Category: Stock Market

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.5% to 7,151.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower this morning. This follows a mixed night on Wall Street, which in late trade sees the Dow Jones up 0.3%, the S&P 500 trading flat, and the Nasdaq down 0.9%.

CSL acquisition update

The CSL Limited (ASX: CSL) share price will be on watch on Friday. This follows the release of an update on its proposed acquisition of Vifor Pharma after the market close on Thursday. According to the release, following a public tender offer, 74% of Vifor shares have been tendered. While this was short of its target, CSL has decided to waive the original 80% acceptance rate condition and declare the offer successful. This puts the acquisition on course to complete mid-2022.

Oil prices ease

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a subdued finish to the week after oil prices eased. According to Bloomberg, the WTI crude oil price is down 1.1% to US$109.48 a barrel and the Brent crude oil price is down 0.6% to US$112.28 a barrel. Oil prices hit 2008 highs before paring their gains.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price pushed higher. According to CNBC, the spot gold price is up 0.7% to US$1,935.7 an ounce. The Russia-Ukraine crisis boosted the appeal of the safe haven asset.

Xero shares given buy rating

The Xero Limited (ASX: XRO) share price remains in the buy zone according to the team at Goldman Sachs. This morning the broker retained its buy rating but trimmed its price target to $135.00. Despite the price target reduction, it still implies potential upside of 35% for investors over the next 12 months.

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

More reading

• Here are the top 10 ASX shares today
• The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next?
• Santos (ASX:STO) share price rockets to a new 52-week high. Here’s why
• Looking for ASX shares in these uncertain times? Top broker says these sectors are now ripe for the picking
• Are ASX green energy shares losing their appeal amid rising oil and gas prices?

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 CSL Ltd. and Xero. The Motley Fool Australia owns and has recommended Xero. 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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There are a lot of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

But which ETFs should you focus on? Listed below are three excellent ETFs that could be worth getting better acquainted with in March. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors exposure to the growing Asian economy through a number of the most promising tech shares in the region. This means you’ll be owning a slice of companies such as ecommerce giants Alibaba, Meituan Dianping, and Pinduoduo, as well as search engine company Baidu and WeChat owner Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF to look at is the BetaShares Crypto Innovators ETF. It could be worth considering if you’re interested in gaining indirect exposure to cryptocurrencies. BetaShares highlights that the ETF allows investors to access the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment companies, and other companies servicing crypto-markets. Coinbase, Silvergate, and Riot Blockchain are among the ETF’s holdings.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF to look at in March is the VanEck Vectors Morningstar Wide Moat ETF. This Warren Buffett inspired ETF focuses on companies with sustainable competitive advantages. This is a key feature that Mr Buffett looks for when making his investments. And given his success, it’s hard to argue against this. The ETF currently contains almost 50 attractively priced shares, including the likes of Alphabet (Google), Altria, Amazon, Boeing, Coca Cola, Intel, Kellogg Co, and Walt Disney.

The post Check out these ETFs in March appeared first on The Motley Fool Australia.

More reading

• 3 excellent ETFs for ASX investors to look at in March
• 2 popular ETFs you need to know
• 2 exciting tech ETFs for your watchlist
• 2 quality ASX shares that have been sold-off
• 2 intriguing ETFs for ASX investors to watch

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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. 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 Telstra Corporation Ltd (ASX: TLS) share price lost ground today. It came amid the company signing a new satellite partnership with OneWeb to explore low earth orbit satellite communications.

Telstra shares finished the day at $3.91, a 0.76% fall. In contrast, the S&P/ASX 200 Index (ASX: XJO) climbed 0.49% today. However, it was broadly in line with the S&P/ASX 200 Communication Services Index (ASX: XTJ), which fell 0.59%.

Let’s take a look at what is happening at the telecommunications giant.

New satellite deal

Telstra announced the new deal overnight at Mobile World Congress in Barcelona. The telco signed a non-exclusive memorandum of understanding with OneWeb.

OneWeb is a global company that currently has 428 satellites in low orbit.

Commenting on the deal, Telstra networks and IT group head Nikos Katinakis said:

Working with OneWeb could allow us to boost connectivity in hard-to-reach places across rural and regional Australia with a combination of our mobile network and OneWeb’s Low Earth Orbit (LEO) satellite technology.

It also opens the possibility of bringing high-speed, low latency connectivity from space, as well as support enterprise and small businesses across Australia and improve the resilience of our existing network.

The Telstra share price was one of the most heavily traded ASX 200 shares on the market on Thursday. More than 33,000 shares swapped hands on the market in one day. As my Foolish colleague Aaron reported, the company’s shares traded ex-dividend on Wednesday.

Meanwhile, speaking from Barcelona, Telstra CEO Andy Penn highlighted how the company is helping people impacted by the Ukraine crisis.

In the Ukraine, obviously some just some terrifying images. And I know our hearts go out to all of the people in the Ukraine, and also those with family and friends in Ukraine.

We’ve provided free calls to people in Ukraine and we are adding roaming now, and we are adding free data as well for people who are impacted here. We just want to do everything we can to support people. But it’s obviously a very concerning time.

Telstra share price snapshot

The Telstra share price has gained nearly 26% over the past year, while it has fallen 6% this year to date.

For perspective, the benchmark ASX 200 has returned nearly 5% over the past year.

Telstra has a market capitalisation of about $46 billion based on its current share price.

The post Telstra (ASX:TLS) share price in the red amid new satellite deal appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Battle for 5G: here’s why Telstra (ASX:TLS) is ruffling feathers of its rival
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• What’s with the Telstra (ASX:TLS) share price today?
• 5 things to watch on the ASX 200 on Wednesday

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 Telstra Corporation Limited. 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 Cimic Group Ltd (ASX: CIM) share price showed its resilience today. This comes after reports the company has underpaid hundreds of its workers at its Middle East operations.

At the close of trading, the engineering company’s shares were flat at $22.00 apiece.

What happened?

The Cimic share price stood firm today amid fresh allegations in an alleged wages scandal that first surfaced last year.

It involves claims the company short-changed workers, subcontractors, and banks in the United Arab Emirates, Oman, and Saudi Arabia.

According to an article published in The Age, Cimic could face criminal prosecution as it’s accused of owing $500 million.

A judicial guard appointed as administrator of Leighton Contractors Qatar (LCQ), Fatima Almass Al-Hamad, said, “the situation is a humanitarian disaster”.

In 2018, LCQ was formed following the merger of the Qatari building contractor Al Habtoor Engineering with Gulf Leighton, the CIMIC Group’s original operating company in the Gulf region. However, in 2020, the company went into receivership.

Al-Hamad said, “With no salary and no health insurance, the workers are struggling to survive and cannot support their families”.

LCQ is currently being investigated by the administrator over a number of alleged breaches of Qatari legislation.

Cimic refutes the allegations made and claims all employee entitlement payments were honoured up until its exit from the Middle East and Dubai-headquartered BIC Contracting (BICC).

Last year in February, the company signed a share purchase agreement with SALD Investment LLC. The deal saw Cimic sell its 45% non-controlling interest in BICC for “nominal” consideration.

Cimic stated it would re-focus its efforts on major markets including Australia, New Zealand, and the Asia Pacific.

Management noted that since February 2021, around 40 people (equivalent to 2%) remain unpaid in the UAE and Saudi Arabia. Payment is expected soon, as soon as settlements are reached between BICC and the employees.

Cimic share price snapshot

Over the last 12 months, the Cimic share price has gained roughly 10%. It is also up 30% year to date.

The company’s shares reached a 52-week high of $22.42 last month following a takeover approach by Hochtief Australia.

Cimic commands a market capitalisation of close to $6.85 billion at today’s prices.

The post Cimic (ASX:CIM) share price holds ground amid ‘humanitarian disaster’ claims. Here’s why appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in February
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher
• ASX 200 (ASX:XJO) midday update: Appen and Life360 crushed, Flight Centre posts $188m loss

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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Today, the S&P/ASX 200 Index (ASX: XJO) solidified another green day backed by strength in the energy and mining sectors. At the end of the session, the benchmark index finished 0.49% higher at 7,151.4 points.

Thursday ended up being a great day for investors in mining and energy companies. Both sectors have been pushing to the upside amid sanctions imposed on Russia. Meanwhile, consumer staples let down the index with its 2.1% fall today. Coles Group Ltd (ASX: COL) dragged the sector lower with it trading ex-dividend throughout the session.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Yancoal Australia Ltd (ASX: YAL) was the biggest gainer today. Shares in the coal-producing company gained another 10.98% today after posting an impressive gain yesterday. Record high coal prices — over US$400 per tonne — have put steam under this company’s wings recently. Find out more about Yancoal Australia here.

The next biggest gaining ASX share today was Whitehaven Coal Ltd (ASX: WHC). Yet another coal producer hitting 52-week highs on Thursday — Whitehaven Coal was pushed 10.62% above its previous closing price. Uncover the latest Whitehaven Coal details here.

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

ASX-listed company	Share price	Price change
Yancoal Australia Ltd (ASX: YAL)	$4.75	10.98%
Whitehaven Coal Ltd (ASX: WHC)	$3.96	10.62%
AVZ Minerals Ltd (ASX: AVZ)	$0.945	8.00%
Liontown Resources Ltd (ASX: LTR)	$1.615	6.95%
Pilbara Minerals Ltd (ASX: PLS)	$2.96	5.34%
Nickel Mines Ltd (ASX: NIC)	$1.63	5.16%
OZ Minerals Ltd (ASX: OZL)	$27.09	5.04%
Beach Energy Ltd (ASX: BPT)	$1.68	4.67%
IGO Ltd (ASX: IGO)	$12.31	4.41%
Fortescue Metals Group Ltd (ASX: FMG)	$19.37	4.20%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Aussie coal is in hot demand, and these ASX coal shares are booming
• Why IGO, Lake Resources, Talga, and Whitehaven Coal shares are charging higher
• Are ASX green energy shares losing their appeal amid rising oil and gas prices?
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded

Motley Fool contributor Mitchell Lawler 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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During times of uncertainty, volatility and market malaise, many ASX investors feel the need to sell out of some, or even all, of their ASX share. How do we know this? Because if a share market is falling, it usually means there are more sellers than buyers in the market. That’s how the laws of supply and demand play out on a stock exchange. 

But this might not always be the best move for an investor. After all, the legendary billionaire stock picker Warren Buffett is famous for his oft-repeated mantra of ‘be greedy when others are fearful’. And history is full of examples that show that selling when the market tanks is usually not the soundest of moves. For example, it didn’t take too long for an investor that cashed out the shares back in March of 2020 to feel very silly indeed. 

But of course, that wisdom is only available in hindsight. And it is certainly easier said than done. Over 2022 so far, we have seen a lot of share market volatility. From fears over inflation and rising interest rates to the ongoing war in Ukraine, there has been a lot of negative news. And judging by the gyrations we have seen in the markets, there has been a lot of selling too. 

Fear and greed

So have you considered selling (or have sold) your ASX shares at the wrong time out of fear?

Geroge Wong of Kauri Asset Management, says that despite the dread that volatility causes, there are good reasons why you should avoid acting impulsively. Writing for Livewire, here’s some of what Mr Wong had to say:

Humans have a tendency to be scared during times of uncertainty, especially when it comes to things that we cannot control. A falling market is just one example. This is a phenomenon that is in many respects conditioned into us as part of the fight or flight response… It was evident thousands of years ago in our ancestors, and it is still on show today…

In the minds of many, it is better to make a decision to try to do something to reduce our fear. However, that often might not be the best course of action given the emotions tied to those decisions and the general tendency for the market to climb higher over time.

We never ‘have to’ do anything, including selling shares

Wong calls this “decision” an example of ‘action bias’ – the need to do something. If markets are doing something dramatic, then many investors feel they need to match that dramatic action. Perhaps by selling their shares. Or even by avoiding buying quality shares when they are ‘on sale’. 

He even cites Buffett’s example:

We should know from some of the most-successful investors of all time, including Warren Buffett, the buy-and-hold strategy is a proven approach to do well in the market. You don’t need to trade just for the sake of trading, and if you are forcing it, something is likely awry.

Concluding, Wong states that keeping one’s eye on our own behaviour can be one of the best paths to long-term success in investing. Here’s some of what he finished with: 

While a volatile market can be a confronting challenge for investors to navigate, we can’t let our fear dictate the decisions we make, nor the actions we take…

No matter your investing style, if you allow fear and action bias to have an influence over your mindset, you are no longer investing rationally but rather, emotionally… Remember, there is no need to be active in the market just for the sake of it. Patience and discipline are arguably the most fundamental mechanisms to combat action bias and deliver consistent returns over time.

Wise words indeed. And some points that we arguably all should keep in mind during these confronting and intimidating times. 

The post Are you selling your ASX shares at the wrong time out of fear? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Game on! PointsBet (ASX:PBH) share price rebounds 18% on Thursday
• ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week?
• 2 ASX 200 financial shares that hit 52-week lows on Thursday
• A2 Milk (ASX:A2M) share price slips amid ‘long-term implications’ of flooding

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 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 PointsBet Holdings Ltd (ASX: PBH) share price spiralled upwards today, prompting ASX investors to pay attention.

At the close, shares in the sports betting company finished 18.2% higher at $4.35. More than 5.3 million shares exchanged hands during the course of Thursday’s session.

Oddly enough, investors are piling into the company today without any news from PointsBet. This leaves us to look back at what recent events could be impacting the PointsBet share price today.

Broker rating that’s hard to grapple with

In light of the lack of new information, investors are forced to revert back to the latest news on PointsBet for context. At this point in time, that takes us back to a broker note from Goldman Sachs, which was released yesterday.

The analysts at Goldman decided to reduce their price target on the sports betting company by 32% to $6.74. Clearly, shareholders were shaken by the revision, prompting the PointsBet share price to tumble 11.8%.

While the broker maintained its buy rating, it explained the new price target reflected a derating of peer multiples and lower earnings estimates.

Perhaps market participants have found solace in the broker’s retained buy rating? Notably, Goldman mentioned that both its medium-term and long-term forecasts for PointsBet’s EBITDA remained unchanged.

Last week, PointsBet posted its half-year earnings. Shareholders were tasked with deciphering whether it was a positive result overall or not.

Net revenue for the half increased by 27% year on year to $97.6 million. Meanwhile, statutory EBITDA losses deepened to $130.6 million versus the $71.3 million in the prior corresponding period.

PointsBet share price takes an ‘L’

The PointsBet share price appears to be caught up in a sector-wide sell-off. Competitors abroad and locally have suffered in a similar fashion during the past year.

On the ASX, Bluebet Holdings Ltd (ASX: BBT) is another bookie struggling with a 53% share price fall. Likewise, US-listed DraftKings Inc (NASDAQ: DKNG) has plunged 65% during the 12-month timeframe.

Yet, the PointsBet share price takes the cake with a 67% landslide.

The post Game on! PointsBet (ASX:PBH) share price rebounds 18% on Thursday appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded
• Why Domino’s, Magellan, PointsBet, and Zip shares are falling
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• Why is the PointsBet (ASX:PBH) share price sinking 13% today?
• These were the worst performing ASX 200 shares in February

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Pointsbet Holdings 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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ASX 200 insurance shares are taking a battering this week amid devastating floods in Queensland and New South Wales.

Three S&P/ASX 200 Index (ASX: XJO) shares facing thousands of insurance claims are QBE Insurance Group Ltd (ASX: QBE), Insurance Australia Group Ltd (ASX: IAG), and Suncorp Group Ltd (ASX: SUN).

Let’s take a look at how the floods could impact these three shares.

Insurance claims sky rocket

A flooding crisis is sadly devastating two eastern states in Australia. Half a million people are currently under evacuation orders in New South Wales, Nine News reports.

S&P Global Ratings predicts the damage bill of the floods could be between $1 and $2 billion, Insurance News reported.

More than 48,200 flooding insurance claims are in the works, Insurance Council of Australia figures show. Most of these are in Queensland, however, NSW claims are expected to skyrocket in the next few days.

QBE has boosted its team helping flood victims lodge claims. The company said:

We’re working hard to support our customers affected by the severe weather and flooding across Australia’s East Coast, which is causing devastating damage to homes, vehicles and businesses.

Insurance Australia is being inundated with thousands of claims. The insurer expects the total number to rise as the event unfolds. In a release to the market on Tuesday, the company reiterated it has a maximum event retention of $95 million. This is the maximum loss the insurer can be exposed to in an extreme event.

Suncorp predicts the maximum retained cost from the floods will be about $75 million. In a statement to the market on Monday, the company said:

The full year outlook for natural disaster hazard costs remains around $1.075 billion.

The QBE share price has descended 7.3% since market close last Friday, including a 0.82% fall today. The IAG share price edged 0.68% higher today but has tumbled 7.5% this week. Meanwhile, Suncorp shares are down 4.7% since Friday after losing 1.12% today.

Share price recap

The QBE share price has surged 18% in the past year, while Suncorp has climbed 4%. Meanwhile, IAG has fallen 9% in the last 52 weeks. For perspective, the benchmark ASX 200 has returned almost 5% in the past year.

In the year to date, QBE and Suncorp shares have fallen around 4%, while the IAG share price has climbed 4%.

The post ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week? appeared first on The Motley Fool Australia.

More reading

• IAG (ASX:IAG) share price slumps amid $300m Greensill hit
• Why is the IAG (ASX:IAG) share price sliding this week?
• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• Here’s why the Suncorp (ASX:SUN) share price is slipping today
• 4 ASX shares that love rising interest rates: report

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 Insurance Australia Group Limited. 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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Thursday proved to be a good day for many shares on the market, with the S&P/ASX 200 Index (ASX: XJO) gaining 0.64% and the All Ordinaries Index (ASX: XAO) finishing 0.69% higher.

And while the S&P/ASX 200 Financials Index (ASX: XFJ) also finished in the green – having gained 0.13% – some of its constituents flopped to long forgotten lows.

Let’s take a look at 2 ASX 200 financial shares that tumbled to their lowest in more than 12 months.

These ASX 200 financial shares fell to 52-week lows today

Zip Co Ltd (ASX: Z1P)

The Zip share price plunged to yet another 52-week low on Thursday as multiple brokers posted bearish outlooks for the stock.

As The Motley Fool Australia reported today, UBS, Citi, and Macquarie are all warning the stock could slide.

While UBS slapped the ASX 200 company’s shares with a $1 price target and a ‘sell’ rating, Macquarie was slightly more optimistic, hitting it with a $1.85 price target.

Meanwhile, Citi analysts don’t believe the company’s acquisition of Sezzle Inc (ASX: SZL) will bring the extent of benefits the buy now, pay later (BNPL) providers predict.

The Zip share price fell to a low of $1.87 today. That’s 4% lower than where it closed Wednesday’s session.   

Pendal Group Ltd (ASX: PDL)

There’s been no such clear cut happening to explain the fall of the Pendal share price today.

The investment management company’s stock slumped 1.7% in intraday trade to reach a new 52-week low of $4.42. That’s 50% lower than the 52-week high it reached in September.

It’s been a rough few months on the market for the ASX 200 share.

Its stock tumbled 10% in mid-October when the company released a funds under management update, detailing a $2.3 billion outflow.

It slumped another 16% in January on the back of another funds under management update, noting a $6.8 billion outflow.

The post 2 ASX 200 financial shares that hit 52-week lows on Thursday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Why Coles, Dusk, Monadelphous, and Zip shares are dropping today
• Zip (ASX:Z1P) shares have tumbled 14% since the merger news. Top brokers offer possible reasons why
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded
• Why Domino’s, Magellan, PointsBet, and Zip shares are falling

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. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The A2 Milk Company Ltd (ASX: A2M) share price is falling today amid comments from the company regarding implications of the New South Wales flooding.

Recovery could take months, if not years, a spokesperson for A2 Milk told The Australian today.

At the time of writing, the A2 Milk share price is down 0.91% at $5.45. To compare, the wider All Ordinaries Index (ASX: XAO) is up 0.72%.

Let’s take a look at what the company said.

A2 Milk products impacted by Queensland flooding

Chances are, you’ve already heard and seen images of the flooding in NSW — deemed the worst the state has ever seen.

And while many residents are evacuating, A2 Milk’s four farm sources in Lismore are currently all underwater. Thankfully, a spokesman for the dairy company told The Australian that all four of its suppliers “reported they are all safe and stock has been accounted for”.

However, there are serious ramifications for the sites themselves. These include “flooded paddocks, severe pasture damage, and rising floodwaters, which have cut off roads in low-lying areas, restricting access for milk tankers”, the A2 spokesman said.

A2 also warned there could be delays collecting milk from farms. Cows are milked twice a day and if milk cannot be collected or stored, it goes to waste.

It all adds up to a long recovery process, according to the spokesman:

The clean-up process on pastures can take months, sometimes years, before cropping or grazing can resume … our farmers are an important part of the A2 Milk Company, and our farm services team will continue to provide support to our farming families during these challenging times.

A2 Milk share price snapshot

The A2 Milk share price has dropped by 42% in the last 12 months. It fell from a high of $9.68 a year ago to a low of $4.97 last month.

Despite today’s news, Bell Potter still considers A2 Milk as a buy, anticipating an earnings rebound.

The company has a market capitalisation of $4.09 billion, a last reported revenue of $1.2 billion, and a price-to-earnings ratio (P/E) of 218.

The post A2 Milk (ASX:A2M) share price slips amid ‘long-term implications’ of flooding appeared first on The Motley Fool Australia.

More reading

• Why this top broker rates these ASX shares as buys in March
• What’s next for the A2 Milk (ASX:A2M) share price?
• Why the A2 Milk (ASX:A2M) share price can climb 40%: broker
• Top brokers name 3 ASX shares to buy next week
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor Alice de Bruin 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 A2 Milk. 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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