Category: Stock Market

It seems the S&P/ASX 200 Index (ASX: XJO) is continuing to recover from its recent slump today. At the time of writing, the ASX 200 is up 0.74% at 7,023 points.

So before we get the champagne ready, let’s dive a little deeper into the markets and check out the ASX 200 shares that are topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Tuesday

BHP Group Ltd (ASX: BHP)

The Big Australian is our first share experiencing high trading volumes today. We have seen an impressive 12.31 million BHP shares bought and sold so far this Tuesday. This ASX 200 mining giant has taken a nasty tumble today, currently down by 2.91% at $45.00 a share. However, it’s perhaps more likely that BHP’s ‘unification’ is what is really behind this trading volume. Just yesterday, BHP wound up its London share listing and now only calls the ASX home. As such, many LSX-issued shares are finding their way to the ASX. This is probably influencing this trading volume we’re seeing.

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is next up today. So far, a hefty 13.44 million Telstra shares have found a new owner this Tuesday. There are no fresh developments out of this company recently so we can probably assume that this high volume is the result of the movements in the Telstra share price itself.

Telstra shares have had something of a volatile day. The telco is currently asking $3.95 a share, up 0.77% for the day. However, the share price has gone as high as $3.97 and as low as $3.90 during the day thus far. It’s this bouncing around that is the likely cause of the trading volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is our final share of the day today. So far this Tuesday, a sizeable 17.84 Pilbara shares have traded on the markets. We can probably point to the movements of the Pilbara share price today to explain this volume once again. The Pilbara share price is presently up a robust 1.72% so far at $3.25 a share.

But earlier this morning, this lithium company was up as high as $3.40. As my Fool colleague Bernd covered today, ASX lithium shares like Pilbara are in focus right now amid warnings of a supply squeeze for the metal. This could be why Pilbara shares are topping the ASX 200’s volume charts as we speak.

The post Here are the 3 most heavily traded ASX 200 shares this Tuesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• ASX lithium shares in focus amid potential supply squeeze
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• Buy this ASX share with 48% upside: expert
• These were the worst performing ASX 200 shares in January

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 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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Key points

• Block shares are leaping on the ASX in Tuesday’s session
• The Scheme of Arrangement between Afterpay and Block has officially been implmented
• First integration of Afterpay’s buy now, pay later offering made in Block’s seller ecosystem
• New board appointment of former Afterpay director made

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The Block Inc (ASX: SQ2) share price is enjoying a positive session today as it officially takes Afterpay under its wing.

At the time of writing, shares in the US-based financial services company are up 8.11% to $174.50. In turn, Block shares are now trading at their highest level since hitting the ASX.

So, what exactly does it all mean for the two unified companies and their shareholders?

Waking up to Block shares instead of Afterpay

Today, former Afterpay shareholders will have noticed their shares in the buy now, pay later (BNPL) company are not being displayed in their portfolio. Instead, investors will find Block shares in their absence following the successful Scheme of Arrangement implementation.

In short, Block has now officially acquired all the issued Afterpay shares. That means former shareholders of the BNPL company should now be staring at 0.375 Block shares for every Afterpay share that was previously held.

The milestone draws a close to what has been a nearly six-month-long endeavour. Furthermore, during this time the Block share price has eroded by 55% — taking the value of Afterpay down with it.

However, with the formalities now behind it, the company is putting the new acquisition to work. According to the release, the US fintech company launched its first integration of Afterpay in the United States and Australia. Now Block sellers using Square Online can leverage the installment option for their e-commerce offering.

Commenting on the implementation, Block co-founder and CEO Jack Dorsey said:

We’re excited to welcome the Afterpay team to Block and are eager to get to work. Together, we’ll deliver even better products and services for sellers and consumers while staying true to our shared purpose of making the financial system more fair and accessible to everyone.

What else?

Alongside the acquisition news, Block announced the appointment of former Afterpay director Sharon Rothstein to the board of directors.

In acknowledging the appointment, Rothstein said:

I’ve long admired Block’s purpose to make the financial system more accessible and inclusive. I’m honoured and excited to bring my global experiences to the diverse expertise of this Board.

Lastly, for new holders of Block shares, the company is set to report its fourth-quarter earnings on 24 February 2022.

The post Afterpay takes a bow, officially uniting with Block (ASX:SQ2) shares on the ASX appeared first on The Motley Fool Australia.

More reading

• Trouble in tech land may not be the only reason Block (ASX:SQ2) shares have dived 17% since listing
• What happened to ASX buy now, pay later shares today?
• 5 things to watch on the ASX 200 on Thursday
• What happened to ASX tech shares today?
• There’s a new kid on the Block (ASX:SQ2), but how does it make money?

Motley Fool contributor Mitchell Lawler owns Block, Inc shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

ARB Corporation Limited (ASX: ARB)

According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted their price target on this 4×4 parts manufacturer’s shares to $40.60. This follows the release of its half year trading update. Credit Suisse was pleasantly surprised to see ARB outperform its estimates during the first half of FY 2022. This has led to the broker upgrading its full year estimates and valuation accordingly. However, it still believes its shares are overvalued at the current level, particularly given its concerns that ARB’s margins are unsustainable. The ARB share price is trading at $46.94 on Tuesday.

Brambles Limited (ASX: BXB)

A note out of Morgan Stanley reveals that its analysts have downgraded this logistics solutions company’s shares to an underweight rating and cut the price target on them to $9.30. Its analysts made the move due to concerns over current supply chain challenges which it fears could be weighing on Brambles’ performance. The Brambles share price is trading at $9.50 on Tuesday afternoon.

IGO Ltd (ASX: IGO)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $9.70 price target on this battery materials miner’s shares. This follows the release of its second quarter update which revealed greater than expected capital expenditures. In light of this and its current valuation, the broker appears to see no reason to change its recommendation at this point. The IGO share price is currently fetching $11.73.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• ARB Corporation (ASX:ARB) share price goes into overdrive, up 9% on revenue surge
• Why Airtasker, ARB, Bubs, and Sezzle shares are pushing higher
• IGO (ASX:IGO) share price lower as revenue slides 18%
• Leading fund manager says these blue-chip ASX shares are buys right now
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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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Key points

• The Elmo share price is up more than 9% today
• The company reported 35% organic growth in H1 FY22
• Revenue increased by 41% on the first half of FY21

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The ELMO Software Ltd (ASX: ELO) share price is soaring today on the back of the company’s half-year financial results.

In afternoon trade, the business software company’s shares are trading at $4.22, up 9.04% at the time of writing. The share price reached as high as $4.38 in early trading. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is 0.87% higher.

 Let’s take a look at what the company reported today.

Elmo share price escalates on half-year results

Some highlights from Elmo’s H1 FY22 report include:

• $43.1 million revenue, up 41% from H1 FY21
• $98.3 million annualised recurring revenue (ARR)
• 35% organic growth compared to H1 FY21
• EBITDA of $0.3 million, up $0.9 million from H1 FY21

What else happened in the half?

Elmo’s total cash receipts in the first half of the financial year were $56 million. This represents a 63% increase on the first half of FY21.

The company provides cloud-based software solutions for HR, payroll, and rostering in Australia, New Zealand, and the UK.

In the past 12 months, the company has topped $101 million in cash receipts. This is a 57% rise on the first half of the previous financial year. Since H1 2018, the company’s cash received has increased from $21.2 million to $101.4 million. That’s a 378% improvement in four years.

The company’s cash balance finished at $58.4 million as at 31 December 2021. The figure is nearly 29% less than H1 FY21 when Elmo Software held $81.9 million. However, the company says its operating monthly cash burn fell by 36% compared to the first half of 2021.

What’s next for Elmo?

Elmo has improved its guidance for FY22 to between $107 and $113 million ARR. This represents 28% to 35% year on year growth.

Meanwhile, the company predicts its revenue to increase by 32% to 39% year on year to between $91 and $96 million. The company’s expected EBITDA is between $1.5 to 6.5 million.

My Foolish colleague Tristan reported recently that Morgan Stanley rates the share price as a buy with a price target of $7.80. That’s around 84% more than the share price at the time of writing.

Share price recap

The Elmo share price has shed 36% in the past year. It’s fallen 7% in the past month alone but it has recovered more than 6% in the past week.

Meanwhile, the broader ASX 200 Index has returned nearly 5% over the past 12 months.

The company has a market capitalisation of about $377 million based on its current share price.

The post Here’s why the Elmo (ASX:ELO) share price is surging 9% today appeared first on The Motley Fool Australia.

More reading

• Why are these beaten-up small cap ASX tech shares seeing 52-week lows today?
• 2 top ASX growth shares with compelling potential
• 2 ASX shares that now have 80% upside: analysts
• 3 small cap ASX shares to watch in January

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Elmo Software. The Motley Fool Australia owns and has recommended Elmo Software. 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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Key points

• The Bendigo Bank share price is in the green, having gained 1.6% to trade at $8.72
• Its gain come amid news the bank is shaking things up, merging its rural and business banking divisions
• The unification will also bring about a number of executive changes

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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broader market on Tuesday amid news that the bank is combining its business and rural divisions to fast-track growth.

As part of the unification, Bendigo Bank is shaking up its executive team, with a new role to be created and new titles handed out.

At the time of writing, the Bendigo Bank share price is $8.72, 1.63% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.2% while the All Ordinaries Index (ASX: XAO) has gained 0.28%. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) is recording a 1.7% surge.

Let’s take a closer look at today’s news from the ASX 200 bank.

Bendigo Bank share price gains amid major division shake up

The Bendigo Bank share price is in the green after it announced it will be combining its Rural Bank and Business Bank businesses into one division.

Following the merger, the two businesses will retain their individual brands and will be led by a chief customer officer for the business and agribusiness division – a position the bank is on the hunt to fill.

The change will allow the bank to scale up its services and invest in its future. Bendigo Bank managing director Marnie Baker commented on the changes, saying:

Both the Rural Bank and Business Banking businesses have been positive growth and transformation stories for us. Bringing the businesses together will help us fast track our transformation agenda and achieve our goal of becoming a bigger, better, and stronger bank for our customers and the communities we serve.

As part of the move, Business Bank executive Bruce Speirs has been appointed to the new role of chief operating officer.

Meanwhile, chief customer officer of consumer banking Richard Fennell will take on the role of acting chief customer officer of business and agribusiness.

Rural Bank CEO Alexandra Gartmann has decided to leave her 6-year tenure as of today.

The bank is expected to release its results for the first half of financial year 2022 on 14 February.

ASX 200 banks surging higher on Tuesday

The Bendigo Bank share price is far from alone in its gains today. In fact, nearly all its ASX 200 financials peers are in the green on Tuesday.

The AMP Ltd (ASX: AMP) is the best performing banking stock today, boasting a 5% gain.

Meanwhile, the Bank of Queensland Limited (ASX: BOQ) share price is outperforming that of Bendigo Bank, having increased 2.2%.

Of the big 4, National Australia Bank Ltd. (ASX: NAB) is leading with a 2.6% gain.

Those of Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are up 1.1%, 0.9%, and 0.8% respectively.

And if one is to count Macquarie Group Ltd (ASX: MQG) as a big bank – which, by valuation, it is – it has bested its peers with its 3.2% boost.

The post What’s boosting the Bendigo Bank (ASX:BEN) share price today? appeared first on The Motley Fool Australia.

More reading

• Can the Bendigo Bank (ASX:BEN) 8% dividend yield make up for its share price correction?
• What’s happening to ASX bank shares today?
• The Bendigo Bank (ASX:BEN) dividend is smashing the big four right now
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• How the Bendigo Bank (ASX:BEN) share price went in 2021

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 owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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Key points

• Marley Spoon share price up 9% on strong revenue growth
• US and Aussie markets post strongest growth
• More supply chain volatility expected

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The Marley Spoon AG (ASX: MMM) share price is up 8.5% in afternoon trade to 70 cents per share.

Shares in the global subscription-based meal kit provider leapt as high as 75 cents in morning trade as ASX investors digested the company’s strong results for Q4 2021, for the quarter ending on 31 December.

Marley Spoon share price lifts on 24% quarterly revenue growth

• Net revenue for FY21 of 322 million euros up 27% year-on-year
• Fourth quarter net revenue of 85 million euros up 24% year-on-year
• Q4 Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of 4.8 million euros
• Year-end cash balance of 39 million euros

(1 euro = AU$1.59 at time of writing.)

What else happened during the quarter?

The 322 million euros in net revenue for FY21 was within the company’s guidance range. The boost in revenue resulted in a 2-year Compound Annual Growth Rate (CAGR) of 56%.

Marley Spoon reported that Australia and the United States drove the fourth quarter revenue growth, with revenue in the Aussie market up 52% and in the US up 15%. The company attributed this to its broader range of product offerings and continued investment into increasing its subscriber base.

Shortly after the end of the reporting quarter, Marley Spoon completed its acquisition of Chefgood Pty Ltd in Australia. The acquisition is intended to expand the company’s customer choice and increase its average revenue per user (ARPU).

What did management say?

Commenting on the results, Marley Spoon’s CEO, Fabian Siegel said:

We are particularly pleased with our team’s strong operating performance leading to the highest quarterly contribution margin of 31% in a challenging operating environment. The contribution margin performance was aided by successful price increases, demonstrating the pricing power our brands enjoy.

We also improved our marketing efficiency allowing us to acquire more customers at costs in-line with previous years despite significant CPM inflation. The contribution margin expansion and disciplined investment in marketing led to an improvement in Operating EBITDA versus previous quarters, landing at €(4.8m), in line with our expectations.

What’s next?

In its guidance for the full 2022 calendar year, Marley Spoon said it will “focus on continued growth within its current balance sheet capacity”.

The company expects customer behaviour to remain volatile along with supply chain disruptions and inflation. Guidance (excluding the contribution of Chefgood) was reported as:

• Mid-to-high teens year-on-year net revenue organic growth (plus full year contribution from Chefgood)
• Contribution Margin in-line with 2021
• Operating EBITDA better than €(15m)

Marley Spoon share price snapshot

The Marley Spoon share price is down 28% so far in 2022. That compares to a loss of 8% posted by the All Ordinaries Index (ASX: XAO).

The post Marley Spoon (ASX:MMM) share price leaps 9% today on revenue growth appeared first on The Motley Fool Australia.

More reading

• Why Boral, Carsales, Credit Corp, and PointsBet shares are racing higher
• Why is the Macquarie (ASX:MQG) share price smashing the other big banks today?
• AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP
• How will ASX shares perform this earnings season? Experts explain what to look for
• Why is the Audio Pixels (ASX:AKP) share price booming 14% today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Marley Spoon AG. The Motley Fool Australia has recommended Marley Spoon AG. 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 on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the month with a gain. At the time of writing, the benchmark index is up 0.3% to 6,989.3 points.

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

Boral Limited (ASX: BLD)

The Boral share price is up 6% to $6.24. This morning the building materials company announced a multibillion-dollar capital return for shareholders. According to the release, Boral intends to return $3 billion of surplus capital to shareholders. This will be via a $2.65 per share capital reduction and an unfranked 7 cents per share dividend.

Carsales.Com Ltd (ASX: CAR)

The Carsales share price is up 2.5% to $22.53. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has upgraded the auto listings company’s shares to an outperform rating with a $25.80 price target. Credit Suisse is expecting a solid result from Carsales later this month.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 3.5% to $35.07. This follows the release of its half year results which revealed a first half profit well ahead of expectations. Credit Corp posted an 8% increase in both first half revenue and net profit after tax to $203.9 million and $45.7 million, respectively. The latter compares to the market consensus estimate of $42.7 million.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 6% to $5.15. Investors have been buying this sports betting company’s shares following a strong night of trade for its peers on Wall Street and in response to a bullish broker note out of Goldman Sachs. According to the note, the broker has retained its buy rating but trimmed its price target on the company’s shares to $9.97. This target is almost double the current share price.

The post Why Boral, Carsales, Credit Corp, and PointsBet shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Broker says PointsBet (ASX:PBH) share price could have 90% upside
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• Boral (ASX:BLD) share price takes off amid $3b return of capital
• Credit Corp (ASX:CCP) share price up 5% after smashing first half profit expectations
• These were the worst performing ASX 200 shares in January

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and carsales.com 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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Key points

• The Sparc Technologies share price is halted at $1.65 today
• It could potentially remain frozen until the company announces a new joint venture
• The trading halt follows the release of the company’s quarterly report yesterday

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The Sparc Technologies Ltd (ASX: SPN) share price has been put into the freezer today as the company prepares to release an announcement to the ASX.

While the company hasn’t let many details on its forthcoming announcement slip, we do know it pertains to a “material joint venture”.

Currently, the Sparc Technologies share price is halted at its previous close of $1.65.

Let’s take a closer look at the graphene-focused technology company’s trading halt.

Why is the Sparc Technologies share price frozen?

The Sparc Technologies share price has been halted until either Thursday morning or when the company releases its news to the market, whichever comes sooner.

Interestingly, it hasn’t been long since Sparc Technologies’ previous trading halt.

In October, the company broke a freeze with news of a joint venture with the University of Adelaide. The pair are working to create ‘ultra-green’ hydrogen – made using solar power.

Today’s trading halt also follows the release of the company’s report for the December quarter, which dropped yesterday. Its release pushed the Sparc Technologies share price up almost 15% on Monday.

Within the report, the company recapped previously announced news of its graphene-based additives. In December, its ecosparc additives were found to perform up to 40% better than other anticorrosive epoxy coatings.

It also noted that, as of 31 December, the company had around $3.4 million in cash.

Looking to the current quarter, the company is planning to launch its ecosparc graphene coating. It will also be advancing its bio-medical sensor project.

The company is also applying product development and testing to its composites and concrete activities.

Excitingly, Sparc Technologies might have hinted at potential partnerships yesterday. It stated it plans to continue “industry partner discussions” regarding the sensor project.

It also said, “[Sparc] will welcome any opportunity to work collaboratively with customers operating within the industrial materials sector.”

Finally, it noted it’s aiming to “establish further agreements with institutions” to support its activities and accelerate the commercialisation of its coatings, composites, and concrete products.

The post Why is the Sparc Technologies (ASX:SPN) share price on ice today? appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX hydrogen shares of 2021

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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Key points

• The Macquarie share price is outstripping the other ASX banks today
• While many of the big four are strugglign to break even, Macquarie shares are up 3%
• Could interest rates be a factor here?

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The S&P/ASX 200 Index (ASX: XJO) is having a decent day of trading on the markets so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 0.33% after an initial dip into negative territory this morning. But that’s nothing compared to the Macquarie Group Ltd (ASX: MQG) share price.

Macquarie shares are currently up a very pleasing 2.76% at $188.68 each. That’s not only a vast outperformance of the ASX 200, but also of Macquarie’s peers in the ASX banking sector.

In contrast to Macquaire’s near-3% rise, Commonwealth Bank of Australia (ASX: CBA) shares are currently up 0.50% at $94.21.  

National Australia Bank Ltd. (ASX: NAB) shares are doing a little better, up 2.03% at $27.68 a share.

Westpac Banking Corp (ASX: WBC) shares have gained 0.67% at $20.44 each.

And the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has gained 0.30% at $26.61 a share. 

So how come Macquarie shares are smashing the other ASX banks so far this Tuesday?

Well, unfortunately, we can’t say for sure. There hasn’t been any major news or announcements out of Macquarie today. Or indeed for a couple of weeks.

But it’s possible that today’s moves have something to do with the upcoming meeting of the Reserve Bank of Australia (RBA). The RBA is meeting today, as it does on the first Tuesday of every month. But this meeting is one that is a little more anticipated than most. Investors are keeping an eagle eye on the central bank as it deliberates over its monetary policy outlook.

Could the RBA meeting be pushing Macquarie shares higher today?

Until now, the RBA has stuck to its guns over interest rates and inflation, describing the prospects of an interest rate hike in 2022 as remote. However, over the past month, the inflation outlook in both Australia and around the world has changed. Higher than expected inflation numbers in the Australian economy have many experts predicting that the RBA will be forced to change up its expectations and entertain the possibility of at least one rate rise this year. Or at least end its quantitative easing (QE) bond buying programs.

Interest rates have a profound influence in all financial markets, given the effect they have on most asset classes. Higher rates mean it is more attractive to park cash in savings accounts and other ‘safe’ investments rather than riskier assets like shares. Additionally, higher rates increase the cost of borrowing money, which can have major implications for many companies (such as those with higher debt burdens) listed on the share market.

So it’s not clear why investors are pushing up Macquarie shares today over the other big four banks. Perhaps this is a bet that whatever the RBA tells us this afternoon will be more beneficial to Macquarie than other ASX shares like the major banks. Or perhaps investors are just finding a renewed interest in Macquarie. After all, this is a company that has sold off rather heavily over the past month or so. Even after today’s rally, the Macquarie share price remains down 10.8% year to date. 

Whatever the reason for today’s rally, it will no doubt be welcomed by Macquaire shareholders.

At the current Macquaire share price, this ASX 200 bank has a market capitalisation of $72.39 billion, with a trailing dividend yield of 3.22%. 

The post Why is the Macquarie (ASX:MQG) share price smashing the other big banks today? appeared first on The Motley Fool Australia.

More reading

• How will ASX shares perform this earnings season? Experts explain what to look for
• Own Westpac (ASX:WBC) shares? Outlook ‘highly uncertain’ says this broker
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• This broker just upgraded the ANZ (ASX:ANZ) share price to a buy. Here’s why
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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Key points

• The AGL share price is in the green today, up 0.7% at the time of writing
• The company is facing renewed calls from the health sector to shut down its coal-powered stations
• AGL will release its financial results on February 10

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The AGL Energy Ltd (ASX: AGL) share price is clinging to the green today despite pressure from healthcare professionals to close its coal-fired power stations.

The energy company’s share price is trading at $7.15 at the time of writing, a 0.7% gain. Earlier in the session, AGL shares traded as high as $7.17.

Let’s take a look at what’s happening at AGL Energy.

Coal focus

The AGL share price is clinging to the green today after a stellar month. The company’s share price has increased 16.29% since market close on December 31.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.31% today but has soared more than 7% in the past month.

AGL is facing renewed pressure from healthcare workers to exit the coal business, according to reports in The Age newspaper. A letter signed by 600 healthcare workers and 25 health organisations is calling on AGL to close its coal generators by 2030.

An AGL spokesperson told the publication the company respected their views on the need for action. The company spokesperson said:

The exit of thermal generation must happen responsibly and via a co-ordinated plan across governments, industry, regulators and the community.

We believe our thermal generation assets have an important role to play supporting providing reliable and affordable energy to Australians as the energy industry decarbonises.

The price of thermal coal fell 2.15% in the United States in the past 24 hours to US$222.75 per tonne. However, it is up 56% in the past month.

AGL’s Loy Yang power station, near Traralgon in south-east Victoria, is fuelled by coal and produces about 30% of Victoria’s power. Meanwhile, AGL Macquarie’s power generation network also relies on coal and produces 35% of New South Wales’ electricity.

As my Foolish colleague Brooke reported in January, the company is working on several green initiatives. AGL is involved in the Hydrogen Energy Supply Chain Project producing clean liquid hydrogen from the Latrobe Valley in Victoria to Kobe in Japan.

AGL also recently entered an agreement with Fortescue Metals Group Limited‘s (ASX: FMG) to work on an industrial energy hub capable of producing green hydrogen.

AGL will release its half-year results on 10 February.

AGL share price snapshot

The AGL share price has dropped 38% in the past year but has rebounded 16% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% in the past year but has lost 6% so far in 2022.

AGL has a market capitalisation of roughly $4.7 billion based on its current share price.

The post AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in January
• What is green shorting and which ASX 200 shares are being targeted?
• Why have ASX energy shares become such hot property in 2022?
• Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?
• Top 2 ASX 200 shares of the year so far revealed

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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