In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.1% to 7,129 points.

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

Altium Limited (ASX: ALU)

The Altium share price is up 4% to $38.02. This follows the release of the electronic design software company’s annual general meeting update. At the event, Altium reaffirmed its guidance for FY 2023. Management said: “We expect total revenue to be between $255 and $265 million USD, with both our PCB software business and cloud platform business growing nicely. And, we expect underlying EBITDA margin to be between 35 and 37% for the full year in FY23.”

Pendal Group Ltd (ASX: PDL)

The Pendal share price is up 10% to $4.91. This follows news that the courts are pressuring Perpetual Limited (ASX: PPT) to complete its acquisition of the rival fund manager. Perpetual’s shares have sunk on the news. This is because this action is likely to scupper its own potential takeover by a consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

Terracom Ltd (ASX: TER)

The Terracom share price is up 8% to 90.5 cents. This morning this coal miner announced that its board has declared a fully franked dividend of 10 cents per fully paid ordinary share for the quarter ended 30 September. This comprises an ordinary dividend of 7.5 cents per share and a special dividend of 2.5 cents per share.

Webjet Limited (ASX: WEB)

The Webjet share price is up 11% to $6.24. Investors have been buying this online travel agent’s shares following the release of a strong first half update. Webjet reported a 223% increase in TTV to $2,143 million and a 217% jump in revenue to $175.7 million. On the bottom line, the company delivered an underlying net profit after tax of $32 million, up from a loss of $29.2 million a year earlier.

The post Why Altium, Pendal, Terracom, and Webjet shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Why did the Perpetual share price just plummet 14%?
• Worried about a stock market crash? I’d buy these 5 rock-solid ASX shares to ride it out
• Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping
• Why did these ASX 200 shares just crack new, multi-year highs?
• Webjet share price jumps 10% on ‘spectacular turnaround’

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 Altium. The Motley Fool Australia has recommended Webjet Ltd. 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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Morgan Stanley has warned that the recent rally in ASX 200 shares could soon come to an end.

The broker believes a stop to the rally could come in the form of rising interest rates and a pullback in consumer spending, thus reducing corporate earnings, the Australian Financial Review reported.

The S&P/ASX 200 Index (ASX: XJO) has lifted 10.4% since 3 October to the present day. It’s currently up 0.32% in today’s trading session.

Let’s cover how Morgan Stanley expects rising interest rates to affect ASX 200 shares moving forward.

What did Morgan Stanley say?

Morgan Stanley’s head of Australian strategy Chris Nichol said we may not have felt the full effects of rising interest rates, which will put pressure on companies’ bottom lines.

He said:

Investors should brace for impact from the lagged effects of an aggressive tightening cycle. The next six months will see fuller effects from an aggressive monetary hiking cycle impacting domestic focused earnings.

Nichol also believes consumers could be underestimating the effect that rising interest rates might have on the economy, which could be leading to a sense of overconfidence in their spending habits.

[Consumers] are not fully calibrating the true extent of the adjustment in disposable income and asset wealth ahead whilst also potentially underappreciating the job required of policymakers to achieve their goals.

The net result of rising interest rates is that housing prices could fall by as much as 20%, Nichol said. This, in turn, may finally force consumers to spend less on discretionary items, thus kicking off a recessionary cycle in the economy.

However, another expert believes ASX 200 shares could have reached their bottom and are poised to rally again.

Have ASX 200 shares bottomed out?

AMP economist Dr Shane Oliver thinks there have been some “fundamental improvements” in the backdrop of ASX 200 shares that occurred during October.

He said the main reason is that inflation appears to have peaked in the United States, dropping from a high of 9.1% in June to 7.7% year-on-year in October.

Oliver notes that with inflation easing, future interest rate hikes by the Fed are likely to be less severe, thus reducing the chance they will put the economy into a recessionary tailspin.

US equities could also be benefiting from a couple of tailwinds in the short-term, Oliver said, including US midterm elections and the fact ASX 200 shares have entered into a bullish part of the year. These cyclical factors could also be giving them a lift.

Oliver also suggested China could look to focus on growing its economy and lift COVID-zero restrictions by the middle of next year.

Summarising his position, Oliver said the following on the longer-term outlook for ASX shares:

We remain optimistic about shares on a 12-month horizon as investors will start to focus on monetary easing from late next year and then economic recovery.

The post Why ASX 200 ‘investors should brace for impact’: Morgan Stanley appeared first on The Motley Fool Australia.

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More reading

• Why did these ASX 200 shares just crack new, multi-year highs?
• Guess which ASX 200 lithium director just snapped up $250,000 worth of their company’s shares
• Buy these ASX 200 shares now before the market wakes up: fund manager
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX mining shares on ice today pending big news

Motley Fool contributor Matthew Farley 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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The Perpetual Limited (ASX: PPT) share price is tumbling on news of its planned takeover of fund management business Pendal Group Ltd (ASX: PDL).

Early this morning, the companies announced a change to the consideration mix on the table for the takeover target. Later, they revealed a court decision related to a hypothetical breach cost.

It comes after a consortium upped its bid for Perpetual to $33 per share last week. While the bid was ultimately rejected, it seems to have spurred concern about Perpetual’s planned acquisition of Pendal.

The Perpetual share price is down 14% at the time of writing, trading at $27.16.

Let’s take a closer look at the latest from the financial services firm.

What’s going wrong for the Perpetual share price?

The market is bidding the Perpetual share price lower on Thursday on the back of a flurry of news regarding its takeover bid for S&P/ASX 200 Index (ASX: XJO) financials peer Pendal.

First, news broke the pair had agreed to revise the mix of cash and scrip initially put forward to acquire Pendal. The offer price on the table hasn’t changed alongside the mix.

If the deal goes ahead, Pendal shareholders will now receive one Perpetual share for every seven Pendal shares they hold, as well as $1.65 cash per Pendal share.

Originally, Perpetual offered one share for every 7.5 Pendal shares and $1.976 cash per share.

Perpetual said the new terms “further strengthen the balance sheet and enhance the financial flexibility for the combined group”.

Additionally, the companies announced a court decision regarding a ‘break fee’ today.

The Supreme Court of New South Wales declared a $23 million break fee — which Perpetual would be elegible to pay Pendal if it abandoned the takeover — would not be an exclusive remedy. Pendal said:

This means … Pendal [could] seek orders to enforce Perpetual’s obligations to complete the scheme, including by way of injunctive relief or orders of specific performance.

That’s likely a relief to Pendal shareholders but worrying to those invested in Perpetual stock. An improved acquisition proposal for the latter could impact its deal with the former.

The post Why did the Perpetual share price just plummet 14%? appeared first on The Motley Fool Australia.

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More reading

• Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares
• Why Elders, Flight Centre, Perpetual, and Telstra shares are dropping

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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Markets have been in turmoil this year, as central banks take decisive action in an attempt to stomp out inflation. Yet, some are still concerned it could get worse for ASX shares amid calls for further rate hikes.

I don’t think it is wise to try and predict where the share market will go from here in the short term. Although, if a bear market is a concern, it can be worthwhile positioning a portfolio in a way that gives you confidence in your investments through a challenging time.

If the goal is to invest in companies that are well-positioned for economic uncertainty, this is worth a read.

Here are five ASX shares I believe are worth holding through a rocky market.

Healthy foundations

Exposure to quality healthcare shares can be worthwhile during a stagnant or declining economy. Unlike other areas of the market, the healthcare industry is considered to be non-discretionary. People generally prioritise health and regard it as essential.

In this category, Pro Medicus Limited (ASX: PME) and Cochlear Limited (ASX: COH) stand out as rock-solid opportunities.

Both of these companies operate in industries — medical imaging and hearing devices — that will likely continue to see demand irrespective of prevailing conditions.

In addition, Pro Medicus and Cochlear are well capitalised with $90.6 million and $586.7 million in net cash as of 30 June 2022.

One ASX share keeping you covered

Another relatively defensive industry to invest in during turbulent times is insurance. Although, ASX-listed companies providing the insurance policies usually run on thin margins — around 5% or less. In contrast, insurance brokering and underwriting tend to print profits at a thicker margin.

I would consider AUB Group Ltd (ASX: AUB) an attractive way of investing in this relatively inelastic industry. Since its founding in 1985, AUB has demonstrated its ability to consistently compound revenue and earnings over long periods of time.

Furthermore, as a broker, AUB stands to benefit from a more price-conscious consumer. The team at Ophir Asset Management recently named this ASX share as one with potential upside.

A dash of defensive innovation

Some might ditch exposure to innovation to protect the portfolio against a stock market crash. However, I believe there are some highly-innovative, fast-growing ASX shares that are also extremely robust.

Taking out the final two spots of my five rock-solid buys are PWR Holdings Ltd (ASX: PWH) and Altium Limited (ASX: ALU). A cooling solutions company and a PCB design software provider may not appear to be rock-solid, but here’s my take.

These companies are operating within industries boasted by strong tailwinds. Demand for advanced cooling solutions is growing with the adoption of electric vehicles. Likewise, circuit boards are finding their way into everything as digital devices consume analog hardware.

Importantly, PWR and Altium are both exceptionally well-run businesses. Zero debt, above 20% earnings margin, and high returns on capital. I struggle to envisage a future where these ASX shares provide below-market returns over the long term.

The post Worried about a stock market crash? I’d buy these 5 rock-solid ASX shares to ride it out appeared first on The Motley Fool Australia.

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More reading

• Experts name 3 of the best ASX growth shares to buy in November
• Hub24 or Altium: Which ASX 200 tech stock is the better buy right now?
• 8 All Ords shares that soared 10% or more today
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares jump 6%

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Cochlear Ltd., PWR Holdings Limited, and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended PWR Holdings Limited and Pro Medicus Ltd. The Motley Fool Australia has recommended Austbrokers Holdings Limited and Cochlear Ltd. 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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Goldman Sachs has been looking at the banking sector this week and has given its verdict on the state of the sector.

This follows the release of the Commonwealth Bank of Australia (ASX: CBA) first quarter update earlier this week, completing the banking reporting season.

What is Goldman Sachs saying about the big four banks?

According to the note, the broker believes that upside risk to sector earnings is now diminishing.

This is due to net interest margin tailwinds being partially offset by headwinds from competitive pressures and cost inflation. Goldman also expects system housing loan growth to slow towards 2.5% by the end of next year.

In light of this, its analysts expect bank earnings growth to slow in the coming years. It explained:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years.

Which ASX 200 bank shares should you buy?

The good news is that Goldman still sees value in the sector and believes a couple of ASX 200 bank shares could continue to outperform. These are Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB), with the former the broker’s top pick in the sector. It added:

Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

Over the next three years, Goldman expects Westpac’s shares to deliver an average total return of 13% per annum.

This is expected to be underpinned by the following:

• Average earnings per share growth of 5%, driven by:
  • Net interest margin expansion of 8 basis points in FY 2023
  • FY 2023 cost reduction of 8%
  • A 7% average 12-month forward PPOP per share growth
  • Partially offset by BDDs normalising +9 basis points but remaining at benign levels
• ~7% of total multiple expansion
• Average dividend yield of ~6%.

Goldman currently has a conviction buy rating and $27.60 price target on Westpac’s shares.

What about NAB?

As for NAB, Goldman expects the bank’s shares to provide investors with an average total return of 12% per annum over the next three years. This is based on the following:

• Average earnings per share growth of 4%, driven by:
  • Net interest margin expansion of 8 basis points in FY 2023
  • Strong leverage to commercial volumes
  • 4% average 12-month forward PPOP per share growth
  • Partially offset by BDDs normalising +13 basis points but remaining below mid-cycle levels
• ~6% of total multiple expansion
• Average dividend yield of ~5%.

Its analysts have a buy rating and $35.41 price target on NAB’s shares.

The post Goldman says these ASX 200 bank shares can deliver 12%+ returns for three years appeared first on The Motley Fool Australia.

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More reading

• Why is Wilsons selling down its ASX 200 bank shares?
• Hoping to bag the latest Westpac dividend payment? Here’s what you need to know
• 2 ASX dividend giants to buy now: brokers
• ASX 200 bank shares: fundie picks winners and losers of the big four
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 a small gain. At the time of writing, the benchmark index is up 0.1% to 7,132.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down a further 4.5% to $1.42. This means the lithium miner’s shares are down 24% since Monday’s close. Investors have been hitting the sell button following a broker downgrade by Macquarie and concerns over demand for the battery making ingredient in China.

Creso Pharma Ltd (ASX: CPH)

The Creso Pharma share price has sunk 9% to 2.1 cents. Investors have been selling this cannabis company’s shares after the company kicked out its chairman, James Ellingford, with immediate effect. While the company didn’t comment on the reason for Ellingford’s exit, it could be due to his deplorable behaviour on TikTok.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is down 6% to 93.2 cents. This appears to have been driven by a sharp pullback in nickel prices overnight. According to CommSec, the nickel price recorded a 9.1% decline on Wednesday night. Prices were down as much as 12% in volatile and illiquid conditions. In response, the London Metal Exchange (LME) said it would be conducting enhanced monitoring of nickel trading.

Perpetual Limited (ASX: PPT)

The Perpetual share price is down 14% to $27.09. This follows news that the courts are enforcing its acquisition of rival fund manager Pendal Group Ltd (ASX: PDL). This is likely to scupper the potential takeover of Perpetual by a consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

The post Why Core Lithium, Creso Pharma, Nickel Industries, and Perpetual shares are dropping appeared first on The Motley Fool Australia.

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More reading

• ASX lithium shareholders rejoice! Expert tips lithium price to hit $100K
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Wednesday
• Dig this! Look how many of the top-performing ASX 200 shares today are miners
• Why Aristocrat, CBA, Core Lithium, and GrainCorp 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 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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The Mineral Resources Limited (ASX: MIN) share price flew 3.1% higher in early trading to an intraday high of $85.32.

It has since dropped to $83.98, a gain of 1.49% on yesterday’s close and is outperforming the S&P/ASX 200 Index (ASX: XJO), which is barely in the green today, up 0.09% at the time of writing.

Mineral Resources shares are having a great week with the highlight being a new 52-week peak.

Let’s take a look at what’s been happening with the $15 billion diversified miner.

Broker buys despite lofty Mineral Resources share price

According to The Australian, broker Wilsons has added Mineral Resources to its Focus Portfolio. The broker has allocated 3% of its portfolio to the ASX mining share.

The article says that Wilsons considers Mineral Resources to be one of the highest-quality mining companies on the ASX.

It has four business segments — iron ore, energy (gas), lithium, and mining services.

What has really piqued the broker’s interest is the lithium segment.

There was speculation earlier this year that Mineral Resources may spin off its lithium business.

Wilsons notes that if this were to occur, it could provide substantial returns because the segment is “markedly undervalued” at the moment.

Mineral Resources has a stake in two of the country’s largest hard-rock lithium mines.

Their two mines are Mt Marion mine and Wodgina mine, both in Western Australia.

Mineral Resources holds AGM today

The mining giant held its annual general meeting (AGM) today and delivered an investor presentation.

It noted that it is the world’s largest crushing contractor and a global top five lithium producer.

Over the next two years, the company plans to double production at Mt Marion from 450,000 tonnes of lithium spodumene concentrate per annum to 900,000 tonnes.

At Wodgina, it plans to commence Train 3 and approve and construct Train 4.

In the presentation, Mineral Resources said it operates 29% of the world’s hard rock lithium supply.

The company noted: “Production-ready hard rock lithium deposits are rare.”

Mineral Resources share price snapshot

The mining stock hit a new 52-week high price of $85.36 on Monday as lithium stocks enjoyed a dream run on the back of news that China is relaxing its COVID-19 restrictions.

There was also news that Australia is exploring a lithium mine and processing partnership with Indonesia.

According to reporting by The Australian, the partnership could make the two countries the dominant global supplier of electric vehicle batteries.

As my Fool colleague Sebastian notes, it’s been an incredible couple of years for Mineral Resources.

Back in November 2020, the Mineral Resources share price was $27. It has tripled since then.

In recent weeks, the Mineral Resources share price has steadily increased following the release of the company’s quarterly activities report on 26 October.

In the report, the company reaffirmed its FY23 guidance.

The post Why is the Mineral Resources share price beating the ASX 200 on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did ASX lithium shares have a dream run on Monday?
• 4 ASX 200 shares to play the global decarbonisation theme: fund manager
• 3 ASX 200 lithium shares smashing all-time highs on Friday
• Why have Minerals Resources shares hit two new all-time highs this week?

Motley Fool contributor Bronwyn Allen 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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When you buy an ASX dividend share, many investors are offered a choice. Take your dividends as cash, or participate in a dividend reinvestment plan (DRP). Of course, not all ASX shares offer DRPs to investors.

But for those who do, investors have a choice between receiving their dividend in cash, or instead getting additional shares in the company to the value of the dividend payment.

Why would some investors choose the DRP path? Well, DRPs usually offer these additional shares without any brokerage costs or other fees. Thus, the dividends are ‘rolled back’ into the investor’s portfolio seamlessly, ensuring an even greater dividend payment next time around (assuming the company at least keeps its dividend payments steady).

Yes, you still have to pay tax on your dividend, even if you decide to reinvest your shares. And yes, you still get the franking credits as well.

Many investors enjoy this hands-off approach. It can fully harness the wonderful power of compound interest over time, and ensures there are no hard choices about where to invest one’s dividends.

But then again, there’s no cash payment. And having the flexibility and liquidity that this passive income can provide is also a wonderful thing. So can investors have their cake and eat it too?

Well, in many cases, yes.

To DRP or not to DRP your ASX dividends? Why not both!

If a company offers a DRP, chances are it will also offer what is known as a partial DRP. This means you can indeed have your cake and eat it too.

A partial DRP allows investors to allocate some of a dividend payment to the DRP, while receiving the remainder as a cash payment. For example, you may decide to have half of your dividend go towards new shares, and the other half come your way as a cash payment.

So which ASX shares offer partial DRPs? Well, there are many.

For one, all four of the major ASX bank shares offer both full DRPs and partial DRPs. As do Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), and BHP Group Ltd (ASX: BHP). Along with CSL Ltd (ASX: CSL), Coles Group Ltd (ASX: COL), Woodside Energy Group Ltd (ASX: WDS), and Wesfarmers Ltd (ASX: WES).

In fact, it’s rather hard to find a large ASX dividend share that doesn’t offer a DRP with full or partial participation. Some notable exceptions include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), and Goodman Group (ASX: GMG). Not to mention any ASX share that doesn’t pay a dividend, of course.

At the end of the day, receiving dividends as cash or as additional shares as part of a DRP is a personal choice. But it’s sure nice to have the option.

The post How to have your ASX 200 dividend cake and eat it too appeared first on The Motley Fool Australia.

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More reading

• What’s going on with ASX 200 mining shares on Thursday?
• Here’s how much dividend income $20,000 worth of Telstra shares will get you today
• OZ Minerals shares remain halted ahead of potential BHP takeover offer update
• 3 passive ASX income machines to help fund your retirement
• Which are the best ASX mining shares to buy now for 2023?

Motley Fool contributor Sebastian Bowen has positions in CSL Ltd., Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL Ltd., and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, COLESGROUP DEF SET, Telstra Corporation Limited, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. 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 Zip Co Ltd (ASX: ZIP) share price has had a top run in the past week.

Zip shares have surged 31% since market close on 10 November to the current price of 82 cents per share. For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 2.6% in the same time frame.

So what is going on with this ASX buy now, pay later (BNPL) share?

What’s happening with Zip?

Zip shares soared 18% on 11 November alone. Investors bought up Zip shares amid general sector strength.

This followed an incredible night on US markets, where the S&P 500 Index (SP: .INX) lifted 4.7% and the NASDAQ-100 (NASDAQ: NDX) soared 7.5% on better-than-expected inflation data.

Zip shares surged 12% on Wednesday and are currently up a further 4.5% today.

A positive business update from fellow BNPL share Sezzle Inc (ASX: SZL) may have boosted investor sentiment in the Zip share price on Wednesday. Sezzle reported it is making significant progress towards profitability.

Zip’s over-the-counter market listing in the US (OTCMKTS: ZIZTF) soared 17% to 55 US cents overnight.

US retail sales lifted more than expected in October, Reuters reported today. This could be providing Zip shareholders with confidence today, given Zip’s BNPL solution can be used for in-store payments.

Zip CEO and co-founder Larry Diamond moved to the US last month to take advantage of “significant opportunity” for the company in America. Diamond said:

It is important to be there to demonstrate what we have done in Australia. There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.

Diamond also said in October he believes Zip can be the next Commonwealth Bank of Australia (ASX: CBA). He said there is “no reason why deposits and mortgages can’t be inside Zip, if customers trust us”.

Zip share price snapshot

The Zip share price has descended 86% in the past year, while it has fallen 81% in the year to date.

In comparison, the ASX 200 has shed more than 3% in the past year.

Zip has a market capitalisation of around $554 million based on the current share price.

The post Boom! Why has the Zip share price soared 31% in a week? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares having a cracker session on Thursday
• Guess which ASX All Ords share is leaping 22% on ‘significant progress towards profitability’
• Up 18% today: Can the Zip share price really fight City Hall?
• Why Accent, Block, Nufarm, and Zip shares are racing higher
• Wowsers: Why the Zip share price is up 18% today

Motley Fool contributor Monica O’Shea 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 ZIPCOLTD FPO. 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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It’s a rough day on the market for many S&P/ASX 200 Index (ASX: XJO) mining shares.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.9% right now, making it one of the market’s worst performing sectors. That’s reflected in the share prices of some of the ASX 200’s most iconic miners:

• The BHP Group Ltd (ASX: BHP) share price is down 1.4%, trading at $43.83
• That of Rio Tinto Limited (ASX: RIO) is posting a greater tumble. It’s fallen 1.7% to $106.23
• Finally, shares in Fortescue Metals Group Limited (ASX: FMG) are defying the downturn, lifting 0.25% to $19.90

For comparison, the ASX 200 has lifted 0.3% at the time of writing.

So, what might be going on with ASX 200 mining shares today? Let’s take a look.

Is this weighing on ASX 200 mining shares today?

The materials sector is falling on Thursday, weighed down by some of the ASX 200’s biggest mining shares.

Interestingly, there’s been no news from the mining goliaths to explain today’s moves. Though, it’s widely speculated that OZ Minerals Limited (ASX: OZL)’s continued freeze is related to another BHP takeover bid.

Iron ore futures were relatively stable overnight, lifting 0.1% to US$92.34 a tonne. It was a worse story for some base metals, with nickel tumbling 9.1% and copper slipping 0.4%.

Looking more broadly, today’s slump comes amid continued concerns regarding a mining tax under consideration by the federal government.

The mooted tax would relate to earnings from thermal coal and gas exports. It is being considered as a bid to reduce energy costs.

NSW Minerals Council CEO Stephen Galilee previously said, if implemented, its “unlikely” the tax would be temporary. He also said it could be extended to other sections of the mining industry over time.

Though, treasurer Jim Chalmers has said the government’s preferred solution would be regulatory, rather than tax-based.

Any move to tax energy commodities would likely impact BHP more than Rio Tinto or Fortescue. The former operates seven coal mines in Queensland.

NSW Minerals Council, the Minerals Council of Australia, and Queensland Resources Council (QRC), all of whom have slammed the mooted tax, are banding together to launch an advertising campaign against the move today, The Australian reports. QRC CEO Ian Macfarlane commented yesterday:

Introducing a new mining tax on the resources sector, on top of the billions in taxes and charges coal and gas companies already pay to state and federal governments, will kill off investor interest in future resources projects in Australia, it’s as simple as that.

Such talk might be turning investors’ attention to ASX 200 mining shares on Thursday.

The post What’s going on with ASX 200 mining shares on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why is Rio Tinto share price rolling downhill today?
• OZ Minerals shares remain halted ahead of potential BHP takeover offer update
• Which are the best ASX mining shares to buy now for 2023?
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX mining shares on ice today pending big news

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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