The S&P/ASX 300 Index (ASX: XKO) is falling today following mixed daily movement throughout the week.

At the time of writing, the ASX 300 is down a sizeable 2.15% to 7,174.6 points. This means that over the past month, the index has dropped 5% lower.

Let’s take a look at which ASX companies are making headlines so far today.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is currently topping the charts, surging 9.67% to a 52-week high of $2.95 during afternoon trade.

Despite no recent news coming out of the coal producer, investors appear to be bullish on its future prospects. The spot price for coal reached is at a record high of US$218 a tonne, which will result in bumper profits for the company.

Paladin Energy Ltd (ASX: PDN)

Another big mover on the ASX 300 is Paladin — its share price is currently up 5.07% to 72.5 cents.

The uranium company also hasn’t released any market-sensitive news to the ASX.

However, its shares are rebounding after being heavily sold off in the past week, down almost 15%. It appears investors have found the bottom of Paladin shares for now.

It’s worth noting that the company’s share price is up by more than 450% since this time last year.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is pushing 3.72% higher to $3.35.

The company is also enjoying strong revenues coming from the rise in coal prices overnight.

In addition, Bell Potter cut its rating on Whitehaven Coal shares to “hold” from “buy”, but raised its price target by 35% to $3.50. Based on the current share price, this implies an upside of roughly 4%.

And the companies in decline?

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

The worst performer on the ASX 300 at the time of writing is Domino’s, with its share price down 6.40% to $150.19.

The pizza chain operator gave notice of its Annual General Meeting (AGM) which will be held virtually on 3 November.

Virgin Money UK PLC (ASX: VUK)

Lastly, the Virgin Money UK share price has plummeted 6.06% to $3.795 on Friday.

The United Kingdom-based bank announced its digital strategy after market close yesterday. It seems investors are unimpressed with the company closing a number of its stores.

Virgin Money UK shares have tumbled 5% this month, but are up 60% in 2021.

The post Which ASX shares are set to finish the week as the top movers on the ASX 300? appeared first on The Motley Fool Australia.

More reading

• Why the Virgin Money UK (ASX:VUK) share price is sinking 6% today
• Why Evolution, Northern Star, Weebit Nano, & Whitehaven Coal are rising
• ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract
• How did ASX uranium shares perform in September?
• These were the 5 best performing ASX 200 shares in September

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 Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3F6tGEi

September turned out to be a pretty tough month for most ASX shares. The S&P/ASX 200 Index (ASX: XJO) ended up losing around 2.7% for the month, which is a pretty nasty performance. But one ASX exchange-traded fund (ETF) fared far worse. That would be the BetaShares Asia Technology Tigers ETF (ASX: ASIA).

This ASIA fund has had a month to forget. It started out in September with a unit price of roughly $10.24, and rose all the way to $10.68 early on in the month. But things went from up to down very quickly, and ASIA ended up closing yesterday at $9.80 a unit. That puts its losses for September at 4.3%. From the high of $10.68 on 7 September, the fund had gone backwards by more than 8% by the end of the month.

But it’s not like September was an outlier for this ETF. ASIA has had an extremely tough year in 2021 so far. Year to date, ASIA is now down by more than 16%. And since reaching an all-time high of more than $14 back in February, ASIA is now down more than 31% from those levels.

So what’s gone wrong here, especially over September?

ASIA suffers from China’s Evergrande woes

Well, the answer can perhaps be summed up with one word: Evergrande.

ASIA is an ETF that invests in tech-centred companies from Asia, as its name implies. Currently, its portfolio is weighted by around 45% to China shares. Some of its largest holdings include the Chinese giants Alibaba Group Holding Ltd (NYSE: BABA), Tencent Holdings Ltd (HKG: 0700) and JD.Com Inc (NASDAQ: JD). That’s in addition to other Asian tech giants like Samsung and Taiwan Semiconductor Manufacturing Co Ltd.

Well, if you weren’t aware, the Chinese economy has had one of its worst months in decades in September due to the woes of the giant Chinese property developer Evergrande. Although the crisis at Evergrande seems to be abating (at least for now), this saga sparked many a concern over the current structure of the Chinese economy.

This sparked a crisis of confidence for international investors, and has arguably contributed to a brutal selloff in Chinese equities.

Take Tencent shares, a top ASIA holding. They are still currently down almost 20% year to date, and down almost 40% from the company’s February 52-week high. Alibaba is still down more than 35% in 2021 so far, including an ~11% loss over September alone.

This has been probably the single largest contributor to ASIA’s woeful performance over the month just gone.

The BetaShares Asia Technology Tigers ETF has just over $655 million in assets under management as of 29 September, and charges a management fee of 0.67% per annum.

The post Why did the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggle in September? appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in October 2021
• 2 top tech ETFs for ASX investors in October
• 3 highly rated ETFs for ASX investors in September
• 2 top ASX growth shares that might be worth buying
• 2 excellent tech ETFs for ASX investors

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd. and JD.com. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended JD.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3D64RXx

The Woolworths Group Ltd (ASX: WOW) share price is tracking to finish the week lower. At the time of writing, shares in the supermarket giant are swapping hands for $38.85, down 1.27%.

Downward pressure is being felt across the entire market on Friday. In fact, the S&P/ASX 200 Index (ASX: XJO) is down 2.18%, making it the worst session on the Australian share market since 15 June 2020.

However, Woolworths is in particular focus today as the company reports staff shortages.

Store closures loom as COVID-19 bites

Heading into the afternoon, the Woolworths share price is struggling to shake its negative sentiment on Friday. This follows reports that the grocery chain is battling with staff shortages.

Due to the outbreak in COVID-19 cases in Victoria, more than 30,000 Victorians are presently in isolation. As fate would have it, many of these close contacts are springing up at supermarkets. As a result, entire shifts worth of Woolworths employees have been placed in 14-day long isolation.

The ninth-largest listed company on the ASX has said that it will be forced to start closing its doors at dozens of sites across Melbourne this weekend if these isolation rules continue. Such a move could weigh on the Woolworths share price, as store foot traffic would likely fall.

In commentary shared with The Australian, a Woolworths spokesperson stated:

Making some sensible, risk-based adjustments to contract tracing would go a long way in helping us maintain essential supply and service to the Victorian community.

Fortunately, it appears these pleas have been heard by Victorian Premier Daniel Andrews. In a briefing held today, the premier indicated a likely change to how isolations are dealt with in the state, stating:

People will still need to be double-dose vaccinated. People will still need to have a negative test. Where it may change – and I’m foreshadowing that it most likely will change – is the duration that people will have to be in iso at home. We may be able to reduce that. That work is not quite finalised.

Despite this announcement, the Woolworths share price remains in the red on Friday afternoon.

Woolworths share price in review

Although current isolation protocols are hindering Woolworths, its share price has been anything but over the past year. In fact, the company as an investment has slightly outperformed the benchmark index, putting a smile on shareholder’s faces.

At present, the supermarket chain trades on a 12-month trailing price-to-earnings (P/E) ratio of 31.35 times.

The post Woolworths (ASX:WOW) share price struggles amid staff shortages appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price lower after raising $700 million
• Woolworths (ASX:WOW) share price slumps this week despite Everyday Market launch
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
• How do you value the Woolworths (ASX:WOW) share price?
• September hasn’t been a great month so far for the Woolworths (ASX:WOW) share price

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.

from The Motley Fool Australia https://ift.tt/3CW5XVw

The BPH Energy Ltd (ASX: BPH) share price is roaring higher during afternoon trade on Friday.

This comes as the biotechnology and mineral exploration company announced an update in regards to its investee company, Cortical Dynamics.

At the time of writing, BPH shares are up 5.08% to 6.2 cents. It’s worth noting that its shares reached an intraday high of 6.7 cents before treading lower.

What did BPH announce?

Investors are pushing the BPH share price upwards after digesting the company’s latest positive update.

According to its release, BPH advised that Cortical Dynamics has filed a 510(k) submission with the United States Food and Drug Administration (FDA). This is in relation to the company’s medical device, the Brain Anaesthesia Response Monitor (BARM).

Touted as the next-generation brain function monitor, BARM is an Australian-first. It has been developed by BPH in partnership with Swinburne University.

BARM works by measuring changes in a patient’s brain activity as a medical professional delivers anaesthesia. It allows anaesthetists to calculate the dosage and make adjustments as necessary during surgical procedures.

The monitor also has the potential to indicate how pain-free a patient is while under anaesthesia.

BARM is better than the currently used electroencephalogram (EEG) technology because it is based on science’s latest understanding of how the brain produces rhythmic electrical activity.

A 510(k) is a premarket submission that demonstrates that the device is safe and effective for potential consumers. This is considered the fastest route to market. Clearance of the 510(k) would allow Cortical Dynamics to begin marketing a predicate device in the US without clinical trials.

About the BPH share price

Over the past 12 months, BPH shares have lifted by 24%. Year to date, the BPH share price has gained 55%.

Based on today’s price, BPH presides a market capitalisation of roughly $41.2 million. There are approximately 665 million shares outstanding.

The post Here’s why the BPH Energy (ASX:BPH) share price is surging 5% today appeared first on The Motley Fool Australia.

More reading

• Alumina (ASX:AWC) share price lifts on project update
• Electro Optic Systems (ASX:EOS) share price dips as CEO spruiks AUKUS
• Why the CBA (ASX:CBA) share price is down 4% today
• Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks?
• What is weighing the ASX share market down today?

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

from The Motley Fool Australia https://ift.tt/3utKvnJ

The Alumina Ltd (ASX: AWC) share price is crawling higher in afternoon trade today and is now changing hands at $2.12 apiece.

Alumina shares are on the move after the company announced an update for developments on alumina production.

Here’s what we know.

What did Alumina announce?

Alumina advised that Alcoa of Australia Limited has executed a binding term sheet agreement with FYI Resources Ltd (ASX: FYI) to “produce high-quality alumina”.

Alcoa of Australia is a venture between Alcoa Corporation and Alumina.

The latter has a 40% stake in Alcoa of Australia, which represents one of the world’s largest integrated bauxite mining, alumina refining and aluminium smelting operations.

Back to the agreement – Alcoa of Australia will hold a 65% interest in the project, and play a managerial role as well.

The release points to a potential construction date in 2024, of a “full scale, 8,000 metric tonne per year (high purity alumina) HPA plant”, after several milestones.

Alcoa of Australia will contribute an initial $5 million over the coming year, to fund trials and facility design.

Afterwards, the company intends to build a demonstration facility, and engineer the full scale HPA plant.

Finally, stage three would signal the start of construction on the full scale plant. The build is estimated to cost around $200 million.

Alumina’s announcement of the project comes after a successful trial in December 2020 that used Alcoa’s feedstock to produce HPA “at more than 99.99% aluminium oxide purity”.

US based Alcoa Corporation – the other 60% partner in the venture – certainly appeared to relish the news, with executive vice president, Tim Reyes, seeing the play as an easy fit.

Speaking on the announcement, Reyes said:

This project is a natural complement to Alcoa’s existing business that builds on our expertise in alumina refining technology development and our production capability.

Expanding on the above Reyes added:

Alcoa and FYI have complementary skills, experience and knowledge that combined will help to accelerate our entry into the HPA market, which is expected to have a compounded annual growth rate of nearly 20 percent to 2028.

Alumina share pice snapshot

The Alumina share price has more than doubled the S&P/ASX 200 index (ASX: XJO)’s return of 25% over the past 12 months, climbing 52.5%.

It rallied another 19% in the past month, after gaining another 15.5% since January 1.

The post Alumina (ASX:AWC) share price lifts on project update appeared first on The Motley Fool Australia.

More reading

• Use the sharp commodity sell-off to buy these ASX 200 mining shares
• Alumina (ASX:AWC) share price cools off but it’s up 19% in September. Here’s why
• Here are 2 ASX mining shares up 25% in the past month
• Here are the 3 heaviest trading ASX 200 shares on Monday
• These were the best performing ASX 200 (ASX:XJO) shares last week

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.

from The Motley Fool Australia https://ift.tt/3zYOSIT

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is in the red today.

Meanwhile, the company’s founder and CEO, Dr Ben Greene, has reportedly made note of overlooked advantages of the newly formed AUKUS pact.

At the time of writing, the Electro Optic share price is trading at $3.42, 0.29% lower than its previous close.

That’s a better performance than the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) is down a massive 2.2% while the All Ordinaries Index (ASX: XAO) has fallen 2%.

Let’s take a closer look at the comments attributed to the communication, defence, and space technology company’s boss.

A quick refresher

Australia, the United States, and the United Kingdom recently announced a new security pact between the 3 nations. The pact will see them jointly patrolling the Indo-Pacific region.

The nations announced the pact on 16 September. At the time, ABC News reported the deal would see the trio bolstering Australia’s defence capabilities.

The headline news included a fleet of nuclear-powered submarines. The submarines will join Australia’s defence arrangements, courtesy of the alliance.

Electro Optic CEO bullish on AUKUS pact

The Electro Optic share price is slipping today amid reports the company’s leader is bullish on the benefits of the AUKUS alliance.

According to a report in The Australian, the veteran CEO said most people were focusing on Australia’s plan for nuclear-powered submarines.

However, the pact would also boost Australia’s defence exports and its strategic positioning.

Greene reportedly made the comments recently at a celebration of the anniversary of the ANZUS treaty. The Australian quoted him as saying:

There is a significant growth element for Australian defence industry where they have the tech base to be able to contribute…

The Australian defence ­industry ecosystem is on the small side but has wonderful technology. This is an opportunity for some companies to be given growth opportunities so they can achieve much greater levels of scale and revenue.

Greene also said the pact would create opportunities for smaller defence companies to grow at never-before-seen speed, noting he believed the next military frontier would be space:

There will be a huge emphasis in acceleration in the intelligent use of space to make more cost-­effective defence programs on the ground and in the air.

Electro Optic share price snapshot

Today’s slight dip has worsened the company’s unfortunate year on the ASX.

Right now, the Electro Optic share price is trading for 42% less than it was at the start of 2021. It has also fallen 36% since this time last year.

The post Electro Optic Systems (ASX:EOS) share price dips as CEO spruiks AUKUS appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why has the Electro Optic Systems (ASX:EOS) share price slumped 10% in a month?
• These are the 10 most shorted ASX shares
• Want to invest in space? Here are 4 ASX shares

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 Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zXJZzH

The Commonwealth Bank of Australia (ASX: CBA) share price is down on Friday as the S&P/ASX 200 Index (ASX: XJO) was quick to reverse yesterday’s gains.

At the time of writing, the CBA share price is down 4.33% to $99.75, bringing its returns for the past month to -1.21%.

Today’s losses greatly overshoot the broader ASX 200, which is currently down 2.08% to a 4-month low of 7,182.

What’s driving the CBA share price lower?

The Australian Bureau of Statistics (ABS) released fresh data this morning about new borrower-accepted finance commitments for housing, personal and business loans for August.

The report flagged that new loan commitments, from a month-on-month perspective:

• Fell 4.3% for housing
• Fell 2.5% for personal fixed term loans
• Plunged 26.4% for business construction

Breaking down housing finance, the report flagged that owner-occupier housing fell 6.6%, the largest decline since May 2020. While investor housing itched 1.5% higher.

Overall, total housing fell 4.3%, which again, is the largest fall since the pandemic outbreak.

Total housing finance has boomed off the back of solid economic recovery and a red hot housing market. To add some perspective, new loan commitments for housing, seasonally adjusted, doubled from May 2020 lows of $16.66 billion to a peak of $32.56 billion by May 2021.

During this time, the CBA share price rallied more than 50% from pandemic lows of $60 to well over $100 by mid-June this year.

But it looks like the CBA share price has hit a wall amid a slowdown in demand for loans.

The Reserve Bank of Australia noted similar trends in its September monetary policy meeting with members flagging that the “current lockdowns were likely to affect demand for new loans in the coming months.”

Members also added that “given the environment of rising housing prices and low interest rates, members continued to emphasise the importance of maintaining lending standards and carefully monitoring trends in borrowing.”

The post Why the CBA (ASX:CBA) share price is down 4% today appeared first on The Motley Fool Australia.

More reading

• The CBA (ASX:CBA) share price is underperforming against the big four banks today
• ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Afterpay tumbles
• Confirmed: APRA is planning action on home loans, ASX 200 banks drop

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/3D0L6QX

The Boss Energy Ltd (ASX: BOE) share price has taken a tumble over the last fortnight despite no news having been released by the uranium producer.

The company’s stock is dipping alongside the price of uranium. The commodity’s spot price peaked 2 weeks ago today and has been falling since.

In a similar pattern, Boss Energy’s shares hit a new 52-week high of 58 cents on 16 September. In fact, over the 30 days ended 17 September, Boss Energy’s stock gained a massive 150%.

However, Boss Energy’s stock’s value has fallen 30.88% over the last fortnight.

At the time of writing, the Boss Energy share price is 24 cents, having gained 2.1% so far.

Let’s take a look at what’s been driving Boss Energy’s stock down lately.

Why is the Boss share price falling?

The Boss Energy share price is dipping as uranium’s day in the sun seemingly comes to a close.

The uranium spot price reached US$50.80 – its highest price since 2013 – on 17 September.

Uranium’s surge seemed to have been spurred by Canadian Fund, Sprott Physical Uranium Trust. The trust has been snapping up huge amounts of the commodity off the spot market.

Additionally, as the Wall Street Journal reported, nuclear energy, of which uranium is the key, might have a part to play in decarbonisation.

The commodity could have been boosted by the same influences that saw copper, nickel, and lithium prices surge recently.

Unfortunately, since the spot price of uranium peaked on 17 September, its bullish run has seemingly ended. It has since fallen 18% to US$43.

The Boss Energy share price isn’t the only uranium-focused stock that’s been dipping over the last 14 days.

Those of fellow uranium explorers Deep Yellow Limited (ASX: DYL) and Peninsula Energy Ltd (ASX: PEN) have fallen comparable amounts over the last 2 weeks.

The post Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks? appeared first on The Motley Fool Australia.

More reading

• How did ASX uranium shares perform in September?
• A sea of red for ASX uranium shares. Is the run over?
• Are ASX uranium shares fully valued?
• Why the Boss Energy (ASX:BOE) share price is tanking 18% today
• Why ASX uranium shares are diving double-digits on Monday

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.

from The Motley Fool Australia https://ift.tt/3mhjgJo

The ASX share market is struggling today as the S&P/ASX 200 Index (ASX: XJO) seals its first monthly decline since September 2020.

It appears Wall Street has paved the way for today’s sharp decline, with its major indices opening slightly higher before fading heavily by market close.

The S&P 500 Index (SP: .INX), Dow Jones Industrial Average Index (DJX: .DJI) and Nasdaq Composite Index (NASDAQ: .IXIC) all closed near session lows, down 1.19%, 1.59% and 0.44% respectively.

At the time of writing, the ASX 200 is down 2.11% at 7177 points. Let’s look at some of the factors that might be weighing the market down today.

Why the ASX share market is struggling to bounce

Interest rate hikes on the horizon

The US Federal Reserve signalled last week that it may begin raising the benchmark interest rate in late 2022.

Equity markets, more notably tech and richly valued growth shares have thrived under ultra-low interest rates.

With potential looming interest rate hikes on the horizon, investors have been quick to rotate away from these sectors.

In the last week, the S&P/ASX Information Technology (INDEXASX: XIJ) and S&P/ASX Health Care (INDEXASX: XHJ) have logged hefty declines, tumbling 6.41% and 6.09% respectively.

Iron ore woes continue

ASX 200 iron ore heavyweights BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto Limited (ASX: RIO) have weighed on the broader commodities sector as iron ore plunged from May all-time highs of US$230 a tonne to around US$120 a tonne this week.

The iron ore majors continue to bleed amidst weak economic data from China, with all three iron ore majors falling between 2.4% and 3.5% on Friday.

Lending indicators plateau

Australia’s lending indicators for new borrower-accepted finance commitments for housing doubled between March 2020 lows and June 2021.

But the once bullish lending indicators might have hit a near-term top with the latest figures from the Australian Bureau of Statistics (ABS) signalling a broad pullback in new loan commitments.

New borrower-accept loan commitments for housing declined 4.3% month-on-month while personal fixed-term loans also declined 2.5%.

This might also be a reason why the Commonwealth Bank of Australia (ASX: CBA) share price has plunged 4.29% to $98.85 at the time of writing.

The post What is weighing the ASX share market down today? appeared first on The Motley Fool Australia.

More reading

• Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks?
• Why the Virgin Money UK (ASX:VUK) share price is sinking 6% today
• The Flight Centre (ASX:FLT) share price is in the green today. Here’s why
• NIB (ASX:NHF) share price struggles as despite big profits in FY21
• Why is the Li-S Energy (ASX:LIS) share price sliding 9% today?

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/3F6FIh5

The Virgin Money UK CDI (ASX: VUK) share price has been a particularly poor performer on Friday.

In afternoon trade, the UK bank’s shares are down 6% to $3.79.

Why is the Virgin Money UK share price tumbling?

There appear to have been a couple of catalysts for the weakness in the Virgin Money UK share price on Friday.

One is broad market weakness, which is being felt more than most in the banking sector. For example, the Commonwealth Bank of Australia (ASX: CBA) share price is down 4% at the time of writing.

Another potential catalyst for the Virgin Money UK share price weakness could be the release of an announcement after the market close on Thursday.

What did Virgin Money UK announce?

According to the release, Virgin Money UK has decided to accelerate its digital strategy in order to enable greater efficiency and drive up levels of digitisation across the bank. This is with the aim of further developing a strong, scalable platform for future growth.

This plan is going to come at a cost, though. The release explains that restructuring charges for FY 2021 are now expected to be ~GBP145 million in total with an additional ~GBP45 million booked in the fourth quarter.

Where do the new charges come from?

Part of the strategy will see the bank close almost a fifth of its branches in the coming months. Virgin Money UK has identified 31 stores out of the 162 in its network which will be closed. This is expected to cost ~GBP25 million.

The bank will also be embracing the work from home initiative. This will result in lower office space requirements, with infrastructure and office hubs re-purposed to fit new ways of working.

After applying valuation adjustments and including other operating model changes, the bank expects to incur a ~GBP20 million restructuring charge in the fourth quarter from these changes.

However, management believes these costs will be worth it in the long run.

It explained: “The Group’s digital strategy will further develop a strong, scalable platform for future growth. In the near term, cost savings from improved productivity delivered by Virgin Money UK’s digital initiatives will be reinvested into the business to further accelerate the pace of platform development. Virgin Money UK will also leverage the capabilities of its key strategic partnerships, such as those announced with Global Payments and Capita, to deliver additional features and differentiated propositions for customers.”

The Virgin Money UK share price is up 61% in 2021 despite recent weakness.

The post Why the Virgin Money UK (ASX:VUK) share price is sinking 6% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Gold miners jump, Pro Medicus wins contract
• Why is the ASX share market down today?
• Which ASX 300 shares are making headlines on Thursday?
• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200

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 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.

from The Motley Fool Australia https://ift.tt/3iGOWXZ