Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is on form again and poised to record another solid gain. In afternoon trade, the benchmark index is up 0.55% to 6,685 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up 5% to $47.45. This morning the team at Goldman Sachs upgraded this health imaging technology company’s shares to a neutral rating from sell. And while the broker’s price target of $42.60 is lower than where its shares trade today, Goldman spoke very positively about the company’s future.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 7.5% to 89.2 cents. Investors have been buying this gold miner’s shares after its strong fourth quarter performance allowed it to achieve its revised guidance for FY 2022. Total gold production came in at 86.4k ounces during the quarter, up 40% from the previous quarter. This took its full year production to 281k ounces.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is up 6% to $5.78. As well as getting a boost from a rebound in the lithium industry, a positive announcement has given Vulcan’s shares a lift. Vulcan revealed that it has signed an agreement with Italian renewable energy giant Enel Green Power to explore the development of a geothermal well housing lithium in Italy.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 7% to $5.07. Whitehaven Coal and the rest of the resources sector have been performing strongly today amid news that China is planning a huge infrastructure-focused stimulus program to boost its economy. The S&P/ASX 200 Resources index is up 1.8% this afternoon.

The post Why Pro Medicus, St Barbara, Vulcan, and Whitehaven Coal are pushing higher appeared first on The Motley Fool Australia.

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More reading

• St Barbara shares sparkle 7% brighter amid strong production update
• Vulcan Energy share price leaps 8% on Italian energy producer agreement
• Why Goldman Sachs just upgraded Pro Medicus shares
• 5 things to watch on the ASX 200 on Friday
• Becoming Australia’s biggest export failed to ignite ASX coal shares today

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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. 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 is up 1.44% in late afternoon trading to $98.56.

Fellow ASX mining shares BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are similarly up by 1.82% and 1.34% respectively.

The big miners might be doing well today because of reports that China is considering a massive new stimulus program to boost its economy following disruptive recent COVID-19 lockdowns.

Let’s look at the detail.

Rumours of China stimulus boost Rio Tinto share price

According to a Bloomberg report, the Chinese Ministry of Finance is considering a US$220 billion stimulus program.

The program would be funded through special bonds issued by local governments. The bonds would be taken from their FY23 quotas to ramp up infrastructure investment.

The Chinese budget year begins in January. This would be the first time the central government has allowed bonds to be issued ahead of time. Therefore, the plan would require a State Council review and possibly approval by the National People’s Congress.

The US$2.2 billion would be on top of US$164 billion in infrastructure spending already announced in recent weeks.

Bloomberg quoted Wei Yao, Societe Generale’s chief economist and head of research for Asia/Pacific: “It has been clear for sometime that local governments need more money. The central government is still unwilling to expand its own balance sheet.”

The article said it is instead letting local governments borrow more. Yao says that means “a fiscal cliff next year”.

What this means for ASX mining shares

More infrastructure spending in China means more demand for our commodities, particularly iron ore which is used to make steel.

Commodity prices have increased on the news.

According to Trading Economics, Zinc rose by 3.55%, iron ore (62% fe) is up 2.46%, and aluminium is up 1.37%.

Rio Tinto share price outlook

The Rio Tinto share price is down 1.18% in the year to date. This is largely due to the falling iron ore price.

While the price is still elevated, it has fallen in 2022 due to fears of a global recession caused by rising inflation and interest rates.

As my Fool friend Tristan reports today, top broker UBS has downgraded its 12-month price target for Rio Tinto to $98. Credit Suisse is more bullish with a price target of $118 on Rio Tinto shares.

In addition, Credit Suisse thinks Rio will pay a grossed-up dividend yield of 20% in FY22 and 18% in FY23.

The post Rio Tinto shares avoid a rocky Friday amid US$220 billion commodity stimulus rumours appeared first on The Motley Fool Australia.

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More reading

• Own Rio Tinto shares? Here’s the outlook for July
• What’s the outlook for ASX 200 dividend shares in FY23?
• Here are the top 10 ASX shares today
• 5 worst ASX energy shares of FY22
• Is now the time to be buying beaten down ASX 200 mining shares?

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week on a positive note. At the time of writing, the benchmark index is up 0.6% to 6,687.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is down 3.5% to $10.17. The catalyst for this was the quick service restaurant operator’s shares trading ex-dividend this morning for its final dividend of FY 2022. Eligible shareholders can look forward to receiving this 15 cents per share dividend at the start of next month on 1 August.

GQG Partners Inc (ASX: GQG)

The GQG share price is down 2% to $1.31. This morning this fund manager released its latest funds under management (FUM) update. GQG’s update revealed that its FUM fell 8.35% in June. This was driven partly by International Equity FUM dropping 8% and Global Equity FUM sinking 11.1% during the month.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down almost 3% to $11.93. Investors have been selling this struggling fund manager’s shares following the release of its monthly FUM update. That update revealed that Magellan’s FUM continues to dwindle. Magellan’s FUM stood at $61.3 billion at the end of June. This is down 5.7% from $65 billion at the end of May.

SkyCity Entertainment Group Limited (ASX: SKC)

The SkyCity share price is down 7.5% to $2.29. This casino and resorts operator’s shares have come under pressure this month after it revealed that the South Australian gaming regulator is undertaking an independent review of SkyCity Adelaide. The SkyCity share price has now fallen 13.5% since announcing the review.

The post Why Collins Foods, GQG, Magellan, and SkyCity shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Collins Food share price is sinking on Friday
• Here’s why the Magellan share price is sinking 6% today
• Why I think these 2 ASX All Ords shares are at bargain prices in July
• 5 ASX dividend shares with the highest yields in FY22
• Here are the top 10 ASX shares today

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.

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The Galileo Mining Ltd (ASX: GAL) share price isn’t going anywhere on Friday.

This comes after the company requested that its shares be placed in a trading halt before market open today.

At the time of writing, shares in the cobalt and nickel explorer remain frozen at $1.275 apiece.

Why is the Galileo Mining share price halted?

In a statement to the ASX, Galileo Mining advised it is preparing to make an important announcement to investors.

This is in relation to material drill assay results from the company’s flagship Callisto discovery.

Galileo Mining requested the trading halt remain in place until Tuesday 12 July or when the announcement is made, whichever comes first.

A brief rundown on Galileo Mining

Based in Western Australia, Galileo Mining is focused on exploring its Norseman and Fraser Range projects for base metals.

The company wholly owns the Norseman Project and has joint ventures with the Creasy Group in the Fraser Range.

The Callisto palladium-nickel discovery is located within the Norseman project, near the town of Kalgoorlie in Western Australia.

Earlier this week, the company received firm commitments for a $20.4 million placement to expand its drilling program at Callisto.

Galileo Mining managing director Brad Underwood commented:

The placement will increase our total cash to approximately $26.5 million and allow us to aggressively explore this significant new palladium province within our Norseman Project area.

Galileo Mining share price snapshot

Since this time last year, Galileo Mining shares have registered an incredible gain of more than 360%.

However, in 2022, the company’s shares have zipped further with a 460% gain on the back of positive investor sentiment.

Based on valuation grounds, Galileo Mining presides a market capitalisation of roughly $227.98 million.

The post What’s behind the frozen Galileo Mining share price today? appeared first on The Motley Fool Australia.

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More reading

• Why Beach, BHP, Bubs, and Galileo Mining shares are sinking
• Here’s why the Galileo Mining share price is charging higher today
• Why is the Galileo Mining share price diving 21% this week?

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

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The BHP Group Ltd (ASX: BHP) share price is rebounding on Friday after hitting a year-to-date low earlier this week.

At the time of writing, shares in the world’s largest miner are up 1.93% to $39.69.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.52% higher to 6,682.7 points.

Let’s take a look at what’s causing the miner’s shares to race past the benchmark ASX 200 index.

What’s driving BHP forward?

There could be a couple of reasons why the BHP share price is heading north today despite no company announcements.

Firstly, the S&P/ASX 200 Resources Index (ASX: XJR) is the best performing index across the ASX today with a 2.27% gain.

This has led shares in Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) to lift 1.47% and 1.40%, respectively.

The strong turnaround for the benchmark index of Australian resource companies comes amid a 17% fall since 8 June.

Recently, bearish sentiment impacted global markets following investor concerns about a looming recession on the back of China’s COVID-19 crisis.

However, those worries have been alleviated for now as a number of blue-chip shares trade in bargain territory.

In addition, the price for iron ore appears to have stabilised after cooling down from its year-to-date highs of US$150.

Currently, the steel-making ingredient is fetching US$114.50 per tonne.

As reported by Trading Economics, China’s portside inventories increased last week after declining for the previous two months.

Both Australia and Brazil ramped up their iron ore shipments to the Asian powerhouse.

Subsequently, China’s blast furnaces are likely to operate close to full capacity as iron ore supply flows in.

BHP share price snapshot

Since the beginning of 2022, the BHP share price has struggled to take off amid a challenging economic environment.

The mining giant’s shares are up 7% year-to-date, but down 10% in the past 12 months.

Based on today’s price, BHP has a market capitalisation of $191.15 billion.

The post Why BHP and other ASX mining shares are making strides on Friday appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 dividend shares in FY23?
• Is now the time to be buying beaten down ASX 200 mining shares?
• 5 ASX dividend shares with the highest yields in FY22
• These ASX 200 mining shares are bouncing back on Thursday
• Should investors dig the BHP 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 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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A basket of ASX shares involved with lithium production is going gangbusters on Friday.

At the time of writing, the Novonix Ltd (ASX: NVX) share price is soaring 7.2%, Pilbara Minerals Ltd (ASX: PLS) is also trading 7.2% higher, and Allkem Ltd (ASX: AKE) shares are going for 5.6% more than when they started the day.

What’s going on?

Enjoy the inexplicable bounce in ASX lithium stocks

None of the three ASX lithium stocks made any announcements today that would affect their share prices.

The trio seems to be simply enjoying a rebound after lithium shares deflated badly in June.

All these recent movements seem to be sentiment-driven. According to Trading Economics, the lithium carbonate price has remained steady since early March.

The S&P/ASX 200 Index (ASX: XJO) is also up more than 0.5% on Friday, so there is considerable upwards momentum in the share market generally.

Pilbara, based in Western Australia, has seen its share price plummet 32% year-to-date.

Novonix is a pre-revenue ASX lithium share that enjoyed a spectacular (and speculative) 594% rise in its stock price last calendar year. 

This year, though, it is suffering through a 76% drop.

Allkem has fared the best in 2022, losing just 5.8% of its valuation so far. The stock surged 60% upwards in the 2022 financial year.

Long-term demand for lithium

Lithium is in demand as an ingredient for high-powered batteries, such as those used in electric cars.

Hence it’s seen as a valuable commodity in a world transitioning to lower carbon economies.

Shaw and Partners portfolio manager James Gerrish also explained last month that lithium is difficult to substitute.

“Lithium has unique characteristics that are difficult to replicate. It is a light metal but is able to store large amounts of energy and is an excellent conductor of electricity,” he said in a Market Matters Q&A in June.

“Demand for lithium has grown at [approximately] 20% compound annual growth rates through 2017 to 2022 and we think that will continue, while lithium deposits that are technically and economically viable to exploit are rare.”

The post These 3 ASX 200 lithium stocks are exploding on Friday appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals share price blasts 8% higher as lithium regains attention
• Why is the Life360 share price soaring 12% today?
• Lake Resources shares are the most traded today. What’s going on?
• Down 40% in 2022: Is the Xero share price a buy today?
• Why did the Allkem share price soar 60% in FY22?

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

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is having a turbulent day today.

The shares opened strongly this morning at $18.06 — up 1.06% on yesterday’s close. But they quickly tumbled and have been trying to recapture this morning’s gains all day.

The Flight Centre share price is currently $17.98, up 0.5% at the time of writing.

What’s happening in the travel industry today?

According to a Bloomberg report, British jet engine maker Rolls-Royce is seeing the widebody aircraft market rebounding faster than expected.

Rolls-Royce makes its money in the travel sector by selling and maintaining long-haul jet engines.

The long-haul market was the hardest hit by the pandemic. However, things may be turning around with some signs of a pick-up in sales talks in recent times.

Rolls Royce CEO Warren East said the company is discussing future production planning and rates with aircraft manufacturer Airbus. This comes amid other reports of airlines considering placing new orders for large jets.

Rolls-Royce is the only engine supplier for Airbus A350s. It has a 35% market share over the Boeing 787, according to the report.

It said that Airbus plans to increase its A350 production rate from five per month to six in early 2023.

Airports swamped by school holiday travellers

More people are taking short-haul trips over international travel as the world continues to manage COVID-19.

In Australia, as the school holidays come to a close in Victoria and Queensland, airports have been swamped with passengers.

A staff shortage due to COVID-19 and bad weather in NSW are causing widespread travel delays and many flight cancellations.

Flight Centre share price summary

Flight Centre shares are down 4% year to date and have risen 12% in value over the past 12 months.

The post Flight Centre share price fails to lift-off amid recovering aircraft engine demand appeared first on The Motley Fool Australia.

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More reading

• Flight Centre completes turbulent journey in FY22
• The Corporate Travel share price hit major turbulence in June
• These are the 10 most shorted ASX shares
• How did ASX travel shares perform in June?
• ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals

Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 Pilbara Minerals Ltd (ASX: PLS) share price is among the S&P/ASX 200 Index (ASX: XJO)’s top performers on Friday despite the company’s silence.

So, what might explain the lithium giant’s gains? Well, the market seems to have performed an about-face on the material, bidding many shares involved with the battery-making ingredient higher.

At the time of writing, the Pilbara Minerals share price is trading at $2.38, 8.18% higher than its previous close.

For context, the ASX 200 has gained 0.54% right now while the S&P/ASX 200 Materials Index (ASX: XMJ) is up 1.84%.

Let’s take a look at what’s going on with ASX lithium shares on Friday.

Pilbara Minerals lifts alongside peers

The Pilbara Minerals share price is launching upwards on Friday, as are many of its ASX lithium peers.

The stock is joined in the green by shares in Liontown Resources Limited (ASX: LTR). It’s currently the ASX 200’s third best performer, recording a gain of more than 8% right now.

Allkem Ltd (ASX: AKE), Lake Resources Ltd (ASX: LKE), and Mineral Resources Ltd (ASX: MIN) are also currently posting gains of 6.3%, 6.4%, and 5.4% respectively.

On top of that, Lake Resources is Friday’s most traded share, with around 22.7 million stocks in the company having swapped hands right now.

The Pilbara Mineral’s uptick follows a period of notable losses. ASX lithium shares suffered through a major sell-off event early last month and many haven’t quite recovered.

In fact, shares in Pilbara Minerals stock are trading 20% lower than at the end of May despite posting plenty of good news in June.

Pilbara Minerals share price snapshot

While the company’s stock is off to a strong start this month, it still has a long way to go before it reaches the year-to-date green.

The Pilbara Minerals share price has slumped nearly 33% since the start of 2022. However, it’s still trading 54% higher than it was this time last year.

The post Pilbara Minerals share price blasts 8% higher as lithium regains attention appeared first on The Motley Fool Australia.

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More reading

• Why is the Life360 share price soaring 12% today?
• Lake Resources shares are the most traded today. What’s going on?
• Down 40% in 2022: Is the Xero share price a buy today?
• Why did the Northern Star share price lose its shine in FY22?
• 5 things to watch on the ASX 200 on Friday

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 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 IGO Ltd (ASX: IGO) share price has been a positive performer on Friday.

In afternoon trade, the battery materials producer’s shares are up almost 5% to $10.14.

Why is the IGO share price pushing higher?

Today’s gain has been driven largely by a rebound in the resources sector.

Investors have been piling back into the sector amid reports that China is planning a massive US$220 billion stimulus program with a focus on infrastructure spending. This bodes well for demand for commodities and should be supportive of prices.

The buying has been so strong in the sector today that the S&P/ASX 200 Resources index is currently up 2.1%. This compares favourably to the ASX 200 index, which is up 0.5% at the time of writing.

Anything else?

In addition to the above, the battery materials industry has been in fine form today, with a number of lithium shares such as Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) rebounding strongly from recent weakness.

The Allkem share price is currently up over 5% and the Pilbara Minerals share price is up a sizeable 7.5%.

IGO has exposure to lithium through its joint venture with Tianqi Lithium Corporation. This includes stakes in the Greenbushes Lithium Mine and the Kwinana Lithium Hydroxide Refiner.

Can its shares keep rising?

According to a recent note out of Macquarie, its analysts see plenty of room for the company’s shares to run higher.

Macquarie currently has an outperform and $17.00 price target on them. Based on the current IGO share price, this implies potential upside of almost 70% over the next 12 months.

The broker likes the company due to its exposure to critical minerals, which has been boosted since the completion of the Western Areas acquisition.

The post Here’s why the IGO share price is discovering a 5% rally on Friday appeared first on The Motley Fool Australia.

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More reading

• Is now the time to be buying beaten down ASX 200 mining shares?
• Down 21% last month, is now the time to buy IGO shares?
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Leading brokers name 3 ASX shares to buy today

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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S&P/ASX 200 Index (ASX: XJO) energy shares are jumping higher today, helping the ASX 200 rise by 0.5% at the time of writing.

The 2022 calendar year has been a volatile period for energy stocks. For example, the last month shows the Woodside Energy Group Ltd (ASX: WDS) share price has dropped around 10%, yet it’s still up by 37% for the year.

Let’s look at the current state of play with some of the biggest players on the ASX.

The Woodside share price is up 2.6% today.

The Santos Ltd (ASX: STO) share price is up 2.4%.

The Beach Energy Ltd (ASX: BPT) share price is up by 3.4%.

Those numbers imply sizeable outperformance compared to the broader ASX 200. However, there are gains for other ASX 200 shares such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Macquarie Group Ltd (ASX: MQG).

What’s going on?

ASX 200 energy shares can be heavily influenced by what happens with commodity prices.

A key factor for profitability for resource businesses is the price that they can get for their commodity.

It can cost almost the same to extract a resource out of the ground whether that price is US$10 higher or US$10 lower than it was before. This means that higher commodity prices can largely fall straight onto the net profit after tax (NPAT) after paying income tax.

According to Commsec, overnight the oil price rose by around 4%. So, perhaps unsurprisingly, ASX’s oil and gas giants have gone up by a somewhat similar level.

Bloomberg reported that “China may let local governments sell 1.5 trillion yuan ($220 billion) of special bonds in the second half. The cash would mostly be used for infrastructure spending to shore up an economy hit by COVID lockdowns and a housing slump.”

It has also been reported by Bloomberg that “a key export route for Kazakh oil risks being suspended as it appeals a Russian court order for it to temporarily shut down.” The relationship between supply and demand can have an important impact on commodity prices.

ASX 200 energy share price snapshot

Over the last six months, the Woodside share price has gone up 34% and the Beach Energy share price has risen 30%. However, the Santos share price has only gone up 3% over the past six months.

The post Why are ASX 200 energy shares making a comeback on Friday? appeared first on The Motley Fool Australia.

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More reading

• Woodside shares rally amid broker’s positive outlook on LNG
• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for ASX 200 dividend shares in FY23?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Woodside share price defies 3-month low in oil prices

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 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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