Category: Stock Market

Many people share the dream of earning a lifelong passive income in a world of financial uncertainties. However, without any savings to start with, this goal may seem distant, if not impossible, to achieve. That’s where the wisdom of legendary investor Warren Buffett comes into play.

Known for his simple yet profoundly effective investment philosophy, Buffett’s approach can be adapted by anyone looking to make their way into the world of investments.

Warren Buffett, often referred to as the “Oracle of Omaha,” has built his fortune through making wise investments in undervalued companies with strong business models and potential for long-term growth.

Save, educate, and invest

For individuals starting from scratch, the first step towards employing the Buffett method is saving money. Buffett is known for his frugality. He still lives in the same house he bought in 1958 and enjoys McDonald’s breakfast. By leading a simple and frugal lifestyle, you can achieve two goals: better focus on important things in life and creating the initial capital to invest.

The second step, or what you can do in parallel, is education. In the early days, Buffett used to read the Moody’s Manual, a thick book introducing all listed shares, one company per page, from A to Z, twice.

He emphasises understanding the businesses you invest in. This means looking beyond share price fluctuations and focusing on the company’s fundamentals, such as its competitive advantages, management quality, financial health, and potential for growth.

What to consider in choosing ASX dividend shares

Patience is crucial when using the Warren Buffett method. Buffett is known for his long-term investment strategy, often holding onto his investments for decades. Dividend-paying stocks can be a great way to achieve this long-term investing goal.

Buffett’s investment vehicle, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), collects billions of dollars in annual dividends from a handful of companies, including Bank of America Corp, Occidental Petroleum Corp, and Apple Inc.

In his 2022 shareholder letter, Buffett highlighted:

In August 1994 – yes, 1994 – Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful sum at Berkshire.
The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow.

American Express is much the same story. Berkshire’s purchases of Amex were essentially completed in 1995 and, coincidentally, also cost $1.3 billion. Annual dividends received from this investment have grown from $41 million to $302 million. Those checks, too, seem highly likely to increase.

ASX dividend shares

Once you have saved some money to invest, it is time to look for ASX dividend shares similar to Buffett’s. For this purpose, I looked for ASX companies with a solid dividend history, robust business fundamentals, and inexpensive valuations.

• Washinton H Soul Pattinson (ASX: SOL) has increased its dividends for more than a decade. Currently offering a fully franked dividend yield of 2.6%, it is one of the most loved ASX dividend shares.
• BHP Group Ltd (ASX: BHP) boasts a dividend yield of 5.5% after the recent weakness in its share price. While the near-term outlook is murky, the mining giant has a time-tested history of dividend payments.
• Steadfast Group Ltd (ASX: SDF) is a leader in the insurance broking industry, with a current dividend yield of 2.5%. Its earnings and dividends have demonstrated consistent growth year after year.
• Brickworks Limited (ASX: BKW) shares currently offer a fully-franked dividend yield of 2.3%. Based on management estimates, they are valued below the company’s net asset value (NAV).

While the first step can be daunting, let’s remember that Buffett made his first stock purchase—three shares of Cities Service preferred shares at $38 per share—when he was 11.

The post No savings? I’d use the Warren Buffett method to earn lifelong passive income with ASX shares appeared first on The Motley Fool Australia.

More reading

• Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?
• This ASX stock is 13% of my portfolio and I don’t lose a second of sleep over it
• BHP share price marching higher amid legal cost sharing agreement with Vale
• It’s official, Aussies are getting richer! Here’s how
• Top 10 most traded ASX shares and US stocks in June

American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Kate Lee has positions in Brickworks and Occidental Petroleum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bank of America, Berkshire Hathaway, Brickworks, Steadfast Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum. The Motley Fool Australia has positions in and has recommended Brickworks, Steadfast Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares investors say being debt-free and owning a home are their most important definitions of financial success, according to new research.

These are the findings of a survey conducted by online trading platform Stake in May.

Stake surveyed more than 2,000 Australian investors who held either ASX shares or overseas stocks.

The most popular definition of financial success was being debt-free, according to 86% of respondents.

It’s likely that being debt-free is even more appealing during today’s cost-of-living crisis!

Owning a home was the second most popular definition of financial success, with 85% of respondents agreeing that this was a key aspiration.

Debt-free home ownership is considered essential for a comfortable lifestyle in retirement in Australia.

But as we all know, getting into the property market can be difficult for many reasons.

One of them is that values continue to rise faster than most people can save a deposit. For example, in FY24, the median home price rose by $59,000, according to CoreLogic data.

On top of that, 13 interest rate rises between May 2022 and November 2023 have made it not only difficult to service a loan but also hard to get finance in the first place.

When assessing loan applications, banks typically add a 3% serviceability buffer. This means most customers today have to prove they can afford an interest rate of 8% or 9% to get a home loan.

What are the other definitions of financial success?

The third most popular definition of financial success, with 77% support among ASX shares investors, was being able to live in an area of their choosing.

This definition may reflect the compromises people are making in the property market as values continue to increase and buyers are forced to seek more affordable accommodation.

The fourth most desired milestone of financial success is having the capacity to support family members. Three-quarters of survey respondents said this represented financial success to them.

This reflects the rising role that the Bank of Mum and Dad is playing in Australia’s property market.

Finally, the fifth most common definition of success among ASX shares investors is having the flexibility to reduce working hours, or quit altogether, and live off one’s investments.

If you also aspire to this, check out this article by my colleague Sebastian: How much cash do you need to quit work and live off ASX dividend income?

You can also check out these 7 tips for successful ASX shares investing.

Which ASX shares are attractive to investors today?

The Stake survey explored the top investment themes exciting ASX shares investors today.

Gold was at the top of the list. This was not surprising given the year that ASX gold stocks had in FY24.

The top three ASX 200 mining shares for price growth last financial year were all gold stocks.

The survey also revealed the five most popular ASX shares bought by investors over the 12 months to May.

They included ASX lithium share Pilbara Minerals Ltd (ASX: PLS) and the Vanguard Australian Shares Index ETF (ASX: VAS).

On Tuesday, S&P/ASX All Ordinaries Index (ASX: XAO) shares are down 0.16%.

The post 5 ways ASX shares investors define financial success appeared first on The Motley Fool Australia.

More reading

• Own the Vanguard Australian Shares Index ETF (VAS)? Here’s how much you’ll get paid today
• Here’s the lithium price forecast through to 2027
• Should Aussies choose Vanguard Australian Shares Index ETF (VAS) or a term deposit for passive income?
• Are AGL or Pilbara Minerals shares a better buy?
• Top 10 most traded ASX shares and US stocks in June

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares Index ETF. 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 Scott Phillips.

The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular exchange-traded fund (ETF) on the ASX. It’s so widely held, in fact, that VAS has long held the title of the most popular ETF and index fund on the ASX by funds under management for a number of years.

As such, there will be many ASX investors who will be receiving a paycheque today. That’s because it’s dividend payday for the Vanguard Australian Shares ETF this Tuesday.

The Vanguard Australian Shares ETF typically pays quarterly dividend distributions rather than the six-month interval that is common on the ASX.

We first got an idea about what the latest VAS dividend distribution would be late last month. Back on 28 June, Vanguard announced that the latest investor payment for this ETF would be worth 67.21 cents per unit – an amount later confirmed on 1 July.

That was the same day that VAS units traded ex-dividend on the ASX. So if you didn’t own this ETF at the end of trading on 30 June, you won’t be eligible to receive this latest dividend distribution.

But for those lucky investors who did make the cut, today is your lucky day.

If you haven’t already received this cash payment, you will see 67.21 cents for every VAS unit owned arrive sometime today. Like most VAS dividends, this payment will come partially franked, reflecting the mixed nature of its underlying holdings.

VAS’ latest ASX dividend goes low

However, this payment might not be as enthusiastically welcomed as some of VAS’s former ASX dividend distributions. That’s because this 67.21 cents per unit payment is well below what VAS’s ASX investors would be used to.

For one, it pales in comparison to this ETF’s last three quarterly dividend distributions. The quarter ending 31 March saw investors bag 84.79 cents per unit, for example. Before that, investors enjoyed payments worth 71.62 cents and $1.29 per unit, respectively.

2024’s June quarter distribution is even smaller than the payment investors received this time last year. 2023’s June distribution came to 88.9 cents per share. So this year’s paycheque is in effect a 24.4% pay cut from last year.

But there’s not a lot Vanguard could have done about that. Like all ETFs, VAS can only pass on what it receives in dividend income from its underlying holdings. So the fact that this month’s distribution is so low is more of a reflection of the dividends it has enjoyed from its top holdings, like the big four banks, BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), and Wesfarmers Ltd (ASX: WES).

But saying that, the passive income from an ASX index fund like VAS is usually quite volatile. So long-term investors would be used to their dividend distributions coming in ebbs and flows.

This latest dividend distribution from VAS takes this ASX ETF’s annual distribution total to $3.52 per unit. At the current VAS unit price of $99.06 (at the time of writing), this gives the Vanguard Australian Shares Index ETF a dividend yield of 3.55%.

The post Own the Vanguard Australian Shares Index ETF (VAS)? Here’s how much you’ll get paid today appeared first on The Motley Fool Australia.

More reading

• 5 ways ASX shares investors define financial success
• Should Aussies choose Vanguard Australian Shares Index ETF (VAS) or a term deposit for passive income?
• Buying shares and 5 other ways investors intend to spend tax cuts: report
• The 5 most popular ASX shares bought by investors
• Should I buy ASX shares now or wait? See what Lazard says

Motley Fool contributor Sebastian Bowen has positions in CSL, Wesfarmers and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a fairly ho-hum day on the ASX so far this Tuesday. Fresh from cracking a new all-time record of 8,281.4 points yesterday, the All Ordinaries (ASX: XAO) Index is currently down 0.07%. But let’s talk about what’s happening with the DroneShield Ltd (ASX: DRO) share price. 

As one might expect, most ASX All Ords shares are having a pretty average day, apart from some new highs from the ASX banks. But the Droneshield share price’s day has been anything but ordinary. Unfortunately, it’s not good news for the true believers in this ASX defence stock.

Droneshield closed at $2.60 a share yesterday afternoon after enjoying an 11.11% bounce on Monday’s session. But today, it has been a very different story. Things started well for the company, with Droneshield opening at $1.71 before hitting yet another fresh new record high of $2.72 soon after open.

But that’s when the selling started. After less than 30 minutes of trading, the Droneshield share price was back in the red. Things didn’t look too dire by midday, which had the company drop down to $2.53 a share.

However, investors seemed to have gotten a bad case of the afternoon blues soon after. Selling quickly accelerated. The Droneshield share price dropped below $2.40, then $2.20 and finally $2.

At the time of writing, the company has gone into a trading halt, but not before losing an astonishing 28.5% of its value and coming to a stop at $1.86 a share. That’s after getting as low as $1.79 in earlier trading, a drop worth more than 31%.

So what on earth is going on with the Droneshield share price that has caused investors to wipe off more than a quarter of this company’s value in just a few short trading hours?

Why have DroneShield shares tanked by 31% today?

Unfortunately for lovers of certainty and logic, it’s a gosh darn mystery. Prior to the request for the trading halt, Droneshield had not made any fresh news or announcements today. In fact, we haven’t had any major news from the company for almost a month.

There doesn’t appear to be any other news out regarding Droneshield either.

So all we can do at this point is speculate and wait for further updates.

It is possible that some investors have finally decided to take some gains off the table, sparking a rush to get out of the stock today.

Today’s drop does look dire. But investors have been raking in the profits (at least on paper) from Droneshield for months now.

Remember, this is a company that has risen from 38 cents a share at the start of 2020 to the record high of $2.72 that we saw this morning. That’s a gain worth over 615%. Even after today’s drop, the Droneshield share price remains up by around 400% year to date.

As of yesterday’s close, the Droneshield share price was also up close to 80% over the past month alone and had risen 20% just last week. Check all of that out for yourself below:

Too hot to handle?

Deep down, most investors know that gains like these are rare on the ASX and don’t typically last too long without a pullback. So it was arguably only a matter of time before some investors started to blink and pull money off the table. This could have caused a cascade effect, sparking a rush for the exits.

At this point, that’s the best explanation we have as to why Droneshield has suddenly cratered in value today after such a strong run.

Even so, long-term investors are still up substantially here. It will be interesting to see what happens with this hot (until this afternoon) ASX All Ords stock next. I, for one, will be watching closely for more updates from the company, and what happens when trading resumes.

The post Big ASX news! DroneShield share price crashes 31% appeared first on The Motley Fool Australia.

More reading

• Top 10 most traded ASX shares and US stocks in June
• Are ASX small-cap shares back in vogue amid a big shift?
• Would I be crazy to buy DroneShield shares now at over $2?
• 3 ASX small-cap shares that soared 250% to 675% in FY24
• Why DroneShield, GenusPlus, Monadelphous, and Telstra shares are roaring higher today

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 positions in and has recommended DroneShield. 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 Scott Phillips.

ASX 200 mining shares including BHP Group Ltd (ASX: BHP) are tumbling on Tuesday after Rio Tinto Ltd (ASX: RIO) released second-quarter results that fell short of some consensus expectations.

Investors appear to feel that Rio’s report does not bode well for other ASX 200 mining shares.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the worst performer of the day so far, down 1.12%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 0.13% today.

What’s happening with the ASX 200 mining shares today?

At the time of writing:

• The Rio Tinto share price is down 2.15% to $117.26
• The BHP share price is down 1.63% to $42.96
• The Fortescue Ltd (ASX: FMG) share price is down 0.27% to $22.42
• The Champion Iron Ltd (ASX: CIA) share price is down 2.16% to $6.33

What did Rio Tinto report today?

Rio Tinto released its 2Q FY24 update before the market open on Tuesday.

As my colleague James covered earlier, some of Rio’s results fell short of consensus expectations. This has led to a fall in the share price of the ASX 200 mining share.

Rio Tinto reported iron ore production of 79.5Mt in 2Q FY24, up 2% on 1Q FY24 and down 2% on 2Q FY23. This took 1H FY24 production to 157.4Mt, down 2% on 1H FY23.

Iron ore shipments in 2Q FY24 totalled 80.3Mt, up 3% on 1Q FY24 and up 2% on 2Q FY23. This took 1H FY24 shipments to 158.3Mt, representing a 2% decline on 1H FY23.

Consensus expectations among analysts had been 82Mt in shipments for 2Q FY24.

The ASX 200 mining major explained that a train collision in mid-May impacted production and shipments.

Aluminium production was flat at 824kt over 2Q FY24 compared to 1Q FY24 and up 1% compared to 2Q FY23. This took production for 1H FY24 to 1,650kt, up 3% on 1H FY23.

Copper production rose 10% in the second quarter to 171kt and increased 13% over 1H FY24 to 327kt. Consensus estimates were 175kt for 2Q FY24.

Falling iron ore price weighs on ASX 200 miners in 2024

The iron ore price has fallen dramatically in 2024 due to concerns over the Chinese economy.

At the beginning of the year, the iron ore price was about US$144 per tonne. Today, it’s US$109.58.

As a result, ASX 200 mining share prices have weakened in the year to date.

Analysts at Trading Economists said the 62% fe iron ore price held steady overnight as investors considered the latest economic data from China.

According to Trading Economics:

Data showed that China’s economy grew less than expected in the second quarter amid a persistent property downturn, weak domestic demand and rising trade tensions with the West.

Investors now await the outcome of a key political meeting in Beijing this week where traders are hoping for further stimulus to support the economy.

Westpac Banking Corp (ASX: WBC) forecasts the iron ore price will weaken further in 2024 and 2025.

Rio shares are down 14%, and BHP shares are down 15% year to date. Fortescue shares have lost 23.5%, and ASX 200 mining junior Champion Iron has lost 26.5%.

The post Why are BHP and other ASX 200 mining shares getting hammered on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping
• Rio Tinto shares fall on soft second quarter update
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• BHP share price marching higher amid legal cost sharing agreement with Vale

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 Scott Phillips.

The Guzman Y Gomez Ltd (ASX: GYG) share price has seen plenty of volatility in its early listed life. It’s up 21% from the initial public offering (IPO) price but down 11% from the first-day-of-trading price of $30, as shown on the chart below.

With such a volatile stock, it’s hard to say where the valuation is going to go next.

Some experts think the GYG share price is going to sink while others see a long-term opportunity. One of Australia’s leading broker has just put a very optimistic price target on the Mexican food business.

Bullish price target on the Guzman y Gomez share price

According to reporting by The Australian, the broker Barrenjoey has initiated its coverage on GYG shares with a price target of $33.

A price target is where the broker thinks the share price is going to go over the next 12 months. Of course, these price targets are just guesses – no one actually knows where share prices are going in a year.

If the Guzman y Gomez share price increased to $33, it’d represent an increase of approximately 24% over the next 12 months.

Of course, Barrenjoey has a close connection with GYG. Barrenjoey acted as a joint lead manager, bookrunner, and underwriter during the IPO process. The broker also owns around 10% of Guzman y Gomez, so it would benefit substantially if the GYG share price rose to $33.

However, as I mentioned, not every expert is positive on the company.

Sell call on GYG stock

Writing on The Bull, Jabin Hallihan from Auburn Capital called the Mexican food ASX share a sell.

He noted that the business has done well for IPO investors, but Hallihan suggested “investors may want to consider trimming their positions to pocket some profits”.

The Auburn Capital investment team likes the business but suggests that the reporting season of August 2024 “will more than likely highlight a challenging year ahead for restaurants and discretionary retailers.”

In the Guzman y Gomez prospectus, it disclosed it’s expecting to report FY24 revenue of $339.7 million (up 31%), $25 million of earnings before interest, tax, depreciation and amortisation (EBITDA) and a net loss after tax of $16.2 million.

In FY25, the company projects revenue of $428.2 million (up 26%), EBITDA of $59.9 million (up 136%), and a net profit of $6 million (up $22.2 million).

The post Top broker slaps $33 price target on Guzman y Gomez (GYG) shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 re-writes history. Which companies are leading the charge?
• Here’s what ASX brokers are saying about Guzman y Gomez shares right now
• 2 ASX shares I’d give a wide berth to in today’s stock market
• 5 reasons I’d throw Guzman y Gomez shares in the bin like a bad burrito
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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 Scott Phillips.

The National Australia Bank Ltd (ASX: NAB) share price advanced 1.15% in early trading on Tuesday to reach a nine-year high of $37.68 apiece.

Several other ASX 200 bank shares are also resetting price records today. Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 0.14% to 8,006.7 points at the time of writing.

Why did the NAB share price just touch a 9-year high?

The ASX S&P/ASX 200 Financials Index (ASX: XFJ) is one of the strongest performers today, up 0.39% behind the S&P/ASX 200 Communication Index (ASX: XTJ) at 0.44%.

There is no price-sensitive news from NAB to explain its share price rise today. The Big Four bank has only released a daily update on its share buyback program

The bank advised the on-market purchase of 507,590 NAB shares yesterday. This is part of a larger program that commenced in August 2023, through which the bank has bought back almost 52 million shares.

The buyback program is due to end on 1 May 2025.

As the chart below shows, all ASX 200 bank shares, bar Bank of Queensland Ltd (ASX: BOQ), have been on a sustained run since November 2023, when speculation of interest rate cuts began.

Last Friday, Australia’s biggest bank, Commonwealth Bank of Australia (ASX: CBA), overtook mining behemoth BHP Group Ltd (ASX: BHP) to become the biggest ASX 200 company by market capitalisation.

Despite the NAB share price trading at elevated levels, several executives have added to their personal holdings in recent months.

Non-executive director Sarah Carolyn Kay was the most recent purchaser among NAB board members.

Kay bought 2,000 NAB shares on-market on 3 July for an implied average share price of $35.44.

Can the exuberance over ASX 200 bank shares last?

There are some mixed views on this. UBS reckons ASX 200 bank shares ‘don’t appear overly expensive‘ compared to global peers, whereas Goldman Sachs views them as the most expensive in the world.

Goldman Sachs said ASX 200 bank shares valuations are “skewed to the downside” from here. The broker says there is an expanding valuations discrepancy despite weaker relative profitability.

Philip King, CIO at Regal Funds Management, says Aussie banks are being “attacked from all angles” by competitors such as buy now, pay later operators, non-bank lenders, and private credit.

Martin Conlon from Schroders says the banks’ profits will be “flat at best” unless they can reduce costs.

What’s ahead for the NAB share price in FY25?

While UBS expects NAB to grow its profits in FY24 and FY25, the broker has a sell rating on the shares. The NAB share price is now trading well beyond the broker’s 12-month price target of $30.

Goldman Sachs has a neutral rating on NAB with a 12-month share price target of $34.04.

Earlier this month, NAB paid an interim dividend of 84 cents per share to shareholders.

My colleague Tristan recently reported on the FY25 outlook for NAB.

The post NAB share price hits 9-year high amid yet another strong day for ASX 200 banks appeared first on The Motley Fool Australia.

More reading

• Westpac and three other ASX 200 bank shares smashing new multi-year highs today
• Prepare for earnings! What ASX bank share buyers can learn from Wells Fargo results?
• It’s official, Aussies are getting richer! Here’s how
• Top 4 reasons why more Aussies are managing their own superannuation
• Why mum and dad investors aren’t buying ASX bank shares like they used to

Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, Commonwealth Bank Of Australia, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is out of form on Tuesday. In afternoon trade, the benchmark index is down 0.25% to 7,998.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is down 2% to $6.33. This morning, this Canadian iron ore miner announced a gradual return of its workforce to its Bloom Lake mine following a preventive evacuation and temporary shutdown of operations in response to nearby forest fires. However, it also advised that the timing and resumption of full operational activities remain subject to the availability of railway services. Management continues to collaborate with local authorities and the railway operator to expedite a return to normal operations, while prioritising the safety of its employees and the community.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 4% to 11.5 cents. This is despite there being no news out of the lithium miner today. However, it is worth noting that its shares have been on fire in recent sessions. This could mean that some investors are taking some profit off the table on Tuesday after a weak night for lithium stocks on Wall Street. Even after this decline, Core Lithium’s shares are up 25% since this time last week. Though, it is worth remembering that they remain down over 85% on a 12-month basis.

Encounter Resources Ltd (ASX: ENR)

The Encounter Resources share price is down 13% to 72 cents. This follows the release of initial assays from first pass, wide-spaced aircore drilling at the Green target of the Aileron project. While the drilling has mapped out carbonatite hosted niobium-REE mineralisation over 1.6km of strike (which remains open), it seems that some investors were betting on stronger results. Nevertheless, its executive chairman, Will Robinson, was pleased. He said: “Broad spaced aircore drilling is achieving what we had hoped by rapidly identifying and mapping out near surface mineralised carbonatites in the West Arunta. The mineralised trend at Green broadly follows a curved, magnetic anomaly extending to the north-east from WA1’s Luni discovery and wraps around into the Stromness fault.”

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 2.5% to $117.09. Investors have been selling the mining giant’s shares after it fell short of expectations during the second quarter. The consensus estimate for iron ore shipments was 82Mt, but Rio Tinto reported shipments of 80.3Mt. It was the same for copper production, which came in at 171kt compared to the consensus estimate of 175kt. Management now expects to hit the low end of its copper guidance for the full year.

The post Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping appeared first on The Motley Fool Australia.

More reading

• Rio Tinto shares fall on soft second quarter update
• Here’s the lithium price forecast through to 2027
• 5 things to watch on the ASX 200 on Tuesday
• Why Atturra, Bravura, Core Lithium, and Opthea shares are racing higher today
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Scott Phillips.

It’s looking like today’s trading is off to a shaky start. After hitting a new record high yesterday and climbing above 8,000 points for the first time ever, the S&P/ASX 200 Index (ASX: XJO) is taking a breather today. But let’s talk about four ASX 200 bank shares, including Westpac Banking Corp (ASX: WBC), that have still smashed out new multi-year highs.

At the time of writing, the ASX 200 is reversing some of yesterday’s gains and is down around 0.08% to just over 8,010 points.

So what’s going on with the ASX banks this Tuesday?

Well, as we just mentioned, there’s been a cavalcade of new multi-year highs from no fewer than four ASX banks.

First up, let’s talk about Westpac shares.

Westpac and three other ASX bank shares at new multi-year highs

At the time of writing, Westpac shares are up a far more confident 0.43% at $28.23 each. But earlier this morning, we saw those same shares rise up to $28.26 each. Not only is that a new 52-week high for Westpac, but it is also the highest that this ASX 200 bank has traded at in the post-COVID era.

To find the last time Westpac asked this kind of price, you’d have to go all the way back to October 2019.

Things are looking even brighter for another big four bank though – National Australia Bank Ltd (ASX: NAB). NAB shares are presently up a chunky 1.02% at $37.63 each. That’s after this bank climbed up as high as $37.68 a share earlier in today’s session.

Again, that is a new 52-week high for NAB. But it is also a multi-year high. You’d have to go all the way back to April 2015 to find the last time NAB shares were leading with those kinds of figures.

Over at ANZ Group Holdings Ltd (ASX: ANZ), things aren’t quite as euphoric. But ANZ has still clocked a new high today. This bank is currently up a solid 0.42% at $29.96 a share. That’s after hitting a new high of $29.98 this morning. It’s also the highest level at which ANZ shares have traded since May of 2017. So another new multi-year record here.

Finally, you might assume our last bank share at a new high today would be Commonwealth Bank of Australia (ASX: CBA). CBA is no stranger to new highs lately, and it is the only big four bank we haven’t mentioned yet. But CBA hasn’t hit any new highs today. It is currently up a decent 0.17% at $132.92 after going as high as $133.08 this morning. But that wasn’t enough to break yesterday’s new record of $133.30 a share.

No, our last ASX bank share to discuss this Tuesday is Bendigo and Adelaide Bank Ltd (ASX: BEN).

Bendigo Bank is enjoying a lift similar to that of NAB right now. This bank is presently up a healthy 1.18% at $11.97 a share after rising as high as $11.98 in earlier trading. You guessed it, that’s a new 52-week high for this bank stock. But it is also the highest we’ve seen Bendigo Bank since February 2017.

Why are these stocks at new 52-week highs today?

There are no apparent market catalysts today that could easily explain the successful performance of ASX bank shares, especially these four stocks.

Perhaps it just comes down to the expectation that interest rates are going to fall this year. Last week, we discussed the latest inflation figures out of the United States. American inflation came in much cooler than expected over the month of June, dropping to an annualised 3% – the lowest level in three years.

That bodes extremely well for US interest rates. And If US rates drop, it could mean that our own Reserve Bank of Australia (RBA) might follow suit. Of course, that’s just speculation. But it could explain why investors are so in love with the ASX banks today. Let’s see what the rest of the week brings.

The post Westpac and three other ASX 200 bank shares smashing new multi-year highs today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is on course to record a decline. At the time of writing, the benchmark index is down 0.2% to 8,002.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 5% to $1.70. Investors have been buying this defence and space company’s shares after it announced an update on its first half performance. EOS achieved unaudited first half revenue of approximately $142.6 million. This represents an increase of 92% on the $74.3 million that it recorded in the prior corresponding period. Management advised that this was driven by growth across all businesses. This includes the impact of accelerating production and delivery of remote weapons systems under an existing contract with a customer in the Middle East, growth in the EM Solutions business, and growth in the Space Technologies business.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 1.5% to $47.06. This morning, this investment platform provider released its fourth quarter update and revealed further strong growth. Hub24 reported that its platform funds under administration (FUA) increased to $84.4 billion during the fourth quarter. This represents a 6% quarter on quarter increase and a 35% improvement on the prior corresponding period. This reflects record quarterly net inflows of $5 billion, which was up 138% on the prior corresponding period. For the 12 months, the company also reported a record year of net inflows. They came in at $15.8 billion, which is up 62% on the prior corresponding period.

Integrated Research Limited (ASX: IRI)

The Integrated Research share price is up 12% to 95 cents. This has been driven by the release of the performance management solutions provider’s trading update this morning. It revealed a strong rebound in total contract value (TCV), statutory revenue, and EBITDA. The latter is now expected to be at the upper end of its previous guidance. Management believes the result provides a platform for a strategic shift to product-led growth. It also announced that its CEO, John Ruthven, will be stepping down. The company felt that the “timing is right for new leadership and CEO transition.”

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate share price is up almost 2% to $1.69. This morning, this gold miner announced that it has entered into definitive loan documentation for a US$35 million term facility with Nebari Gold Fund and Nebari Natural Resources Credit Fund. The funds will be available for drawdown following satisfaction of conditions precedent that are standard for a facility of this nature. Management notes that the funding will enable it to consolidate its existing debt, repay preference shareholder loans, ensure timely delivery of new mining equipment, and expand the aggressive near mine and regional exploration programs.

The post Why EOS, Hub24, Integrated Research, and Kingsgate shares are pushing higher appeared first on The Motley Fool Australia.

More reading

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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. has positions in and has recommended Electro Optic Systems and Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.