If you’re on the lookout for big returns, then you may want to check out Clarity Pharmaceuticals Ltd (ASX: CU6).

That’s because analysts at Bell Potter believe that the ASX biotech stock could generate big returns for investors with a high tolerance for risk over the next 12 months.

What is the broker saying about this ASX biotech stock?

According to a note, the broker was pleased with its recent announcement relating to the SECuRE trial, which is investigating the therapeutic qualities of 67Cu-SAR-bisPSMA in metastatic castrate resistant prostate cancer (mCRPC).

That announcement revealed that the preliminary data showed that despite having high levels of prostate-specific antigen (PSA) and having received multiple treatments, 60% of participants across all cohorts showed reductions in PSA levels of greater than 35% from a single therapy cycle of 67Cu-SAR-bisPSMA.

In addition, no dose limiting toxicities (DLTs) have been reported in cohort 3 to date, with most adverse events being mild or moderate and comfortably below levels that would cause investigators genuine concern.

In response to the trial data, Bell Potter said:

All cohorts have shown encouraging levels of reduction in PSA from a single dose of therapy. The announcement does not include progression free survival data, however, case studies from the EAP group which have now received multiple doses are highly encouraging, both from a safety and efficacy standpoint. Each of these patients remains alive and apparently with no disease progression, many months after commencing treatment. In one case PSA has reduced to undetectable levels with PET imaging showing a near complete response.

In summary, very pleasing data from SECuRE, strongly supportive of further investigation.

Major upside ahead

Bell Potter has held firm with its speculative buy rating and $3.90 price target on the ASX biotech stock.

Based on its current share price of $2.75, this implies potential upside of 42% for investors over next 12 months.

Though, it is worth remembering that its rating comes with a speculative tag. This means it may only be suitable for investors with a high tolerance for risk.

The post Why this ASX biotech stock could rise a massive 40% appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 mining shares to buy now with less than $1,000
• Leading brokers name 3 ASX shares to buy today
• 2 ASX 200 shares to buy that are ‘catalyst rich’
• Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher
• Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling 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.

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Looking for ASX shares to buy now without spending a fortune?

Below we look at three top S&P/ASX 200 Index (ASX: XJO) mining stocks that have been heavily sold down in 2024.

While that doesn’t necessarily mean they might not have further to fall shorter-term, I believe these are ASX shares to buy now for patient investors with an eye on long-term gains. Not to mention the two fully franked dividend payments they’ll receive each year.

ASX mining shares to buy now with less than $1,000

You’re most likely familiar with the three ASX 200 mining stocks in question.

Namely Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

Here’s how they’ve performed so far in 2024:

• BHP shares are down 16% at $42.37
• Rio Tinto shares are down 14% at $117.34
• Fortescue shares are down 19% at $23.80

Now you’ll notice that Rio Tinto shares trade for almost five times as much as Fortescue shares and nearly three times as much as BHP shares. So, the amount of these ASX shares to buy now will depend on whether you want to own the same number of shares in each company or spread your $1,000 evenly between them.

Why have the ASX 200 miners come under selling pressure?

I believe after the big 2024 sell-off, these three ASX shares are good buys now.

Some of the selling pressure has come amid a rout in nickel markets, with Indonesia ramping up its nickel mining. That’s seen the Australian miners call for a global distinction between environmentally friendlier “clean nickel” and the much cheaper “dirty nickel” that comes from Indonesia.

While that process is still evolving, I believe a world focused on sustainability will eventually reward the big miners for their cleaner nickel by paying higher prices, or by taxing dirty nickel producers. Either way, investors buying these ASX shares now could see an uptick in their fortunes down the road.

The biggest headwind that’s hit these ASX 200 mining stocks in 2024, however, is the big fall in iron ore.

Iron ore counts as the biggest revenue earner for all three companies.

The steel-making metal kicked off 2024 trading for US$145 per tonne. But it’s been mostly downhill from there.

Iron ore dipped below US$100 per tonne on Friday amid ongoing concerns over rising Chinese stockpiles and lower levels of steel manufacturing.

As to where iron ore will be trading over the rest of the year and in 2025, forecasts vary from lows of US$85 per tonne to highs of more than $125 per tonne.

And a lot of that will depend on China’s growth outlook.

Capital Economics’ chief Asia economist Mark Williams, has this rather bearish take on China’s real estate sector (courtesy of The Australian Financial Review):

Property sales and project starts have collapsed. But property construction activity has retreated only a little. It is likely to halve in the next few years, triggering similar falls in demand for construction inputs.

So, why do I think these are still three ASX shares to buy now?

Largely, because I don’t believe Chinese President Xi Jinping can afford to let China’s economy slide much further. Meaning the rather tepid stimulus measures we’ve seen from the Chinese government over recent months could see some sizeable boosts yet this year.

I’m also encouraged by the fact that copper prices have gained more than 6% in 2024, trading for US$8,545 per tonne on Friday.

That bodes well for the prospects of broader global growth. This should support the medium-term outlook for the big miners and bolsters the case to buy these three ASX shares now after 2024’s big sell-down.

And don’t forget the dividends you’ll get from buying these ASX shares.

Despite their payouts falling from the 2022 highs, the retrace in the big miners’ share prices still sees them trading at some juicy, fully franked yields.

At current share prices:

• BHP shares trade on a yield of 5.5%
• Rio Tinto shares trade on a yield of 56%
• Fortescue shares trade on a yield of 8.8%

The post 3 ASX 200 mining shares to buy now with less than $1,000 appeared first on The Motley Fool Australia.

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More reading

• Fortescue shares retreat to fresh 2024 low as iron ore breaks below US$100 per tonne
• Buy Woodside shares and these ASX 200 dividend giants now
• Where will Fortescue shares be in 3 years?
• If I invest $10,000 into BHP shares, how much passive income will I receive?
• Brokers name 3 ASX shares to buy now

Motley Fool contributor Bernd Struben 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.

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With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Boss Energy Ltd (ASX: BOE)

According to a note out of Macquarie, its analysts have retained their outperform rating and $6.00 price target on this uranium miner’s shares. Macquarie was pleased with the company’s performance during the first half, noting that its underlying result was in line with expectations and its reported result smashed estimates. The broker is feeling positive about the future thanks to the restart of the Honeymoon project and its organic growth optionality. In addition, it highlights that spot prices are currently trading well above its forecasts. This could be good news for its earnings and valuation if they remain at these levels for longer. The Boss Energy share price is trading at $4.83 today.

Hub24 Ltd (ASX: HUB)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $44.00 price target on this investment platform provider’s shares. Morgan Stanley has picked out the company as a standout from last month’s earnings season. It has been impressed with the way HUB24 has disrupted the platform market and believes there’s more to come in the future. Particularly given its expectation that the structural tailwinds it has been experiencing will continue. The broker also points out that it trades at a discount to its ASX listed rival despite stronger platform inflows. The HUB24 share price is fetching $40.36 on Monday.

Perpetual Ltd (ASX: PPT)

Analysts at Bell Potter have retained their buy rating on this fund manager’s shares with a trimmed price target of $27.15. The broker is feeling positive about Perpetual’s strategic review and believes it could be used to either close the valuation discount or become an acquisition target. The latter is based on the company owning attractive and valuable assets (particularly Corporate Trust and Wealth Management in the current environment). Overall, the broker feels that the market is not seeing the full value of the company, noting that it trades at a wide discount to a sum-of-the-parts valuation. The Perpetual share price is trading at $24.43 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 6 ASX 200 shares with ex-dividend dates next week
• Why Core Lithium, Jupiter Mines, Newmont, and Perpetual shares are dropping today
• What’s happening with ASX uranium shares today?
• 13 ASX 200 shares with ex-dividend dates next week

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 Hub24 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

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The fund manager Wilson Asset Management (WAM) has revealed two S&P/ASX 200 Index (ASX: XJO) shares where there are multiple reasons to think they can deliver good performance.

WAM Leaders Ltd (ASX: WLE) is a listed investment company (LIC) that largely focuses on businesses with larger market capitalisations. Below are two stocks that the investment team likes within the portfolio.

WiseTech Global Ltd (ASX: WTC)

It was recently the ASX reporting season and WAM enjoyed the “strong result” from WiseTech. The investment team said the ASX tech share demonstrated “its ability to integrate its recently-acquired businesses called Blume and Envase, without losing the organic growth momentum.”

The fund manager also said the ASX 200 share remained diligent on costs and positively surprised the market with its profit margin outlook.  

Another positive from the report update was the announcement of three major new customer wins in the Asian region during the period, including Sinotrans, a large Chinese shipping company. This win meant WiseTech now has 13 of the top 25 global freight forwarders.

WAM Leaders said the report and customer wins validated the value proposition of WiseTech’s core software platform (CargoWise) and its continued traction in the core global freight forwarding market. The investment team concluded:

We remain positive on WiseTech as we see the company continuing to gain market share in a large industry, led by its technology platform and new product launches as the company continues to invest in its product and technology for future growth.

Santos Ltd (ASX: STO)

Santos also recently reported its result to the market, though this one was “slightly below” market expectations.

The ASX 200 share didn’t meet investors’ forecasts because of “other” costs, including inventory and foreign exchange movements.

However, WAM Leaders pointed out the ASX oil and gas share reconfirmed its full-year guidance and declared an “outsized” dividend that was reportedly ahead of expectations.

Santos said it’s committed to reducing the gap between the Santos share price and the value of its underlying asset base while returning additional cash flow to shareholders.

The investment team said:            

We remain constructive on Santos as we see the company being catalyst rich, including potential strategic structural changes, as well as successful project executions in Barrosa and Alaska, which will de-lever the balance sheet and further improve cash flow performance.

The post 2 ASX 200 shares to buy that are ‘catalyst rich’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Tuesday
• Why Santos shares may be ‘one of the most attractive globally’
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record small decline. At the time of writing, the benchmark index is down 0.1% to 7,662.4 points.

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

Bannerman Energy Ltd (ASX: BMN)

The Bannerman Energy share price is up 6% to $3.18. This has been driven by the release of scoping study results for the uranium developer’s Etango operation in Namibia. The company revealed that two future phase options have been evaluated. These are a post ramp-up expansion in throughput capacity to 16 Mtpa (Etango-XP) or an extension of operating life to 27 years (Etango-XT). Its Executive Chair said: “I am delighted that we have more formally demonstrated the longer-term optionality delivered by our large-scale Etango uranium resource. While the XP and XT cases are readily viable at our base case Etango-8 DFS price assumption of US$65/lb, their economics are clearly supercharged in higher price scenarios.”

Cettire Ltd (ASX: CTT)

The Cettire share price is up 3.5% to $4.16. This morning, the team at Bell Potter reaffirmed their buy rating and $4.80 price target on this luxury products ecommerce company’s shares. It commented: “We think CTT’s ability to outperform their peer group far outweighs others given the ~0.9% market share and further supported by the ongoing consolidation in the luxury e-commerce market.”

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up almost 3% to $16.95. This has also been driven by a broker note out of Bell Potter this morning. According to the note, its analysts have upgraded the enterprise software provider’s shares to a buy rating with an $18.50 price target. Bell Potter expects a strong half-year result from TechnologyOne in May. It said: “We see the 1HFY24 result as a potential catalyst with an expected strong result and an NRR [net revenue retention] around 115%.”

Zip Co Ltd (ASX: ZIP)

The Zip share price has continued its positive run and is up a further 4.5% to $1.35. This buy now pay later provider’s shares have been on fire this year thanks to its strong first-half performance and takeover rumours. In addition, last week Citi upgraded the company’s shares to a buy rating with an improved price target of $1.40. Citi has been impressed with the company’s performance and particularly its balance sheet improvements.

The post Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• Ignore the noise and buy this hot ASX growth stock
• This ASX uranium stock is racing 8% higher on big news
• Guess which ASX 200 tech stock has just been upgraded
• 5 things to watch on the ASX 200 on Monday
• If I’d put $5,000 into Zip shares on 9 October, here’s what I’d have now!

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Technology One and Zip Co. The Motley Fool Australia has recommended Cettire and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Monday. In afternoon trade, the benchmark index is down slightly to 7,666.3 points.

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

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is down over 10% to 21 cents. This is despite there being no news out of the rare earths developer. However, it is worth noting that its shares were on fire last week thanks to some huge news. This could mean that some investors are taking profit off the table on Monday. The announcement that got them excited was that the Commonwealth Government has conditionally approved a US$533 million debt finance package to support its Nolans Project in the Northern Territory.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 10% to 16.2 cents. This appears to have been driven by the release of a broker note out of Macquarie this morning. According to the note, the broker has reaffirmed its neutral rating but slashed its price target on the lithium miner’s shares by 25% to 15 cents (from 20 cents). Macquarie has downgraded its lithium price assumptions for the coming years.

Goodman Group (ASX: GMG)

The Goodman share price is down 3.5% to $29.77. This decline seems to have been driven by rising bond yields, which have reduced the appeal of property shares with investors. It isn’t just Goodman shares that are falling today. At the time of writing, the S&P/ASX Real Estate index is down 1.9% on Monday afternoon. This makes it the worst performing area of the market.

Superloop Ltd (ASX: SLC)

The Superloop share price is down over 6% to $1.17. This has been driven by news that the telco has instructed its rival Aussie Broadband Ltd (ASX: ABB) to sell down its stake in the company. Superloop issued a notice under its constitution directing Aussie Broadband to dispose of approximately 37.6 million ordinary shares to reduce Aussie Broadband’s voting power in Superloop to less than 12%. This is from 19.9% currently. Superloop advised: “The acquisition was made without the prior approval of the Info-communications Media Development Authority (IMDA) in Singapore, as required by Superloop’s constitution.” It is possible the selling has now commenced.

The post Why Arafura Rare Earths, Core Lithium, Goodman, and Superloop shares are falling today appeared first on The Motley Fool Australia.

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• Why bond yields are bruising ASX property shares on Monday
• These are the 10 most shorted ASX shares
• Aussie Broadband share price tumbles after telco told to sell $47 million stake in a competitor
• Top brokers name 3 ASX shares to buy next week
• $20,000 invested in these ASX 200 shares 10 years ago is worth how much?

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 Aussie Broadband and Goodman Group. The Motley Fool Australia has recommended Aussie Broadband and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Buying S&P/ASX 200 Index (ASX: XJO) shares and hoping for Reserve Bank of Australia (RBA) interest rate cuts in 2024?

You’re not alone!

It’s hard to believe that less than two years ago, in early May 2022, the official RBA interest rate stood at a rock bottom 0.10%. And over the prior months, some analysts were even forecasting that Australia’s central bank could join its European counterparts and delve into negative interest rates.

How that would have turned out, we’ll never know.

What we do know is that the massive fiscal and monetary stimulus measures pushed through during the COVID pandemic scare stoked what had been labelled ‘stubbornly low’ inflation levels. Inflation down under topped out at a blistering 7.8% in December 2022.

To combat that suddenly resurgent inflation, commencing in May 2022, the RBA hiked interest rates at 10 consecutive monthly meetings.

With three more rate increases over the next eight months, Australia’s official cash rate reached the current 4.35% on 8 November.

The question ASX 200 investors are asking now is, when can the market expect the central bank to begin easing?

Might the next RBA interest rate cut not come until 2025?

Under the new reporting schedule, RBA governor Michele Bullock will announce the bank’s next interest rate decision tomorrow at 2:30pm AEST.

Now only a few optimistic investors are expecting the central bank to cut rates this month.

According to the ASX interest rate indicator, 95% of investors expect the bank to hold rates at 4.35%.

But the market continues to expect one or more RBA interest rate cuts in 2024.

Expectations are high for a 0.25% cut in September, with many investors also pricing in a second reduction in December bringing the official cash rate to 3.85% heading into 2025.

But not everyone is looking through the same rose-coloured glasses.

HSBC chief economist Paul Bloxham believes ASX 200 investors awaiting interest rate relief will need to be patient and await 2025.

According to Bloxham (quoted by The Australian Financial Review):

Although the RBA is patiently seeking to bring inflation down gradually, so as to maintain as close to full employment as possible, fiscal policymakers may not be so patient given the electoral cycle.

Personal income tax cuts are already locked in for July 1, but more spending is a risk in the May budget, with both likely to support inflation, at a time when it is already above target.

Then there’s the blistering Aussie housing market.

“We see the RBA as unlikely to want to cut rates when the housing market is so tight and housing prices are rising solidly, for fear of pump-priming and driving a further housing price boom,” Bloxham said.

Keep your eyes on the horizon

We may see the first RBA interest rate cut in September, and perhaps a second cut in December.

Or we may need to await 2025 for some rate relief.

Either way, ASX 200 investors will do well to keep one eye on the horizon and the other eye peeled for quality companies operating in growing markets that may have been unduly oversold due to market angst over sticky inflation.

As legendary investor Warren Buffett famously advised, “Embrace what’s boring, think long-term, and ignore the ups-and-downs.”

The post Why ASX 200 investors hoping for an RBA interest rate cut may be waiting until 2025 appeared first on The Motley Fool Australia.

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More reading

• 2 ASX growth stocks I’d buy for rapidly rising profit
• Why bond yields are bruising ASX property shares on Monday
• Guess which ASX All Ords share is surging 16% after announcing a new finance chief
• ‘Cheapest’ lithium miner: Broker says Sayona Mining shares could rise 200%+
• ASX 200 investors, have you grabbed your share of the coming $34 billion dividend windfall?

Motley Fool contributor Bernd Struben 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.

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ASX growth stocks can be a really attractive place to hunt for opportunities because of how quickly their profit is compounding. A bigger profit can justify a higher share price, over time.

Businesses that are demonstrating strong growth may give us a greater chance of delivering outperformance of the S&P/ASX 200 Index (ASX: XJO).

Many promising names on the ASX have soared higher, but I think the two I’m going to talk about still have a promising future at the current prices.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price has risen an impressive 63% in the past six months.

But, I think it can keep rising over the long term – even if there is some volatility along the journey.

Lovisa sells affordable jewellery in numerous countries around the world. At the end of the FY24 first-half result, it had 854 stores globally, with its largest markets by store count being the USA (207 stores), Australia (175 stores), France (80 stores), South Africa (77 stores), Germany (51 stores) and the UK (47 stores).

I think its store count can fairly easily double thanks to its presence in countries with much bigger populations than Australia. For example, the US population is more than ten times bigger than Australia.

The ASX growth stock has only just entered a number of markets including Italy, Spain, Hong Kong, mainland China, Vietnam, Canada and Mexico. I believe each of these markets can host a sizeable Lovisa store network.

Lovisa’s HY24 result saw revenue growth of 18.2% to $373 million and earnings before interest and tax (EBIT) growth of 16.3% to $81.6 million.

It’s investing a lot to grow, and I believe its profit can grow significantly in the coming years.

If the Lovisa share price were to see a pullback, I’d want to add some more shares to my portfolio.

GQG Partners Inc (ASX: GQG)

GQG is a large fund manager which is rapidly growing. It now has a market capitalisation of $6.1 billion, with funds under management (FUM) of US$137.5 billion as at 29 February 2024.

It had ending FUM of US$91.2 billion for 2021 and US$120.6 billion for 2023. We can see the business has already made strong progress in 2024 with its FUM of US$137.5 billion.

The 12 months to 31 December 2023 saw the business receive US$10 billion of net flows, with net revenue growth of 18.5% to US$517.6 million and diluted earnings per share (EPS) growth of 19% to US 9.55 cents.

The ASX growth stock also announced the launch of its private capital business and the acquisition of minority interests in Avante Capital Partners, Proterra Investment Partners and Cordillera Investment Partners.  

GQG’s main funds have outperformed their respective benchmarks over the long term. Outperformance isn’t guaranteed, but GQG has shown it has a good investment team.  

The post 2 ASX growth stocks I’d buy for rapidly rising profit appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s shaping up to be yet another rough day for most ASX shares so far this Monday. At present, the S&P/ASX 200 Index (ASX: XJO) has dropped by 0.22% today, leaving the index at just over 7,650 points. But let’s talk about what’s going on with ASX property shares.

Property shares and ASX real estate investment trusts (REITs) are, on the whole, having an even worse day than the broader market. Just take what’s happened to the S&P/ASX 200 A-REIT Index (ASX: XPJ) so far today. This index is currently the worst-performing sector on the entire market, down a hefty 1.61% so far.

Some ASX property shares are faring even worse than their index. Goodman Group (ASX: GMG) units, for instance, are presently nursing a 2.74% loss down to $30.01.

Charter Hall Group (ASX: CHC) has lost 1.86% to $13.20, while HomeCo Daily Needs REIT (ASX: HDN) units have tanked 2.9% down to $1.28.

Scentre Group (ASX: SCG) has retreated by 1.35% down to $3.30 a unit, while Stockland Corporation Ltd (ASX: SGP) is faring better than most with a loss of 0.62% to $4.82.

So why are ASX property shares having such a dire start to the week? It’s likely that rising bond yields are at least playing some role here.

Last week, we covered the latest American inflation numbers, which didn’t exactly delight anyone. US wholesale inflation over the month of February ran at a hot 0.6%, which was double what most economists were expecting to see.

Has American inflation just tanked ASX property shares?

This has resulted in some significant losses on the US markets in recent days and was arguably at least partially responsible for the ASX rout we saw on Friday.

Investors have been spending most of 2024 hoping that inflation will continue to cool, leading to lower interest rates sooner rather than later. Those hot inflation figures poured cold water on this notion.

US government bond yields have been rising ever since this inflation data was released. According to CNBC, a week ago the US Five-Year Treasury note was trading on a yield of 4.08%. Today, that yield is sitting at 4.33% – a massive increase over just one week.

This indicates that investors are sharply revising their expectations of interest rate cuts in the immediate future. And that’s bad news for most ASX shares, but particularly ASX property shares.

Property shares and REITs tend to use relatively high levels of borrowing and gearing, thanks to their ownership of real estate. As such, these investments are more sensitive to interest rate moves than other ASX shares. If a property share like Goodman Group or Scentre has a large debt facility, its interest costs would also be high.

If investors are expecting central banks to lower interest rates in the immediate future, this might not bother investors too much. But if, as seems to be the case this week, investors pivot to expecting higher rates for longer, it arguably makes ASX property shares immediately less desirable by extension.

This could be what is giving this ASX sector a whack today.

The post Why bond yields are bruising ASX property shares on Monday appeared first on The Motley Fool Australia.

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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 Goodman Group. The Motley Fool Australia has recommended Goodman Group and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Race Oncology Ltd (ASX: RAC) shares are on form and racing higher on Monday.

In afternoon trade, the ASX All Ords share is up over 16% to $1.81.

This means that the oncology company’s shares are now up an impressive 130% since this time last month.

Why is this ASX All Ords share surging on Monday?

Investors have been buying the company’s shares today following the announcement of the appointment of its new chief financial officer (CFO).

According to the release, the company has named Brendan Brown as its new CFO, effective from Monday 1 April 2024, succeeding Ms Christina Manfre.

The release notes that Brown is a partner and director of Prime Accounting & Business Advisory, which is part of the Prime Financial Group (ASX: PFG).

Race Oncology highlights that he brings significant practical experience to the company, having worked with numerous life science clients through the past 20 years. In addition, Brown is a chartered accountant, and registered tax agent with a Bachelor of Commerce in Accounting from La Trobe University.

The company’s CEO, Dr Daniel Tillett, was pleased with the appointment. He commented:

We thank Christina for her time with Race and welcome Brendan to his new role as Race CFO. Race has had a productive working relationship with Prime over the last two years being responsible for Race’s successful R&D Tax Incentive claims. We are pleased to be expanding our engagement with both Brendan and Prime as we advance our new formulation of bisantrene in the clinic in 2024.

Why such a jump?

While I’m sure the appointment has gone down well with shareholders, it’s unlikely to be the real reason for the ASX All Ords share’s strong rise today.

As I mentioned at the top, Race Oncology’s shares have been on fire this month. This has been driven by excitement around the potential of its bisantrene product.

Earlier this month, the ASX All Ords share revealed that bisantrene has shown potent activity in a range of patient-derived primary acute myeloid leukemia (AML) cells and in mouse models of AML.

The combination of bisantrene and decitabine was found to exhibit robust anticancer synergy in both cell and mouse AML models. In addition, key cellular pathways targeted by bisantrene were identified, further supporting the use of bisantrene in combination with decitabine as a low intensity treatment for AML patients.

Overall, management believes preclinical data is “highly supportive of clinical trials of the new bisantrene formulation (RC220) combined with oral decitabine, as a low intensity treatment approach, for AML patients.”

The post Guess which ASX All Ords share is surging 16% after announcing a new finance chief appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Prime Financial Group. The Motley Fool Australia has recommended Prime Financial Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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