Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

DEXUS Property Group (ASX: DXS)

According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company’s shares. The broker notes that a number of the company’s peers have recently announced strong updates. While this is likely to bode well for Dexus’ own performance, Citi isn’t in a rush to change its rating. The broker has previously flagged potential for further weakness in office rental markets, which it feels is likely to feed into office asset pricing. The Dexus share price is trading at $11.44 this afternoon.

Insurance Australia Group Ltd (ASX: IAG)

A note out of UBS reveals that its analysts have downgraded this insurance giant’s shares to a sell rating and cut the price target on them to $4.20. UBS is feeling bearish on the company’s outlook, particularly given its lack of growth opportunities. In addition, the broker expects IAG to be impacted by a spike in claims. The IAG share price is fetching $4.36 on Tuesday.

Pact Group Holdings Ltd (ASX: PGH)

Analysts at Morgan Stanley have retained their underweight rating on this packaging company’s shares and cut the price target on them to $2.70. According to the note, Pact is the broker’s least preferred option in the space due to partly to its struggling Contract Manufacturing segment. It expects this business to weigh on its performance and has downgraded its earnings forecasts to reflect this. The Pact share price is trading at $2.44 today.

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

More reading

• Why Audinate, Firefinch, IAG, and Ramsay shares are falling
• Broker says sell: IAG (ASX:IAG) share price slumps 3.5%
• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Top brokers name 3 ASX shares to sell next week
• Why the IAG (ASX:IAG) share price could be cheap for patient investors

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 owns and has recommended Insurance Australia 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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Volatility is a measure of the ferocity of the market’s changes — violent fluctuations mean high volatility. Much like frantically shaking a fruit tree at its trunk until it relinquishes its ripened goods, investors can be shaken loose of their ASX shares during times of market volatility.

Uncertainty created by COVID-19 has yet to subside, but there are new potential causes of volatility that could unseat COVID.

Will inflation put a dent in ASX shares next year?

As we move towards the end of another year, investors begin to shift their sights to what lies ahead. For AXA Investment Managers chief investment officer Chris Iggo, it marks the realisation there might be other market disruptions than just COVID for the S&P/ASX 200 Index (ASX: XJO) and its constituents.

According to Iggo, the unknowns associated with COVID-19 will likely still linger as a worry for investors. However, the elephant in the room of financial markets is expected to be inflation.

After policymakers around the world looked to contain the economic damage of the pandemic through stimulus and loose monetary policy, the repercussion could manifest itself in the form of higher than expected inflation. Central banks would need to steer the economy in the other direction by potentially raising interest rates.

On this topic, Chris Iggo outlined what scenario investors might be confronted with in 2022:

Looking to 2022, investors need to contemplate a number of issues over the likely trajectory of inflation, whether central banks will need to do more than what is already priced in, and how portfolios should be adapted to hedge against a worse outcome. That worse outcome would be even higher inflation, a more aggressive tightening of monetary policies and a subsequent downgrade to growth prospects.

For Iggo, the risk lies in the Federal Reserve conceding its terminal policy rate to be higher than 2.5%. This would likely boost long-term bond yields substantially higher. In turn, growth investments such as ASX shares would look less attractive.

The verdict

While the risk exists, Iggo and the team at AXA Investment Managers are doubtful of a catastrophe for ASX shares. The fund manager expects a slight increase in rates, in conjunction with a ‘little’ easing in earnings growth. All in all, the fund’s outlook is described as “hardly the stuff of bear markets“.

There are still tailwinds Iggo references that could counter the possible headwinds ahead in 2022.

Iggo said:

Ongoing recovery, innovation around climate change and re-purposing supply chains should be strong tailwinds for equity investors for some time.

So far this year the benchmark index has gained 10.5% before dividends. This surpasses the average total return of 9.3% over the past 10 years.

The post Could inflation cause more volatility than COVID for ASX shares in 2022? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• What ASX 200 energy shareholders should know about the Permian Basin 2022
• Why is the Wesfarmers (ASX:WES) share price having a day to forget?
• Here’s why the Latrobe Magnesium (ASX:LMG) share price is tumbling 7% today
• Rhythm Biosciences (ASX:RHY) share price roars 8% on new cancer markets

Motley Fool contributor Mitchell Lawler 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 post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• What to look for when investing in ASX microcap shares
• ASX 200 (ASX:XJO) midday update: Afterpay takeover vote, Woolworths crashes
• Could 2022 be a good year for the Vanguard International Shares ETF (ASX:VGS)?
• Here’s why the Charter Hall (ASX:CHC) share price is leaping another 5% today
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation 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 S&P/ASX 200 Index (ASX: XJO) has managed to claw back its 0.5% morning loss and is currently up 0.15% in afternoon trade.

The same can’t be said for ASX 200 energy shares today.

The Woodside Petroleum Ltd (ASX: WPL) share price is down 0.22% to $22.23 per share.

Santos Ltd (ASX: STO) is taking a bigger hit, with shares down 0.91% to $6.54 per share.

As for the Oil Search share price? I’d quote it if I could. But Oil Search stopped trading on the ASX on Friday, following its official merger with Santos.

Santos and Woodside are facing some modest headwinds today with crude oil prices slipping overnight. International benchmark Brent Crude is down 0.5% over the past 24 hours, trading at US$74.02 per barrel.

That’s well up from the US$51.80 per barrel Brent was fetching on 1 January. But it’s well down from the US$85.99 that same barrel was worth on 29 October.

ASX 200 energy shares slip alongside oil price

With Brent crude down 14% since 29 October, it’s no surprise that the Woodside share price is also down. Though only by 6.3% since then. Over that same time, the Santos share price has lost 8.2%.

Which brings us back to the expansion plans underway for the Permian Basin.

What’s happening at the Permian Basin?

Most ASX 200 energy shareholders will be at least passingly familiar with the Permian Basin.

Covering more than 200,000 square kilometres, spread across the US states of Texas and New Mexico, the region contains rich oil and gas deposits. With new technologies opening up profitable shale oil extraction over the past decade, the potential output from the Permian Basin has soared.

In fact, as Bloomberg notes, “Crude production from the Permian exceeds that of each OPEC member except Saudi Arabia.”

And that’s just the Permian, mind you. Not the rest of the crude oil potential housed within continental US, Alaska, and offshore.

Why does this matter for ASX 200 energy shareholders in 2022?

Word has it that US shale oil producers are planning to up their output in the Permian.

Rystad energy forecasts that shale oil producers will ramp up their capex by some 20% to US$83.4 billion next year.

According to Bloomberg, Chevron is going to increase its spend in the Permian to $3 billion in 2022. That’s 50% more than the energy giant spent this year.

And the US Energy Information Administration (EIA) forecasts that crude output from the Basin will top 5 million barrels per day (bpd) in January 2022, exceeding pre-pandemic production records.

On the more bullish outlook for ASX 200 energy shares, OPEC+ appears intent to stick to its gradual production increases. And even with the expanded forecast output from the Permian Basin, total crude production in the US in 2022 is still expected to be below its pre-pandemic levels.

The post What ASX 200 energy shareholders should know about the Permian Basin 2022 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Could 2022 be a bumper year for the Woodside (ASX:WPL) share price?
• Leading brokers name 3 ASX shares to buy today
• $22 billion of newly merged Santos shares are fronting the ASX this morning. Here’s what you need to know
• 4 ASX shares tipped for buybacks in 2022: expert

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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Sure, the S&P/ASX 200 Index (ASX: XJO) is not having a great day thus far this Tuesday. At the time of writing, the ASX 200 remains down by around 0.06%, after dipping by almost 0.5% earlier this morning. But why is the Wesfarmers Ltd (ASX: WES) share price doing so much worse?

Wesfarmers shares are currently down by a nasty 2.16% at $58.50 each. They dipped as low as $58.13 earlier in today’s trading session too. So why is Wesfarmers, arguably one of the ASX’s most respected blue-chip shares, in the doldrums today?

Well, unfortunately, we can’t say for sure. There are no major news or announcements out of the company today, or this week for that matter. Or any other relevant direct developments.

Why are Wesfarmers shares in the doldrums today?

However, there is one possible explanation. Wesfarmers’ peer Woolworths Group Ltd (ASX: WOW) is having a shocker today. Woolies released a trading update this morning covering the company’s performance over the first half of FY2022. As my Fool colleague James covered this morning, this update saw Woolworths report Australian Food sales growth of 3% for the half against the same half of FY2021. Woolworths’ Big W chain saw its sales fall by 3.3% over the same period.

Woolworths CEO Bradford Banducci called the results “one of the most challenging halves we have experienced in recent memory”. Clearly, investors agree, seeing they have sent the Woolworths share price down a nasty 8% today so far. It’s presently sitting at $37.31 after closing at $40.72 a share yesterday.

Seeing as Woolworths and Wesfarmers operate in similar (and sometimes overlapping) arenas of the Australian retail market, it’s possible that the fallout from Woolworths’ report this morning has extended to its peers like Wesfarmers. That might also explain why the Coles Group Ltd (ASX: COL) share price is also nursing heavy losses today. It’s currently down 3.2% at $17.30 a share.

So perhaps investors can blame Woolworths for the Wesfarmers share price woes we see today.

At the current Wesfarmers share price, this ASX 200 blue chip has a market capitalisation of $66.06 billion, with a dividend yield of 3.06%. Despite today’s losses, Wesfarmers shares remain up 13.1% year to date in 2021 so far.

The post Why is the Wesfarmers (ASX:WES) share price having a day to forget? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Afterpay takeover vote, Woolworths crashes
• Why is the Coles (ASX:COL) share price sinking 4% today?
• ASX shares that could be impacted by AdBlue shortage
• Woolworths (ASX:WOW) share price sinks 7% amid ‘one of the most challenging halves’
• Could this tasty morsel be next on the acquisition menu for Woolworths (ASX:WOW)?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Wesfarmers 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 Latrobe Magnesium Limited (ASX: LMG) share price is in the red today following a loan facility announcement.

Shares in the magnesium company fell as low as 9.6 cents today after opening at 11 cents. At the time of writing, they’ve clawed back some ground to 9.9 cents, down 5.71%

The company is developing a magnesium production plant with a patented extraction process in the Latrobe Valley, Victoria.

What did Latrobe announce today?

Latrobe has signed off on a $23 million loan to construct the magnesium production plant. The total cost of the build is $39 million.

The company revealed it now has the funds available to completely pay for the construction of the plant.

Interest on the company’s loan will be charged at 14% per annum up to October 2023 before increasing to 16% to December 2024, with a final capped rate of 24% from January 2025. The term of the loan is five years.

Latrobe hopes to showcase how its hydromet technology can extract high-quality magnesium and other by-products.

The company intends to conduct a pre-feasibility study during 2022 using ferro nickel slag feedstock.

As reported by Motley Fool Australia, the Latrobe share price surged in early trade yesterday after the company secured a property with several buildings to house the production plant.

The deal, worth $4.5 million, will include a combination of a $2.25 million cash payment and the issue of shares to the property’s former owner, the Di Fabrizzio family.

Latrobe share price snapshot

The Latrobe Magnesium share price has gained more than 438% in the past 12 months, rallying 321% this year to date.

Although the company’s shares dived 39% in the last month of trading, they’ve gained 26% this past week.

The company has a market capitalisation of about $151 million, based on the current share price.

The post Here’s why the Latrobe Magnesium (ASX:LMG) share price tumbled 7% today appeared first on The Motley Fool Australia.

More reading

• What’s happening to the Latrobe Magnesium (ASX:LMG) share price today?
• Here’s why the Latrobe Magnesium (ASX:LMG) share price is sinking 7% today
• Why is the Latrobe Magnesium (ASX:LMG) share price down again today?

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 Rhythm Biosciences Ltd (ASX: RHY) share price is on the move today. This comes after the company revealed its intentions to expand ColoSTAT into new cancer markets.

At the time of writing, the medical device company’s shares are trading for $1.75 cents, up 4.79%.

What’s driving the Rhythm share price higher?

Investors are fighting to get a hold of Rhythm shares after digesting the company’s encouraging announcement.

According to the release, Rhythm advised that it has identified five new cancer detection markets to expand its platform technology.

As such, ColoSTAT is believed to hold multi-cancer detection properties, which could provide a foundation to expand the platform. Cancer markets include breast, cervical, lung, gastric, and pancreatic.

Rhythm’s ColoSTAT is an experimental test kit that is being trialled as a low-cost, easy-to-use blood test to detect colorectal cancer.

It is estimated that around 850,000 people lose their life from colorectal cancer each year. In the United States, Europe, and Australia, over 130 million people aged between 50-74 years are unscreened for colorectal cancer. This represents an addressable market opportunity of more than $6.5 billion.

The strategic plan to expand the technological platform will form part of a research and development program. This is expected to follow a similar commercial pathway as to ColoSTAT.

The program will have access to $0.75 million worth of funds sourced from the company’s last capital raising. In addition, the program could be eligible for the government R&D tax incentive rebate as well as other grants.

Rhythm CEO and managing director, Glenn Gilbert commented:

As we move closer to the launch of our initial cancer detection product ColoSTAT in 2022, the Company is making positive progress with respect to its broader strategy to leverage our cancer detection technology into other global cancer markets. Ultimately, Rhythm believes it can make a meaningful impact for improved health outcomes across millions of people around the world.

More on the Rhythm share price

The Rhythm share price has accelerated by 110% in the past 12 months, reflecting positive investor sentiment. Additionally, the company’s shares reached an all-time high of $2.08 last month, before treading slightly lower.

At today’s prices, Rhythm presides a market capitalisation of roughly $365.54 million, with approximately 208.88 million shares on issue.

The post Rhythm Biosciences (ASX:RHY) share price roars 8% on new cancer markets appeared first on The Motley Fool Australia.

More reading

• Rhythm Biosciences (ASX: RHY) share price slumps amid ‘pivotal’ board changes
• Rhythm Biosciences (ASX:RHY) share price rockets amid US$12bn market opportunity

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but is falling just a touch short. At the time of writing, the benchmark index is down slightly to 7,379.2 points.

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

Charter Hall Group (ASX: CHC)

The Charter Hall share price is up a further 5% to $21.89. Investors have been buying this property company’s shares since the release of a strong update on Monday. That update went down well with the team at Macquarie. In response, the broker retained its outperform rating and lifted its price target on the company’s shares to $22.90.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is up 5% to $1.55 following the release of a trading update. According to the release, the company expects the Annualised Contract Value (ACV) of its North America portfolio to surpass its Australia and New Zealand ACV by the end of the first half. The release notes that North America ACV has just surpassed US$50 million, taking group ACV beyond US$100 million.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price has jumped 15% to $1.57. This morning the medical device company advised that its United States segment has experienced a strong start to the second quarter of FY 2022. Sales for October and November are up 133% over the prior corresponding period to $4.66 million. PolyNovo also revealed that a number of large corporations have expressed their interest in bringing its NovoSorb BTM product to their retrospective markets.

Virtus Health Ltd (ASX: VRT)

The Virtus Health share price has surged 31% to $6.81. Investors have been bidding this fertility treatment company’s shares higher today after it received a takeover approach from BGH Capital. The private equity firm has tabled an offer of $7.10 cash per share, which represents a 36.3% premium to its last close price. The Virtus Board is assessing the proposal.

The post Why Charter Hall, Nearmap, PolyNovo, and Virtus Health are racing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Afterpay takeover vote, Woolworths crashes
• Here’s why the Charter Hall (ASX:CHC) share price is leaping another 5% today
• Here’s why the Polynovo (ASX:PNV) share price is rocketing 12% today
• Virtus Health (ASX:VRT) share price soars 30% on takeover bid
• Nearmap (ASX:NEA) share price jumps 10% on strong US growth

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 Nearmap Ltd. and POLYNOVO FPO. The Motley Fool Australia owns and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Virtus Health 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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Shares in airline operator Qantas Airways Limited (ASX: QAN) are rangebound today and are trading around 1% down at $4.90.

It’s been a difficult year in 2021 for Qantas, having come off a low base in 2021 amid the pandemic-induced lockdowns of 2020/21.

Today the company announced it will purchase blended sustainable aviation fuel (SAF) from next month, helping to reduce its carbon emissions by around 10% for its flights from London.

Whilst not price-sensitive at all, let’s take a look at what the flying kangaroo had to say today.

What did Qantas release?

Qantas advised it will purchase the SAF for its Kangaroo route flying direct from Australia to London.

Both Qantas and subsidiary Jetstar have already flown several demonstration flights using SAF, most notably a flight across the Pacific Ocean in 2018 that was powered by biofuel derived from mustard seeds.

However, this new agreement is the first time an Aussie airline will purchase SAF on an ongoing basis for regular scheduled services, Qantas says.

The fuel will be produced with certified bio feedstock from used cooking oil and other waste products. This is then blended with normal jet fuel to create the SAF derivative.

Specifically, the company has signed an agreement with petroleum giant BP to purchase 10 million litres of SAF in 2022 with an option to purchase up to another 10 million litres in 2023 and 2024 for flights from Heathrow Airport.

In total, this litreage represents up to 15% of Qantas’ annual fuel use out of London, according to the release.

Qantas says it is also in discussions about accessing SAF at its other overseas ports, such as Los Angeles, and recently joined other airlines in signing a memorandum of understanding to use SAF for flights from San Francisco from 2024.

These agreements are “crucial to bringing the cost of SAF down, which can be several times more expensive than traditional jet kerosene”.

Management commentary

Speaking on the media release, Qantas Group Chief Sustainability Officer, Andrew Parker said:

We know that climate change is incredibly important for our customers, employees and investors and it is a major focus for the national carrier as we come out of a difficult couple of years. Zero emission technology like electric aircraft or green hydrogen are still a very long way off for aviation, and even further away for long haul flights like London to Australia. SAF and high quality carbon offsetting are therefore critical on the path to net zero.

Parker also added:

Aviation biofuels typically deliver around an 80 per cent reduction of greenhouse gas emissions on a lifecycle basis compared to the jet fuel it is replacing and is the most significant tool airlines have to reduce their impact on the environment.

The Qantas share price has slipped over 3% into the red in the last 12 months, however, has reversed course and is up more than 1% this year.

Yet, despite this, Qantas remains deep out of the money in the last month of trading, plunging over 13% in that time.

The post Qantas (ASX:QAN) share price struggles despite ‘green fuel’ news appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) shares just topped these end-of-year rankings
• Down 14% in a month, is the Qantas (ASX:QAN) share price a buy?
• ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings
• Here’s why ASX 200 travel shares are taking off today
• Qantas (ASX:QAN) share price lifts as airline expands freight capacity

The author has no positions 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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It’s no secret the world is decarbonising, but there’s another reason the ASX renewable energy sector could be worth watching in 2022.

Chief investment officer for AXA Investment Managers’ Core Investments Chris Iggo says decarbonisation could increasingly “determine capital allocation and investment opportunities” in the future.

Let’s look at why the fundie is bearish on decarbonisation, as well as which ASX shares operate in the area.

The market in 2022

While the risk of COVID-19 causing havoc on share markets continues as the new year approaches, concerns of inflation have also started to surface.

According to Iggo, during the pandemic, policymakers supported economic growth by cutting interest rates and “loosening fiscal purse strings”. But now, he says, “the era of pandemic-crisis monetary policy is coming to an end”.

As a result, central banks will likely scramble to reduce inflation – a challenge that’s not so simple. Iggo commented:

The impact of the pandemic on global economic trends … will take some time to really understand. For now, however, central banks will err on the side of caution and will need to be convinced – by evidence of persistent second round effects – that the decades-long period of low inflation is coming to an end.

Luckily, Iggo believes investors can look forward to “decent returns” while central banks make necessary changes.

That’s because trends like energy transition are still pushing companies to make structural changes.

ASX renewable energy sector on watch

Iggo is optimistic about renewable energy in 2022. Particularly, as energy prices are likely to continue increasing. He commented:

Energy prices rose in the second half of 2021 – a key reason why broader inflation has also increased – yet, there has been no global approach to pricing carbon, which could push energy prices even higher. When it comes, and it will, the economics will swing sharply in favour of renewably produced energy and that will quickly allow upstream activities to benefit.

He also noted that the ongoing COVID-19 recovery, climate innovation, and re-purposing supply chains may bring “strong tailwinds for equity investors”, leaving investors with “opportunities to profit”.

Finally, he stated, the march towards decarbonisation will be driven by the market even more so in 2022:

Investors are playing a key role in supporting decarbonisation through asset allocation decisions, in engagement with companies on transition plans, and by supporting new technologies and business models that rate highly in terms of ESG.

With that in mind, here are some shares to consider:

3 ASX renewables shares

Genex Power Ltd (ASX: GNX)

Genex Power is working to build a portfolio of renewable energy projects within Australia.

It operates projects producing power from solar, hydro energy, and wind, as well as a battery storage project.

Right now, its share price is 20 cents, 9% lower than it was at the start of 2021.

Infratil Ltd (ASX: IFT)

Infratil is a largely New Zealand-focused company investing primarily in energy, transport, and social infrastructure businesses.

The company owns a business that operates 22 New Zealand hydropower stations. It also owns others that develop wind and solar generation in North America, Europe, and Asia.

Infratil shares are currently trading for $7.60, 6% higher than they were at the start of this year.

Contact Energy Limited (ASX: CEN)

Contact Energy also operates in New Zealand.

It retails electricity generated from geothermal and hydropower.

The company also produces power using thermal generation and supplies gas and broadband.

Shares in Contact Energy are swapping hands for $7.30. They’ve fallen 14% in 2021.

The post How might renewable energy investment opportunities play out in 2022? appeared first on The Motley Fool Australia.

More reading

• The Genex (ASX:GNX) share price shot up 12% earlier today. Here’s why
• Which ASX renewable energy shares have been climbing the charts lately?

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 Bruce Jackson.

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