

• Broker names 3 of the best ASX shares to buy in July
• Experts say these ASX 200 growth shares are buys with 20%+ upside
• Here are the top 10 ASX shares today
• Why is the Altium share price down 5% today?
• Analysts tip big returns from these ASX growth shares

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 Altium. 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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