Key points

• AGL, Origin Energy shares closed lower today
• Beach Energy, Woodside Petroleum, and Santos also finished in the red
• Natural gas prices have fallen 19% since 12 January

ASX energy shares, including AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG), have had a tough day on the market.

The AGL share price fell 2.74% to $7.10. Meanwhile, the Origin Energy share price closed 1.58% lower at $5.60. For perspective, the S&P/ASX 200 Index (ASX: XJO) ended the day down 0.51%.

Let’s take a look at what may be impacting energy shares.

Tough day for ASX energy shares

AGL and Origin finished in the red today, but they were not alone. The broader S&P/ASX 200 Energy (ASX: XEJ) also closed 0.53% lower.

Investors could be reacting to the declining price of natural gas. The commodity has fallen 1.68% in the past day to $US3.932 per MMBtu.

Since 12 January, the natural gas price has plummeted by a whopping 19% from US$4.8570 to US$3.932 per MMBtu.

Despite the fall in price, AGL and Origin are reportedly planning to pass increased natural gas costs to consumers, the Herald Sun newspaper reported yesterday.

Origin executive general manager Jon Briskin told the publication:

The increase in natural gas prices for variable rate plans is primarily due to a significant increase in what it costs us to purchase and supply this gas to our customers.

Increasing prices is not a decision we take lightly, which is why we absorbed some increases in network costs in Victoria over the past few years to keep gas prices flat for our customers throughout 2019 and 2020

Meanwhile, in other energy stocks today, the Beach Energy Limited (ASX: BTP) share price fell 1.05%, Woodside Petroleum Ltd (ASX: WPL) dropped 0.24%, and Santos Limited (ASX: STO) dipped 0.14% today.

As my Motley Fool colleague James reported this morning, oil prices dropped on Friday, with the WTI crude oil price falling 0.5% and Brent crude oil prices dropping 0.55%.

Share price recap

AGL shares have dived around 40% in the past year, while Origin Energy shares have climbed 9.6%.

In comparison, the benchmark ASX 200 index has returned about 5% in the past year.

The post Why AGL (ASX:AGL), Origin (ASX:ORG) shares tumbled today? appeared first on The Motley Fool Australia.

More reading

• Why UBS says the Woodside (ASX:WPL) share price is a buy
• 5 things to watch on the ASX 200 on Monday
• Own AGL (ASX:AGL) shares? JP Morgan is overweight, tips 23% upside in 2022
• 2 cheap ASX 200 shares rated as top buys
• 5 things to watch on the ASX 200 on Friday

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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Key points

• COVID-19 variants continue to impact Australia’s economy
• Tasmania again leads the states in the past quarter’s economic performance
• Australia’s unemployment rates are historically low across much of the country

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Call it COVID-19. Or the coronavirus. Or Delta. Or Omicron.

Call it what you will, the virus has managed to spread rapidly across every Australian state over the past month. That’s with the exception of Western Australia which hopes to stem the spread of COVID by remaining isolated from the rest of the country.

The pandemic is hitting supply chains, impacting international and interstate travel, and seeing some businesses forced to shutter, at least temporarily.

With that in mind, we take a look at the latest CommSec State of the States report to see which state is handling the COVID impacts best.

(CommSec is wholly owned by the Commonwealth Bank of Australia (ASX: CBA).)

Tasmania leads the charge in COVID hampered economy

According to the CommSec report, released today, Tasmania once again leads the states – and territories – as the best performing economy. That’s the 8th quarter in a row the prize goes to Tasmania.

As for the rest of the nation, CBA reports  “little separated the other states and territories before the [COVID] Omicron variant started influencing activity across the country”.

Tasmania took first spot in 4 of the 8 categories CommSec uses to gauge economic performance. Namely: equipment investment, relative unemployment, retail spending, and dwelling starts.

The Tassie economy came in second spot in 2 other indicators: relative economic growth and construction work done.

A word from CommSec’s chief economist

Commenting on the economic picture amid the continued spread of COVID, CommSec’s chief economist, Craig James, said:

Australia’s state and territory economies are in solid shape, well supported by strong fiscal and monetary stimulus. Unemployment rates are historically-low across much of the nation. Labour is in short supply across many industries – a reflection of current COVID-related self-isolation requirements and border restrictions.

Ahead, the country will continue to face challenges managing the latest Omicron wave with infrastructure spending continuing to be a key driver of growth in 2022.

As for Tasmania’s best in show performance, James said other states could take the prize in upcoming quarters:

Tasmania has held top position in the performance rankings – solely or jointly – for eight consecutive quarterly surveys. While it is likely to remain on top in the short-term, much can change over 2022.

In fact, the Western Australian and South Australian economies have moved up the rankings, performing strongly during the pandemic, with the former benefiting from a surge in iron ore exports and prices, while the latter has benefited from strong government and business investment.

In differing ways, each state or territory will attempt to ‘live with COVID’ throughout 2022, potentially leading to major changes in the performance rankings.

The post CBA reveals the Australian economy’s leading state amid COVID surge appeared first on The Motley Fool Australia.

More reading

• What’s happening to ASX bank shares today?
• Own CBA (ASX: CBA) shares? Here’s what’s happening with the big bank this week
• What to expect from the CBA (ASX:CBA) half year result next month
• 2 buy-rated ASX dividend shares with fully franked yields
• How are ASX bank shares performing 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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Key points

• The gold sector dragged the All Ords Index lower on Monday, sliding 1.85%
• Its constituents were likely impacted by a slight dip in gold prices. Though, the sector’s worst performer dropped its full year guidance by as much as 11%
• As of the end of Monday’s session, the All Ordinaries Index was 0.68% lower than it was at Friday’s close

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The All Ordinaries Index (ASX: XAO) struggled on Monday. It was weighed down by one of the market’s worst performing sectors, the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

The gold sector faced multiple challenges today, as the price of gold softened overnight while one of its participants reported that its guidance had dropped on the back of a geotechnical incident.

As of Monday’s close, the All Ords had tumbled 0.65%. For context, the S&P/ASX 200 Index (ASX: XJO) had also slumped 0.51%.

Let’s take a look at what weighed on the index’s ‘golden children’ today.

Why did All Ordinaries gold shares drag on the market today?

The All Ords was weighed down by gold miners on Monday, with the gold sector having slid 1.85% at the session’s close.

It followed a softening of the price of gold overnight. As The Motley Fool Australia reported this morning, the metal’s price slipped 0.35% to trade at US$1836.10 an ounce prior to the ASX’s open.

And, while it has recovered slightly in today’s trade – CNBC has the commodity’s value at US$1,837.20, a 0.29% improvement – it hasn’t been enough to pull its ASX-listed producers out of the red.

The share prices of Resolute Mining Limited (ASX: RSG), DGO Gold Ltd (ASX: DGO), and Pantoro Ltd (ASX: PNR) slipped 11.2%, 5.4%, and 7.2% respectively.

However, the sector’s biggest tumble came from the Regis Resources Limited (ASX: RRL) share price.

It fell a whopping 14.29% on Monday after the company downgraded its financial year 2022 guidance.

A wall slip at the company’s Rosemont operation and other challenges resulted in the downgrade of its full year production guidance. It now expects to produce between 300,000 ounces and 340,000 ounces of gold at its Duketon operation in financial year 2022 – 40,000 fewer than previously thought.

That saw the company’s total expected production fall to between 420,000 ounces and 475,000 ounces.

However, one All Ords gold producer recorded a gain on Monday. The Tietto Minerals Ltd (ASX: TIE) share price surged 6.1% after the company announced it had struck a bonanza gold intercept at its Abujar Gold Project.

The post These ‘golden’ ASX shares weighed on the All Ordinaries Index today appeared first on The Motley Fool Australia.

More reading

• Here are the latest broker updates from Macquarie. It’s not all pretty for ASX shares.
• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking
• Here’s why the Regis Resources (ASX:RRL) share price is nosediving 14% today
• Why is the Regis Resources (ASX:RRL) share price frozen today?
• 5 things to watch on the ASX 200 on Thursday

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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Today, the S&P/ASX 200 Index (ASX: XJO) was awash with more red, replicating the disappointing end to the week on Wall Street Friday night. At the end of trade, the benchmark index was 0.51% worse for wear at 7,139.5 points.

Tech shares took another backward step as the sector erased 1.5% today. Though, it wasn’t alone in its uninspiring performance, with miners and utilities also wearing a deep shade of red on Monday. Glimmers of green still managed to poke through in the opening session for the week. Real estate, consumer staples, and communication services provided some positivity for investors.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Uniti Group Ltd (ASX: UWL) was the biggest gainer today. Shares in the telecommunications company surged 8.75% after the company revealed it has received multiple approaches from parties interested in a potential acquisition. Find out more about Uniti Group here.

The next biggest gaining ASX share today was Goodman Group (ASX: GMG). The property company posted a 4.02% gain in its share price following a broker note from Macquarie. Analysts believe there’s a chance Goodman could upgrade its FY2022 guidance in its half-year results. Uncover the latest Goodman Group details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Uniti Group Ltd (ASX: UWL)	$4.10	8.75%
Goodman Group (ASX: GMG)	$23.54	4.02%
Orica Ltd (ASX: ORI)	$14.18	3.20%
Corporate Travel Management Ltd (ASX: CTD)	$20.80	3.12%
REA Group Ltd (ASX: REA)	$151.04	2.87%
Vicinity Centres (ASX: VCX)	$1.675	2.76%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$103.665	2.76%
Mercury NZ Ltd (ASX: MCY)	$5.54	2.40%
Megaport Ltd (ASX: MP1)	$15.14	2.30%
Carsales.com Ltd (ASX: CAR)	$21.57	2.23%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Monday
• Why Corporate Travel Management, Goodman, Lendlease, and Uniti shares are rising today
• Why are these beaten-up small cap ASX tech shares seeing 52-week lows today?
• The Nasdaq is in correction territory. Is the ASX 200 next?
• Why is the Uniti (ASX:UWL) share price up 10% on Monday?

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. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Corporate Travel Management Limited, Dominos Pizza Enterprises Limited, MEGAPORT FPO, REA Group Limited, Uniti Group Limited, and carsales.com 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 February earnings season is fast approaching, which means results will soon be feeding through the ASX. One company that will draw plenty of attention with its earnings is A2 Milk Company Ltd (ASX: A2M). This follows a 26% fall in the A2 Milk share price since releasing its FY21 full-year results on 26 August 2021.

For investors, Monday 21 February 2022 will serve as an important day. On this day the infant formula company is expected to reveal its results for the first half of FY2022.

After enduring a year and a half of disastrous performance, shareholders will be hoping the company reports a better result. Otherwise, there could be more pain ahead for this unloved ASX share.

Having said that, let’s dive into an earnings preview of A2 Milk and its share price.

What to look for in the upcoming earnings?

The once darling of the ASX share market has been plagued with issues involving its distribution channels and inventory in recent times. As a result, revenue and earnings evaporated during last year.

To illustrate this, the infant formula company posted revenue of NZ$1.731 billion in FY20. Then China’s demand softened and the company was stuck with excessive inventory. In turn, A2 Milk recorded a significantly reduced revenue of NZ$1.205 billion in FY21.

Similarly, earnings were crushed, tumbling nearly 80% from NZ$388.17 million to NZ$80.66 million. For this reason, investors will likely be seeking — at a minimum — a reduction to the impact on revenue and profits in the upcoming half-year result.

At this stage, analysts are expecting net profits after tax (NPAT) of NZ$60 million for the half-year. Unfortunately, this would suggest another 50% reduction on the NZ$120 million of NPAT reported in 1HFY21.

What else is there to consider for the A2 Milk share price?

In an interview with Livewire, Jun Bei Liu of Tribeca named the A2 Milk share price as a buy. While the company has still been trending towards the downside, the portfolio manager believes it could be a turnaround story in the making.

A highlight that Bei Liu mentioned for A2 Milk is that it remains debt-free. Simultaneously, the company laid claim to NZ$875 million of cash and cash equivalents at 30 June 2021. In addition, Jun Bei Liu likes the great brand that A2 Milk has built.

Taking all of this into consideration, the fund manager believes the A2 Milk share price could “really recover” in the next 12 months. Currently, A2 Milk shares are fetching a price of $5.11 — giving the company a valuation of $3.8 billion.

The post A2 Milk (ASX:A2M) share price awaits judgement day as earnings draw near appeared first on The Motley Fool Australia.

More reading

• Broker tips A2 Milk (ASX:A2M) share price to rise over 50%
• 5 things to watch on the ASX 200 on Thursday
• Are the worst-performing ASX 200 shares turnaround opportunities?
• Here’s why the A2 Milk (ASX:A2M) share price lost 52% of its in value in 2021
• Leading brokers name 3 ASX shares to buy today

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 recommended A2 Milk. 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 TPG Telecom Ltd (ASX: TPG) share price has edged lower on Monday.

In afternoon trade, the telco giant’s shares are down 0.5% to $6.07.

This means the TPG Telecom share price is now down 19% since this time last year.

Is the TPG Telecom share price good value now?

Although the TPG Telecom share price has come under significant pressure over the last 12 months, one leading broker still doesn’t see enough value on offer to recommend its shares as a buy.

According to a note out of Goldman Sachs this morning, its analysts have retained their neutral rating but lifted their price target on its shares by 3% to $6.30.

Based on the current TPG Telecom share price, this implies modest upside of 3.8% over the next 12 months.

What did the broker say?

Goldman notes that despite the deterioration in its enterprise revenues, TPG Telecom has aspirations to achieve $1 billion a year in business revenues by 2025 as part of its post-merger new enterprise strategy.

This target implies a 7% revenue compound annual growth rate across 2020-25 versus the ~$700 million business (non-wholesale) revenue it delivered in calendar year 2020.

Goldman appears to have a few doubts that TPG Telecom will achieve this. But even if it does, the broker expects softer margins to undo a lot of the good.

It explained: “We would expect even if TPG is successful on building its $1bn business revenues, the corresponding EBITDA is likely to be less significant than would have historically been the case. Given this and the execution risk on achieving $1bn p.a. in revenues (given ongoing NBN aggression, HyperOne build, Telstra adaptive networks launch and superior 5G coverage) we are cautious on TPG’s outlook.”

In light of this and other risks, it believes investors should keep their powder dry for the time being.

Goldman concluded: “We continue to see: (1) mobile subscriber headwinds (following underperformance vs. industry in recent halves); and (2) risk of shareholder churn (noting remaining escrows expire in 2022), as key overhangs for the name, while also acknowledging potential support from: (1) upside from Tower monetisation; (2) greater leverage to the roaming recovery; and (3) improved enterprise mobile/fixed offerings enabling share gains. Hence we remain Neutral, with our 12m TP +3% to A$6.30 driven by lower than expected spectrum payments (driving FY21-23E EPS +5% to +10%).”

The post Is the TPG Telecom (ASX:TPG) share price good value? appeared first on The Motley Fool Australia.

More reading

• Dividend investors should put these 2 top ASX shares on the watchlist
• 2 top ASX shares to buy according to WAM
• Brokers name 3 ASX shares to buy today
• This top broker just rated the TPG (ASX:TPG) share price as a buy
• 2 beaten-up blue chip ASX shares rated 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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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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Key Points

• Bigtincan achieves sound performance for the December quarter period
• Integration of Brainshark progressing along smoothly
• Remains on track to meet or exceed FY22 targets

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The Bigtincan Holdings Ltd (ASX: BTH) share price is lower today regardless of a positive trading update from the company. It appears the All Ordinaries (ASX: XAO) is dragging the company’s shares lower following a heavy sell-off throughout the day. 

At the time of writing, the enterprise mobility software company’s shares are down 3.93% to 85.5 cents. On the other hand, the All Ords is also down by 0.56% to 7,448.5 points.

How is Bigtincan performing?

In its release, Bigtincan provided investors with a quarterly business update for the 2022 financial year.

For the 3 months ending 31 December (Q2 FY22), Bigtincan reported total quarterly cash receipts of $26.3 million. This reflected an increase of 150% when compared against the prior corresponding period (Q2 FY21) of $10.5 million.

Cash operating payments came to $25.2 million, which included operating payments for the first full quarter of Brainshark. This led to a $1.1 million positive cashflow for the company.

At the end of the period, Bigtincan declared a balance of $49.9 million in cash and equivalents.

What’s ahead for Bigtincan?

While the company has made significant progress in the Brainshark integration program, annual recurring revenue (ARR) is expected to grow.

In the December quarter, Bigtincan achieved $112 million in ARR underpinned by cross sell/upsell opportunities from the Brainshark acquisition. Whilst this was a 133% lift over the previous comparable period, ARR is forecasted to be at least $119 million for FY22.

In addition, revenue is anticipated be somewhere in the vicinity of $109 million for the current financial year. In contrast, Bigtincan reported $43.9 million in revenue at the end of FY21.

Bigtincan share price snapshot

Despite shooting to a 52-week high of $1.53 in August, the Bigtincan share price has moved lower in recent times. Its shares are currently down 18% when looking at the past 12 months.

Based on today price, Bigtincan has a market capitalisation of roughly $470.43 million, with approximately 547 million shares on issue.

The post Why is the Bigtincan (ASX:BTH) share price in reverse today? appeared first on The Motley Fool Australia.

More reading

• Why Adairs, Bigtincan, Regis Resources, and Telix shares are sinking
• Earnings preview: What to expect from Bigtincan (ASX:BTH) this reporting season
• 3 exciting ASX growth shares with major upside potential in 2022
• Experts tip the ASX sectors that are set to outperform in 2022
• 3 small cap ASX shares to watch in 2022

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. owns and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. 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 kicked the week off on the wrong side of the bed yet again this Monday. At the time of writing, the ASX 200 has lost 0.54% and is currently sitting at 7,137 points. 

But not to let that get us down, let’s now take a gander at the 3 ASX 200 shares that are currently at the top of the ASX’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Monday

Sydney Airport (ASX: SYD)

Sydney Airport is our first share with soaring trading volumes today. This ASX 200 infrastructure giant has had a hefty 23.51 million of its shares swap hands so far this Monday. There’s not much in the way of news or announcements out of the company itself so far.

So we can probably put this elevated volume down to the movements of the Sydney Airport share price itself, and perhaps at its potential upcoming takeover. Sydney Airport is currently flat at $8.66 a share, but has been doing some bouncing around today. It might be this volatility, together with the takeover factor, that is behind this volume today.

South32 Ltd (ASX: S32)

Diversified ASX 200 mining company South32 is next up today. A whopping 25.42 million South32 shares have been bought and sold so far today. We don’t have to look too far to explain this one though. This volume is the likely consequence of the performance report South32 released to investors today.

As my Fool colleague Brooke covered earlier this Monday, South32 revealed that it had a rough period over the last quarter, experiencing labour and supply-chain issues. As such, it was forced to downgrade its FY22 guidance. The South32 share price has lost an unpalatable 3.8% so far today and is now trading at $3.94 a share.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is our final and (so far) most traded share of the day. This Monday has seen a sizeable 25.51 Pilbara shares find a new home at this point of the trading day.

Again, there isn’t any official news out of Pilbara that we can point to that might explain this move. So perhaps it is the nasty share price fall this company has endured today that is the culprit here. Pilbara shares have lost 1.4% so far this Monday and are currently trading at $3.51 each. This might be the reason why we find Pilbara on this list today. 

The post Here are the 3 most heavily traded ASX 200 shares this Monday appeared first on The Motley Fool Australia.

More reading

• Why are these beaten-up small cap ASX tech shares seeing 52-week lows today?
• The Nasdaq is in correction territory. Is the ASX 200 next?
• Why is the South32 (ASX:S32) share price tumbling 5% on Monday?
• Top fund manager says don’t buy the share market dip
• 5 things to watch on the ASX 200 on Monday

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 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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Key points

• NAB has reportedly been served a class action alleging it breached Australian Consumer Law
• The claim follows the 2013 collapse of construction business Walton Group
• The bank allegedly allowed Walton to trade insolvent to recover a $16 million debt, after which subcontractors reportedly wore $80 million of non-payments

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Owners of National Australia Bank Ltd (ASX: NAB) shares might want to keep an ear out for news of a class action after reports emerged claiming the bank could be facing a $200 million lawsuit.

The class action reportedly relates to the collapse of Walton Group in 2013. It’s said to include the claim NAB – Walton Group’s financial backer – worked to recover $16 million of funds before the company went under, but left subcontractors in the red.

At the time of writing, the NAB share price is $28.20, down 0.42% on the day.

Let’s take a closer look at the rumoured class action against the big bank.

Is NAB set to face a major class action?

According to reporting by the Australian Financial Review, NAB might have breached Australian Consumer Law by allowing Walton Group to trade insolvent for months before it went belly-up.

Lawyer Robert Armstrong is said to be leading the class action on behalf of 1,400 subcontractors.

The subbies claim the construction company owed them more than $80 million when it collapsed. Losses from the non-payment, including interest and resulting damages, could amount to more than $200 million.

The publication quoted Armstrong as saying:

[Walton] ought to have called in a receiver. Instead, what they did was appoint a restructuring group on the strong recommendation of the NAB. It allowed them 6 months to delay putting in receivership while they secured and recovered their funds. Almost the next day it went into receivership.

It wasn’t long ago Motley Fool Australia reported on another class action again NAB. In June 2021, the bank settled a United States-based class action alleging the bank manipulated the Bank Bill Swap Rate.

NAB share price snapshot

So far, 2022 has not been kind to the NAB share price.

The bank’s stock has slipped 2.22% since the end of 2021. Though it’s still almost 17% higher than it was this time last year.

The post Own NAB (ASX:NAB) shares? Here’s why the bank could be facing a $200m class action appeared first on The Motley Fool Australia.

More reading

• What’s happening to ASX bank shares today?
• 2 ASX dividend shares with large and growing yields
• Does the NAB (ASX:NAB) share price make it the best value bank right now?
• 2 buy-rated ASX dividend shares with generous yields
• NAB (ASX:NAB) share price target raised at Morgan Stanley. So, is it a buy?

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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Key points

• Listed Investment Company AFIC has just released is half-year results
• A surge in received dividends help raise profits by 74%
• Interim dividend of 10 cents per share (steady over FY21) was announced

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The Australian Foundation Investment Co Ltd (ASX: AFI) share price has fallen this Monday after the Listed Investment Company (LIC) released its FY2022 half-year earnings results for the six months to 31 December 2021. AFIC shares are currently trading at $8.58 each at the time of writing, down by 0.7%. That comes after the company closed at $8.66 a share last week and opened at $8.64 this morning.

AFIC share price falls despite solid first half update

• Revenue from operating activities rises to $161.8 million, up 68.1% from the $65.6 million reported for the first half of FY2021 (prior corresponding period, or pcp).
• Profit after tax of $146 million, up 73.5% on pcp’s $84.1 million
• Interim dividend of 10 cents per share, fully franked, announced. That is unchanged from the prior period.
• Return of 6.9% for AFIC’s portfolio for six months to 31 December (including franking). That compares to 4.6% for the S&P/ASX 200 Index (ASX: XJO).

What else happened in the first half?

As a LIC, AFIC’s primary business is investing in an underlying portfolio of (mostly) ASX shares for the benefit of shareholders. The company tells us that its outperformance for the first half of FY22 was mainly driven by its investments in Macquarie Group Ltd (AS:X MQG) and Sydney Airport (ASX: SYD). As well as in Goodman Group (ASX: GMG) and James Hardie Industries plc (ASX: JHX).

Additionally, AFIC told investors that it took advantage of “attractive prices” sparked by “short-term volatility” to increase its holdings. Positions added to include Transurban Group (ASX: TCL), Coles Group Ltd (ASX: COL) and CSL Limited (ASX: CSL), amongst others. The LIC also initiated positions in JB Hi-Fi Limited (ASX: JBH) and WiseTech Global Ltd (ASX: WTC).

Meanwhile, management also said that AFIC exited positions in APA Group (ASX: APA), Origin Energy Ltd (ASX: ORG) and Altium Limited (ASX: ALU).

In regards to its large lift in revenues and profit, AFIC thanked large dividend rises from many of its top holdings. In particular BHP Group Ltd (ASX: BHP) and Macquarie.

What did management say?

Management had this to say on the results AFIC delivered this morning:

The Australian equity market continued to deliver gains in the six months to 31 December 2021 following on from the very strong rebound in markets in the first six months of the calendar year. While market valuations remained higher than historical levels, as a result of continued low interest rates, corporate earnings growth remained strong supported by improved economic activity…

AFIC is an investor with a long term focus… This performance has been achieved with lower portfolio volatility than the market and more consistent dividend income.

What’s next?

Going forward into 2022, AFIC’s management stated that the company’s strategy of owning a diversified portfolio of quality companies well placed to deliver growth in earnings over time “remains appropriate” for the 2022 investing environment. Management says that it is well placed to take advantage of any bouts of volatility to increase its holdings in its top ideas. Furthermore, the company stated that its portfolio is “soundly positioned” despite the “risks of rising interest rates and global uncertainty”.

AFIC share price snapshot

AFIC shares have had a pretty robust time over the past few months. The company remains up 1.06% year to date so far in 2022. As well as up 13.6% over the past 12 months. At the current share price, AFIC is offering a trailing and fully franked dividend yield of 2.8%.

The post AFIC (ASX:AFI) share price falls despite 74% rise in profits appeared first on The Motley Fool Australia.

More reading

• How is AFIC (ASX:AFI)’s international share portfolio going?
• Why are AFIC (ASX:AFI) shares so popular among young investors?
• How did the AFIC (ASX:AFI) share price manage to outperform in 2021?

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. owns and has recommended Altium, CSL Ltd., and WiseTech Global. The Motley Fool Australia owns and has recommended APA Group, COLESGROUP DEF SET, and WiseTech Global. 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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