Shares in Appen Ltd (ASX: APX) are surging higher again today and are currently trading 3% in the green.

The jump marks an approximate 8% gain Appen shareholders have enjoyed over the past two days of trading, despite no market-sensitive news from the company.

ASX tech shares have begun to stage a short-term rally, as confidence reappears in the sector once again after leaving the party in early 2022.

At the time of writing, the Appen share price is $7.245, up 3.21% on the day.

Why is the Appen share price strengthening?

Shares in Appen are rising today amid sector strengths in ASX tech names on Thursday. The S&P/ASX All Technology Index (ASX: XTX) is 3.73% in the green after faltering for much of 2022.

But as confirmation on the trajectory of interest rates was provided by US Federal Reserve Chair Jerome Powell last night, ASX tech shares are alive once more. The Federal Reserve lifted interest rates by 25 basis points, the first rise since 2018.

It appears the market has digested the news and is happy with the clarity, especially on themes like inflation.

As a result, global tech baskets are starting to resurface from their time in the red, although it’s not entirely clear just how long the joy will last.

Elsewhere, the tech-biased Nasdaq Composite Index (NASDAQ: .IXIC) spiked almost 4% overnight. Additionally, tech exchange-traded funds (ETFs) have also popped, with the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) up 4% today.

Keep in mind an increase in base rates could potentially be a negative to the valuations of tech shares, especially if the hikes spill over into the bond markets.

Nevertheless, moves of the wider sector are important for Appen, seeing as its share price closely tracks the index, as shown over the past three months below.

Not only that, Appen’s executives are buying up more of the company’s shares – a bullish signal in the eyes of many.

The premise is that, if a company’s c-suite starts buying shares, they are laying down a big vote of confidence in the future prospects of operations.

Appen’s chair, Richard Freudenstein, and CEO Mark Brayan each loaded up on shares in the company’s register recently. The former added another 14,795 shares whereas the company’s chief acquired 106,666 shares directly.

Despite the frenzy from investors these past two days, analysts at Macquarie are still bearish on the Appen share price and urge its clients to sell after valuing the company at just $5.70 per share.

At the time of writing this suggests a downside potential of 21%.

Appen share price snapshot

In the last 12 months, the Appen share price has fallen around 60%. It is also down 35% this year to date.

Over the past month, its shares are down by almost 15%.

The post Why has the Appen (ASX:APX) share price flamed 8% higher in 2 days? appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares open with a bang following US interest rate rise
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week
• Here’s why the Appen (ASX:APX) share price is up 6% today
• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has failed to outperform the ASX in recent times, trading at near multi-year lows.

After reporting a mixed full-year result last month, the financial services company is struggling with positive investor sentiment.

At the time of writing, AMP shares are fetching for 96.5 cents, up 2.66%.

In the past month, the company’s shares have fallen 4.4%.

What’s happened to AMP recently?

Investors took the AMP share price to levels stretching since early January this year. This came from the company delivering its financial scorecard for FY21 on 10 February.

AMP reported that its Australian wealth management total assets under management (AUM) increased to $134 billion, up 8% on FY20. This came off the back of improved investment markets and a reduction in net cash outflows.

In AMP’s New Zealand wealth management portfolio, AUM decreased to $12.2 billion, down $200 million year-on-year. The result was driven by conclusion of its term as KiwiSaver default provider, contributing to a net outflow of $600 million.

Nonetheless, AMP recorded a statutory net profit after tax (NPAT) loss of $252 million, compared to a $177 million profit in FY20. Management stated that the impact was primarily due to previously announced impairment charges, mainly non-cash write-downs

The demerger program is scheduled for competition by the middle of FY22. This will see the transition of MAG from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

In an effort to maintain a conservative approach to capital management, and support business transformation, no final dividend was declared for FY21.

The board stated that its capital management strategy and payment of dividends will be reviewed following the demerger.

How does the AMP share price compare to the financial sector?

Over the last 12 months, the AMP share price has moved 32% lower, with year to date down by around 4%. The company’s shares hit a multi-decade low of 85.5 cents in late January, before moving in circles.

In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 9.5% from this time last year and is up 2.5% year to date. The sector also registered a 52-week high of 6,956.4 points in late October.

Undoubtedly, AMP shares are lagging behind the Financial Index which has continued to accelerate since March 2020.

Based on today’s price, AMP commands a market capitalisation of roughly $3.18 billion, with approximately 3.27 billion shares on issue.

The post How is the AMP (ASX:AMP) share price performing against the financial sector lately? appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) share price falters amid ‘important step forward’
• Has the AMP (ASX:AMP) dividend gone the way of the dodo?
• The AMP (ASX:AMP) share price has dumped 16% in under 4 weeks. What’s happening?
• Why did the AMP (ASX:AMP) share price leap 8% in February?
• AMP (ASX:AMP) share price lifts as new suitor for capital arm emerges

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 Bruce Jackson.

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The All Ordinaries Index (ASX: XAO) is enjoying another day of big gains today, up 1.5% at the time of writing.

But 2 ASX All Ords shares are running far hotter than that.

This ASX All Ords share is up 18%

Online luxury goods retailer Cettire Ltd (ASX: CTT) is soaring today, hitting an intraday high of $1.78, up 19.5%.

Cettire offers some 200,000 products on its website, representing more than 1,700 high-end brands.

We’ve heard no price-sensitive news out of Cettire since 7 February, when the company announced its China launch.

Cettire shares closed yesterday at $1.49 and are currently trading for $1.67. This is a welcome turnaround for ASX investors who have watched this All Ords share slide 54% over the past 6 months.

That slide continued despite some strong half-year results from Cettire, reported on 3 February. Those results included a 181% lift in sales revenue compared to the prior corresponding period, with sales reaching $114 million.

Also charging higher…

Our second ASX All Ords share leaping today is the cloud platform service provider, Dubber Corp Ltd (ASX: DUB).

The Dubber share price hit an intraday high of $1.38 in earlier trading, up 16%.

Dubber shares closed yesterday at $1.19 and are currently trading for $1.34.

As with Cettire, Dubber has also taken a beating over the past 6 months. Its shares are down 66% despite today’s big lift.

With no price-sensitive news out, Dubber looks to be benefitting from improved sentiment in the tech sector. This has sent the S&P/ASX All Technology Index (ASX: XTX) 3.75% higher today.

The post 2 ASX All Ords shares jumping more than 15% today appeared first on The Motley Fool Australia.

More reading

• Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week?
• Why has this ASX share you’ve never heard of soared 30% already this month?
• What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
• Why did the Race Oncology (ASX:RAC) share price drop 10% today?
• Beaten-up: Are these 2 top ASX growth shares turnaround buys?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cettire Limited and Dubber Corporation. The Motley Fool Australia owns and has recommended Dubber Corporation. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is climbing almost 4% today amid a significant increase in the price of iron ore.

At the time of writing, Fortescue shares are swapping hands for $18.045 apiece, a gain of 3.71%.

Fortescue is one of the world’s largest iron ore miners alongside BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). Their share prices are up 1.08% and 1.71% respectively at the time of writing.

What happened to the iron ore price?

Fortescue generates its profit by mining and selling iron ore. An increase in the iron ore price can be a boost to Fortescue’s net profit after tax (NPAT).

In overnight markets, the spot iron ore price increased by 7.3% to US$145.45 per tonne. In dollar terms, it was an increase of US$9.90 per tonne.

The iron ore price has continued to be volatile amid the Russian invasion of Ukraine and China locking down certain areas of the country to try to control the spread of COVID-19.

Which way is the iron ore price expected to go next?

Commodity prices are challenging to predict. But some analysts have a go.

China is a significant buyer of a lot of Australia’s iron, so a slowdown of purchasing can have a sizeable impact on the iron ore price.

The broker Citi recently said the iron ore price could drop to US$70 per tonne in the long-term, though this was an upgrade from the expectation of US$60 per tonne.

In the next couple of years, Citi thinks the iron ore price may reduce to US$80 per tonne. But Citi admitted it’s possible it could be higher than that.

Other brokers, such as UBS, also have estimated the iron ore price will drop in the coming years.

Is the Fortescue share price an opportunity?

A lot of brokers believe the Fortescue share price is overvalued. Citi, UBS, and Morgan Stanley all think the business is a ‘sell’.

Morgan Stanley has a particularly negative outlook for the Fortescue share price, with a price target of $13. That implies a possible decline of close to 30% over the next year.

Citi has a price target of $16 on the business, suggesting a drop of around 11%.

Brokers think Fortescue looks expensive compared to peers such as BHP and Rio Tinto. The discount applied to Fortescue’s lower grade iron ore has increased compared to the middle of 2021.

Some analysts, such as Credit Suisse, also want more information and disclosure about Fortescue Future Industries (FFI).

FFI continues to make progress

Fortescue wants FFI to become one of the world leaders of green hydrogen production with a global portfolio of projects. FFI’s goal is to produce 15 million tonnes of green hydrogen per year by 2030 for the global market.

It has hired some high-profile individuals to drive the business forward.

The latest appointment is the Reserve Bank of Australia Deputy Governor Dr Guy Debelle who will become FFI’s chief financial officer (CFO).

Fortescue said Dr Debelle will help facilitate the green energy goals, while also delivering value for shareholders and economic benefits for the communities where FFI operates.

In terms of decarbonisation, one of the latest developments from Fortescue is the partnership with Airbus to create a plane by 2035 that runs on green hydrogen.

Fortescue share price snapshot

The Fortescue share price is swimming in a sea of red over all recent timelines.

It is down 11.5% over the past year, 6% this year to date, almost 15% over the past month, and 4% over the past week.

The post Fortescue (ASX:FMG) share price jumps as iron ore price soars appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 mining shares having such a dire day?
• Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today?
• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• What’s going on with Fortescue (ASX:FMG), green hydrogen and the Egyptian prime minister?
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tristan Harrison owns 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 Bruce Jackson.

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ASX biotech shares have, as a whole, had a remarkably poor run over the last 6 months.

Here’s what we mean.

Over the past 6 months, the All Ordinaries Index (ASX: XAO) is down 2.2%. Not what you’d like to see. But not close to gut wrenching either.

Now let’s looks at some large-cap and small-cap ASX biotech shares.

First up, industry heavy weight CSL Limited (ASX: CSL), with a market cap of $129 billion, is down 13% over 6 months.

Meanwhile the Imugene Ltd (ASX: IMU) share price has lost 41%, while fellow ASX biotech share Immutep Ltd (ASX: IMM) is down 33% over that same time.

Moving to the smaller, and more speculative end of the spectrum, Avecho Biotechnology Ltd (ASX: AVE) shares are down 40% in 6 months; the Volpara Health Technologies Ltd (ASX: VHT) share price has lost 43%; and Chimeric Therapeutics Ltd (ASX: CHM) shares are down 55%.

Then there’s EBR Systems Inc (ASX: EBR). EBR Systems only listed on the ASX on 24 November last year. While it’s up 163% since listing, most all of those gains came on the first days of trading. Since 25 November, shares in EBR system are down 32%.

And it’s not just ASX biotech shares under pressure.

Over in the United States the Nasdaq Biotechnology Index is down 25% in 6 months.

What’s next for ASX biotech shares?

Chimeric CEO Jennifer Chow said she’s hopeful that a few things could turn the cycle around.

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

Obviously, the world settling a bit. But, for biotech, a lot of development was slowed because of COVID-19 … it had an impact on clinical trial registrations … but patients are getting back to centres and hospitals are focused on clinical trials again. There was also a slowing down in M&A at the end of last year … and that’s starting to pick up again.

Matt McNamara is the chief investment officer at Horizon 3. With a 3-to-5-year investment horizon, the recent sell-off isn’t keeping him awake:

I look at the positions we hold and none have changed in terms of their investment thesis. I don’t see a problem with any of the companies … We’re patient investors and ride out the bumps. I think there’s good buying at the moment.

Horizon holds ASX biotech shares EBR Systems, Volpara Health and Avecho Biotechnology. McNamara said investors should look at “the prospects of the market they’re breaking into, the experience of the management team, and if they have the skills around the board.”

Why the small-cap space may be in for more pain yet

Rory Hunter, portfolio manager at SG Hiscock draws a sharp distinction between well-established ASX biotech shares and microcap newcomers.

According to Hunter (quoted by the AFR):

We’ve gone from this euphoria phase to the opposite end of the spectrum, and that’s why there’s been so much value destruction. You’re going to see a flight to quality. People have lost a lot of money in some of these companies that came to market last year. It’ll remain really challenging for quite some time.

We are looking to redeploy capital into companies that are already in the commercialisation phase. When we get a view on the better market conditions, we’ll also look at those business that are in phase three trials … and have significant addressable markets.

The post Do ASX biotech shares offer ‘good buying’ after the sell-off? Experts weigh in appeared first on The Motley Fool Australia.

More reading

• Is the CSL share price heading back over $300 in 2022?
• 3 quality blue chip ASX 200 shares analysts are tipping as buys
• Imugene (ASX:IMU) share price lifts on major collaboration announcement
• Why CSL (ASX: CSL) shares climbed on Monday
• Why CSL, Dicker Data, Elders, and Virtus Health shares are charging higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is giving shareholders a reason to smile at long last on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are the best performers on the ASX 200 index.

At the time of writing, the Zip share price is up over 12% to $1.62.

Why is the Zip share price charging higher?

Investors have been bidding the Zip share price higher today amid a strong rally in the tech sector.

It isn’t just Zip that is on form, the S&P/ASX All Technology index is up a massive 4.2% at the time of writing. This is more than double the gain being made by the ASX 200 index.

What’s going on?

The catalyst for this has been a very strong night of trade on Wall Street’s tech focused Nasdaq index. It rose a sizeable 3.8% after investors responded positively to the US Federal Reserve’s decision to raise interest rates for the first time in three years.

And while concerns over rate rises have weighed down shares in recent months, the rhetoric out of the central bank appears to have boosted sentiment.

Bloomberg reports that Fed Chair Jerome Powell said the US economy is “very strong” and can handle monetary tightening.

This has gone down well with investors on both sides of the Pacific and given the Zip share price a much-needed boost today.

The post Why the Zip share price is surging 12% higher today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• ASX 200 shares open with a bang following US interest rate rise
• Here’s why the Zip share price is surging 5% higher today
• Why Chalice Mining, Santos, Yancoal, and Zip shares are dropping
• Zip share price down 6% to another 52-week low

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. owns 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 Bruce Jackson.

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The Ampol Ltd (ASX: ALD) share price is in the green today after the company cleared a hurdle to acquire Z Energy Limited.

Ampol shares are currently trading at $29.56, a 3.18% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.41%.

The Ampol share price is also outperforming some of its ASX energy sector peers. Santos Ltd (ASX: STO) is down 0.2% and Woodside Petroleum Limited (ASX: WPL) is descending 1.58%.

The S&P/ASX 200 Energy (ASX: XEJ) index is 0.22% in the red today.

Key milestone achieved

Ampol has received clearance from the New Zealand Commerce Commission (NZCC) to acquire Z Energy Ltd (ASX: ZEL).

The approval is subject to Ampol divesting its New Zealand business, Gull. Gull owns 112 service stations, six retail properties, and a 91ML fuel import terminal at Mount Maunganui.

As Motley Fool Australia reported Monday, the petroleum company has entered a binding agreement to offload Gull for net cash proceeds of about NZ$509 million. The proceeds of this sale will help fund the Z Energy acquisition.

Commenting on the news that appears to be boosting the Ampol share price today, managing director and CEO Matt Halliday said:

We welcome the decision by the NZCC, which recognises that our commitment to fully divest Gull addresses the potential competition law issues.

The NZCC decision is an important milestone towards the successful completion of the transaction to acquire Z Energy by the end of the first half of 2022.

The news was also welcomed by Z Energy chair Abby Foote, who said:

This announcement is an important step towards the successful completion of the Scheme of Arrangement with Ampol. We are pleased with the Commission’s decision and look forward to presenting the transaction to Z shareholders at the Scheme meeting next week.

Ampol will need to complete the sale of Gull within nine months of acquiring Z Energy. This takeover is subject to a shareholder vote on 25 March, approval from the Overseas Investment Office, and court orders.

Ampol share price snapshot

The Ampol share price has slipped 0.9% this year to date but has surged 25% over the past 12 months.

In the past month, Ampol shares have dropped by almost 9% but are climbing more than 3% over the past week.

Ampol has a market capitalisation of about $6.96 billion based on its current share price.

The post Why the Ampol (ASX:ALD) share price is outperforming the energy sector today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• Ampol (ASX:ALD) shares higher on sale of its Gull business in NZ
• Ampol share price (ASX:ALD) slips despite highest earnings since 2018 and record sales

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 Bruce Jackson.

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One of the many trends that have emerged in the exchange-traded fund (ETF) sector in recent years is the focus on ‘quality’ shares. While this may seem like a no-brainer, the fact remains that most ETFs follow an index that either includes most shares on a stock market, based only on market capitalisation. Or else a bunch of shares that all operate in a similar industry or theme. 

But there are far fewer that focus on finding quality companies. One of the only examples on the ASX today is the VanEck MSCI International Quality ETF (ASX: QUAL). This ETF from VanEck focuses on finding companies from around the world that share common “key fundamentals”. These include high return on equity, earnings stability and low financial leverage. 

Some of the companies we see in this ETF include Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Visa Inc (NYSE: V).

QUAL charges a management fee of 0.4% per annum.

Number of QUALity ETFs on the ASX set to expand…

BetaShares also has a quality-themed ETF. It goes by the name of the BetaShares Global Quality Leaders ETF (ASX: QLTY). This one seems to have less of a focus on tech shares than the QUAL ETF. But it does use very similar stock criteria. These are “return on equity, debt-to-capital, cash flow generation ability and earnings stability”. Some of its current top holdings include Johnson & Johnson (NYSE: JNJ), Pfizer Inc (NYSE: PFE) and Intel Corporation (NASDAQ: INTC). QLTY charges a management fee of 0.35% per annum. 

But we might have to add another one to the list soon, one that covers ASX shares no less. 

According to a report in The Australian today, BetaShares is planning on launching a new, ASX-based quality ETF.

The BetaShares Australian Quality ETF is reportedly set to hit the ASX boards next month under the ticker code ‘AQLT’. The provider says that “AQLT will provide cost-effective access to a diversified portfolio of quality Australian companies selected based on high return on equity, low leverage and relative earnings stability”.

It will house a diversified portfolio of 40 companies. The report names Macquarie Group Ltd (ASX: MQG), CSL Limited (ASX: CAL), Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) as current constituents of the index AQLT is aiming to track. 

So investors looking for a simple way to access quality shares on the ASX will soon have a homegrown option to consider as well. 

The post The ASX is set to welcome a new Quality ETF. Here’s what we know… appeared first on The Motley Fool Australia.

More reading

• Why Alibaba, JD.com, and Didi stocks rocketed higher on Wednesday
• Electro Optic (ASX:EOS) share price surges again, up 50% in a week. Here’s why
• Own Medibank (ASX:MPL) shares? Now you own a piece of this tech start-up
• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• Are BOQ (ASX:BOQ) shares cheap right now? Read what analysts say

Motley Fool contributor Sebastian Bowen owns Apple, Intel, Johnson & Johnson, Microsoft, Pfizer, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple, CSL Ltd., Intel, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Apple and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

After days of panic-selling, a wide range of Chinese stocks staged a broad relief rally on Wednesday. Many of the stocks had fallen to 21-month lows, as investors worried about a resurgence of the pandemic in China, an ongoing regulatory crackdown, and the Chinese government’s stance on the war raging between Ukraine and Russia. While there wasn’t any company-specific news, these stocks came roaring back after government officials vowed to boost economic growth and stabilize the markets. 

Shares of Alibaba Group Holding (NYSE: BABA) gained as much as 27.8%, JD.com (NASDAQ: JD) climbed as much as 33.1%, and Didi Global (NYSE: DIDI) surged as much as 51.1%. The trio were still trading higher, up 26.3%, 30.4%, and 50%, respectively, as of 12:45 p.m. ET. 

So what

China’s Vice Premier Liu He, the country’s top economic advisor, said Beijing would take substantial steps to “boost the economy in the first quarter,” while also introducing “policies that are favorable to the market.” The comments came in the wake of a special session of the State Council’s Financial Stability and Development Committee. The committee has oversight of China’s financial and securities regulators. 

The country has faced numerous headwinds in recent months, which have weighed heavily on investor sentiment and driven Chinese stocks to their lowest level in years. The Nasdaq Golden China Dragon Index, which tracks a collection of popular Chinese stocks, plummeted 12% on Monday alone, its largest one-day decline in more than two decades. The index had also plunged 25% over the previous four trading days, as investors worried about multiple challenges facing Chinese companies. 

In recent weeks, China has been struggling to contain a resurgence of COVID-19 infections, as the number of cases recently topped a two-year high, forcing the country to initiate new, stringent lockdowns. There are restrictions in more than 11 cities and counties in the world’s most populous country, including the population centers of Shenzhen and Shanghai, and China has restricted travel and closed non-essential businesses to combat the latest outbreak.

Adding to the uncertainty, U.S. regulators have taken steps to kick a number of Chinese stocks off U.S. exchanges. The Securities and Exchange Commission (SEC) has identified five companies that could be delisted following the passing of legislation that requires Chinese companies to submit their audit records for review by U.S. regulators. 

Finally, news reports from earlier this week suggested that Russia had requested military and financial assistance from China in the wake of the country’s war against Ukraine. The U.S. has imposed strict sanctions against Russia in response to the unprovoked invasion, battering its economy. Investors are concerned that a backlash would no doubt ensue if China were to back Russia, whose actions have been condemned by the majority of the free world. 

Now what

The statements by Chinese government officials were welcomed by investors, resulting in more bullish sentiment on Wall Street. 

U.S. Tiger Securities analyst Bo Pei upgraded the China internet sector to outperform (buy) from neutral (hold), positing the sector’s biggest ongoing risks are already priced into the beaten-down stocks, which have fallen dramatically in recent weeks and months. Alibaba, JD.com, and Didi Global were all cited in the upgrade. Pei also cited recent reports that suggest regulators from both the U.S. and China have been in talks and are making headway toward finding a mutually agreeable solution to the potential delisting of Chinese stocks from U.S. markets.

The recent headwinds facing Chinese technology stocks may persist, so investors should watch for further developments in these areas. That said, the willingness of China’s government regulators to address the situation was welcomed by investors, helping push these stocks up from their recent lows. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Alibaba, JD.com, and Didi stocks rocketed higher on Wednesday appeared first on The Motley Fool Australia.

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Danny Vena owns JD.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended JD.com. The Motley Fool Australia has recommended JD.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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What a week it has been for the Electro Optic Systems Hldgs Ltd (ASX: EOS) share price.

Just two weeks ago, the defence contractor’s shares were trading at a multi-year low of $1.605. That was when the ASX as a whole was looking grim due to the turmoil between Russia and the West.

However, a quick rebound ensued, particularly for the Electro Optic share price, as a number of countries ramped up their defence spending.

Investors who were brave enough to pick up some shares last week would be sitting on an incredible gain of 51%, based on the closing price last Tuesday 8 March and where the shares are trading at the time of writing today.

The Electro Optic Systems share price is currently $2.50, up 6.2%. In earlier trading, it was up by 12.3% to an intraday high of $2.64.

Let’s take a look at the company’s announcement to the ASX today.

Electro Optic undertakes strategic review

According to its release, the Electro Optic board is undertaking a strategic review to maximise shareholder value.

Recently, management has been in discussions with key parties in relation to funding options for its wholly-owned United States subsidiary, SpaceLink. This relates to the manufacture and launch of a constellation of medium earth orbit satellites to create a ‘communications superhighway for the space economy’.

In addition, Electro Optic Systems is assessing opportunities to accelerate growth in the defence and space divisions.

The board believes the company is currently undervalued given the attractive future prospects on offer.

US investment bank, Greenhill & Co. (NYSE: GHL) has been appointed as financial advisor to assist in the strategic review.

Electro Optic Systems says there is no certainty that the review will lead to any particular outcome or transaction. But it appears investors are positive about this latest initiative.

Electro Optic Systems share price snapshot

Adding impressive gains over the last week, the Electro Optic share price is up 4.6% year to date.

But the past 12 months have been a turbulent ride for shareholders, with the company’s shares sinking 55%.

Electro Optic Systems commands a market capitalisation of $354.64 million. It has approximately 150.91 million shares on issue.

The post Electro Optic (ASX:EOS) share price surges again, up 50% in a week. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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