Category: Stock Market

The Andromeda Metals Ltd (ASX: ADN) share price is surging higher on Friday despite no news having been released by the company.

However, its enthusiastic performance might be in response to recent turbulence.

At the time of writing, the Andromeda share price is 13 cents, 31.58% higher than its previous close.

For context, the broader market is also in the green today, though, not to such a dramatic extent. Right now, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both up around 0.5%.

So, what could be driving the Andromeda share price today? Let’s take a look.

What’s pushing Andromeda’s stock higher on Friday?

Andromeda’s stock is launching nearly 32% on Friday after tumbling 45% over the previous two sessions.

The halloysite-kaolin-focused producer of industrial metals released the definitive feasibility study for its Great White Kaolin Project on Wednesday.

The project was a joint venture between Andromeda and the previously ASX-listed Minotaur Exploration.

The pair merged in February, with Minotaur shareholders each receiving 1.5 shares in Andromeda for their investment.

Under its definitive feasibility study, the Great White Kaolin Project was given a valuation of $613 million and an internal rate of return of 36%.

Previously, the project’s prefeasibility study indicated a valuation of $736 million and an internal rate of return of 175%.  

On the release of the latest study on Wednesday, the Andromeda share price tumbled 33%. It ditched another 16% the following day.

Thus, today’s movements might be the market’s way of correcting the company’s valuation following the sell-off.

Andromeda share price snapshot

Today’s gains haven’t been enough to boost the industrial metals stock back into the long-term green.

Right now, the Andromeda share price is 34% lower than it was at the start of 2022. It has also fallen 57% since this time last year.

The post Why is the Andromeda share price skyrocketing 32% on Friday? appeared first on The Motley Fool Australia.

More reading

• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower
• Why Andromeda Metals, Block, Paladin Energy, and Zip shares are dropping

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) ended up having a very solid month during March, after what was an extremely volatile start to the year. Over the month just passed, the ASX 200 gained a healthy 6.4%. But how did the Coles Group Ltd (ASX: COL) share price fare?

Coles is one of the mid-tier blue-chip shares of the ASX 200. It of course owns the supermarket chain of the same name, and is the second-largest player in its market, coming runner up to Woolworths Group Ltd (ASX: WOW).

Coles is often cited as a defensive ASX share due to its consumer staples nature and strong dividend record. So let’s see how it fared over March.

Coles started the month at a share price of $17.38. Last week, the grocer finished up March trading at $17.91 a share. That’s a gain of 3.05%. Nothing to complain about of course. But also a performance worth less than half of what the ASX 200 delivered.

A caveat though. Coles paid out its interim dividend during March as well. The value of this payment left the Coles share price on 3 March when the company traded ex-dividend and hit investors’ bank accounts on 31 March. Since both of these dates fall within the month, we can add the value of this dividend (worth a yield of 1.84% on the day it was received) to those returns if we wish.

So now that March is done and dusted, what could be in store for the Coles share price going forward?

Is the Coles share price a buy today?

Well, one ASX broker who is expecting big things is Citi. As my Fool colleague James covered last week, Citi is currently bullish on Coles shares, with a “buy” rating and a 12-month share price target of $19.30.

That’s around 5.5% higher than where Coles is trading today. Citi reckons the recent federal budget will result in a boost to disposable income, which the broker is expecting will flow through to sales at Coles’ supermarkets.

No doubt shareholders will be hoping that Citi’s predictions turn out to be accurate.

At the current Coles share price of $18.29 (at the time of writing), this ASX 200 supermarket share has a market capitalisation of $24.06 billion, with a dividend yield of 3.34%

The post ASX market beater? Here’s how Coles shares performed during March appeared first on The Motley Fool Australia.

More reading

• Coles share price falls amid reports Wesfarmers is selling down its stake: Time to buy?
• Are Woolworths shares positioned for ‘a long-term, post-COVID trend?’
• 5 things to watch on the ASX 200 on Wednesday
• Are Woolworths shares worth buying for their defensive properties?
• What’s the outlook for the Woolworths share price in April?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns 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 Bruce Jackson.

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The Boss Energy Ltd (ASX: BOE) share price is exploding today after the company released its latest capital raising update.

At the time of writing, the uranium producer’s shares are swapping hands for $2.57, up 7.98%.

In contrast, other uranium companies are also on the move on Friday. This includes Paladin Energy Ltd (ASX: PDN), up 10.63% to 88.5 cents, and Alligator Energy Ltd (ASX: AGE), up 12.64% to 10.25 cents.

It is worth noting that global uranium shares are rallying after the United Kingdom revealed its nuclear energy plans for the next two decades. As such, the British government is seeking to triple its nuclear power capacity by 2050 to reduce reliance on Russian hydrocarbons.

Boss Energy announces its share purchase plan results

The Boss Energy share price is heading north today as investors digest the positive developments surrounding the company.

In its release, Boss Energy advised that it has successfully completed its share purchase plan (SPP) underpinned by strong support.

The company raised $17.6 million, which was well over the $5 million offered to retail investors.

Due to receiving a number of overwhelming applications, Boss Energy closed the SPP early on 4 April. Originally, the SPP was due to finish at the close of business on 7 April.

The offer price of $2.15 per share represents an 11.2% discount from the last closing price and a 17% discount from the 5-day volume-weighted average price (prior to 16 March when the announcement of the offer was made). This was when the offer was announced to the market.

Boss Energy stated it will scale back applications, taking into consideration the number of shares applied for, and their current holdings.

This follows the recently successful $120 million institutional placement completed on 18 March 2022.

The proceeds of the capital raise will be used to progress a number of strategic initiatives that include the following:

• Complete front end engineering design (FEED) study
• Fund $113 million in development costs (including contingency)
• Secure long-lead time items to further de-risk development
• Restart development – post FEED and subject to COVID-19 logistic and sourcing issues
• Continue engagement with utilities for long-term contracts
• Use of equity to fund development de-risks project and retains maximum financial flexibility through commissioning and for future growth initiatives
• Continue exploration focus – substantial scope to extend life of mine (LOM) and/or increase production profile

Boss Energy share price summary

With the uranium spot price rising to unprecedented levels, the Boss Energy share price has accelerated by 98% in the past year.

The company’s shares rocketed to an all-time high of $3.08 in November, before retracing to today’s level of $2.61 per share.

Boss Energy presides a market capitalisation of roughly $880.25 million with approximately 337.26 million shares on its registry.

The post Here’s why the Boss Energy share price is rocketing 8% on Friday appeared first on The Motley Fool Australia.

More reading

• Why Boss Energy, GrainCorp, Pro Medicus, and Select Harvests are pushing higher
• Why are ASX uranium shares having such a stellar end to the week?
• Boss Energy (ASX:BOE) shares slip 6% on ASX return. Here’s why
• ‘Australia’s next uranium producer’: Why the Boss Energy (ASX:BOE) share price is halted today
• Why are ASX uranium shares having such a stellar day?

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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is charging higher. At the time of writing, the benchmark index is up 0.55% to 7,483.5 points.

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

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up 11% to $2.64. This morning the uranium developer announced the completion of its share purchase plan. However, the main catalyst for its strong gain today is likely to be uranium prices hitting a decade high. This has led to a number of uranium shares surging higher on Friday.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price is up 4.5% to $9.09. This follows the release of an earnings guidance update this morning. GrainCorp has upgraded its earnings guidance for FY 2022 thanks to significant ongoing global demand for Australian grain and oilseeds. Management also highlighted that planting conditions for the upcoming east coast Australian winter crop are favourable.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is up 1.5% to $47.80. Investors have been buying this health imaging technology company’s shares after it announced a major new contract win. According to the release, the company’s US business, Visage Imaging, has signed a $32 million, eight-year contract with Inova Health System.

Select Harvests Limited (ASX: SHV)

The Select Harvests share price is up 4.5% to $5.60. This follows the release of a market update from the almond producer this morning. That update reveals that despite facing adverse weather conditions early in the season, the company is performing in line with expectations. As a result, there is no change to its price or crop estimate. Another positive is that its sorting and packing upgrade has been completed and is operating at or above business case.

The post Why Boss Energy, GrainCorp, Pro Medicus, and Select Harvests are pushing higher appeared first on The Motley Fool Australia.

More reading

• Why are ASX uranium shares having such a stellar end to the week?
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Pro Medicus share price jumps on $32m contract news
• GrainCorp share price jumps 9% to record high on guidance upgrade amid ‘significant’ demand
• 2 stellar ASX growth shares analysts rate as buys

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. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns 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 Bruce Jackson.

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Shares in utilities giant Origin Energy Ltd (ASX: ORG) are tracking lower today and trade 15 basis points down at $6.53 on last check.

As global energy markets heat up amid European conflict and commodity inflation, shares of Origin have soared 25% higher this year. That’s brought 12-month gains to 37% – 15 percentage points ahead of the sector.

Natural gas has powered higher to now trade back above US$6.35 Metric Million British thermal units (MMBtu) – a 10-year high – whilst Brent Crude still fetches US$100 per barrel after levelling down in recent weeks.

In fact, all energy markets are up by anywhere from 19% to 450% year on year, per Bloomberg data.

What does this mean for Origin going forward?

Whilst pricing strengths have certainly helped out this year to date, Origin still has to back up the story with sales and profit growth, analysts say.

Depending on who you ask, it may or may not be capable of doing so. JP Morgan upgraded its outlook on Origin shares to neutral in early March, noting a strong pullback in prices, and that “there is clearly value in energy retailing.”

“Since the release of its interim financial results on 17 February 2022, Origin’s stock price has declined 11% (versus the ASX200 at -3%),” the broker said.

“[T]he recent underperformance now means the stock price is below our price target,” it added.

We would also flag a number of potential positive catalysts including: 1) higher wholesale electricity prices potentially implying FY2023 guidance is conservative; 2) the recent approach for AGL shows corporate appeal in energy retailing; and 3) strength in LNG markets should mean improved dividends from APLNG. As a result, we are upgrading to Neutral on better valuation.

Meanwhile, analysts at Morgans downgraded its recommendation on Morgans from add to a hold yesterday.

“[Origin] shares have performed strongly and have moved past our target price,” it said, cited by the Australian.

“International energy markets are providing tailwinds for LNG contracts but some of that volatility is being imported into the domestic market where ORG potentially could be exposed.”

Meanwhile, Henik Fung, senior analyst at Bloomberg Intelligence said that “[f]ierce competition in Australia’s retail power market could hurt Origin Energy’s sales for the next two years,” in a recent note.

As a result, “Origin Energy’s sales may remain weak in difficult power market,” it says, nothing that earnings in the retail power segment could “stay weak given the market situation”.

At its current share price of $6.53, the Origin share price is 10 cents per share above the consensus price target of $6.43, per Bloomberg data.

According to Barrenjoey – it’s not overvalued, as they reckon it’s worth $7.21. Whereas JP Morgan reckons it’s way overvalued at a $5.50 valuation.

The post The Origin share price is now overvalued, consensus says yes. What do you think? appeared first on The Motley Fool Australia.

More reading

• High voltage! Origin (ASX:ORG) share price up 3% to new 52-week high
• These were the 5 best performing ASX hydrogen shares of the March quarter
• The Origin (ASX:ORG) share price has surged 15% since the start of March. Could this be why?
• Origin Energy (ASX:ORG) share price hits post-COVID high on Friday
• Own Origin (ASX:ORG) shares? Why a shareholder advocacy group is demanding immediate suspension of this joint venture

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 Bruce Jackson.

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The Capricorn Metals Ltd (ASX: CMM) share price is launching higher on early drilling results from the company’s Mt Gibson Gold Project.

Assays from 55 holes of the company’s resource definition drilling program have returned “very encouraging results”, says the company.

At the time of writing, the Capricorn Metals share price is $4.18, 6.63% higher than its previous close.

That brings the stock back into the green for this week. It previously tumbled 3.9% between last Friday’s close and the end of Thursday’s session.

Let’s take a closer look at the news boosting the gold producer’s stock on Friday.

What’s boosting the gold producer’s stock on Friday?

The Capricorn Metals share price is in the green today on news of its Mt Gibson project in Western Australia.

Assay results for 55 of the 188 holes completed at the project’s latest drilling program have found significant gold mineralisation both within and below the resource pit optimisation shells.

Additionally, high-grade mineralisation intercepts have also been identified, aligning with historic data. That provides validation of the project’s historic drill database.

A review of the results returned to date has led the company to add more extensional drilling to the drill program this quarter.

The drilling program kicked off in January. It’s aiming to infill and extend the project’s current mineral resource estimate of 2.08 million ounces of gold.

It’s also expected to underpin a maiden ore reserve estimate, which should be finished in the September quarter.

The company is also progressing other technical studies needed to complete the maiden ore reserve estimate, as well as feasibility studies.

Additionally, Capricorn Metals will push a 30,000-metre regional exploration drill program later this quarter, targeting areas including the project’s Taurus Trend and Highway prospects.

Capricorn Metals acquired the Mt Gibson Project in June 2021.  

Capricorn Metals share price snapshot

The Capricorn Metals share price has been performing well in 2022 so far.

It has gained 24% year to date. It’s also 162% higher than it was this time last year.

The post Here’s why the Capricorn Metals share price is shooting 7% higher today appeared first on The Motley Fool Australia.

More reading

• The Origin share price is now overvalued, consensus says yes. What do you think?
• Why Block, IGO, Navigator Global, and Platinum shares are dropping
• Why Rivian stock dropped over 25% last month
• This ASX mining share is soaring 43% in just 2 days. Here’s why
• Why is the Northern Star share price having such a positive end to the week?

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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.6% to 7,489.1 points.

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

Block Inc (ASX: SQ2)

The Block share price is down 1.5% to $168.22. This follows a poor night of trade for the payments giant’s NYSE listed shares. In addition, the tech sector is underperforming today, with the S&P/ASX All Technology Index trading only a fraction higher.

IGO Ltd (ASX: IGO)

The IGO share price is down 2% to $13.63. Investors have been selling this battery metals miner’s shares in response to a bearish broker note out of UBS. This morning the broker initiated coverage on IGO with a sell rating and $12.65 price target. It believes its shares are overvalued at the current level and fears that current sky high lithium and nickel prices are unsustainable.

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global share price is down over 6.5% to $1.63. This morning the investment company announced the completion of a $47 million placement. Navigator raised the funds at $1.55 per new share, which represents an 11.4% discount to its last close price. The company will now seek to raise a further $10 million through a share purchase plan.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price has crashed 15% to $1.90. This follows the release of the fund manager’s latest funds under management (FUM) update. According to the release, Platinum’s FUM fell 7.9% or $1.7 billion in March to $19.442 billion. This was despite only recording net outflows of $222 million and the ASX 200 rising over 6% during the month.

The post Why Block, IGO, Navigator Global, and Platinum shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Top brokers name 3 ASX shares to sell today
• Why are ASX 200 tech shares having such a dire day?
• ASX 200 midday update: Magellan jumps, tech shares tumble
• March was a lousy month for ASX BNPL shares. Here’s why

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. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

What happened

Investors don’t expect electric vehicle (EV) start-ups to be profitable for several years after commercial production begins.

One key to profitability is manufacturing at volumes that will cover fixed costs. So when EV maker Rivian Automotive (NASDAQ: RIVN) told investors in its March report for fourth-quarter 2021 results that it was reducing production guidance, investors fled. Over the full month of March, Rivian stock dropped 25.6%, according to data provided by S&P Global Market Intelligence.

That plunge has continued so far in April, with Rivian shares now down more than 40% since the beginning of March. 

So what

Though the company said it has capacity to produce as many as 50,000 of its electric vehicles this year, it said in its shareholder letter on March 10 that it only expects to make 25,000 due mainly to supply chain issues. 

More recently, in a Securities and Exchange Commission (SEC) filing dated March 31, 2022, the company added additional risks, including the conflict in Ukraine as well as fuel and energy prices, as potentially impacting its progress. The company specifically noted it has experienced impacts in “facility construction to equipment installation to vehicle component supply”.

Now what

Investors already were aware that Rivian was trying to navigate how inflation was affecting its raw material costs. On March 1, the company said it was raising prices on both its pickup trucks and SUVs, including for those that had already been ordered. After facing immediate backlash from customers who had made those reservations at a lower price, the company reversed its decision.

Rivian CEO RJ Scaringe acknowledged the mistake, stating in a letter to shareholders, “We didn’t give you enough insight into what was driving these decisions…In speaking with many of you over the last two days, I fully realize and acknowledge how upset many of you felt.”

The takeaway for investors is that the company will have to shoulder those rising costs internally for the more than 80,000 vehicles that were ordered prior to March 1. Rising costs combined with Rivian’s lower pace of production pushed many investors to sell the stock in March. 

In the first week of April, Rivian announced it produced 2,553 vehicles in the first quarter. It added that it believes it remains “well positioned” to achieve the lowered guidance of 25,000 vehicles it provided just a month prior.

That didn’t give investors any additional incentive to buy the stock, however. But with the share price down more than 60% so far in 2022, it may be close to a level that long-term investors find makes for a good time to buy. 

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

The post Why Rivian stock dropped over 25% last month appeared first on The Motley Fool Australia.

More reading

• Rivian stock soared today — is it a buy?
• Why Rivian tanked ahead of earnings after the bell

Author Howard Smith 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 Bruce Jackson.

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

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The Okapi Resources Ltd (ASX: OKR) share price is shooting the lights out after releasing some exciting news. The ASX mining share has gained 43.33% in value since the market open yesterday. The Okapi share price is currently up 16% at 42 cents after touching a high of 43.5 cents in early trade.

ASX investors responded big-time to Okapi’s announcement yesterday about a transformative acquisition in the United States that will make it “a significant player” in the US uranium market.

The company also updated ASX investors on Monday regarding approval for a separate drilling program.

All this amid news the uranium price reached its highest point in more than a decade overnight.

In short, it’s been a pretty major week for the nano-cap miner. Let’s look at the detail.

How this ASX mining share’s big week began

The first bit of news out of Okapi this week was an announcement on Monday that it has received approval from authorities in Moab, Utah, in the United States to commence an exploration drilling program at the high-grade Rattler Uranium Project.

Okapi will drill 100 shallow holes to test the extent and nature of mineralisation confirmed by recent rock sample results. The project comprises 98 unpatented federal mining claims. It includes the historical Rattlesnake open-pit mine, which operated from 1948 to 1954.

The project is located about 85km from the only operating conventional uranium mill in the US. That’s the White Mesa Uranium/Vanadium mill owned by Energy Fuels Inc (NYSEAMERICAN: UUUU).

Okapi has an option to acquire 100% of the Rattler Project. The company describes it as “a near term, low-capital development opportunity”. Drilling is expected to start in Q3 this year.

The ASX mining share’s price was virtually unmoved by the news. This is possibly because investors had already responded strongly on 10 March when Okapi released rock sample results from the site. That news sent the Okapi share price 17% higher in one day.

On Tuesday, Okapi announced a trading halt before the market open, pending an announcement.

What happened next for Okapi?

The ASX mining share resumed trading on Thursday after revealing a major acquisition in Colorado. In a statement, Okapi said the deal would turn it “into a significant player in the USA uranium market”.

Okapi announced a binding agreement to buy an option over a 51% stake in the shallow, high-grade Hansen Uranium Deposit. It’s situated in one of the most prolific uranium districts in the US – the Tallahassee Creek Uranium District.

The deal lifts Okapi’s JORC Resource at the Tallahassee Project by 81% to 49.8 million pounds of U3O8. It also increases the grade by 10% to 540ppm U3O8.

In its statement, Okapi said it was “highly accretive” for shareholders with 22.2 million pounds U3O8 at 610ppm U3O8 “for the modest upfront cost of US$500,000 which is fully funded by existing cash reserves”. Okapi also released an investor presentation on the deal.

The news thrilled ASX investors, who bid up the ASX mining share from 30 cents to 36 cents — or 20% yesterday. And it looks like the market enthusiasm is continuing today.

About Okapi Resources

Okapi has a portfolio of advanced, high-grade uranium assets in the US and Canada. Its Canadian assets are located in the world’s premier uranium district, the Athabasca Basin. The basin is home to the world’s largest and highest-grade uranium mines.

Okapi says its “clear strategy is to become a new leader in North American carbon-free nuclear energy”.

The ASX mining share has a market capitalisation of $42.15 million.

The post This ASX mining share is soaring 43% in just 2 days. Here’s why appeared first on The Motley Fool Australia.

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• Why is the Northern Star share price having such a positive end to the week?
• Who owns ANZ shares? Take a look. You might be surprised
• Jackpot! Citi tips Aristocrat share price to surge 30% higher
• Why are ASX uranium shares having such a stellar end to the week?
• If you’d bought $10,000 of BHP shares 5 years ago, here’s what you’d have now

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

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The Northern Star Resources Ltd (ASX: NST) share price is outperforming the benchmark today in a strong finish to a rather wobbly week.

Northern Star shares closed yesterday at $10.15 and are currently trading for $10.30, up 1.48%.

By comparison the S&P/ASX 200 Index (ASX: XJO) is up 0.6% today.

Why is the Northern Star share price outperforming?

It’s not just Northern Star shares posting strong gains today.

Fellow ASX 200 gold share Evolution Mining Ltd (ASX: EVN) is up 1.54% today, while Newcrest Mining Ltd (ASX: NCM) shares have gained 1.7%.

All up, the S&P/ASX All Ordinaries Gold Index (ASX: XGD), which contains ASX gold shares outside of the ASX 200, is up 1.64% at the time of writing.

Among other factors, Northern Star shares look to be getting a boost from an uptick in gold prices. An ounce of gold is currently trading for US$1,934 per troy ounce. That’s up from US$1,925 yesterday, according to data from Bloomberg.

Its shares could also be getting a lift from a positive assessment from broker Morgan Stanley.

As the Motley Fool reported yesterday, Morgan Stanley has a bullish outlook for the price of gold, and Northern Star ranks among its top two picks among ASX gold shares.

According to Morgan Stanley:

NST has the highest FCF [free cash flow] generation of our coverage and offers the most sensitivity to upside gold prices, with lowest downside due to well-priced hedges. NST also has a near-term catalyst with its brownfield expansion at KCGM.

How has Northern Star been tracking?

With gold prices on the upswing, the Northern Star share price has gained almost 10% since the opening bell of 4 January, compared to a year-to-date loss of 1.3% posted by the ASX 200.

The post Why is the Northern Star share price having such a positive end to the week? appeared first on The Motley Fool Australia.

More reading

• Yield curve inversion is bad news for ASX shares except for this sector
• 5 things to watch on the ASX 200 on Wednesday
• Why has the Northern Star (ASX:NST) share price gained 23% in 2 months?
• 5 things to watch on the ASX 200 on Monday
• Top ASX shares to buy in April 2022

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 Bruce Jackson.

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