Category: Stock Market

It’s been just over a month since investors woke up to a brand new, crypto-themed exchange-traded fund (ETF) trading on the Australian markets.

The Cosmos Global Digital Miners Access ETF (DIGA) commenced trading on the ASIC-regulated Aussie exchange Chi-X on 28 October. (You can find our coverage following its first day of trading here.)

Now DIGA doesn’t invest directly into Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), or any of the other range of altcoins with growth potential. No Australian-listed ETFs have been given the green light by regulators to do so yet.

Instead, DIGA gives investors exposure to the crypto world via a basket of cryptocurrency mining and infrastructure companies.

With DIGA now entering its second month of trading, the Motley Fool reached out to Dan Annan, CEO of Cosmos Asset Management, for his insights into this rapidly evolving market.

Below you’ll find part 1 of that interview.

Motley Fool: What was the market’s reaction to DIGA in its first week of trading?

Dan Annan: The feedback from DIGA’s debut was very positive. The market was impressed with the product design, in that the fund focused on the ETF benefits of liquidity, diversification, and access to the crypto asset class without diluting the cryptocurrency asset class exposure.

Cosmos designed a robust product to give investors the closest exposure to the digital currency asset class without sacrificing liquidity. And it was exciting for the team to see the market reception and intrigue in DIGA.

The objective of DIGA is to track the Global Digital Miners Index.  The index is designed to provide access to the picks and shovels of companies listed globally on national stock exchanges, with the primary business focused on crypto mining and infrastructure.

MF: What do you see driving the increased demand and broader institutional adoption of cryptos like Bitcoin?

DA: One of the great mysteries of modern life is the time it still takes for international money transfers to clear and settle. Every other aspect of our lives is increasingly digital, reduced to a tap of your phone or the press of a key. But money transfers take days to rumble from the payee to the original bank. That’s days of lost opportunity and plenty of fees for the intermediaries passing them around behind the scenes.

Bitcoin and crypto more broadly has been the breakthrough. And it has only started getting institutional support globally since last year. Bitcoin allows for a true digital store of value and transfer. Transactions can be done natively digital in a way that is fast, limitless, secure, and transparent.

MF: How has DIGA performed since launching on 28 October?

DA: From a timing perspective, Bitcoin rallied right around the launch of DIGA on 28 October, which by its design brings a 0.75 correlation to Bitcoin. So we saw DIGA break records for its first 5-day performance debut over all ETFs to list in the Australian market over the past 5 years, delivering 25% returns.

That 25% return is measured by the fund’s NAV [net asset value], with the opening NAV at 4.9977 on 28 October and a closing NAV of 6.2454 on 5 of November. This performance broke the record for all ETFs to debut in the Australian market over the past 5 years.

MF: What kind of volatility can investors expect in a crypto ETF like DIGA?

DA: The objective of DIGA is to deliver access to the outsized returns we are seeing in the crypto asset class.  That said, investors should have a long-term view to withstand the daily volatility this asset class presents.

Month-to-date, as at 25 November, DIGA is among the top-performing ETFs in the Australian market. It’s delivered more than a 20% return since inception [as at 25 November] as measured by NAV, with an opening NAV of 4.9977 on 28 October and a closing NAV of 6.1561 on 25 November.

MF: Why did you opt for a Chi-X listing?

DA: What many investors aren’t aware of is that both exchanges, the ASX and Chi-X, are top tier 1 licensed stocked exchanges. Chi-X is owned by Chicago Options Board Exchange, which is the largest ETF listing venue in the US.

Chi-X, for example, makes up about 20% of equity trading and more than 35% of fund trading in Australia. The fact is, if you’ve bought a BHP share or units in STW in the last 10 years, you’ve probably already traded on Chi-X and didn’t realise it.

With that said, we liked the innovation Chi-X brings to the table to work with start-ups like Cosmos, and we took the opportunity to work with them on DIGA. We liked the prospect of working with a platform that was open to our innovative ideas in the crypto asset class.

MF: What criteria do you look for in crypto mining and infrastructure companies before adding them, removing them, or adjusting their weighting within the ETF?

DA: The index methodology for the Global Digital Miners Index (GDMI) is clean and clear with transparent rules to consider.

These include:

• Companies listed on global national exchanges;
• Companies with a minimum market cap of US$100 million;
• Companies that generate at least 80% of their revenue from crypto mining and infrastructure; and
• Companies with median daily trading volume exceeding than US$1 million.

The index follows a free-float adjusted market capitalisation weighted methodology, and it’s rebalanced on a monthly basis. For diversification purposes, no single stock may have a weight greater than 15% as of the rebalance date.

DIGA’s objective is to replicate the Global Digital Miners Index, and we are very proud of how the team has been tracking the index thus far.

**

(Tune in tomorrow for part 2 of our interview with Dan Annan. You can find out more about DIGA here.)

The post How did the Aussie crypto miners ETF fare during its first month? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Talga share price plunged 18% on Tuesday
• Here’s why ASX retail shares are in the spotlight on Tuesday
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• Are Nanosonics (ASX:NAN) shares a buy? Here’s what Motley Fool analyst Andrew Legget says
• IOUpay (ASX:IOU) share price halted amid acquisition news

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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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Shares in battery anode and advanced materials company Talga Group Ltd (ASX: TLG) were very much out of favour with investors today.

By the market’s close, the Talga share price had tumbled 17.78% to $1.48. Investors responded negatively to an update provided by the company on the ASX this morning.

What was weighing on the Talga share price?

Talga shares are copping a caning after the company revealed its formal letter of intent with Mitsui & Co. Europe and Swedish mining company Luossavaara-Kiirunavaraa Aktiebolag (LKAB) has now lapsed.

Talga was hoping to partner with LKAB and Mitsui on the development of its green anode project for use in producing lithium-ion batteries.

This would include construction of a scalable, 19,000-tonnes-per-annum anode production facility and integrated graphite mining operation in northern Sweden.

The project would be situated close to the Nunasvaara deposit, said to be the highest-grade graphite deposit in the world.

Is there still hope for the venture?

Whilst no further details about the venture’s prospects have yet been provided, Talga did reveal it will continue advancing project development discussions with Mitsui under the existing Memorandum of Understanding.

Talga is using its 100%-owned mineral and technology assets in northern Sweden to establish a European supply of sustainable, low-CO₂-emission anode materials.

The company said it will continue to pursue current and new financing and partnership opportunities emerging from the strong global demand outlook for green-battery anode.

Foolish takeaway

The Talga share price has had a rocky twelve months, having fallen by around 23% over the past year. The company’s shares reached a 52-week low of $1.13 on 5 March this year.

Talga shares have been volatile in November, climbing by over 45% from $1.50 at the end of October to $2.20 by 9 November. Unfortunately, from then on, it has been largely downhill for Talga shares, which have since fallen by more than 30% to back below October’s closing price.

The post Here’s why the Talga share price plunged 18% on Tuesday appeared first on The Motley Fool Australia.

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

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Market watchers might want to keep an eye on ASX retail shares as Black Friday proves to be a hit and talk of mergers and acquisitions heat up.

Here’s what you need to know about the record-breaking retail event and the potential outlook for the sector.

Black Friday proves fruitful

ASX retail shares rejoice, between the start of Black Friday and the end of Cyber Monday, Australians spent an estimated $8 billion on retail purchases, according to National Australia Bank Ltd (ASX: NAB).

That’s up to 8% more than 2019’s pre-pandemic record Black Friday weekend spend.

The bank analysed merchant transactions to come up with the estimate, which it released today. NAB noted the findings are a “clear boost for Australian business”.

The strongest bricks-and-mortar performers? Technology and shoes.

Tech sales were up 168% compared to the Black Friday weekend of 2019, while shoe stores saw sales increase 92%.

Meanwhile, consumers flocked online to purchase jewellery. Online stores for shiny things and wearable timepieces saw 312% more sales than they did over 2019’s Black Friday weekend.

NAB Business and Private Bank group executive, Andrew Irvine commented on the retail event’s popularity, saying:

It may be a trend adopted from our American friends, but it’s clear that Black Friday and Cyber Monday are now a strong part of the sales calendar here in Australia.

Sadly, boosted sales didn’t automatically equate to share price increases.

The share price of shoe retailer Accent Group Ltd (ASX: AX1) ended Cyber Monday 1.9% lower than it was at Thursday’s close. Meanwhile, that of jewellery merchant Lovisa Holdings Ltd (ASX: LOV) slipped 5.1%.

Though, technology retailer JB Hi-Hi Limited (ASX: JBH) has seen its share price gain 0.3% over same time frame.

Is the ASX retail sector set for an M&A flood?                         

And the skies ahead might be even more blue (or green) for ASX retail shares.

According to reporting by The Australian, experts believe the sector is rife for mergers and acquisitions.

They reportedly stated happenings like Adairs Ltd‘s (ASX: ADH) recent $80 million purchase of Focus on Furniture might be the new norm, as retailers scramble to make acquisitions to boost future growth.

Additionally, the publication claims some experts point to the recently accepted takeover offer for Australian Pharmaceutical Industries Ltd (ASX: API) – posed by Wesfarmers Ltd (ASX: WES) – as the start of a new trend.

Such a trend could see retailers branching into complimentary spaces to generate more consumer spending.

The publication also claims Universal Store Holdings Ltd (ASX: UNI) and Accent Group recently looked to get in on the acquisition action. They were reported on board to purchase General Pants.

Finally, according to The Australian‘s experts, acquisition-hungry investors might want to keep an eye on JB Hi-Fi and Super Retail Group Ltd (ASX: SUL). The latter’s brands, Super Cheap Auto, Rebel, and Macpac, are said to be on the hunt for acquisitions or mergers.

The Motley Fool Australia reached out to Universal Store and Accent Group for comment but didn’t receive an immediate response.

The post Here’s why ASX retail shares are in the spotlight on Tuesday appeared first on The Motley Fool Australia.

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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 shares of and has recommended ADAIRS FPO and Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO, Super Retail Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group. 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) has shaken off yesterday’s nasty fall and is currently enjoying some gains so far this Tuesday. At the time of writing, the ASX 200 is up by a healthy 0.99% at 7,312 points.

But let’s dive a little deeper and check out the ASX 200 shares that are currently topping the ASX trading volume charts so far today, according to investing.com.

3 most active ASX 200 shares by volume this Tuesday

Telstra Corporation Ltd (ASX: TLS)

Blue chip telco Telstra is our first ASX 200 share with high trading volumes today. Thus far, Telstra has seen a hefty 17.6 million of its shares swap hands.

With no news out of this telco today, this volume can probably be put down to the nice share price bump Telstra has experienced today. Telstra shares are currently up a robust 1.5% at $4.06 each. Together with Telstra’s ongoing on-market share buybacks, this is the likely cause behind this elevated trading volume.

AMP Ltd (ASX: AMP)

AMP is our next ASX 200 share up this Tuesday. This embattled wealth manager and bank has had 22.65 million shares find new owners on the markets so far today. This could be put down to the market update AMP gave its investors this morning.

In this, AMP told investors that it is making strong progress with its Private Markets demerger. Amid this update, AMP shares are currently up a very pleasing 5.97% at $1.06 a share. This has probably sparked the high trading volumes we are seeing with this ASX 200 company today.

Pilbara Minerals Ltd (ASX: PLS)

Yet again, Pilbara Minerals tops the ASX 200 most traded shares list, at least so far today. The lithium producer has seen a whopping 26.16 million of its shares bought and sold so far this Tuesday.

With no news out of this company as well, we can probably put this elevated volume down to the chunky share price gains Pilbara is enjoying so far today. Pilbara is currently up 4% at $2.60 a share. It’s this big jump in valuation that is likely ensuring Pilbara’s gold medal for trading volumes this Tuesday.

The post Here are the 3 heaviest traded ASX 200 shares on Tuesday so far appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of 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 shares of 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 Nanosonics Ltd (ASX: NAN) share price has failed to deliver a positive return for shareholders so far this year.

With hospitals inundated globally as a result of the COVID-19 pandemic, the infection technology company has struggled to promote its patented Trophon product. Despite this, the investing team at The Motley Fool Australia thinks there’s a lot to like about the business, making it a compelling opportunity.

In a discussion between Motley Fool Australia analyst Andrew Legget and our chief investment officer Scott Phillips, the COVID-19 headwind could be set to morph into a long-term tailwind for the infection technology company.

Let’s jump into the reasoning behind a positive outlook for Nanosonics shares on the ASX.

Renewed emphasis on sterilisation could help Nanosonics shares

While restrictions on surgical procedures may have impacted the performance of Nanosonics on the ASX in recent years, the outlook could be starting to shift. An indication of this is the company’s forecast for double-digit revenue growth in FY2022.

This increase would be from a higher number of installed devices and an uptick in consumables used across all regions — but where is this demand coming from?

Motley Fool analyst Andrew Legget recently offered an explanation, saying:

Hospitals have been busy, you’ve probably got all these COVID-related things to look after in the middle of a pandemic, the last thing you want to do is speak to a salesperson offering you an ultrasound disinfectant machine. But, I do expect that even the COVID pandemic will help in the long term because it did place a lot of focus on sterilisation.

A heightened focus on sterilisation might act as a catalyst to drive further Trophon sales. The major positive is that this phenomenon is global. Rather than one country seeing an increased need for disinfection protocols, it is essentially the entire world.

Attractive business model

In laying out the investment case for Nanosonics shares, Legget highlights the lucrative business model. It’s called the razor and blade model, and we’ve all likely fallen for it before. Legget explains:

You sell the device really cheap. Then once that device is installed and part of the process, then you open up the rivers of gold. Which are these consumable devices, which have extremely high margins. Every time you do a procedure that requires the usage of a Trophon device, you’re paying for a consumerable liquid that has really high margins.

Another bullish trait of the ASX-listed Nanosonics story is its position in the market. The company’s current installed base of devices is 26,760. However, management believes the market could be more than 100,000 machines.

On this note, Legget comments on the competition within the industry, saying:

I’ve had a look… it’s not easy to find competitors to what Nanosonics does. Also, the ones that you do find are not as complete a solution as what Nanosonics does. Nanonsonics, I said before, it is the gold standard.

In summary, Legget considers Nanosonics shares a beneficiary of increased importance on disinfection. The combination of its lucrative business model and lack of competition presents an opportunity for a very strong business.

The opinions expressed in this article were as at November 2021 and may change over time.

The post Are Nanosonics (ASX:NAN) shares a buy? Here’s what Motley Fool analyst Andrew Legget says appeared first on The Motley Fool Australia.

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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 shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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Shares in fintech and digital commerce company IOUpay Ltd (ASX: IOU) are sat in limbo at the time of writing amid a company-requested trading halt.

Before it was put on the back-burner, the IOU share price was set to open at 18.5 cents, a slight gain from last week’s close.

Let’s take a closer look.

Why is the IOU share price halted?

The company requested a trading halt to be put in place on its shares today, in relation to the acquisition of a 42% interest in I.Destinasi Sdn Bhd (IDSB). IDSB is a provider of consumer credit services in Malaysia.

The trading halt is requested to be in place until the commencement of trade on 2 December 2021 or when that announcement is released to the market.

IOU previously announced the acquisition back in September, where it penned a letter to investors outlining the particulars.

It is set to acquire the interest on a $41.3 million consideration finalised over 2 tranches in a 6-month period. A contingency in the deal could allow IOU to acquire IDSB for less if its pre-tax profit is less than $9.8 million for FY21.

IOU will finance the transaction on an all-cash consideration that will be completed in 50% lots, pursuant with the 2 tranches outlined above.

In a separate release last week, the company also advised that it was waiting for consent from one of IDSB’s banking partners to finalise the acquisition. It appears this may have been finalised judging by IOU’s language today, but the company is yet to confirm in full.

Today’s announcement builds on momentum after the company released its operations update last week. In that report, IOU recognised $3.2 million in total transaction value (TTV) whilst growing its consumer downloads by 67% since September 30.

The company’s operations in Malaysia is performing, securing over 100 merchants operating more than 300 outlets to the myIOU platform during this quarter so far.

It has also deployed staff to grow its base in regional areas outside of the Klang Valley central economic hub which is by Kuala Lumpur and Selangor.

There has been no movement on this update since the ASX announced the trading halt earlier in the session on Tuesday.

IOU share price snapshot

In the last 12 months, the IOU share price has gained almost 9% after rallying another 12% this year to date.

Despite this, it has fallen 26%% in the last month and has collapsed a further 12% this past week alone.

The post IOUpay (ASX:IOU) share price halted amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Why is the IOUpay (ASX:IOU) share price tumbling 7% on Tuesday?

The author has no positions 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 Life360 Inc (ASX: 360) share price is edging higher during mid-afternoon trade. This comes after the mobile app maker provided investors with its retail entitlement offer information booklet today.

At the time of writing, Life360 shares are fetching for $12.07 apiece, up 2.29%.

Life360 begins retail entitlement offer

Investors are buying up the Life360 share price following the company’s capital raising efforts.

Last week, the company announced it successfully completed the institutional component of its fully-underwritten $280 million placement. This saw approximately $248.9 million raised from both institutional and sophisticated investors.

Life360 revealed the details of its retail component today for eligible investors.

The retail entitlement offer will see 1 new CDI share for every 15.64 Life360 CDI share owned. Each new CDI represents one third of a share of common stock in the company.

Listed at an offer price of $12 apiece, Life360 is hoping to raise gross proceeds of $31.1 million. This follows the successfully completed Institutional Entitlement Offer which received $88.7 million. Together, Costa is aiming to raise $119.8 million from both offers.

Approximately 9.98 million CDI’s will be created in the retail entitlement offer.

The closing date for the retail offer is 13 December 2021. The record date has already surpassed (25 November 2021) if you were hoping to get in on the action.

Life360 is seeking to build up its balance sheet to fund the acquisition of Tile, Inc for up to US$205 million. The global leader in finding things along with Life360’s market, will boost membership numbers for digitally native customers.

About the Life360 share price

It’s been an outstanding 12 months for the Life360 share price, accelerating by more than 200% for the period. When looking at year-to-date, its shares are up close to 220%.

Life360 presides a market capitalisation of about $1.88 billion, with approximately 156.03 million shares on its books.

The post Why is the Life360 (ASX:360) share price climbing today? appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Life360, Inc. 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) is having a pretty stellar day of trading this Tuesday so far. At the time of writing, the ASX 200 is up a healthy 0.98% at 7,310 points. For the ASX 200 to have such a robust gain usually means one thing — ASX 200 bank shares are having a good time of it.

That’s because the big four ASX banks, along with Macquarie Group Ltd (ASX: MQG), make up 5 of the top 7 ASX 200 shares by market capitalisation and therefore weighting. And it is proving a strong day for the ASX banks, with two notable exceptions.

The ASX 200’s largest company, Commonwealth Bank of Australia (ASX: CBA), is currently down slightly by 0.13% at $93.65 a share after rising as high as $94.99 earlier today.

Westpac Banking Corp (ASX: WBC) is also down, by 0.5% at $20.81, after going as high as $21.27 this morning.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are currently up a very pleasing 1.65% at $27.06 a share.

And National Australia Bank Ltd (ASX: NAB) is presently up 1.05% at $27.48 a share.

Macquarie, which briefly overtook ANZ as the ASX 200’s fourth-largest bank earlier this month, is up 2.14% at $198.16.

So why are some ASX 200 bank shares having such a good day?

ASX 200 bank shares lead share market recovery

Well, we don’t know for sure. But we do know that ASX 200 financials shares are still one of the best performing sectors on the ASX 200 so far this Tuesday.

It’s possible these gains are the direct result of the losses ASX financials such as the banks took on Monday. Yesterday’s trading day saw the ASX 200 lose 0.4% by the closing bell, with the banks all going backwards by varying degrees. ANZ was the biggest loser, falling 1.6%.

Financial shares like the banks are notoriously cyclical and volatile, often exceeding the market’s gains or losses when either occurs. Take last year. When the COVID-induced crash hit the ASX boards, the ASX 200 lost around 33% peak-to-trough.

But the NAB share price was down by roughly 45% over the same period. NAB’s subsequent share price recovery was even more dramatic than the ASX 200’s. We could just be seeing this dynamic playing out yesterday and today on a far smaller scale with NAB and ANZ.

Out of CBA, NAB, Westpac, and ANZ, Westpac is currently leading the ASX 200 banks’ income potential, with its dividend yield of 5.67% on today’s share pricing.

The post Here’s why some ASX 200 bank shares are having a terrific Tuesday appeared first on The Motley Fool Australia.

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• Macquarie (ASX:MQG) share price lifts amid $1.3 billion capital raise
• At this share price, is NAB (ASX:NAB) the best big four bank to buy?
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Motley Fool contributor Sebastian Bowen owns shares of 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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Fund managers have been buys repositioning their ASX 200 share portfolio even before the omicron COVID-19 outbreak hit.

Capital flows have been rotating into defensives from cyclical shares on the S&P/ASX 200 Index (Index:^AXJO), reported JPMorgan.

The latest fund manager survey by the broker provides insights to where these professionals see the best value buys.

ASX 200 shares that are hot and not

“Most of the flows have been directed into defensives, with Communication Services the preferred destination,” said JPMorgan.

“This pattern is evident through the performance of Value vs. Growth, with the former underperforming sharply since mid-year (-1206bp).”

The broker noted a similar theme for global shares, but it is particularly pronounced in ASX 200 shares.

Going defensive

One beneficiary of the rotation is the Telstra Corporation Ltd (ASX: TLS) share price. The telco is trading close to a four-year high at $4.06 at the time of writing.

“A clear favourite in the defensive dial-up has been TLS, which has seen its proportion of top stock holdings rise from 3.4% in Jan-21 to 4.3% currently,” said JPMorgan.

“In addition, this move has been accompanied by an increase in the average manager OW to 180bp. Through that period, the stock has outperformed the ASX 200 by 1100bp.”

Gold is another defensive sector that’s with the “in” crowd. That makes sense given inflation fears and jitters over renewed COVID lockdowns.

The ASX 200 share that is benefitting from this thematic is the Newcrest Mining Ltd (ASX: NCM) share price. The broker noted that the gold miner entered into the “well-held” territory this month.

Another ASX 200 finding favour

Another favourite of fund managers is the Aristocrat Leisure Limited (ASX: ALL) share price. You might not think the gaming machine maker as a defensive investment, but experts are confident in its growth outlook.

“ALL has been a near-permanent member of the ‘well-held’ cohort in our Love Index,” said JPMorgan.

“Since the turn of the year, conviction in the stock has ratcheted higher, with the number of funds holding the stock rising sharply.”

The proportion of the Aristocrat share price held by fundies rose to 5% in October from under 1.5% at the start of calendar 2021.

JPMorgan has an “overweight” recommendation on both Telstra share price and Aristocrat share price.

ASX 200 shares losing their lustre

On the flipside, the so-called value shares that fundies have been stepping away from include the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price.

Meanwhile, cyclical ASX 200 shares have also fallen out of favour with the professionals. These include the Brambles Limited (ASX: BXB) share price and Qantas Airways Limited (ASX: QAN) share price.

The post These are the ASX 200 shares that fundies have been snapping up appeared first on The Motley Fool Australia.

More reading

• What’s Jefferies saying about the Qantas (ASX:QAN) share price?
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• ASX 200 (ASX:XJO) midday update: AMP shares jump, Collins Foods impresses
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Motley Fool contributor Brendon Lau owns shares of Aristocrat Leisure Ltd., BHP Billiton Limited, Newcrest Mining Limited, Rio Tinto Ltd., and 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 shares of 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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PainChek Ltd (ASX: PCK) has been dealt a speeding ticket today following its share price and trading volume taking off over the past few days.

The company’s stock finished last Thursday’s session trading at 4.5 cents. Since then, it has surged more than 44% despite no word having been released by the company.

At the time of writing, the PainChek share price is 6.5 cents, the same as it was at yesterday’s close.

Let’s take a closer look at what’s been happening with PainChek’s stock lately.

A quick refresher

PainChek develops and markets its PainChek app.

The app uses artificial intelligence, facial recognition, and smart phone technology to assess pain levels of people who can’t verbalise or self-report their pain.  

What’s happening with the PainChek share price?

It’s been a crazy couple of days for PainChek on the ASX.

More than 23 million of its shares have swapped hands since Friday’s open. For context, the average day over the last 4 weeks has seen around 3.1 million PainChek securities traded.

Additionally, the PainChek share price soared 35.5% on Friday and another 6.5% yesterday.

It was in the green again earlier today amid the release of a ‘please explain’ issued by the ASX. In response, the company said it was as confused as anyone else about the change in trading behaviour.

Making the increased price and volume more head-scratching, is the fact the company hasn’t released any price-sensitive news to the market in more than a month.

In fact, the last time the ASX heard price-sensitive news from PainChek was in October when it updated the market on its performance over the September quarter.

Though, it published its non-price-sensitive annual general meeting investor update earlier today.

At its current share price, PainChek has a market capitalisation of around $74 million.

The post What the heck is going on with the PainChek (ASX:PCK) share price? appeared first on The Motley Fool Australia.

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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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