Category: Stock Market

The Pushpay Holdings Ltd (ASX: PPH) share price has burst out of its trading halt earlier than expected on Tuesday.

In afternoon trade, the donation technology company’s shares have jumped 17% to $1.31.

Why is the Pushpay share price jumping?

The Pushpay share price was placed in a trading halt this morning pending the release of an announcement relating to a takeover approach.

Although the company requested the halt until Thursday, it hasn’t needed anywhere near as long to respond to the proposal.

According to the release, Pushpay has confirmed the receipt of an offer from two existing shareholders, BGH Capital and Sixth Street. Combined, these shareholders have a holding of just over 20% in the company.

The release notes that BGH Capital and Sixth Street have advised that they have entered into a co-operation agreement with respect to a potential transaction involving Pushpay.

However, Pushpay has warned shareholders that the proposal is not a definitive transaction agreement and can be terminated immediately by either party on notice to the other.

Furthermore, the company has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction.

Instead, it is continuing with a process that is already underway, and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole.

Though, once again, it has warned that there is no certainty that this process will result in any transaction.

Unfortunately, Pushpay has neglected to provide retail shareholders with any further details, such as the takeover price that is being proposed. So, they may have to sit tight until BGH Capital and Sixth Street or one of the other “multiple parties” tables a firm offer.

The post Pushpay share price jumps 17% amid BGH Capital and Sixth Street takeover approach appeared first on The Motley Fool Australia.

More reading

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• Pushpay share price down 5% on full-year results and weak guidance
• Why AUB, Block, BrainChip, and Pushpay shares are sinking
• Why Jumbo, Nufarm, Pushpay, and Vulcan Steel charged higher
• Pushpay share price soars 23% following takeover approach

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 PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. 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 Lottery Corporation Limited (ASX: TLC) share price has commenced trade on the ASX boards on Tuesday.

In afternoon trade, the lotteries company’s shares are fetching $4.60.

The Lottery Corporation share price debut

The Lottery Corporation share price debuted on the ASX boards this morning following its successful demerger from gaming giant Tabcorp Holdings Limited (ASX: TAH).

Though, whether you can call Tabcorp a gaming giant anymore remains to be seen. Its shares are down a massive 81% to 99 cents at the time of writing, with the balance of power seemingly shifting to the ASX 200’s newest member.

Based on the current Lottery Corporation share price, it has a market capitalisation of approximately $10.24 billion, whereas new Tabcorp is valued at $2.2 billion.

What is The Lottery Corporation?

The Lottery Corporation is the new home of Tabcorp’s lotteries and Keno businesses.

Management highlights that the Lottery Corporation is an omni-channel business with a portfolio of high profile, recognised brands and games, strong digital growth and a retail footprint across ~7,000 retail outlets/venues. This makes it one of the largest in the country.

These businesses continued their solid growth in FY 2021, generating a 14.4% increase in EBITDA. This meant that its Lotteries and Keno businesses contributed 55% or $611 million of Tabcorp’s total EBITDA during the 12 months.

Pleasingly, since then, these businesses have continued their positive form. For example, in February, Tabcorp reported a 15.1% increase in Lotteries and Keno EBITDA to $358 million. Whereas the rest of the business reported earnings declines, which led to group EBITDA falling 5.5% over the prior corresponding period to $529 million.

The good news is that management still sees plenty of growth ahead. It notes that the business offers infrastructure-like asset qualities, with low capital intensity and upside potential from digital growth.

It could also prove to be a good option for income investors. Management highlights that the company will aim to pay out 70% to 90% of net profit after tax excluding significant items.

The post The Lottery Corporation share price debuts on the ASX boards appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
• Why is the Tabcorp share price crashing 82%?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most traded ASX 200 shares on Monday
• Here’s why the Tabcorp share price is lifting on Wednesday

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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Shares of Woodside Petroleum Limited (ASX: WPL) are rangebound on Tuesday and now trade less than 1% higher at $29 apiece.

Earlier in the session, Woodside had crept up to $29.28 apiece, before receding back down to its current levels. It had closed the day at $28.91 yesterday.

Meanwhile, Brent Crude trades at US$112 per barrel after gyrating upwards in the last few weeks. In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has climbed 81 basis points on the day.

What’s up with the Woodside share price?

Woodside’s Scarborough project has caused its fair share of controversy along its very short lifecycle to date.

With the newly-elected government now sworn in, Labor leader Anthony Albanese has made commitments to reduce climate emissions by roughly 40% compared to 2005 levels.

However, with a large swing of support towards independents and The Greens simultaneously gripping the election’s result, the new ministry might face pushback as both of these groups are seeking a 60% and 70% reduction respectively.

Greens leader Adam Bandt – whose party picked up three seats in the Senate – was adamant the new government had an obligation for Labor to work with the Greens.

“We’ve been very clear that in this parliament we have to come up with a plan for coal and gas,” Bandt told The Australian Financial Review.

“This has to be the year that Australia’s pollution starts peaking and that we keep coal and gas in the ground.”

However, potential minister for the climate, Chris Bowen has assured that the Labor government will carry its election commitments forward and won’t necessarily be swayed by the other parties.

This sentiment was echoed by former WA premier Colin Barnett, who also told The AFR that “it will be difficult to achieve a tougher target for 2030 when you’ve got a big project like Scarborough.”

“The [Scarborough] project needs to happen, but it’s going to be a dilemma for Albanese because a lot of people would say he’d be breaking his word – the emissions out of Scarborough dwarf everything else,” he added.

“It’s a major project. It guarantees the continuance of the Northwest Shelf at its current production levels and allows the expansion of Pluto,” Barnett concluded.

The Woodside share price has clipped a 32% gain this year to date amid a sector-wide commodity boom that’s seen prices for oil and gas shoot north.

The post What’s boosting the Woodside share price on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Keen to bag the special BHP dividend? Here’s what you need to do
• What might a Labor government mean for ASX energy shares?
• Why is the Woodside share price having such a strong start to the week?
• 2 ASX energy shares that brokers rate as buys for exposure to sky high oil prices
• 5 things to watch on the ASX 200 on Monday

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

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The Bitcoin (CRYPTO: BTC) price has again slipped back below the psychologically significant US$30,000 level.

At the time of writing one Bitcoin is worth US$29,157 (AU$41,180), down 3.3% since this time yesterday.

The world’s number one token by market cap has come under pressure this year, with soaring inflation figures across Western nations forcing central banks to up interest rates.

With more rate rises expected, risk assets including cryptos have seen some of the heaviest selling.

The tech-heavy Nasdaq is down 27% in 2022, while the Bitcoin price has retraced by 39%. That puts the token down 58% since hitting all-time highs on 10 November last year.

“The markets right now are just punishing anything that’s on the speculative side,” said Chris Gaffney, president of world markets at TIAA Bank (courtesy of Bloomberg).

Now we know what’s been happening.

But the question keeping crypto investors on the edge of their seats is, where to next for the Bitcoin price?

What the experts are saying

Fundstrat Global technical strategist Mark Newton says crypto investors should keep a close eye on US equity markets to buy Bitcoin at a bargain price.

According to Newton (quoted by Bloomberg):

If the S&P falls some more, that should create one final flush and a great buying opportunity for Bitcoin. There’s a lot of bearishness, and we should be approaching a time when you really want to buy into that in the next couple of months.

Heading into June, Noelle Acheson and Konrad Laesser of Genesis Global Trading believe the Bitcoin price will remain fairly rangebound. “Bitcoin is likely to hover around $29,000 to $31,000 for the next couple of weeks,” they said.

Rick Bensignor, president of Bensignor Investment Strategies, also doesn’t think there’s going to be a big break higher over the coming month. “I’d still expect another four weeks of heaviness,” he said.

But he doesn’t believe that heaviness will see Bitcoin fall much further. Looking at the charts, Bensignor said the token has strong support at US$28,900.

Bitcoin price to zero?

On the ultra-bearish side, we’ll leave off with this forecast from European Central Bank President Christine Lagarde, decidedly not a fan of cryptos.

“My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as an anchor of safety,” Lagarde said on Dutch television.

The post What to expect for the Bitcoin price heading into June appeared first on The Motley Fool Australia.

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• Why Bitcoin, Ethereum, and Dogecoin are falling today
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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.

 Meta’s (NASDAQ: FB) social media apps will soon be home to NFTs based on the Solana (CRYPTO: SOL) network, unlike Twitter, which only supports Ethereum-based NFTs. For a blockchain with so much potential, it is encouraging to see one of the world’s largest tech companies recognize its utility. 

Rather than being an NFT marketplace like OpenSea or Foundation, the social media apps will serve as a gallery to show off NFTs. Creators will be able to categorize their posts as NFTs and add additional information like where to buy the NFT, what blockchain it is based on, and how much it is going for. Those scrolling past the NFTs can then access these details if interested in purchasing.

The exposure that Solana will receive through this integration is a first for the blockchain. It is a leader among the so-called Ethereum Killers, but aside from lesser-known DeFi use cases, Solana has been unable to tap into the mainstream view. 

Now Solana has the chance to prove its worth to nearly 4 billion users across Instagram and Facebook. 

The state of Solana NFTs

The timing really couldn’t have been better. As of recently, Solana NFTs have been soaring in popularity and price. The monthly volume of Solana NFTs has increased significantly. Between February and April, sales volume tripled.

Despite Solana NFTs being available on marketplaces like OpenSea and Rarible, Magic Eden is currently the most popular marketplace for them. More and more collectors are discovering this new marketplace. Before late February, there had never been more than $25 million of volume on Magic Eden. By the end of April, there was nearly $75 million in volume traded on the marketplace.

Recent NFT projects like Okay Bears and DeGods have helped catapult Magic Eden and Solana-based NFTs into the spotlight. 

The launch of Okay Bears put up historic numbers. Within 24 hours of minting, Okay Bears generated $18.4 million in primary and secondary sales. That was more than any other NFT for that day. Currently, Okay Bears sits in the top ten for all NFT projects on OpenSea in the last 30 days. It has outpaced more famous projects like CryptoPunks, Meebits, and Bored Ape Kennel Club in the same time frame.

More than welcome news

As more exposure comes with the Instagram and Facebook integrations, Solana may have finally turned a corner to put its slightly suspect past behind it. Unfortunately, in the last 12 months, Solana has suffered from a handful of network outages. 

In September 2021, Solana was down for about 17 hours. It had another outage in January of this year. And just last month, the blockchain was down for nearly seven hours due to malicious bots overriding the network. There are solutions being implemented to mitigate this in the future, but the track record is anything but perfect. 

Surprisingly, these outages have not deterred Meta. It seems Meta is aware of the potential Solana brings to level the NFT playing field. 

Despite being the most popular NFT blockchain, using Ethereum is costly when minting, buying, or selling NFTs. Users of Solana, on the other hand, will realize that the cheaper fees and faster speeds will help keep more money in their pocket. The Instagram and Facebook launch should expedite that realization in the coming months.

Solana investors should be thrilled with these new advancements. Solana has been one of the more popular DeFi blockchains, but most of those applications stay out of the public’s view. The integration on Instagram and Facebook will propel Solana into a new stage of its development and place it among the NFT blockchain heavyweights. 

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

The post Why NFTs will solidify Solana appeared first on The Motley Fool Australia.

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RJ Fulton has positions in Ethereum and Solana. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum, Meta Platforms, Inc., Solana, and Twitter. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool Australia owns and has recommended Ethereum and Solana. 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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ASX 200 tech shares are having a tough time on the market today.

The S&P/ASX All Technology Index (ASX: XTX) is falling 2.46% at the time of writing to 2,093.9 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.04% today.

Let’s take a look at what could be impacting ASX 200 tech shares.

ASX tech shares fall

ASX 200 tech shares Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) are falling 6.1% and 2.2% respectively today. Meanwhile, WiseTech Global Ltd (ASX: WTC) is down 2.3% and TechnologyOne Ltd (ASX: TNE) has shed 1.8%.

ASX technology shares could be reacting to news from the United States. Technology shares on the ASX often follow the trends of US counterparts.

The Snap Inc (NYSE: SNAP) share price has plunged more than 31% in after-hours trading on the New York Stock Exchange.

In a US Securities and Exchange Commission filing, Snapchat advised it would likely miss its revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) targets.

Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range. 

This news appeared to impact overall sentiment in the sector, with many of Snap’s peers falling after hours, as the CNBC noted.

Nasdaq Futures are falling 1.30% at the time of writing. Meta Platforms Inc (NASDAQ: FB) shares plunged 7% in after-hours trading, while Twitter Inc (NYSE: TWTR) shares dropped 3.72%, Pinterest Inc (NYSE: PINS) fell nearly 12% and Trade Desk Inc (NASDAQ: TTD) slid nearly 9%.

Closer to home, TechnologyOne shares plunged nearly 5% in earlier trade before recovering slightly to the current share price of $10.22. As my Foolish colleague James reported today, the ASX 200 tech share reported strong first-half growth. Total revenue jumped 19% to $172.5 million, while profit after tax leapt 18% to $33.2 million.

Share price snapshot

The All Technology Index has dived nearly 20% in the past year, while it is plunging nearly 30% year to date.

In the past month, the index has fallen 11%, while it is virtually flat over the past week.

For perspective, the benchmark ASX 200 has climbed 1.5% in the past year.

The post Here’s why ASX 200 tech shares are under pressure on Tuesday appeared first on The Motley Fool Australia.

More reading

• Snapchat share price dives 30% pulling Nasdaq futures lower
• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
• TechnologyOne share price slides despite strong first-half SaaS growth
• Do experts think the Xero share price is a buy?
• 5 things to watch on the ASX 200 on Tuesday

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Meta Platforms, Inc., Pinterest, The Trade Desk, Twitter, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Meta Platforms, Inc., Pinterest, and The Trade Desk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It was another night of wild moves overnight (our time) on US markets. Sure, we didn’t see the kind of savage falls that have recently come to define the US markets. But we still saw a bevvy of US shares, particularly US tech shares, continue to bounce around. Apple Inc (NASDAQ: AAPL) was up, as was Tesla Inc (NASDAQ: TSLA), while Amazon.com Inc (NASDAQ: AMZN) dropped.

But looking at after-hours trading, a very different picture emerges. Instead of a 4% rise, Apple was down 1.34%. Tesla went from a 1.66% rise to a 2.65% fall. And Meta Platforms Inc (NASDAQ: FB), the company formerly known as Facebook, went from a 1.4% gain to a loss of 7.1%. So what happened after hours that caused such a dramatic turnaround?

Well, it appears to be the fortunes of Snap Inc (NYSE: SNAP), the social media company behind Snapchat, that seems to be the catalyst here.

Snap share price plunge makes for a less than pretty picture for the Nasdaq

Snap stock suffered a nasty fall of 3.4% to US$22.47 a share yesterday during normal trading, but plunged by almost 31% in after-hours trading to US$15.51 a share. That represents the lowest level Snap shares have been at since April 2020.

This after-hours plunge in Snap’s value seems to have been sparked by an SEC (US Securities and Exchange Commission) filing. The filing stated the following:

Since we issued guidance on April 21, 2022, the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range.

We remain excited about the long-term opportunity to grow our business. Our community continues to grow, and we continue to see strong engagement across Snapchat, and continue to see significant opportunities to grow our average revenue per user over the long term.

According to reporting from CNBC, Snap CEO Evan Spiegel also sent a note to employees. Here’s some of what that reportedly said:

Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month… As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.

Nasdaq heading for a nasty Tuesday

This was clearly the last thing the markets wanted to hear at this time. Snap’s after-hours plunge looks to have taken the wind out of many other US tech shares’ sails. Companies in Snap’s space, such as Meta, Twitter Inc (NYSE: TWTR) and Pinterest Inc (NYSE: PINS) were hit the hardest. Indeed, most US tech shares that finished last night’s session in the green subsequently went red in after-hours trading.

According to Bloomberg, futures for the Nasdaq 100 are now pointing to a drop of 1.3% for the tech-heavy Nasdaq. Although Snap isn’t a Nasdaq share, many other US tech shares are. So it seems we have the Snap share price to thank for what is shaping up to be anther painful session of trading on the Nasdaq tonight.

The post Snapchat share price dives 30% pulling Nasdaq futures lower appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares are under pressure on Tuesday

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Meta Platforms, Inc., Pinterest, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Meta Platforms, Inc., Pinterest, Tesla, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Inc., and Pinterest. 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 his post-election speech, newly-elected Prime Minister Anthony Albanese noted that Australia can “take advantage of the opportunity for Australia to be a renewable energy superpower”.

A Labor government has committed to slashing carbon emissions by 43% by the year 2030, compared to 2005 levels.

But what impact is this set to have on financial markets? And what tickers are set to benefit? Let’s take a look.

Clean and renewable energy on the agenda

It appears for the first time in at least 70 years that around one-third of Australians voted neither for Laboror nor the Coalition.

The Greens received roughly 12% of the vote while the so-called teal independents have taken a swathe of formerly Liberal seats, campaigning on a platform of greater climate action.

This new representation in federal parliament is set to have far-reaching impacts on Australia’s stance on climate change.

Bloomberg journalist Ben Westcott, speaking on Bloomberg Day Break Australia on Monday, concurs.

Commenting on the outlook for Australia’s climate emission reductions, he said: “[Now Prime Minister Anthony] Albanese went to the election with a promise of about 40% climate commission cuts by 2030 but the Greens Party wants 70%, the Independents want 60%.”

Westcott said it remains to be seen how this will play out in climate policy but it may be that the Labor government could “be forced to take tougher action to cut emissions”.

The regime change has been welcomed by The Clean Energy Investor Group (CEIG), a not-for-profit advocacy organisation representing institutional investors.

The group’s CEO Simon Corbell said any shift in policy towards renewables is “deeply consequential for clean energy investment opportunities in Australia”. Corbell told The Australian:

The message from the incoming Prime Minister is clear.

He wants Australia to be a renewable energy superpower. And that will send an enormously positive signal, right across the sector, about the opportunity in the Australian market.

We now have a national government that will not simply grudgingly accept the energy transition, but which will enthusiastically embrace it.

And that’s enormously positive for investor sentiment.

What ASX shares might benefit?

With the push towards renewable energy imminent, several names within the domain are now front and centre.

ASX shares such as Infratil Ltd (ASX: IFT) and Genesis Energy Ltd (ASX: GNE) come to mind. Each stock has finished 5% and less than 1% in the green over the past five days of trading respectively.

More ‘traditional’ energy companies with a renewable footprint are contenders too, such as Origin Energy Ltd (ASX: ORG) which has ownership of substantial solar power generation assets.

Secular names such as Hazer Group Ltd (ASX: HZR) also spring to mind given its focus on research into alternative power sources.

Except for Origin – with its 29% gain this year to date – each of these ASX shares has been beaten down in 2022, trading in the red during that time.

In wider market moves, the S&P/ASX 200 Index (ASX: XJO) is trading 0.04% higher early on Tuesday afternoon.

The post If the ‘election outcome is deeply consequential for clean energy investment’, which ASX shares might benefit? appeared first on The Motley Fool Australia.

More reading

• The Origin share price is absolutely smashing the ASX 200 in 2022. Why?
• 3 ASX All Ordinaries shares that smashed new 52-week highs today
• How is the Origin Energy share price managing to hit multi-year highs today?
• Origin share price gains as surging commodity prices boost revenue to $2.5b
• How might the election outcome impact the outlook for ASX energy shares?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 have come under selling pressure in 2022.

The combination of fast-rising inflation and interest rates along with major geopolitical turmoil has seen the benchmark index lose 5.8% year to date.

That followed on from a strong 2021, where ASX 200 shares gained 13%.

While it may be overly optimistic to hope for similar gains at this stage of the calendar year, could the market already have hit its low point?

Has the bottom come and gone for ASX 200 shares?

A bullish sign to support the thesis that markets may be at or near their lows is coming from some of the top bosses of companies in the United States.

According to data from Washington Service, some 1,100 CEOs and top executives have been actively buying their own companies’ shares in May.

If the trend persists this week, May will be the first month since March 2020 where the top brass is buying more than they’re selling. That month, as you’ll likely recall, marked the bottom of the vicious early pandemic sell-off and the start of a new bull market.

And, as Bloomberg notes, corporate insiders were also buying more of their own shares in August 2015 – right before the markets bottomed – as well as in the latter months of 2018, which marked another market bottom.

So why are many investors hitting the sell button, both with ASX 200 shares and in US markets, even as company executives are buying?

Boots on the ground

According to Craig Callahan, CEO of Icon Advisers (quoted by Bloomberg):

It is a function of investors functioning at the ‘30,000 foot level’ or ‘macro’ whereas insiders are functioning at the ‘boots on the ground’, company-fundamentals level. We believe the company-fundamentals view is usually correct.

“It’s encouraging in the sense that they have enough confidence in their businesses to put more money in,” John Carey, managing director at Amundi Asset Management, added.

“We’ll see if the trend persists, if the insider buying continues, but generally it’s a positive sign.”

How low confidence could boost ASX 200 shares

For a final signal that ASX 200 shares may be at or near their bottom point, we turn to Jim Paulsen, chief investment strategist at The Leuthold Group (courtesy of The Australian Financial Review).

Citing historically low investor confidence, he believes the stock market sell-off is close to running its course.

“Conviction across both Main Street and Wall Street is currently lower than about 94 per cent of the time since 1960,” he said.

Paulsen continued:

Historically, when confidence was this low, the bear was close to expiring, and the average year-ahead S&P 500 return was more than plus 20%. Compared to historical norms, based on today’s extremely negative sentiment, the stock market finds itself in an area where, traditionally, bears die … and … bulls come out to play.”

While he’s specifically singling out the S&P 500 Index (SP: .INX), when US markets run higher, ASX 200 shares generally follow.

The post Could this mean the bottom has been and gone for ASX 200 shares? appeared first on The Motley Fool Australia.

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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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It has been a mixed day for the ASX 200 index on Tuesday. In afternoon trade, the benchmark index is trading largely flat.

Pleasingly, that hasn’t stopped a number of lithium shares from pushing higher today.

ASX 200 lithium shares rise

Among the best performer in the battery materials sector are the following:

• The Allkem Ltd (ASX: AKE) share price is up almost 4% to $13.46
• The Liontown Resources Limited (ASX: LTR) share price is up 3.5% to $1.34
• The Mineral Resources Limited (ASX: MIN) share price is up 3% to $61.59
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 3% to $2.89

What is driving lithium shares higher?

The gains being made by ASX 200 lithium shares today appear to have been driven by concerns that supply won’t be able to keep up with demand and news of a lithium bidding frenzy in China.

In respect to the former, with demand being tipped to outstrip supply for some time to come due to electric vehicle adoption, prices of lithium could remain higher for longer. This bodes well for companies already producing lithium such as Allkem and Pilbara Minerals.

As for the latter, according to Bloomberg, an auction for a controlling stake in a Chinese lithium mine received a whopping 3,448 bids over the weekend. Bloomberg notes that this underscores “the scramble to secure the battery metal that’s key to the clean-energy transition.”

Bidders were hoping to secure a 54.3% stake in Yajiang Snowway Mining Development, which owns the Sichuan based lithium mine. The lucky bidder ultimately paid approximately 2 billion yuan (US$299 million) for the stake, which was almost 600 times greater than the starting price.

Daiwa Capital Markets’ analysts Dennis Ip and Leo Ho said in a note: “We believe the auction price indicates a bullish Chinese primary market for future lithium prices as well as the strategic importance of Sichuan spodumene assets.”

The post Why are ASX 200 lithium shares kicking goals today? appeared first on The Motley Fool Australia.

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• Here are the 3 most traded ASX 200 shares on Friday

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

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