Category: Stock Market

The good news for income investors in this low interest rate environment, is that there are countless dividend shares to choose from on the Australian share market.

But with so many options, it can be hard to decide which ones to buy.

To narrow things down, I have picked out two ASX dividend shares that are rated as buys by analysts. They are as follows:

DEXUS Property Group (ASX: DXS)

The first ASX dividend share to look at is Dexus. It is an Australian real estate company focused on owning, managing, and developing office, industrial, and retail properties. The company’s areas of operation include a direct property portfolio, which directly invests in Australian office and industrial properties, and third-party fund management. The latter side of the business manages office, industrial and retail properties located across Australia.

The team at Macquarie are very positive on the company’s outlook. So much so, last week the broker upgraded the company’s shares to an outperform rating with an $11.67 price target. Macquarie is also forecasting dividends per share of 52.9 cents in FY 2022 and 57.3 cents in FY 2023. Based on the current Dexus share price of $10.54, this will mean yields of 5% and 5.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is South32. It is a diversified mining company with exposure to a range of commodities. One of those is aluminium, which the team at Goldman Sachs believe is in the early stages of a multi-year bull market. It is largely for this reason that the broker has a buy rating and $3.60 price target on the mining giant’s shares.

The broker is also expecting the favourable commodity prices to underpin big dividend payments in the coming years. Goldman has pencilled in dividends per share of 22.6 US cents in FY 2022 and 27.7 US cents in FY 2023. Based on current exchange rates and the latest South32 share price of $3.44, this will mean fully franked yields of 9% and 10.9%, respectively.

The post Analysts name 2 high yield ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares this Friday
• Why the South32 (ASX:S32) share price is leaping 5% today
• 2 excellent ASX 200 (ASX:XJO) mining shares that could be buys
• Why Afterpay, CBA, Omni Bridgeway, & South32 shares tumbled lower today
• Here are the 3 heaviest trading ASX 200 shares on Thursday

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.

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On Monday the S&P/ASX 200 Index (ASX: XJO) finished the day with a late surge into positive territory. The benchmark index rose 0.2% to 7,425.2 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to edge lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning. This is despite US markets starting the week on a positive note. On Wall Street the Dow Jones rose 0.75% and the S&P 500 climbed 0.25%, but the Nasdaq dropped 0.1%.

Iron ore price tumbles

It could be a difficult day for mining giants BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) after the iron ore price pulled back further. According to Metal Bulletin, the spot iron ore price has fallen 4.5% to US$123.84 a tonne. The steel making ingredient continues to slide amid steel production curbs in China.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$70.63 a barrel and the Brent crude oil price has risen 1% to US$73.64 a barrel. US supply concerns boosted prices to a one-week high.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.15% to US$1,794.7 an ounce. Weaker bond yields were behind the gold price rise.

Shares going ex-dividend

Another group of ASX 200 shares are going ex-dividend on Tuesday and could trade lower. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), poultry company Inghams Group Ltd (ASX: IGO), media giant News Corp (ASX: NWS), and telco TPG Telecom Ltd (ASX: TPG).

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

More reading

• 3 excellent ASX share ideas for investors this week
• ASX 200 up, Sydney Airport flies, Nuix rises
• Is worst over for ASX gold shares as Macquarie upgrades sector?
• Here are the 3 heaviest trading ASX 200 shares on Monday
• Fortescue (ASX:FMG) shares bounce off 9-month low as iron ore sell-off continues

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended TPG Telecom 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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Investors looking for ASX shares to buy this week may want to look at the ones listed below.

Here’s why these ASX shares could be good additions to your portfolio:

Breville Group Ltd (ASX: BRG)

The first ASX share to look at is Breville. It is the leading appliance manufacturer behind a number of popular brands. In FY 2021, Breville was on form and reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in earnings before interest and tax (EBIT) to $136.4 million. The latter was ahead of management’s upgraded EBIT guidance of $136 million.

In response to its results, UBS retained its buy rating and $35.70 price target on its shares. Its analysts appear confident its solid growth can continue for some time to come. This is thanks partly to its global expansion.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX share to look at is this leading donor management and community engagement platform provider to the faith sector. It has been growing its operating revenue at a strong rate in recent years thanks to a combination of organic growth and the benefits of acquisitions. The latter has continued in FY 2022 with Pushpay recently announcing the US$150 million acquisition of Resi Media. Management expects the strategically compelling acquisition of a market-leading faith-focused streaming platform to broaden Pushpay’s core product offering.

Jarden currently has a buy rating and NZ$2.10 (A$2.03) price target on the company’s shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX share to look at is this online furniture and homewares retailer. Temple & Webster has also been growing at a quick rate in recent years. The catalyst for this has been the structural shift to online shopping and its strong market position. For example, last month Temple & Webster released its full year results and revealed an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million. The good news is the shift online is still only in its infancy, particularly for this category in Australia. This bodes well for its future growth.

Morgan Stanley is positive on the company. It currently has an overweight rating and $16.00 price target on its shares.

The post 3 excellent ASX share ideas for investors this week appeared first on The Motley Fool Australia.

More reading

• These 8 ASX shares are going ex-dividend this week
• 2 ASX shares that may be worth looking at this weekend
• 2 fast-growing ASX shares named as buys
• How have ASX retail shares performed during the August 2021 earnings season?
• The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.25% today to 7,425 points.

Here are some of the highlights from the ASX:

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price rose 4.6% today after receiving another takeover offer from a consortium of investors including IFM Investors.

This new offer is $8.75 cash per Sydney Airport share. This is a higher offer than the previous offers of $8.25 per share and $8.45 per share. Those offers were rejected by Sydney Airport.

The terms of this new offer are consistent with the proposal from the consortium last month.

After taking advice and considering all of the relevant factors, the ASX 200 share has decided to grant the consortium due diligence access on a non-exclusive basis so that the consortium can put forward a binding proposal. The due diligence is expected to take four weeks from entry into a non-disclosure agreement.

In regards to accepting the offer or not, Sydney Airport said:

Should the consortium make a binding offer at $8.75 cash per stapled security then, subject to the parties entering into a binding scheme implementation agreement on terms acceptable to Sydney Airport (including as to the timeframe to implementation), and Sydney Airport having completed an assessment of the conditionality of the binding offer to its satisfaction, the current intention of the boards is to unanimously recommend that securityholders vote in favour of the proposal in the absence of a superior proposal and subject to an independent expert concluding that the proposed transaction is in the best interests of Sydney Airport securityholders.

The ASX 200 share noted that there is no certainty this will lead to a binding offer.

Nuix Ltd (ASX: NXL)

The Nuix share price increased more than 3% today after announcing an acquisition.

Nuix said that it has entered into an agreement to acquire the Topos Labs Inc business, which is based in Boston. It’s a developer of natural language processing (NLP) software that helps computer systems better understand text and spoken words at speed and scale.

The ASX 200 business said that Topo’s early-stage platform is already able to automate accurate analysis and classification of complex content in documents, electronic communications, and social media. Nuix said that NLP models can be defined directly by business users through the no-code user interface, reducing the time required to identify risk in an organisation’s data. Topos is then also able to present the risk assessment of confidential, sensitive, and regulated content in user-friendly dashboards.

The initial cost of the acquisition is US$5 million on financial close, with the potential for a further US$20 million comprised of $18.5 million cash and up to US$1.5 million in performance rights payable over 30 months.

Nuix engineering founder and chief scientist David Sitsky said:

The acquisition of Topos is an exciting evolution in Nuix’s journey. Integrating the Nuix engine’s ability to process vast quantities of unstructured data with the next generation NLP capabilities of Topos will be game-changing for Nuix’s product portfolio.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price rose 1.5% after providing an update about its Waggaman ammonia plant in Louisiana and the impact of Hurricane Ida.

After running at “nameplate capacity” since the re-start at the end of May, the Waggaman plant was brought down on 28 August 2021 in anticipation of the hurricane to ensure the safety of its people and to protect the ASX 200 share’s plant against damage.

Inspections undertaken since the hurricane have not identified any material damage to the plant. The plant’s re-start has been awaiting restoration of high voltage industrial power and utilities from third party providers. Factoring in the anticipated restoration of power and utilities, the total outage is expected to be approximately four weeks from the date the plant was brought down.

Based on current market prices for ammonia, and the planned restart schedule, the loss of earnings before interest (EBIT) is approximately US$28 million, or $21 million in net profit after tax terms.

The post ASX 200 up, Sydney Airport flies, Nuix rises appeared first on The Motley Fool Australia.

More reading

• Is worst over for ASX gold shares as Macquarie upgrades sector?
• Here are the 3 heaviest trading ASX 200 shares on Monday
• Here are the top 10 ASX shares today
• ASX 200 tech shares are dragging the market on Monday
• Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. 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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Things could finally be looking up for ASX gold shares after a top broker upgraded the sector.

This could help explain why these ASX miners have outperformed the S&P/ASX 200 Index (Index:^AXJO) on Monday.

The Northern Star Resources Ltd (ASX: NST) share price and Evolution Mining Ltd (ASX: EVN) share price jumped more than 3% each.

The Newcrest Mining Ltd (ASX: NCM) was the relative laggard as it “only” increased by 1.9% to $24.45. But investors won’t be complaining as that’s still well ahead of the 0.3% gain by the ASX 200.

Outlook for ASX gold shares improves on upgrades

There could be more gains ahead too as worries about further big falls in the gold price are assuaged.

The analysts at Macquarie Group Ltd (ASX: MQG) have upgraded their short- and medium-term gold price forecast. This is in light of their revised 10-year yield forecast for US government bonds.

Broker sees limited downside for gold price

The broker is expecting the gold price to average US$1,750 an ounce in the 2021 December quarter. That’s around a 4% increase in Macquarie’s previous CY21 forecasts.

The precious metal is currently trading just under US$1,800 an ounce, so the downside appears limited for this year.

The news will be a relief for gold investors. Since the price of the commodity tumbled from its record peak of around US$2,067 an ounce in August last year, investors have dumped ASX gold shares.

Why the gold price may not fall much further

The fear was that rising US government bond yields will diminish the appeal of gold. Both assets are regarded as safe-haven investments, but one doesn’t pay a distribution.

Hence, as the COVID-19 economic recovery takes hold, bond yields will rise. This makes buying US government bonds a more attractive proposition to gold.

But the delta variant of the virus is dampening the recovery outlook for the global economy. This is prompting some to question if US government bond yields can rise as much as earlier forecast.

ASX gold shares enjoying an upgrade

These doubts are a boon for ASX gold shares. And given that most of these miners have crashed into a bear market, which is a peak-to-trough fall of 20% or more, the sector could be fertile ground for bargain hunters.

This may be particularly so as Macquarie has upgraded its recommendation on the Newcrest share price to “outperform”.

The broker’s 12-month price target on Australia’s largest gold miner was increased by 7% to $29 a share.

Macquarie also upgraded its rating on the Evolution Mining share price to “neutral” from “underperform”. The price target for Evolution Mining was lifted by 3% to $4 a share.

Best ASX gold shares to buy now

The broker’s top pick for the sector is Northern Star. Macquarie reiterated its buy call on the shares and boosted the price target by 8% to $14 a share.

Macquarie is expecting the gold price to average US$1,625 an ounce in 2022 before bottom around US$1,500 the year after.

The post Is worst over for ASX gold shares as Macquarie upgrades sector? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest trading ASX 200 shares on Monday
• Here are the top 10 ASX shares today
• ASX 200 tech shares are dragging the market on Monday
• National Australia Bank (ASX:NAB) share price dragged lower by downgrade
• Macquarie (ASX:MQG) share price struggles amid broker sell rating

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Newcrest Mining 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 Macquarie 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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The Rio Tinto Limited (ASX: RIO) share price has struggled to elevate from 10-month lows following the continued weakness in iron ore prices.

However, the iron ore giant could soon be making “one of its biggest strategic pivots” to lithium.

Rio Tinto to ramp up exposure to battery materials

Back in July, Rio Tinto confirmed its $2.4 billion commitment to fund its Jadar lithium-borates project in Serbia.

The move would “scale up Rio Tinto’s exposure to battery materials, and demonstrate the company’s commitment to investing capital in a disciplined manner to further strengthen its portfolio for the global energy transition.”

The Sydney Morning Herald (SMH) reported that Rio Tinto’s new head of minerals, Sinead Kaufman, has just returned home from a trip to Serbia.

“While in the Serbian capital Belgrade, she met with Prime Minister Ana Brnabić to personally update her about how the project’s environmental impact assessment was progressing.”

One of Kaufman’s immediate challenges is to overcome the mounting local scrutiny of building a new mine.

According to the SMH, local conservation groups and protests have attracted 130,000 signatures. Reportedly it has even raised “the prospect of a referendum on whether it should go ahead”.

If successful, Rio Tinto believes it will emerge as the “largest source of lithium supply in Europe for at least the next 15 years.”

Rio Tinto said that Jadar will be one of the largest industrial investments in Serbia, “contributing 1% directly and 4% indirectly to GDP.”

Assuming all things go to plan, the first saleable production is expected in 2026. This will ramp up to full production in 2029. At full capacity, the mine will produce ~58,000 tonne of lithium carbonate, 160,000 tonne of boric acid and 255,000 tonne of sodium sulphate annually.

Kaufman told the SMH that “even with that [Jadar], we see that EV demand will require another 40 Jadars to be built.”

“We see a strong demand for lithium in batteries in particular,” she added.

Rio Tinto share price snapshot

The Rio Tinto share price is down 6.86% year to date after sliding ~16% in August.

The post Rio Tinto (ASX:RIO) share price grounded as US$2.4b lithium mine faces local opposition appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• How have ASX resources shares performed during the August 2021 earnings season?
• Rio Tinto (ASX:RIO) share price at 10-month lows. What’s next?
• ASX 200 sinks, BHP and CBA fall
• Rio Tinto (ASX:RIO) share price slides as iron ore value continues tumbling

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.

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The King Island Scheelite Limited (ASX: KIS) share price ended the day in positive territory following a company announcement.

At market close, the mining company’s shares finished at 18.5 cents, up 5.71%.

New offtake agreement

According to the release, King Island Scheelite advised it has secured an offtake agreement with physical commodity trader and merchant, Traxys.

Under the deal, 90,000 metric tonne units (equivalent to 10 kilograms) of tungsten trioxide will be supplied annually from King Island Scheelite’s Dolphin Tungsten Project. Combined with the Wolfram agreement, this represents around 70% of the total annual production output from the mine.

King Island Scheelite noted that the agreement is for a total quantity of 330,000 units of tungsten trioxide. The processing plant has been commissioned and will operate until the order is completely fulfilled.

The price received each month for the concentrate will be dependent on market prices for Ammonium Para Tungstate (APT). Currently, APT is fetching for up to US$315 per metric unit tonne. The price has accelerated approximately 35% in 2021, despite COVID-19 impacts on the automotive and aviation sectors.

With the current price and exchange rates, the agreement translates to revenue of around $100 million for King Island Scheelite.

Previously, the company had entered into an agreement for tungsten trioxide with Kalon Resources, a wholly-owned subsidiary of Noble Group. However, certain financial milestones were not met, and a termination notice has been served. It is expected this will take effect on 10 November.

About the King Island Scheelite share price

Since the beginning of 2021, King Island Scheelite shares have risen 90%. Although, when factoring in the last 12 months, these gains extend to over 200% for investors.

The company’s share price reached an all-time high of 35.5 cents in March this year before profit-takers swopped in. And even with today’s higher price, its shares have continued to gradually slide lower over the longer-term.

King Island Scheelite presides a market capitalisation of roughly $77.7 million, with 408 million shares on its books.

The post Why the King Island Scheelite (ASX:KIS) share price rose 6% today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest trading ASX 200 shares on Monday
• Fortescue (ASX:FMG) shares bounce off 9-month low as iron ore sell-off continues
• Boral (ASX:BLD) share price lifts amid latest business sale
• 2 growing small cap ASX shares to watch
• The WAM Capital (ASX:WAM) share price is up 6% in a month. What’s next?

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

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The S&P/ASX 200 Index (ASX: XJO) had a rather positive day on Monday, closing the session at 7,425.2 points, up 0.25% for the day.

But let’s get away from those uninspiring numbers and, instead, check out which ASX 200 shares have been topping the charts today in terms of raw trading volume.

The 3 heaviest trading ASX 200 shares this Monday

Alumina Ltd (ASX: AWC)

ASX 200 resources share Alumina is our first ASX share up today. This aluminium producer has seen a healthy 16.72 million of its shares trade today. This appears to be a result of what has happened with the Alumina share price today, seeing as there were no major news or announcements out of the company.

Alumina shares finished up a robust 1.83% to $2.22 a share. But the company took a big dive around midday, going as low as $2.16 a share before recovering. It’s probably a result of this volatility that we saw so many Alumina shares bouncing around today,

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport is probably the ASX star of the show today. The company set chins a wagging this morning when it announced a third player has lobbed a bid to acquire the Airport. As you might expect, this caused the Sydney Airport share price to spike today. It closed 4.63% higher at $8.37. Almost certainly as a result, we saw a hefty 25.5 million SYD shares swap hands.

Pilbara Minerals Ltd (ASX: PLS)

Not even a takeover offer for Sydney Airport can keep ASX 200 lithium producer Pilbara Minerals away from the top of the pile today. Pilbara saw a whopping 26.46 million of its own shares bought and sold. This follows a massive 7.32% surge in the Pilbara share price at close on Monday. The company finished the session at $2.20 a share. This big jump is likely what has placed Pilbara at the top of today’s list.

The post Here are the 3 heaviest trading ASX 200 shares on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Pilbara Minerals (ASX:PLS) share price up 6% on Monday as lithium prices hit record high
• ASX 200 tech shares are dragging the market on Monday
• Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising
• National Australia Bank (ASX:NAB) share price dragged lower by downgrade

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

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The Fortescue Metals Group Limited (ASX: FMG) share price is rebounding after hitting a 9-month low of $17.81 last Thursday.

At market close on Monday, shares in the iron ore major finished up 0.55% at $18.37.

Fortescue share price defies weak iron ore outlook

Iron ore prices tanked to 1-year lows last Friday. This was following increasing concern that more steel production constraints will come out of China.

Mining.com reported that:

…the most-traded January iron ore contract on the Dalian Commodity Exchange ended daytime trading 0.3% lower at 732.50 yuan ($113.66) a tonne. It touched 717.50 yuan a tonne on Thursday, the weakest since February 4.

Prices edged lower following reports that:

In Jiangsu, China’s second-largest steel-producing province, a campaign to monitor energy consumption among industrial enterprises including steelmakers raised fears of further disruption in blast furnace operations.

Prices on the spot market remained weak, falling 0.4% to US$129.71/tonne on Friday, according to Fastmarkets. Sources told Fastmarkets that prices ticked lower in expectation of weakening demand. This was due to potential further cuts in steel production until the end of 2021.

Despite the bearish headlines, the Fortescue share price has managed to rally more than 3% in the last two trading sessions.

What’s next for iron ore?

The outlook for iron ore doesn’t seem very promising.

Mining.com quoted analysts from Westpac Banking Corp (ASX: WBC) who said:

Iron ore prices have had a volatile couple of months but as August closed, it was clear there had been a quantum shift in the market leading us to revise down our year-end forecast from $175/tonne to $125/tonne.

To add some perspective, Fortescue’s average realised price for its lower-grade iron ore was US$135/dry metric tonne (dmt) in FY21.

The last time iron ore traded at US$125/t was around mid-November last year. At this time, the Fortescue share price was fetching roughly ~$17 a share.

The post Fortescue (ASX:FMG) shares bounce off 9-month low as iron ore sell-off continues appeared first on The Motley Fool Australia.

More reading

• The Fortescue (ASX:FMG) share price is down 13% so far this month
• How have ASX resources shares performed during the August 2021 earnings season?
• These were the worst performing ASX 200 (ASX:XJO) shares last week
• These ASX 200 dividend shares are about to dish out $40bn to shareholders
• Could falling iron ore prices be good for the Fortescue (ASX:FMG) share price?

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.

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The Boral Limited (ASX: BLD) share price has finished the trading day on Monday, up 2.21% to $6 per share.

Below we look at the latest from the building products and construction materials company.

Why is Boral making headline news?

Boral’s share price may have seen some impact from news reported by the Australian earlier today.

According to that article, the company has offloaded “its Australian roof tiles business to private equity firm Lutum and three members of its former management”. The selling price is believed to be somewhere below $30 million.

It’s expected that Boral will hold onto its roof tile business at its Sydney real estate sites while selling the rest of the operation as part of its ongoing strategy to divest its building products segments in Australia.

Today’s bounce in will come as welcome news to investors, who’ve watched shares plummet 12% over the last month.

The Boral share price has come under pressure recently as changes in the S&P Dow Jones Indices to the S&P/ASX Indices will see Boral removed from the ASX 100 Index as of 20 September.

While that may not matter much to you or me, it could have a material impact on some of the larger fund managers who are limited to investing in the top-100 companies by market cap.

Shares in the construction materials company also took a hit during Seven Group Holdings Ltd (ASX: SVW) takeover manoeuvres.

That takeover bid was finally completed on 29 July, leaving Seven Group with a majority stake of 69.5% of Boral’s shares. This saw Seven Group’s CEO Ryan Stokes swiftly replace the company’s previous Board chair, Katheryn Fagg.

Boral share price snapshot

Despite a few recent woes, the Boral share price remains up 21% year-to-date. That compares to a gain of 11% for the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

Over the past 5 days, Boral’s shares are down 0.5%.

The post Boral (ASX:BLD) share price lifts amid latest business sale appeared first on The Motley Fool Australia.

More reading

• Why the Boral (ASX:BLD) share price is down 17% in a month
• These were the worst performing ASX 200 shares in August
• Boral (ASX:BLD) share price on watch as revenue falls
• The Boral (ASX:BLD) share price fell 8% last time the company reported
• The Boral (ASX:BLD) share price is down 7% in a month. Here’s why

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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