Those who have held Woolworths Group Ltd (ASX: WOW) shares over the past decade have likely been pretty chuffed with their investment.

The Woolworths share price has gained 37% over the last 10 years. If an investor bought $1,000 of Woolies stock in December 2012, they likely would have walked away with 40 shares, paying $24.97 apiece.

Today, 40 Woolworths shares would be worth $1,372.40. Stock in the supermarket operator is currently trading at $34.31 per share.

However, the S&P/ASX 200 Index (ASX: XJO) has lifted around 56% over the same period, leaving the Woolworths share price’s performance in its dust.

But have the supermarket giant’s dividends levelled the playing field? Let’s take a look.

How much have Woolworths shares paid in dividends in 10 years?

Here are all the dividends Woolworths has offered over the decade just been:

Westpac dividends’ pay date	Type	Dividend amount
September 2022	Final	53 cents
April 2022	Interim	39 cents
October 2021	Final	55 cents
April 2021	Interim	53 cents
October 2020	Final	48 cents
April 2020	Interim	46 cents
September 2019	Final	57 cents
April 2019	Interim	45 cents
October 2018	Final	50 cents
October 2018	Special	10 cents
April 2018	Interim	43 cents
October 2017	Final	50 cents
April 2017	Interim	34 cents
October 2016	Final	33 cents
April 2016	Interim	44 cents
October 2015	Final	72 cents
April 2015	Interim	67 cents
October 2014	Final	72 cents
April 2014	Interim	65 cents
October 2013	Final	71 cents
April 2013	Interim	62 cents
Total:		$10.69

As the above chart shows, Woolworths shares have paid out $10.69 per share in dividends over the last 10 years.

That means someone holding 40 stocks in the ASX 200 supermarket operator likely would have received $427.60 of dividends in that time.

Thus, our figurative $1,000 investment a decade ago has yielded $372.40 in capital gains and $427.60 in passive income – a total of $800. That leaves Woolworths shares boasting an 80% return in that time.

And that’s before considering franking credits. All Woolies dividends in that time have been fully franked, potentially bringing additional benefits at tax time.

Finally, a savvy investor who reinvested their dividends, potentially through the company’s dividend investment plan (DRP), likely would have realised an even larger gain through the magic of compounding.

Woolworths shares are currently trading with a 2.68% trailing dividend yield.

The post Bought $1,000 of Woolworths shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy next week
• Shopping spree: What happened to the Woolworths share price today?
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares to buy for a possible recession next year

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

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With Christmas less than a week away, the team at Morgans has been busy looking at which ASX shares it would like Santa to leave under the tree this year.

On this occasion, the broker is focusing on the retail sector and has picked out three shares that it wants to unwrap on Christmas morning. It said:

Perhaps you’re super organised this year and have bought all your presents already. If so, reward yourself by writing a note to Santa with a wish list of stocks you’d like to see in your stocking on Christmas morning. We have, and this year we’d love to receive share certificates in BLX, SUL and UNI.

An ASX share that is too cheap

The first ASX share that Morgans wants to find under the tree is speciality retailer Beacon Lighting Group Ltd (ASX: BLX). The broker currently has an add rating and $2.60 price target on its shares. It said:

We think retail demand for BLX’s lighting products will remain resilient through 1H23 and into 2H23, but even when consumer demand inevitably softens, we believe its strategy to develop its Trade (and International) business will offset and outweigh the cyclical downturn. At an FY24F PE of just 13.0x, we think BLX is too cheap for the growth it offers over the longer term.

A Super pick for 2023

The next ASX share for investors to buy is Super Retail Group Ltd (ASX: SUL). It is the retail conglomerate behind brands such as Super Cheap Auto and Rebel Sport. Morgans has an add rating and $13.00 price target on its shares. It said:

Though not a growth story as such, we see SUL as a well-run retailer that is well placed to surprise positively on earnings. Consumer demand is holding up well across most of its brands, while its investment in inventory is likely to allow it to hold gross margins. SUL has more than $250m in franking credits and we wouldn’t be surprised to see a special dividend at some point.

A retailer with a strong customer base

A final ASX share that Morgans wants for Christmas is youth fashion retailer Universal Store Holdings Ltd (ASX: UNI). Its analysts have an add rating and $6.50 price target on its shares. The broker commented:

UNI is benefiting from robust demand from its youthful (and fully employed) core customer. It has displayed excellent discipline around pricing and it has attractive growth opportunities across three channels: retail, online and now wholesale too.

The post Morgans has put these ASX shares on its Christmas wishlist appeared first on The Motley Fool Australia.

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More reading

• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
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• I’d aim for $1 million, buying just 10 cheap ASX shares
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!
• Growth is back: 3 ASX shares to buy now for a 2023 re-rate

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail 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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The Fortescue Metals Group Limited (ASX: FMG) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) since the end of October 2022.

Fortescue shares have gone up by 37% while the ASX 200 has only risen by 4.2%.

I don’t think that Fortescue is going to rise by another 30%, but it’s possible that Fortescue shares could deliver outperformance in the coming months.

Certainly, no one knows what’s going to happen next. But, I believe there are compelling reasons why Fortescue shares can generate stronger returns than the market, yet it’s just as possible that the company could see problems. I’ll outline my thoughts on both sides.

Case for outperformance

The Fortescue share price has done well on the projection that the Chinese economy could open and rebound. If and when China’s COVID settings are ‘open’, then the nation could see a strong economic rebound like many other countries did after the Omicron wave a year ago.

Confirmation of China’s return to full economic activity could be another boost for the iron ore price. It would be wildly optimistic to think the iron ore price could get back to US$200 per tonne. But, it’s possible that it could rise another US$10 or US$20 per tonne within the next six months if China reopens in March.

The Australian Financial Review reported an analyst at Commonwealth Bank of Australia (ASX: CBA) Vivek Dhar thinks the outlook for steel is good. CBA is forecasting that Chinese policymakers will change to ‘living with COVID’ at China’s upcoming ‘Two Sessions’ policy meeting in March 2023.

I also believe the dividend can help Fortescue shares can deliver strong returns.

According to Commsec, Fortescue could pay an annual dividend per share of $1.43 in 2023. That would translate into a grossed-up dividend yield of 10%. The dividend alone could help deliver outperformance.

Case for underperformance

This may be about as far as the iron ore price is going to go if the bounce-back isn’t as strong as the optimists are thinking.

The Chinese people may well want to avoid busy places as the population has largely sought to avoid the virus over the past three years. A reopening in China may be quite different compared to the experience in Australia and the US.

Plus, it was reported that China’s central resources buyer, the China Mineral Resources Group, could start its operations next year. The new entity will reportedly make purchases on behalf of around 20 of the largest Chinese steelmakers. This could give the business “unprecedented negotiating power”. According to reports:

There was no fanfare when CMRG was established in July, but people familiar with the matter told Bloomberg at the time that its creation was encouraged and closely monitored by top leaders in Beijing. They see a consolidated platform for buying resources as a way to strengthen the country’s negotiating position in an unfriendly international environment.

We’ll have to see how this plays out. I wouldn’t want to buy more shares at the current Fortescue share price. I’d rather wait until investors are pessimistic about the iron ore price again.

The post 2 reasons I think the Fortescue share price can keep rising (and 2 why it can’t) appeared first on The Motley Fool Australia.

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More reading

• Why did the iron ore price just hit a 6-month high?
• 5 things to watch on the ASX 200 on Monday
• Shopping spree: What happened to the Woolworths share price today?
• What’s going on with the Fortescue share price on Friday?
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals 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.

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Telstra Group Ltd (ASX: TLS) shares will be under the spotlight this week as it’s announced whether the telco is allowed to enact its regional sharing agreement with TPG Telecom Ltd (ASX: TPG).

According to reporting by The Australian, the Australian Competition and Consumer Commission (ACCC) will, three days before Christmas, hand down its final determination on the Telstra and TPG agreement.

Preliminary views

The ACCC released its The Australian at the end of September 2022.

It said a number of things including:

The ACCC considers that a healthy secondary market for spectrum licences allows spectrum to move to its highest value use and allows for the deployment of new and innovative services over time. This includes situations in which the ACMA (Australian Communications and Media Authority) has imposed allocation limits on the auction of a band on the advice of the ACCC.

However, the ACCC is concerned that very concentrated holdings of spectrum create a disincentive for incumbent licensees to dispose of licences surplus to their technical or commercial requirements and create an incentive to ‘lock up’ this scarce resource. The ACCC is considering the ways in which the proposed transaction increases the concentration of spectrum holdings through the third-party authorisation, and the impacts this may have over the longer term on industry structure.

Optus suggests that there will be “considerable public detriment flowing from a lessening of price tension in the mobile market as a consequence of TPG’s prices being dictated by access costs set by Telstra.”

What are Telstra and TPG actually trying to do?

The deal could affect both Telstra shares and TPG shares.

If approved, Telstra would “obtain much of TPG’s mobile spectrum” in outer-suburban and regional areas, where approximately 17% of Australians live. Telstra will also obtain 169 of TPG’s mobile sites in that area.

TPG would shut down its remaining 556 mobile sites in those areas and acquire mobile network services from Telstra for mobile coverage.

Telstra said that this deal would provide “significant value to Telstra’s wholesale mobile revenue, while providing TPG Telecom group’s subscribers with 4G and 5G services”.

It would allow Telstra to grow its network and increase capacity.

The Telstra CEO at the time, Andy Penn, said:

Similar to monetising our passive infrastructure, it allows Telstra to have an innovative way of monetising some of our active mobile infrastructure, in areas where the population coverage is much smaller and more challenging in terms of returns and further investment and where there are already a number of competitors.

Additional scale from this agreement therefore supports return on invested capital in these areas and makes ongoing investment in the network and innovation more sustainable.

Snapshot of the share prices 

Over the last month, the Telstra share price has gone up around 3% and the TPG share price has gone down 1%.

The post Why all eyes will be on Telstra shares this week appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Telstra share price lagging the ASX 200 today?
• Why Bendigo Bank, Endeavour, TPG, and Zip shares are dropping today
• This ASX 200 company has just become the latest victim of a cyber attack, and its share price is diving
• 3 top dividend payers of the ASX 200

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Tpg Telecom. 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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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share with short interest of 14.4%, which is up slightly week on week. Short sellers have been adding to their positions since the release of a disappointing trading update.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise slightly to 13%. This betting technology company was quizzed by the ASX last week in relation to a $15 million payment to entrepreneur Matthew Tripp.
• Perpetual Limited (ASX: PPT) now has 11.7% of its shares held short, up slightly week on week. Short sellers have continued to increase their positions in this fund manager after it was pressured into completing its acquisition of Pendal Group Ltd (ASX: PDL).
• Megaport Ltd (ASX: MP1) has seen its short interest rise slightly to 10.6%. This network as a service operator’s shares trade on sky high multiples. Short sellers appear to see scope for these multiples to narrow given the prospect of higher interest rates.
• Sayona Mining Ltd (ASX: SYA) has 9.5% of its shares held short, which is down slightly week on week. Concerns that lithium prices could have peaked appear to be weighing on this developer.
• Lake Resources N.L. (ASX: LKE) has short interest of 8.8%, which is up week on week. One short seller claims that Lake is having issues producing battery grade lithium at scale from its Kachi operation.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 8.5%. Short sellers may be doubting this buy now pay later provider’s ability to achieve profitability if a global recession causes a spike in bad debts. Its high debt could be another cause for concern.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.4%, which is down week on week. The jury is out on this medical device company’s sales model change in the key United States market.
• Breville Group Ltd (ASX: BRG) has seen its short interest slide again to 7.8%. Fears that spending on household goods could suffer in 2023 due to the cost of living crisis appear to be behind this short interest.
• Brainchip Holdings Ltd (ASX: BRN) has entered the top ten with 6.8% of its shares held short. Short sellers seem to believe that this semiconductor company is all show and no go. And with a $1.2 billion market capitalisation and less sales revenue than some cafes, it’s no wonder short interest is creeping up.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Sayona Mining share price dive 7% on Thursday?
• Why Australian Ethical, Breville, Iluka, and Pilbara Minerals shares are tumbling today
• Here are the old and new energy ASX 200 shares that investors were buying last month
• Why Bendigo Bank, Endeavour, TPG, and Zip shares are dropping 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 positions in and has recommended Betmakers Technology Group, Megaport, Nanosonics, and Zip Co. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, and Megaport. 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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If you’re searching for ASX dividend shares to buy for a passive income, then the two listed below could be worth looking at.

Both have been tipped as buys with meaningful upside potential and attractive future yields.

Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that has been named as a buy is Baby Bunting. If you’re a parent, there’s a good chance you’ll have shopped at one of this baby products retailer’s superstores. And with management intent on growing its network further in the coming years, more and more parents will be following suit in the future.

While FY 2023 has been tough for Baby Bunting, Morgans believes investors should stick with the company. It has add rating and $3.60 price target on its shares.

The broker believes that Baby Bunting’s margin pressures in FY 2023 are transitory and highlights its “compelling opportunities to grow its share of a growing market.”

As for dividends, Morgans is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.66, this will mean yields of 5.25% and 6%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32. It is a diversified mining and metals company with exposure to a range of commodities including aluminium, copper, manganese, and nickel.

Morgans is also feeling positive on South32. So much so, it has an add rating and $5.30 price target on the mining giant’s shares.

Its analysts like South32 largely due to its portfolio transformation, which has given it exposure to the decarbonisation megatrend. It also believes the transformation is “substantially boosting group earnings quality, as well as S32’s risk and ESG profile”

In respect to dividends, Morgans is expecting South32 to pay fully franked dividends per share of 22.9 cents in FY 2023 and 21.5 cents in FY 2024. Based on the current South32 share price of $4.10, this will mean yields of 5.6% and 5.25%, respectively.

The post Buy these ASX dividend shares for a passive income: analysts appeared first on The Motley Fool Australia.

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More reading

• Experts say these strong blue chip ASX 200 shares are buys for 2023
• Bell Potter says these are some of the best ASX shares to buy for 2023
• Here’s why the South32 share price is shooting north today
• Morgans says these ASX 200 resources shares have almost 30% upside
• The cheap ASX shares to buy for dividends: broker

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 Baby Bunting Group. The Motley Fool Australia has recommended Baby Bunting 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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Legendary investor Warren Buffett has managed to build a massive amount of wealth through the power of investing and compound interest. Certainly, ASX shares can help grow our own wealth using the same principles.

Businesses have a powerful ability to reinvest in themselves and potentially make more profit than the year before.

For example, Coles Group Ltd (ASX: COL) can open another supermarket and then generate earnings from that new location.

There is no ‘right’ age to start investing. People can invest in themselves with education or learning a new skill that can unlock far more earning potential than what shares can do in the short term. Also, the goal of life isn’t necessarily to accumulate as much money as possible.

I think there is a balance between putting money towards building wealth and spending money to enjoy life now.

ASX shares can help build wealth

The great thing about ASX shares is that they can help grow wealth over a long period of time. While there are invariably some periods of volatility, the ASX share market’s historical return is an average of 10% per annum with dividends reinvested. But, past performance is not a guarantee of future performance and sometimes the market does go backward.

However, Warren Buffett’s advice is to keep investing “through thick and thin, and especially through thin”.

It’s the interest that earns interest that can make the biggest difference to wealth-building over time.

Imagine a $1,000 investment that grows at an average of 10% a year. In year one, it grows to $1,100, adding $100. In year two, if it goes up 10% to $1,210 – that’s an increase of $110. In year three, another 10% increase turns into $1,331 – a rise of $121. Of course, the actual performance of the share market doesn’t go like that. It isn’t consistent each year.

How much wealth an investor can build depends on multiple factors, including how much they put in, the amount of time they leave the investments to compound, and the rate of return.

But, if an investment were to make an average of 10% per annum over 20 years, investing $500 a month would turn into just under $344,000.

Which investments to consider?

There are a number of different ways to invest in ASX shares. One of the increasingly popular ways is through exchange-traded funds (ETFs) which allow investors to invest in a whole group of businesses at once, enabling diversification.

The biggest ETF on the ASX is the Vanguard Australian Shares Index ETF (ASX: VAS) which tracks the S&P/ASX 300 Index (ASX: XKO) – 300 of the biggest businesses on the ASX.

Investors can also build a portfolio themselves. ASX blue chip shares are seen as highly reliable. These include Telstra Group Ltd (ASX: TLS), National Australia Bank Ltd (ASX: NAB), CSL Limited (ASX: CSL),  and Wesfarmers Ltd (ASX: WES).

Small-cap ASX shares may have more growth potential, but many are riskier, so it could be worthwhile having an expert assist in the choosing of those opportunities.

The post Over 30 with no investments? Use Warren Buffett’s wisdom to build your wealth with ASX shares appeared first on The Motley Fool Australia.

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More reading

• Future-proofing: The ASX ETF Aussie parents were buying for their kids in 2022
• Is now really the time to buy ASX 200 shares?
• Could the VAS ETF outperform the BHP share price in 2023?
• Can the Vanguard Australian Shares ETF deliver more outperformance in December?
• It took me years to realise I’m no investing genius like Warren Buffett

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 CSL. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Wesfarmers. 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 share prices of many ASX lithium shares have suffered a significant sell-off. The cause may have been news of a lower price for a cargo of lithium sold at auction last week. Certainly, this could have caused investors to worry that lithium prices had peaked.

In the last two days of last week, the Pilbara Minerals Ltd (ASX: PLS) share price dropped by around 10%. Since 9 November 2022, it has fallen around 25%.

The Allkem Ltd (ASX: AKE) share price fell 5.7% over Thursday and Friday. The Liontown Resources Ltd (ASX: LTR) share price also declined, down 11%.

What happened to the ASX lithium shares?

Using the digital Battery Material Exchange (BMX) platform, Pilbara Minerals carried out its twelfth spodumene concentration (lithium) auction.

After the process, the company sold two cargoes — a combined total of 10,000 dry metric tonnes (dmt) at an average price of US$7,552 per dry metric tonne (dmt). This announcement was dated 14 December 2022.

Almost a month before, it sold a cargo of 5,000 dmt on the BMX. The company said that the highest bid was US$7,805. So, over that month, the business saw the price dip, after what had essentially been a year of rising prices at the digital auctions.

So, is this the peak of the lithium price and are ASX lithium shares worth buying?

Each lithium business has different contracts, different customers, and a different operational outlook. So, I’ll focus on Pilbara Minerals shares, considering it was the company’s lithium auction that may have started the current events.

Views on the Pilbara Minerals share price

The broker UBS thinks the lithium price could fall significantly from here over time, though the slightly-weaker auction price was much stronger than its long-term expectations. In any case, UBS prefers other ASX lithium shares. It rates Pilbara Minerals shares as a sell, with a price target of just $3.10, implying a further fall of more than 20%.

Morgans recently upgraded the rating to add, with a price target of $4.70. That implies a possible rise of more than 10% from here. It thinks the market overreacted to the auction result, though acknowledged that the share price could fall further. But, the broker suggests the upcoming financials and cash returns to shareholders could be a boost.

The broker Macquarie is still very bullish, with an outperform rating and a whopping price target of $7.60. That suggests a possible rise of more than 80% over the next year. It notes Pilbara Minerals is very profitable with the current price it’s achieving.

I think that the Pilbara Minerals share price reaction has been an overreaction, for now. But, if the lithium price were to fall heavily then that would obviously be bad news. With lithium demand expected to rise in the coming years, and supply taking time to come online, I don’t see a high chance the lithium price will get back down to less than US$2,000 any time soon.

For me, the Pilbara Minerals shares are ones to own for the long term, though 2023 could be a bit volatile.

The post ASX lithium shares have just been crunched. Time to buy? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Would you be rich if you’d invested in these ASX shares 10 years ago?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• Make or break: the one metric I’ll be watching for Pilbara Minerals shares next year

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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One of the most important sectors within the S&P/ASX 200 Index (ASX: XJO) is the ASX iron ore shares. These include names like BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). Of course, the iron ore price has a major impact on the fortunes of the big names.

The iron ore price has been highly volatile over the last few years, with Chinese demand playing a key role in its rise and fall.

Aside from the last few weeks, the second half of 2022 has been a period of weakness for iron as the Chinese economy faltered with COVID lockdowns limiting activity within the Asian superpower.

However, the last few weeks have been good for the commodity.

What’s going on with the iron ore price?

As readers may already have guessed, the recovery is seemingly down to an improving position in China.

The country has been steadily lifting its strict COVID rules, encouraging its citizens to adapt to the different COVID variants.

An analyst from the Commonwealth Bank of Australia (ASX: CBA) mining and energy team Vivek Dhar is optimistic about the outlook for steel, the Australian Financial Review reports. He forecasts Chinese policymakers will officially shift to ‘living with COVID’ at China’s ‘Two Sessions’ policy meeting next year in March.

Dhar said the Commonwealth Bank is anticipating China’s infrastructure sector to “drive steel demand substantially”. However, at this stage, it is “unclear whether policymakers will tolerate an increase in steel output to meet stronger demand given current policy restrictions on the alloy”.

Bloomberg also reported that China has hinted at more property support. It reports Chinese Vice Premier Liu as saying the real estate sector is a “pillar” of the economy and that new measures are being considered to improve the financial condition of the industry and boost confidence.

What next for the ASX iron ore shares?

The share prices of BHP, Fortescue, and Rio Tinto seem to be rallying on the expected recovery of economic activity in China.

Will they keep going higher? Certainly, it depends on how the iron ore price performs from here. So how likely is it that the iron ore price could return to US$130 or US$150 per tonne? Indeed, it may have seemed unlikely that the iron ore price would have gone above US$200 in 2021. But, it’s possible that it could go back below US$100 from here too.

Time will tell what happens next.

The post Why did the iron ore price just hit a 6-month high? appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Fortescue share price on Friday?
• Why Aurizon, Norwest, Rio Tinto, and Strike Energy shares are rising today
• 3 ASX 200 dividend shares with payouts that jumped more than 10% this year
• Here’s why BHP shares are this fund manager’s favourite ASX iron ore pick
• Why is the Fortescue share price having another day to forget?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals 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.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.8% to 7,148.7 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to continue its slide on Monday following a poor finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. On Wall Street, the Dow Jones was down 0.85%, the S&P 500 fell 1.1%, and the NASDAQ dropped 1%.

Oil prices tumble

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.1% to US$74.50 a barrel and the Brent crude oil price fell 2.6% to US$79.04 a barrel. Recession concerns weighed on oil prices.

Chalice named as a buy

The Chalice Mining Ltd (ASX: CHN) share price could rise materially from current levels according to the team at Bell Potter. This morning, the broker has retained its speculative buy rating with an $11.10 price target on its shares. Although Chalice has delayed its scoping study at the Gonneville deposit, the broker was pleased to see “opportunities to potentially improve recoveries of palladium, platinum, and gold.” Bell Potter sees scope for this to increase its gross-revenue-per-tonne well ahead of its current estimates.

Brambles rated as a sell

The Brambles Limited (ASX: BXB) share price could be overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a $10.75 price target. The broker said: “We see poor medium term cash generation with elevated pooling capex (currently) and incremental transformation capex going forward. Separately, the risk of the company losing its legacy Costco business remains in place should Costco proceed with its plastics transition with an alternative pooler and/or a different business model.”

Gold price rises

Gold shares Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price pushed higher on Friday. According to CNBC, the spot gold price was up 0.85% to US$1,803 an ounce during the session. This couldn’t stop the precious metal from having its worst week in a month after the US Federal Reserve hardened its inflation stance.

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

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More reading

• Shopping spree: What happened to the Woolworths share price today?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today
• Dirty dichotomy: Why Woodside’s record profits might have only painted a bigger target on its back
• 5 things to watch on the ASX 200 on Friday

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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