Category: Stock Market

The De Grey Mining Limited (ASX: DEG) share price performed exceptionally well on Thursday. Shares in the gold explorer gained momentum throughout the day after the company released infill results to the market.

These results were positively received by investors. In turn, the De Grey share price surged 8.2% to $1.25. However, the ASX-listed mining company wasn’t the only solid performer in the sector today. Other honourable mentions include Fortescue Metals Group Limited (ASX: FMG), Mineral Resources Limited (ASX: MIN), and Evolution Mining Ltd (ASX: EVN) — all trumpeting a gain of more than 4% on Thursday.

With all that being said, let’s take a closer look at De Grey’s latest announcement.

Infill results a positive for the De Grey share price

Investors have been instilled with some additional confidence following De Grey’s published results from today. Importantly, the infill drilling undertaken within the proposed Brolga Stage 1 pit demonstrated consistency in its gold discovery.

Infill drilling is used to give a higher resolution understanding of the discovered mineralisation during a prior drilling program. In short, holes are drilled in between the previously drilled holes to map out exactly where the gold might be located and how much of it.

In De Grey’s latest infill drilling across multiple sections, it was determined that the mineralisation holds consistent throughout much of the scoped area. Unsurprisingly, this result was met with enthusiasm towards the De Grey share price today.

For reference, the proposed Brolga Stage 1 pit comprises 1.29 million ounces at 1.3 grams of gold per tonne. The drilling shared with investors today produced similar numbers, such as:

• 80m at 1.6g/t Au from 36m
• 93m at 2.2g/t Au from 43m
• 127m at 2.0g/t Au from 35m
• 114m at 1.5g/t Au from 126m

Commenting on these results, De Grey general manager exploration, Phil Tornatora said:

The recently announced scoping study of the Mallina Gold Project identified Brolga as an early production source. These new resource infill drilling results successfully demonstrate the continuity of mineralisation within the proposed Brolga Stage 1 pit. Resource infill drilling is reducing project risk associated with early production. The 40m x 40m drill spacing at Brolga is expected to provide a high level of confidence in the early production from Brolga.

Positively, the results give increased confidence in the project’s projected cash flow from early production sources.

Next steps

Following this, De Grey will continue its infill drilling program as part of its pre-feasibility study of the Mallina Gold Project. Specifically, the program is expected to run over a further three months.

Finally, drilling is continuing across the company’s Great Hemi and Regional areas. This includes three aircore and three RC rigs engaged in exploratory activities.

The post De Grey (ASX:DEG) share price leaps 8% as project confidence grows appeared first on The Motley Fool Australia.

More reading

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• Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling
• De Grey Mining (ASX:DEG) share price sinks 9% after raising $125m
• De Grey (ASX:DEG) share price halted amid $125 million cap raise

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 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 nanotechnology and biotech company Imagion Biosystems Ltd (ASX: IBX) charged higher today to finish 14% in the green. The Imagion Biosystems share price jumped from the open following a company response to a query from the ASX.

The ASX wanted to know why the company’s share price spiked – in almost vertical fashion – over 40% from Friday’s close to finish at 10 cents on Tuesday.

Imagion provided its answers in a detailed response to the ASX that was posted before the open today.

Here are the details.

What’s up with the Imagion Biosystems share price lately?

Backtracking to the final week of October, Imagion released its quarterly report, covering several investment highlights.

The company, which specialises in medical diagnostic imaging technology, advised it had now enrolled multiple patients into a Phase 1 study of its novel imaging agent MagSense.

The study is investigating the safety of MagSense in its intended use, as a non-invasive alternative to detect early-stage HER2 breast cancer.

It also partnered with Global Cancer Technology during the quarter. The pair will develop Global Cancer’s nanoscintillator technology, also potentially indicated in breast cancer albeit on the treatment side.

Imagion is set to receive funding from Global Cancer Technology as the pair combine technologies to search for a breakthrough in the disease segment.

Imagion also funded its first animal studies investigating MagSense as an imaging solution for prostate cancer.

The market appeared to have a delayed reaction to Imagion’s quarterly update. From the close of trading last Friday to Tuesday’s close, the Imagion Biosystems share price roared from 7.1 cents to a 3-month high of 10 cents.

It is this market activity that had the ASX contacting Imagion in search of some answers.

In a standard compliance letter from the ASX’s Melissa Kostopoulous, the company was asked to explain any possible causes for the gain.

“Is IBX aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?”

How did Imagion respond?

The company replied that it was not aware of any such information. It did, however, make mention of the recent quarterly update, and in particular, the additional enrolments into its MagSense Phase 1 trial.

This is important to note because earlier in the year, Imagion had announced it was having difficulty achieving this due to COVID-19.

Even though the first patients had been enrolled, capturing further study participants was proving a challenge for Imagion.

Hence, the announcement it had secured additional patients in the study cohort can be deemed as a net positive for the company. This could have had an impact on its share price, the company said.

Imagion concluded that it is in fact in compliance with all ASX listing rules and requirements.

Imagion Biosystems share price snapshot

The Imagion Biosystems share price has posted a loss of almost 34% since January 1.

Yet, despite this, it has returned 18% to shareholders over the past 12 months. This is ahead of the benchmark S&P/ASX 200 index (ASX: XJO)’s return of around 14.5% in that time.

The post The Imagion Biosystems (ASX:IBX) share price leapt 40% in 2 days this week. What’s happening? appeared first on The Motley Fool Australia.

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• Imagion Biosystems (ASX:IBX) share price soars 13% on quarterly update

The author Zach Bristow 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 Dusk Group Ltd (ASX: DSK) share price finished Thursday’s market session lower after the company provided a trading update.

At the closing bell, the specialty retailer’s shares ended at $3.03 a pop, down 3.19%.

Dusk reports fall in sales

Investors drove the Dusk share price lower following the company’s late afternoon market release.

For the 19 weeks ending 7 November, Dusk advised its sales have been impacted as a result of store closures. In particular, New South Wales, Victoria, and the Australian Capital Territory were forced shut by state governments due to COVID-19. This effectively reduced the number of store trading days by around 33% over the period.

Total year-to-date unaudited sales have declined by 22.9% when compared to FY21. It is estimated this metric will be between $10 million and $11 million below the prior corresponding period. In addition, pro-forma earnings before interest, tax, depreciation and, amortisation (EBITDA) will also likely be down around $6 million to $7 million.

Total like-for-like (LFL) sales fell 8.5% when measured against last financial year’s performance. Although, since the reopening of all stores, both states and the territory have delivered positive LFL sales growth.

Another positive is that online sales have continued to surge, achieving a 19% lift versus FY21.

On a year-to-date basis, the company noted that gross margins have increased on the same period in FY21. Elevated freight costs have been offset by a favourable foreign currency position and higher retail prices in June 2021.

The results haven’t impressed investors, judging by the fall in the Dusk share price today. However, Dusk CEO Peter King was optimistic. He commented:

We anticipate that customers will be encouraged to shop in stores in the lead-up to Christmas due to pent-up demand, combined with delays in deliveries for online purchases.

Having opened 6 new stores so far in FY22, we now have 128 stores (including online). With all stores now open and stock levels as planned, we are ready to capitalise upon the key Christmas trading period.

Dusk share price summary

Despite today disappointing results, the Dusk share price has zoomed upwards by 50% in 2021. However, when factoring in the last 12 months, its shares are up by 89%.

Based on today’s price, Dusk commands a market capitalisation of roughly $194.9 million and has approximately 62.3 million shares outstanding.

The post Dusk (ASX:DSK) share price backtracks following sales update appeared first on The Motley Fool Australia.

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• 2 best ASX shares to buy right now: fund manager

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 recommended Dusk 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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Are you looking to make some additions to your portfolio? If exchange traded funds (ETFs) are of interest to you, then you might want to look at the three listed below.

Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the BetaShares Global Cybersecurity ETF. This popular ETF gives investors exposure to the leading companies in the global cybersecurity sector. Due to the growing threat of cyberattacks globally, demand for cybersecurity services has been increasing strongly.

This could see the companies in the fund, which includes the likes of Accenture, Cisco, Cloudflare, Fortinet, Okta, Splunk, Zscaler, Crowdstrike, well-placed for growth over the 2020s.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF allows investors to buy a piece of the largest companies involved in video game development, hardware, and esports. This includes Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two.

VanEck highlights that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive 1,504 of the world’s largest listed companies from major developed countries. This makes the ETF one of the most diverse options available to investors.

Among the high quality companies you’ll be owning a slice of are Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Tesla, and Visa. Vanguard notes that buying this ETF allows investors to take part in the long-term growth potential of international economies.

The post 3 fantastic ETFs for ASX investors in November appeared first on The Motley Fool Australia.

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• Why is the Vanguard MSCI Index International Shares ETF (ASX:VGS) off to such a great start in November?
• Why has the ETFS Semiconductor ETF (ASX:SEMI) leapt 14% in a month?
• 2 compelling ASX shares that could be buys in November 2021
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• Why has the BetaShares Global Cybersecurity ETF (ASX:HACK) share price leapt 7% in a month?

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 shares of and has recommended BETA CYBER ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares 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 S&P/ASX 200 Index (ASX: XJO) has finished the day down 0.57% . But one ASX exchange-traded fund (ETF) that investors might not have expected to fall today has done a lot worse. The BetaShares Crypto Innovators ETF (ASX: CRYP) barrelled towards the end of the day. This CRYP ETF finished the day down 4.99%, sitting at a unit price of $11.24.

That might come as a surprise to some investors. Since this ETF floated on the ASX just one week ago today, it had doled out some very impressive gains. In addition, it also managed to break the ASX record for the highest trading volume for a newly-listed fund within its first few hours of life.

As of Tuesday’s close, CRYP units hit a price of $12.38, meaning they were up more than 10% since its ASX debut mere days beforehand. Today’s nasty drop erases much of those gains, and puts CRYP unitholders back at the rough prices this ETF was asking on its first day of trading. Not quite square one, but getting close.

So what has caused this dramatic reversal of fortunes for this new and exciting ETF?

CRYP ETF gets pulled back to earth

Well, to answer that, let’s check out what’s been going on with CRYP’s underlying holdings. Like most ETFs, CRYP holds within it an underlying basket of shares. In this ETF’s case, these shares are selected to give investors “exposure to global companies at the forefront of the dynamic crypto economy”.

So, according to the provider, CRYP’s current top 5 holdings are as follows:

1. Marathon Digital Holdings Inc
2. Galaxy Digital Holdings Ltd
3. Silvergate Capital Corp
4. Coinbase Global Inc
5. Microstrategy Inc

As it happens, all five of these US-based companies (with the exception of Canada’s Galaxy Digital) had big falls in their valuations overnight (our time) on the US markets. And they weren’t small drops either. Galaxy Digital and Marathon Digital each fell by close to 15%. Silvergate fell by 7.3%, while Microstrategy was down close to 5%. These moves might have been prompted by Coinbase reporting its quarterly earnings, upon which Coinbase shares crashed 8%. 

All this is despite the fact that cryptocurrencies themselves (which the CRYP ETF does not directly invest in) remain at elevated pricing. Indeed, Bitcoin (CRYPTO: BTC) just hit a new all-time high yesterday, although it has fallen by around 6% since then. 

This ETF’s provider BetaShares does warn that “an investment in CRYP should be considered very high risk”. Today proves just why.

The post Why was the new BetaShares Crypto Innovators ETF (ASX:CRYP) down 5% on Thursday? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin and Coinbase Global, Inc. 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) followed in the footsteps of Wall Street as it deepened its week of losses so far. Disappointingly, the benchmark index finished 0.57% lower at 7,381.9 points.

It was another day dominated by weakening share prices across the ASX today. Across all the sectors it was tech and healthcare that felt the pinch the most. At the other end of the market, mining shares boomed today irrespective of the falling iron ore price.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery technology company jumped 10.4% partially rebounding from its 14% loss yesterday. Find out more about Novonix here.

The next biggest gaining ASX share today was Chalice Mining Ltd (ASX: CHN). Shares in the gold explorer posted another day of gains, placing in the top 2 best-performing ASX shares for three days straight now. Uncover the latest Chalice Mining details here.

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

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$9.02	10.40%
Chalice Mining Ltd (ASX: CHN)	$9.98	9.31%
Fortescue Metals Group Ltd (ASX: FMG)	$15.49	8.47%
Mineral Resources Ltd (ASX: MIN)	$39.22	5.86%
Evolution Mining Ltd (ASX: EVN)	$4.13	4.56%
Northern Star Resources Ltd (ASX: NST)	$10.60	4.54%
Bluescope Steel Ltd (ASX: BSL)	$20.74	3.70%
Champion Iron Ltd (ASX: CIA)	$4.19	3.20%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$3.05	3.04%
Seek Ltd (ASX: SEK)	$35.11	2.96%

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

• These 3 ASX 200 shares are topping the volume charts this Thursday
• Nine Entertainment (ASX:NEC) share price climbs 3% amid earnings guidance
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• The materials sector is leading the ASX 200 today. What’s going on with the Lynas (ASX:LYC) share price?
• Dream run: Why the Chalice Mining (ASX:CHN) share price is up another 5% today

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 has recommended SEEK 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 Orica Ltd (ASX: ORI) share price finished the day in the red after the company released its full-year results to the market today.

At the closing bell, the Orica share price was $14.79, 3.65% lower than its previous close.

Let’s take a closer look at how the explosives-focused mining and infrastructure solutions provider performed during the year ended 30 September 2021.

Orica share price slides on 30% drop in EBIT

Here are the key takeaways from Orica’s full-year performance:

• Statutory net loss after tax of $174 million, including $382 million loss from significant items after tax;
• Earnings before interest and tax (EBIT) of $427 million – 30% less than that of the previous year before significant items;
• Underlying earnings per share of 51.2 cents – 32% less than the prior corresponding period (pcp); and
• 16.5 cent unfranked final dividend.

Over the year just been, the company’s capital expenditure was $323 million, down 5% on the pcp. Its net operating cash flows came to $619 million, up more than 100% on the pcp.

It also recorded net debt of $1.5 billion and gearing at 34.6%.

The company’s final dividend brings its full-year dividends to 24 cents with a payout ratio of 47%.

What happened over the year ended 30 September?

According to the company, its full-year results reflect a challenging year within which it was hit by several market factors.

These included unfavourable foreign exchange movements, disrupted thermal coal trade flows resulting from political tensions with China, increased sea freight costs, and rising input costs.

The company successfully integrated the Exsa business, got the Burrup explosives plant fully operational and producing product, and continued its uptake of technology solutions.

Orica also sold non-core land, generating $140 million of cash in the process.

Over the last 6 months, Orica has refreshed its strategy to deliver solutions and technology that drive productivity for its mining and infrastructure customers.

Over the full year, Orica committed to reduce its operational scope 1 and 2 greenhouse gas emissions by at least 40% on its 2019 levels by 2030. It also recently announced its ambition to achieve net-zero scope 1, 2, and material scope 3 emissions by 2050.

Its volume total ammonium nitrate increased 4% on the pcp over the year ended 30 September. However, its net volume was less than the pcp because of disruptions to Australian East Coast thermal coal trade and lower sales volumes in Colombia and Chile.

Cyanide volumes were also down 6% due to lower demand and shipping constraints.

Orica saw a 14% increase in demand for its Electronic Blasting Systems and an 8% increase in demand for premium emulsion.

Its struggles over the year seem to have been reflected in the Orica share price today.

What did management say?

Orica managing director and CEO Sanjeev Gandhi commented on the company’s results, saying:

The fundamentals of the business are strong. We have refreshed our strategy to refocus on driving profitable growth and creating enduring value for our shareholders and other stakeholders. As our strategy is embedded in our business, we will be well placed to seize opportunities as the market stabilises.

Our four key business verticals will allow us to leverage our strengths and create opportunities for growth beyond blasting…

We expect steady commodity growth in 2022 which will drive stabilised demand for explosives-related products and services…

Earnings in 2022 are expected to improve from increased adoption of our advanced technology offerings, volume growth, supply chain initiatives and sustainable overhead cost reductions.

What’s next for Orica?

Here’s what might drive the Orica share price over the current full year:

The company’s capital expenditure is expected to be between $340 million and $360 million. Its depreciation and amortisation expense is expected to be up to 5% higher. It expects its gearing to remain within the range of 30% to 40%.

It also expects global commodity growth to continue, particularly in the copper and gold, and quarry and construction markets.

The company will keep focusing on its balance sheet and maintaining its cash-flow optimisation.

Over the next 3 years, Orica will look to create a pathway to profitable, organic growth.

It will do so by adopting innovative blasting technologies and digital solutions, both upstream and downstream, and optimising its manufacturing and supply chains.

It also plans to grow into the future-facing commodities space, expanding into the mining chemicals segment, and diversifing its portfolio.

Orica hopes to achieve an average 3-year return on net assets of 10% to 12%, gearing of 30% to 40%, and a dividend payout ratio of 40% to 70%.

It will strengthen its balance sheet by exiting up to 10 countries and continuing its land sales.

Orica share price snapshot

Over the year ended 30 September 2021, the Orica share price fell by around 10%.

It is currently 3% lower than it was at the start of 2021.

The post Orica (ASX:ORI) share price struggles following $174 million loss appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX shares insiders have been buying recently

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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Looking for a growth share or two to buy? Three that could be worth considering are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Bigtincan Holdings Ltd (ASX: BTH)

The first ASX growth share to look at is this sales enablement platform provider. Bigtincan was on form in FY 2021, delivering a 48% increase in annualised recurring revenue (ARR) to $53.1 million. The good news is that management expects more of the same in FY 2022. In fact, it expects to more than double its ARR to $119 million. This is expected to be driven by organic growth and the benefits of the acquisition of Brainshark. It is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness.

Morgan Stanley is very positive on the company. It has an overweight rating and $2.10 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to consider is Life360. It is the growing technology company behind the Life360 family safety app. This increasingly popular app was being used by a whopping 33.8 million people globally at the end of the third quarter. This was up by 1.5 million users over the three months and underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) to US$120.1 million.

Bell Potter was pleased with its update. The broker responded by retaining its buy rating and lifting its price target on Life360’s shares to $12.50.

ResMed Inc. (ASX: RMD)

A final growth share to consider is ResMed. It is a medical device company with a focus on the sleep treatment market. ResMed has been tipped to continue its strong growth over the long term thanks to its industry-leading products and massive market opportunity. In respect to the latter, management estimates that there are ~1 billion people impacted by sleep apnoea worldwide, with just ~20% already diagnosed.

Credit Suisse is a fan of ResMed and has an outperform rating and $43.00 price target on the company’s shares.

The post 3 buy-rated ASX shares with strong growth potential appeared first on The Motley Fool Australia.

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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 shares of and has recommended BIGTINCAN FPO and Life360, Inc. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Betashares Asia Technology Tigers ETF (ASX: ASIA) is pushing upwards today. This exchange-traded fund (ETF) gives investors exposure to the 50 largest technology companies in Asia, outside of Japan. However, nearly 70% of the fund is comprised of its top 10 holdings.

Given this, today’s move could be the reflection of a recent announcement from one of its largest holdings. One company that might fit the criteria is Tencent Holdings Ltd (HKG: 0700). The China-based tech conglomerate published its third-quarter results yesterday.

While the tech company’s share price is moving to the downside, its performance during the latest quarter might be attracting some investors to take a closer look at the ASIA ETF.

How did the ASIA ETF’s third largest holding fare in Q3?

It was a shaky quarter for Tencent, having to appease China’s intensified gaming policy for children. In August, the government instated a maximum of 3 hours of gaming for people under the age of 18. This compared to the previously allowed one and a half hours per day.

Based on the metrics for the third quarter, the new restrictions had their desired effect, with gaming among children through Tencent’s platforms dropping significantly. Under the category ‘domestic games’, minors accounted for only 0.7% of the company’s recorded time spent on its platform in September. For reference, this is in contrast to 6.4% in September 2020.

Despite this setback, domestic games revenue still managed to increase by 5% year on year to RMB33.6 billion (~A$7.18 billion) in the quarter. Meanwhile, unhampered by government restrictions, international games revenue experienced a major uptick of 20% year on year to RMB11.3 billion (~A$2.41 billion). This result was due to robust performances of games such as Valorant and Clash of Clans.

Out of the company’s various segments, revenue from fintech and business services delivered the highest growth in the quarter. On a year-over-year basis, fintech revenue increased 30% to RMB43.3 billion (~A$9.25 billion).

Overall, Tencent still increased its total revenue by 13% year on year to RMB142.4 billion (~A$30.43 billion) in Q3. However, diluted earnings per share (EPS) fell 1% to RMB3.269 (~A$0.70).

Why isn’t the ETF down today?

Even though the Tencent share price is falling after these results, the ASIA ETF is humming along with a nice bit of green on Thursday.

Fortunately, ETF’s tend to be diversified across numerous companies. Such is the case for the ASIA ETF, with Tencent only making up roughly 9% of the fund’s total holdings. Other tech giant’s featured in the ETF include Alibaba Group (NYSE: BABA), which experienced a 2.4% increase in its share price overnight.

The post Here’s why the ASIA (ASX:ASIA ETF share price is in focus on Thursday appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors to buy today
• Here’s a highly rated tech ETF for ASX investors in November
• Why Betashares Asia Technology Tigers ETF (ASX:ASIA) could be a good investment

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 shares of and has recommended BetaShares Asia Technology Tigers 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 Fortescue Metals Group Limited (ASX: FMG) share price is currently up around 9% as the mining giant shrugs off further declines of the iron ore price.

What’s going on with the Fortescue share price?

Fortescue is currently one of the top performers within the S&P/ASX 200 Index (ASX: XJO), outperforming its large resource peers of Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP), which are up 2.7% and 3.2% respectively.

This is despite the iron ore price continuing its longer-term descent. The iron ore price is currently down to around US$90, with the discount paid for Fortescue’s lower grade iron ore widening.

According to some reporting, such as Bloomberg, there is speculation that the Chinese government will help property developers with their cash and debt problems. Banking lending to property developers increased in October.

It has also been reported that Evergrande may have made an interest payment that was due at the last moment according to Clearstream.

However, DMSA claims that it wasn’t paid its owed interest and is going to start bankruptcy proceedings against Evergrande.

Hydrogen hopes with Fortescue Future Industries

One part of Fortescue is gaining increasing influence and could cause an impact on the Fortescue share price – Fortescue Future Industries (FFI). It has a vision to make green hydrogen the most globally traded seaborne commodity in the world.

The company has been making various announcements in recent months. It has already allocated US$1 billion of net profit from FY21 for FFI, with it expected to spend US$400 million to US$600 million in FY22.

Fortescue Future Industries has announced the construction of a global green energy manufacturing centre in Gladstone, Queensland. The first stage of development is an electrolyser factory with an initial capacity of two gigawatts.

Another announcement by Fortescue Future Industries has been the signing of an agreement with JCB and Ryze Hydrogen to become the United Kingdom’s largest supplier of green, renewable energy. Under a memorandum of understanding, JCB and Ryze will purchase 10% of FFI’s global green hydrogen production, which is expected to grow to 15 million tonnes by 2030, accelerating to 50 million tonnes per year in the next decade.

FFI has also partnered with PNG, which it said was one of the most renewable-rich countries in the world, to develop multiple large-scale green energy and green hydrogen projects. A master development agreement (MDA) has been agreed to undertake studies to develop up to seven hydropower projects and 11 geothermal energy projects in PNG. These projects would generate renewable energy for the purpose of producing green hydrogen and green ammonia, creating a “significant” new domestic energy and export industry for PNG.

The most recent announcement that could be factoring into investor thoughts about the Fortescue share price was the link up with LA-based Universal Hydrogen to enable the aviation industry to decarbonise with zero-emissions green hydrogen.

Whilst analysts note all of the different announcements that Fortescue Future Industries is making, investors are hoping for more financial details.

That was most recently reported by the Australian Financial Review. RBC’s Kaan Peker said that based on FFI’s goal, it could need total capital invested of between US$250 billion to US$350 billion:

For these targets to be achieved, capital allocation towards renewables cannot be constrained by the competition for capital with iron ore assets or the dividend policy.

A new business model for FFI is needed, one which enables growth in renewables. More clarity around this business model is required, in our view.

The post Fortescue (ASX:FMG) share price surges 9% to shrug off falling iron ore price appeared first on The Motley Fool Australia.

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• Why Chalice, De Grey, Estia Health, and Fortescue shares are racing higher
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• Evergrande reportedly defaults, DMSA is preparing bankruptcy proceedings
• ASX 200 (ASX:XJO) midday update: Xero’s results and Nearmap’s guidance disappoint

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

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