The price of the BetaShares Nasdaq 100 ETF (ASX: NDQ) went down in FY22. But amid the volatility, it may have done better than some readers expected.

Firstly, let’s acknowledge that the NDQ ETF did fall by around 20% in the 2022 financial year. That’s a pretty big drop in most people’s books.

However, that decline may not have been as much as people were expecting. Why?

Since the beginning of 2022, the BetaShares Nasdaq 100 ETF has actually fallen by close to 30%. That’s quite a bit worse than the drop for FY22.

The reason for the difference is that in the first six months of FY22, the NDQ ETF rose 16%. This resulted from investors pushing many of the large companies on the NASDAQ higher.

So, at the end of December 2021, NDQ had a higher starting valuation point to fall from than at the start of July 2021.

What drives the BetaShares Nasdaq 100 ETF?

The performance of any exchange-traded fund (ETF) is dictated by how the underlying holdings perform.

NDQ ETF owns shares in 100 of the largest businesses on the NASDAQ. Some of the biggest positions include Apple, Microsoft, Amazon.com, Tesla, Alphabet, Meta Platforms, Nvidia, PepsiCo, and Costco.

The businesses with the biggest weightings have the strongest influence. For example, at 1 July 2022, Apple had a 12.6% allocation and Microsoft had a 10.9% allocation in the NDQ ETF.

Why did the NDQ ETF fall?

The ETF itself simply tracks the share prices of the underlying holdings. So, the BetaShares Nasdaq 100 ETF dropped because the 100 businesses collectively declined in value.

Investors have been heavily focusing on inflation and what this may mean for interest rates and central bank decisions.

Various factors may have pushed up inflation, such as supply chain problems, financial support for economies during COVID-19, and soaring energy prices amid the Russian invasion of Ukraine.

Central bankers want to try to keep inflation within a target range, at a much lower rate than where it is now. One of their main tools to do this is to increase interest rates. The US Federal Reserve increased its interest rate by 75 basis points, or 0.75%, last month alone.

Why do interest rates matter for shares? Warren Buffett once said this:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature …its intrinsic valuation is 100% sensitive to interest rates.

However, despite the declines seen by the ETF, it is still up by over 100% over the past five years.

The post Why the BetaShares Nasdaq 100 ETF may have done better in FY22 than you thought appeared first on The Motley Fool Australia.

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More reading

• Here’s how June treated the NDQ ETF
• Why I think these 2 ASX shares are ideal for growth investors
• Is NDQ expensive or cheap compared to other ASX ETFs?
• Is it time to go bargain hunting for ASX shares?
• 3 high quality ETFs for ASX investors to buy now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Nvidia. 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 looking to boost your income portfolio in July, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Bank of Queensland Limited (ASX: BOQ)

The first ASX 200 dividend share that could be a top option for income investors is regional bank Bank of Queensland.

It has been tipped as a buy by analysts at Citi with a $9.25 price target. Its analysts see a lot of value in its shares at the current level and also expect them to provide investors with big dividends in the coming years.

The broker is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 56 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.77, this will mean yields of 7.2% and 8.3%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. These include alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver.

Morgans is a big fan of the company. It currently has an add rating and $6.10 price target on the miner’s shares. The broker believes the company’s shares are trading at an attractive level. It commented:

We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

As for dividends, the broker is forecasting fully franked dividends per share of 26 cents in FY 2022 and 36 cents in FY 2023. Based on the current South32 share price of $3.89, this will mean yields of 6.7% and 9.25%, respectively.

The post Experts name these ASX 200 dividend shares with big yields as buys appeared first on The Motley Fool Australia.

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More reading

• 3 more of Morgans’ best ASX share ideas for July
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Leading brokers name 3 ASX shares to buy today
• South32 crashes into bear market in June as recession fears bite
• June was a terrible month for ASX 200 bank shares. Here’s why

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 Fortescue Metals Group Limited (ASX: FMG) share price had a rough time during the 2022 financial year.

Shares in the iron ore mining giant fell by almost 30% over FY22.

Fortescue isn’t the only ASX resource share to experience significant volatility over the past year. However, it fell further than the biggest of the bunch, BHP Group Ltd (ASX: BHP).

As a price-taker, Fortescue has to accept whatever price it can get for the commodities it produces.

As a pure-play iron ore producer, it’s the iron ore price that has a very large and direct influence on Fortescue revenue, net profit after tax (NPAT), cash flow and dividends. Not to mention the Fortescue share price.

Iron ore rollercoaster drags Fortescue share price down

Fortescue has seen its fortunes rise and fall with the iron ore price over FY22.

At the start of FY22, the iron ore price was elevated. It was above US$210 per tonne.

Since then, it has dropped down to around US$115 per tonne. While that’s nowhere near as low as it was during November 2021, it’s still a big fall.

So, with the iron ore price not too far off halving over the year, it’s not surprising that the Fortescue share price has fallen heavily.

The company expects its FY22 iron ore shipments to be between 185mt and 188mt.

Leadership change

One of the biggest items of news out of the company during FY22 was the announcement that Andrew Forrest would be returning to a more active role. He will become the executive chair of the company in August.

Current CEO Elizabeth Gaines will remain on the Fortescue board as a non-executive director. She will take up the role of global brand ambassador for Fortescue Future Industries (FFI).

Dr Mark Hutchison will become the CEO of FFI by the end of 2022.

Green progress

Fortescue’s green division, FFI, has made a number of announcements over the last 12 months showing how much progress it has made.

Early on in the financial year, it said that it was going to build a ‘global green energy manufacturing centre’ in Gladstone, Queensland. The first stage of development is an electrolyser factory with an initial capacity of two gigawatts.

FFI has a vision of making green hydrogen the most globally-traded seaborne commodity in the world. It could have a larger influence on the Fortescue share price as time goes on.

It has already secured customers for a large amount of its planned production. By 2030, FFI wants to grow its production to 15 million tonnes per year.

In November 2021, two UK companies signed a multi-billion-pound deal to purchase 10% of FFI’s global green hydrogen production.

FFI also signed a deal with German energy network operator, E.ON to supply up to five million tonnes per annum of green hydrogen, equating to a third of the planned total.

Fortescue also rapidly advanced its green ambitions by acquiring the UK-based Williams Advanced Engineering (WAE) for around US$223 million.

The company is described as a leading provider of high-performance battery and electrification technologies.

Fortescue will use WAE to help develop battery-electric solutions for Fortescue’s vehicles and equipment and also grow WAE’s green tech and engineering business.

The post Why did the Fortescue share price sink in FY22? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Should investors dig the Fortescue share price in July?
• How did the Fortescue share price perform in June?
• These ASX 200 mining shares are digging a deeper hole on Friday

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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National Australia Bank Ltd (ASX: NAB) shareholders will become a little richer today.

After the bank’s shares tumbled more than 10% in the past month, the company is paying out its latest interim dividend.

At Monday’s market close, the NAB share price finished 0.84% higher to $27.74.

For context, the S&P/ASX 200 Index (ASX: XJO) also rose yesterday by 1.11% to 6,612.6 points.

Let’s take a look at the details regarding the company’s dividend.

The details of NAB’s latest dividend

In early May, NAB reported growth across key metrics in its half-year results for the 2022 financial year.

In summary, revenue improved by 4.6% to $9,071 million over the prior corresponding period. The robust performance was underpinned by an increase in lending and deposits, which lifted by 10% and 12% respectively.

This led to the bank achieving a 4.1% boost in cash earnings to $3,480 million.

Management noted that the key driver was the bank’s business banking operations.

The board elected to increase NAB’s interim dividend by 22% to 73 cents per share.

The dividend is fully franked which means those who receive it will get some form of tax credits.

Based on yesterday’s closing price, NAB has a dividend yield of 5.09%. That sits in the mid-range of the big four.

NAB share price snapshot

Over the past 12 months, the NAB share price has moved in circles to register a return of around 5%.

Its shares hit a 52-week high of $33.75 on 21 April before erasing those gains in the following months.

NAB has a price-to-earnings (P/E) ratio of 13.74 and commands a market capitalisation of roughly $87.78 billion.

The post The NAB dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• June was a terrible month for ASX 200 bank shares. Here’s why
• Why this fundie favours NAB and Westpac shares out of the big four
• 2 excellent ASX dividend shares that analysts rate as buys in July
• Can investors bank on the NAB share price in July?
• Volt gets packing as ASX 200 bank shares prove to be a formidable force

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

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Regular readers of The Motley Fool will already know it has been a tough year for technology stocks.

Sentiment turned against growth shares late last year, and there is no industry so dominated by expansionist businesses as the biotechnology sector.

In fact, the S&P/ASX All Technology Index (ASX: XTX) has tumbled more than 40% since mid-November.

Yikes.

But amid the carnage, there is one flower still standing and thriving.

How did a tech stock rise 63% in the last 12 months?

Over the 2022 financial year, US-based artificial intelligence chip maker Brainchip Holdings Ltd (ASX: BRN) took its share price from 49 cents to 80 cents.

That’s an impressive 63% gain during a time when its peers saw their valuations collapse.

So how did it achieve such a feat?

Although still in a pre-revenue stage, the business seems to be impressing the market with incremental deals that suggest its technology might actually have a future.

These include partnerships with space agency NASA and car maker Mercedes Benz Group AG (FRA: DAII).

“The Akida chip is designed to think like a human brain and it can be used for a variety of purposes worldwide,” reported The Motley Fool colleague Aaron Teboneras.

“These include in the manufacture of smart cars such as the Mercedes EQXX concept car as well as in-home automation, unmanned aircraft, medical instruments, cybersecurity, and more.”

To top off this journey to legitimacy, the ballooning share price meant Brainchip shares were welcomed into the S&P/ASX 200 Index (ASX: XJO) last month.

This inclusion forced many institutional investors to buy into the stock for funds that are tied to the composition of the flagship Australian index.

Meme stock no more?

It’s a long way from 2020 when Brainchip shares were derided as a meme stock, months before anyone had heard of GameStop Corp (NYSW: GME).

Its share price skyrocketed from eight cents to 97 cents in a matter of weeks after amateur traders on internet forums bid the price upward. 

Back then, the company had not shown enough for the public to even judge whether its products existed.

But two years since then, while the business is still not making meaningful revenues, partnerships with established companies seem to be giving investors more confidence.

The Motley Fool’s Teboneras picked it as a stock to buy last month.

“Valued at $1.95 billion, BrainChip is still a relatively emerging, pre-revenue company that is looking to dominate the AI market,” he said.

“Should BrainChip be able to deliver on its potential, I think its share price is extremely attractive at its current price.”

The post How Brainchip shares gained 63% in a year when tech stocks nosedived appeared first on The Motley Fool Australia.

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More reading

• Why did the BrainChip share price crash 30% in June?
• Why is the BrainChip share price sliding 4% today?
• Why is the BrainChip share price gaining 5% on Friday?
• How has the BrainChip share price performed since joining the ASX 200?
• Why did the BrainChip share price spike 7% this morning?

Motley Fool contributor Tony Yoo has positions in Brainchip Holdings Ltd. 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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No doubt share investors are sick of hearing it by now, but higher costs for everything and rising interests will dominate market fortunes for the foreseeable future.

According to T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke, the current situation bears similarities to the 1970s “stagflation” era.

“Headlines feature daily around the rising cost of fuel, electricity and commodity prices,” he said.

“At the same time, a tight labour market sparks worries of a wage-price spiral and broader fears of a hot and embedded inflation that will be difficult to cool.”

Thankfully, though, there are some differences. For example, the energy shortage is much more acute in Europe this time, as the US is a net exporter — not an importer as it was back in the 1970s.

“Consumer and corporate balance sheets are also stronger… The lessons from the stagflation period are still very real in the minds of central bankers and they are likely to do whatever possible to ensure we do not repeat history,” said Jenneke.

“With this in mind, we view a stagflation replay as only a 15% to 20% chance.”

Regardless, investors still need to be careful. 

Jenneke suggested buyers of ASX shares need to move their focus from revenue growth to margin sustainability.

“A repeat of the 70s stagflation era is not our base case. However, the parallels continue to grow.”

Nothing beats setting your own prices

So which businesses can protect their margins in times of rising input costs and cooling consumer sentiment?

“Those that can better manage through this period will likely be companies with strong pricing power,” said Jenneke.

“To pass on costs effectively to buyers requires a good industry structure, differentiated products and defensive volumes.”

The T Rowe Price team reckons the healthcare industry fulfils many of those criteria.

Jenneke singled out one name in particular.

“Resmed CDI (ASX: RMD), for example, has a large underpenetrated market,” he said.

“And despite various input and logistics cost pressures, has been able to pass through price increases given their dominant market share and current lack of reputable competition.”

Infrastructure also has the pricing power that Jenneke’s analysts are currently seeking.

“Transurban Group (ASX: TCL), for example, has built-in price increases for its contracts. The nature of its cost structure brings high EBIT margins and margin stability,” he said.

“Anecdotally, you know the cost of tolls are rising when every second taxi driver makes a point or two about it.”

One important note about these ASX shares is that Jenneke very much likes the businesses independent of the economic headwinds.

“Another lesson from the 1970s is that the global macro picture does not trump company fundamentals,” he said.

“For example, both the US and UK faced a similar stagflation narrative. However, UK banks performed terribly amid a severe property price crunch, while their US peers outperformed.”

The post Pricing power: 2 ASX shares that can fight stagflation appeared first on The Motley Fool Australia.

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More reading

• Here’s why Transurban shares are this fund manager’s top holding
• 2 excellent ASX dividend shares that analysts rate as buys in July
• Best ASX shares to buy in July 2022
• 2 ASX 200 shares with enough pricing power to battle inflation: Expert
• Broker rates these 2 top ASX 200 shares as buys in July

Motley Fool contributor Tony Yoo has positions in ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index rose 1.1% to 6,612.6 points.

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

ASX 200 expected to edge lower

The Australian share market appears to be running out of steam and is expected to open the day slightly lower on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 7 points or 0.1% lower. Wall Street was closed for the Independence Day holiday but in Europe the DAX fell 0.3% and the FTSE rose 0.9%. US futures are pointing to declines tonight.

Reserve Bank meeting

The Reserve Bank of Australia is meeting after lunch to decide on the cash rate. Last month the central market shocked the market with its 50 basis points increase to 0.85%. This time around the market is more prepared and currently pricing in a further 50 basis points increase to 1.35%.

Oil prices push higher

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 2.05% to US$110.66 a barrel and the Brent crude oil price has climbed 2% to US$113.83 a barrel. Supply concerns boosted prices despite fears that a recession is looming.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$1,808.3 an ounce. A softer US dollar boosted the price of the precious metal.

Iron ore price falls

Seaborne iron ore prices fell further on Monday amid soft short term demand and downbeat market sentiment according to Metal Bulletin. This led to the benchmark iron ore price falling 5.6% to US$109.90 a tonne. This could put pressure on the shares of BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) on Tuesday.

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

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• The Telstra share price outperformed the ASX 200 in June
• Here are the top 10 ASX shares today
• Here are the best and worst perfoming ASX 200 sectors over June
• Why did ASX 200 energy shares soar today?
• 3 more of Morgans’ best ASX share ideas for July

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The small side of the market has been well and truly out of form in 2022. While this is disappointing, it may have created a buying opportunity for patient, long term focused investors.

For example, the two small cap ASX shares listed below have fallen materially but still have incredibly bright futures. Here’s why analysts are rating them as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals.

Goldman Sachs remains very positive on Hipages. This is due to its belief that it can capture a significant portion of industry advertising spend in the future. The broker has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA). And looking at where these two companies are today, this is quite a statement.

The broker commented:

In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. […] HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.

Goldman Sachs has a buy rating and $2.50 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is driving digital transformation in organisations around the world.

Bell Potter is very positive on Nitro and notes that it continues to win market share due to its cost effective and easy deploy offerings. The broker also sees significant cross sell opportunities ahead.

It said:

The company has been successfully competing against and gaining market share from more entrenched providers in the market by providing a more cost effective and easier to deploy solution for both PDF productivity and electronic signing. […] The company now has a new area of growth, however, with the release of Nitro Sign as a standalone product so most customers will likely have to start paying more for using this product.

Bell Potter has a buy rating and $2.50 price target on its shares.

The post Analysts say these small cap ASX shares have huge potential appeared first on The Motley Fool Australia.

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More reading

• Broker names 3 of the best ASX tech share to buy in FY23
• Why I think these two ASX shares could turn $5,000 into $100,000
• Experts have named these top growth shares as buys
• Goldman Sachs names 2 mid cap ASX shares to buy
• 2 ASX tech shares Goldman Sachs rates as buys

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 Hipages Group Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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 Polynovo Ltd (ASX: PNV) share price has jumped ahead in the past month despite losing its place on the ASX 200.

The company’s share price has jumped nearly 13% from $1.185 at market close on 3 June to the current price of $1.335. In contrast, the S&P/ASX 200 Index (ASX: XJO) has lost nearly 9% in the same time frame.

So why has the Polynovo share price had such a good month?

Why has the Polynovo share price risen?

Polynovo is an ASX healthcare share working on medical devices, using patented technology Novosorb.

Polynovo shares have jumped amid insider trading among the company’s management.

The company’s chair David Williams bought $284,142 worth of shares on 6 June and 7 June alone. In total, he purchased 250,000 shares in these two days.

Williams has purchased more than $5 million worth of shares since the start of May, as my Foolish colleague Aaron reported.

Insider buying can be a sign that management is optimistic about the future direction of a company.

Polynovo reported record revenue of $12.6 million in the March quarter, up 59% compared to the same time in the previous year. The company’s ANZ sales picked up substantially in the quarter, up 81.9% compared to the same time last year.

In recent news, Polynovo has completed settlement on the sale of its headquarters in Port Melbourne.

The company’s headquarters sold for $6.35 million.

In recent times, Polynovo shares have made the list of the 10 most shorted ASX shares. However, as my Foolish colleague James reported, short interest in the company has eased to 7.9%.

Polynovo share price snapshot

The Polynovo share price has descended 50% in the past 12 months, while it is down 12% in the year to date.

In comparison, the benchmark ASX 200 has lost nearly 10% over the past year.

Polynovo has a market capitalisation of nearly $884 million based on today’s share price.

The post Up 13% in a month, Polynovo share price bounces back after being dumped from ASX 200 appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• How have Polynovo shares been performing since leaving the ASX 200?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

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 POLYNOVO 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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The Mineral Resources Ltd (ASX: MIN) share price continued to fall by the wayside throughout the past month.

This came despite the company making no price-sensitive announcements to the ASX during the period.

The iron ore and lithium miner’s shares started at $63.85 from market close on May 31 and finished at $48.27 on 30 June. That represents a decline of around 25% for investors who decided to hang on.

And it appears the blood-letting hasn’t stopped. Mineral Resources shares ended today at $45.96, down another 0.69%.

Let’s take a closer look and see what’s been dragging on the company’s shares lately.

What’s weighing down Mineral Resources shares?

Investors are offloading the Mineral Resources share price as weak sentiment, mixed with strong volatility, hits the mining services company.

A sharp drop at the beginning of June came amid Goldman Sachs’ bearish analysis on the battery metals market.

The broker forecast lithium prices to sink to roughly US$16,400 per tonne by the end of next year.

For context, the battery-making ingredient is currently fetching US$72,000 per tonne.

Nonetheless, the negative report heavily impacted shares across the lithium space, with Mineral Resources tumbling 10% on the news.

Further, a general decline in the ASX brought on by a gloomy economic outlook also dragged down the company’s shares.

Iron ore prices also dropped from their lofty highs to around US$130 per tonne at the end of June. This reflected a 5% decline for the month and its lowest level since January 2022.

Investors expressed their concern by dumping Mineral Resources’ shares, particularly on 17 June regardless of no news coming from the company. Almost five million of its shares swapped hands on that day compared to its historical average of 1.5 million shares.

Mineral Resources share price snapshot

Adding to the heavy losses for the month, Mineral Resources shares are down 18% since the start of 2022.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $8.7 billion.

The post Here’s what led the Mineral Resources share price to sink 25% in June? appeared first on The Motley Fool Australia.

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More reading

• Why are these ASX 200 mining shares behind the eight ball today?
• ASX 200 midday update: Regis Resources jumps, BHP and Rio Tinto drop
• Why have ASX lithium shares had such a lousy month in June?
• 2 excellent ASX dividend shares rated as buys by brokers
• 3 ASX lithium stocks this fund manager is holding despite sector pullback

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

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