The Computershare Ltd (ASX: CPU) share price will be one to watch on Wednesday.

This follows the after market release of the stock transfer company’s full year results.

Computershare share price on watch after beating its guidance in FY 2021

• Full year management revenue fell 0.8% to US$2.3 billion
• Management revenue excluding margin income (MI) up 3.6% to US$2.2 billion
• Margin income down 47.7% to US$104.3 million
• Management earnings before interest and tax (EBIT) excluding MI up 12.6% to US$336.4 million.
• Management earnings per share down 7.3% to 52.03 US cents per share (compared to guidance for an 8% decline)
• Final dividend flat at 23 Australian cents per share

What happened in FY 2021 for Computershare?

All eyes will be on the Computershare share price tomorrow after it delivered a result slightly ahead of guidance. This was driven by a significant improvement in the company’s operating performance during the second half of FY 2021, with earnings increasing 39% half on half.

Management advised that this was driven by a positive performance from its key operating businesses of Issuer Services and Employee Share Plans. They have been benefitting from higher activity levels and stronger equity markets. In addition, thanks to disciplined cost controls, its margins expanded when excluding the impact of low interest rates, which continue to drag on its margin income.

What did management say?

Computershare’s CEO, Stuart Irving, was pleased with the way the company finished the financial year.

He said: “Computershare has delivered an improved operating performance in the second half of the year, with a 39% increase in earnings compared to the first half. This enabled us to report Management earnings per share (EPS) for the full year in line with the upgraded guidance we provided in February.”

“A highlight of the year was the announcement in March of our agreement to acquire the assets of Wells Fargo Corporate Trust Services, a leading US provider of trust and agency services to government and corporate clients. On track to complete later this year, the acquisition accelerates our scale in the attractive US corporate trust market. It also provides Computershare with greater exposure to long term growth trends in trust and securitisation products as well as the interest rate environment. The business is to be renamed Computershare Corporate Trust (CCT),” he added.

What’s next for Computershare?

Potentially giving the Computershare share price a boost on Wednesday will be its outlook for FY 2022.

Mr Irving expects the company to deliver earnings growth in FY 2022. This is thanks to the positive progress it is making in executing its growth strategies despite the challenges it is facing in some of its business lines.

He said: “Management EPS is expected to increase by around 2% in constant currency, after accounting for the impact of the rights issue. Guidance assumes over 4% EPS growth in our existing business lines. The CCT acquisition is expected to complete in October/November. Accretive on an annualised basis, it should add over 4 cps to earnings in FY22, given its partial second-half weighted contribution to the year. The rights issue will impact us by around 5.6 cps in FY22.”

Computershare share price performance

The Computershare share price is up 13% in 2021. This is roughly in line with the performance of the ASX 200 index over the same period.

The post Computershare (ASX:CPU) share price on watch after FY21 guidance beat appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?
• Which ASX 200 shares helped deliver record profits and a 4.5% dividend?

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

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Tuesday has drawn to a close… it’s the second day of the week and the market is alight with ASX shares reporting earnings. Markets reacted with cheer to today’s big-name results with an acquisition announcement thrown into the mix.

We’ll quickly unpack today’s results and then wrap it back up for tomorrow:

Those that delivered today

Challenger Ltd (ASX: CGF)

Shares in the investment management company increased 1.9% to $5.89. This followed the release of the company’s FY21 results and the announcements of the CEO’s retirement.

The takeaway points:

• Net income down 14% to $682 million.
• Normalised net profit after tax down 19% to $279 million.
• Group assets under management (AUM) up 29% to $110.0 billion.
• Fully franked, full-year dividend of 20.0 cents per share, up 2.5 cents per share on FY2020.
• Managing Director and CEO Richard Howes to step down in March 2022

Megaport Ltd (ASX: MP1)

The Megaport share price gained 3.05%, putting it at $17.90 by the close of the ASX today. The move followed the interconnection services company reporting its strong full-year results to the ASX. Additionally, Megaport also announced the acquisition of an AI-powered multi-cloud company known as InnovoEdge.

The takeaway points:

• Revenue increased 35% year on year to $78.28 million.
• Monthly recurring revenue (MRR) jumped 32% to $7.5 million (annualises to $90 million)
• Customers increased 443, or 24%, to 2,285
• Ports grew 1,922, or 33%, to 7,689
• Average revenue per port down $2 to $978
• Net loss of $55 million but cash position of $136.3 million
• US$15 million acquisition of InnovoEdge

James Hardie Industries PLC (ASX: JHX)

Lastly, shares in James Hardie jumped 2.9% to $49.32 today. At one point, the ASX-listed materials manufacturer surpassed the $50 barrier, setting a record high. The price appreciation followed a solid first-quarter result.

The takeaway points:

• Sales up 35% over the prior corresponding period to US$843.3 million
• Adjusted earnings before interest and tax (EBIT) jumped 45% to $180.5 million
• Net income up 50% to US$134.2 million
• Operating cash flow down 3% to US$184.1 million
• Full year net income guidance upgraded

ASX shares reporting tomorrow

Wednesday is set to be a big one with a few more results to be reported by ASX-listed companies. These include Commonwealth Bank of Australia (ASX: CBA), Insurance Australia Group Ltd (ASX: IAG), and Mineral Resources Ltd (ASX: MIN).

The post The ASX reporting wrap-up: Challenger, Megaport, James Hardie appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Challenger and James Hardie up on results
• Why ASX lithium shares are surging to new highs today
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher
• Is now a good time to buy Bendigo and Adelaide Bank (ASX:BEN) shares?
• ASX 200 midday update: James Hardie hits record high, Pilbara Minerals rockets

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Insurance Australia Group Limited. The Motley Fool Australia has recommended MEGAPORT 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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If you’re wanting to boost your portfolio with some blue chips, then you might want to look at the ASX shares listed below.

Here’s why these ASX blue chip shares are highly rated:

SEEK Limited (ASX: SEK)

SEEK is the leading job listings company in the ANZ region. It also has a number of growing businesses around the globe.

In respect to the former, during the first half of FY 2021, the company was the dominant force in the local market. It was averaging 35 million monthly visits and 160,000 active hirers. This represents almost a third of all placements in the region and is five times greater than its nearest rival.

It is thanks to this dominance that SEEK has been tipped to benefit greatly from Australia’s strong economic recovery from the pandemic. With the unemployment rate tipped to fall materially over the next 12 months, job ad volumes look set to increase and underpin strong top line growth.

Macquarie is positive on SEEK. It currently has an outperform rating and $40.00 price target on its shares.

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is one of the world’s leading providers of medical diagnostics. Over the last few decades it has earned a reputation for excellence in pathology, diagnostic imaging, and primary care medical services across operations in the ANZ, European and North American markets.

Due largely to strong demand for COVID-19 testing services, it is expected to deliver a very strong full year result this month. And with COVID testing unlikely to be going away any time soon, the company appears well-placed to benefit from elevated testing volumes in FY 2022 and potentially even FY 2023.

Combined with the strength of the rest of the business and a balance sheet that would support earnings accretive acquisitions, the future looks bright for Sonic.

Credit Suisse is very positive on Sonic and has an outperform rating and $43.50 price target on its shares.

The post 2 excellent ASX 200 blue chip shares named as buys appeared first on The Motley Fool Australia.

More reading

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• 2 buy-rated ASX 200 dividend shares with attractive yields

Motley Fool contributor James Mickleboro owns shares of SEEK 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 recommended SEEK Limited and Sonic Healthcare 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 Archer Materials Ltd (ASX: AXE) share price reached an all-time high in intraday trade today. This came after the semiconductor company announced it has been granted a new South Korean patent.

In late afternoon trade, Archer shares were swapping hands for $1.665 apiece — a new record. By the final bell, they had partially retreated to $1.61, a 12.94% gain on yesterday’s closing price.

Archer adds to its intellectual property portfolio

Investors are pushing the Archer share price higher after digesting the company’s positive update.

According to its release, Archer has been granted a patent associated with its CQ quantum computing chip technology.

The KR patent (No. 10-2288974) is considered a significant commercial milestone in the company’s efforts to access global markets.

South Korea is regarded as a leading manufacturer and exporter of semiconductor chip devices. Conglomerates such as Samsung Electronics and SK Hynix are ranked among the top producers in the world.

Achieving patent approval is a giant leap for the company. The Korean Intellectual Property Office has more than 1 million patents and thoroughly examines each patent before consent.

Together with the United States and China, South Korea is one of the most competitive jurisdictions for patent granting.

As such, the granting of the patent gives Archer access to a high-performing economy to explore sales opportunities within the country.

South Korea committed to investing US$450 billion in the industry through to 2030. Most of these funds came from Samsung Electronics and SK Hynix, US$150 billion and US$200 billion, respectively.

CEO Dr Mohammad Choucair commented on the news which could be affecting the Archer share price:

Archer’s quantum computing chip IP is now well protected in South Korea – home to some of the world’s largest chipmakers, and a critical part of the global semiconductor supply chain.

We now have CQ chip patents granted in Japan and South Korea, with patent applications in the US, China, and Europe progressing well… South Korea’s semiconductor industry is one of the world’s best, while Asia as a whole dominates in semiconductor manufacturing, where close to 80% of all chips are produced.

The patent is valid until December 2036.

Archer share price snapshot

Shareholders would be ecstatic with the Archer share price since the beginning of 2021.

The company’s share price has gained more than 200% year-to-date, reflecting strong optimism in Archer’s progress in developing its CQ chip.

The post Why the Archer Materials (ASX:AXE) share price rocketed 13% today appeared first on The Motley Fool Australia.

More reading

• The Archer Materials (ASX:AXE) share price is up 60% in a month to a record high
• Why the Archer Materials (ASX:AXE) share price is up 30% in a week
• Why the Archer Materials (ASX:AXE) share price is surging 12% higher

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 basket of S&P/ASX 200 Index (ASX: XJO) gold shares has slipped into the red during today’s session.

And looking beyond the ASX 200, to the 27 ASX-listed gold shares with a market capitalisation of over $200 million, the average loss today is 1.47% and the median loss is 1.5% (at the time of writing).

What’s impacting ASX 200 gold shares today?

Firstly, the spot price of gold is down around 5% over the past month and a similar amount over the past six months, extending the loss over the past year to approximately 15%.

Moreover, the spot price of gold took a 3–4.5% dip over the past two days, with the yellow metal now trading at $1,736 per ounce.

There is a high correlation between the price of gold and ASX 200 gold shares, as can be gleaned from the chart below. That is, the pair tend to move in a relatively similar fashion. The chart highlights the single year performance of the S&P/ASX All Ordinaries Gold Index (ASX: XGD) versus the iShares Gold Trust.

For context, according to the issuer iShares, its Gold Trust “seeks to reflect generally the performance of the price of gold” whereas the All Ords’ Gold index “is a benchmark for Australian gold companies”. Therefore, both are acceptable proxies for our analysis.

Correlation between ASX Gold shares and price of gold, last 12 months

Source: Google Finance

Notice the synchronised movement (movement, not actual price) in the pair’s price returns over the last year, for instance.

Adding weight to this correlation is the underperformance of key ASX gold shares today.

To illustrate, Newcrest Mining Ltd (ASX: NCM), Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) shares have all slipped into the red today, amid many other well-known names.

For comparison, the S&P/ASX 200 Index has climbed about 0.2% into the green during today’s session.

Therefore, given the correlation between gold spot and ASX gold shares, it stands to reason that this recent volatility will have some bearing on the ASX gold basket’s price action today.

What about inflation?

Inflation is certainly a contentious issue in the global economy at the moment, with commentary from both sides around the globe weighing in on the debate.

For instance, discussions on “inflation” were at a record high among S&P 500 company earnings calls this quarter, increasing 900% year on year, according to Bank of America.

Gold has traditionally been viewed as a reasonable hedge against inflation. However, data shows the correlation of gold to inflation has been historically low over the past 50 years, at only 16%. A correlation of 50–100% is considered statistically significant.

Next, central banks use their position in the marketplace to regulate factors such as inflation and interest rates.

In fact, one of the Reserve Bank of Australia (RBA)’s primary functions is to maintain inflation within a range of 2–3%.

In order to achieve this, the RBA utilises its position in the money markets to indirectly increase interest rates, which flows on to contain the fire of inflation in the real economy.

What about interest rates and ASX gold shares?

A hike to interest rates is generally seen as a headwind to gold prices as investors seek yield in higher rewarding asset classes, such as fixed income.

The RBA’s posture has been to hold rates down since 2020, even throughout the COVID-19 pandemic. For instance, the RBA has stated the cash rate will remain flat at 0.1% until 2024 at the current trajectory.

However, the Commonwealth Bank of Australia (ASX: CBA), amongst other banks, predicts this rise will occur sooner. CBA just adjusted its 2-year and 4-year mortgage rates to reflect its viewpoint, the third increase this year.

Given the bank’s move, it is not unreasonable to expect other financial institutions to follow suit, thereby acting on their conviction.

Therefore, it stands to reason that the recent selloff in ASX gold shares is somewhat impacted by the uncertainties on interest rates in the economy.

Foolish takeaway

ASX Gold shares have had a rough day on the back of headwinds in the underlying gold markets and in the real economy.

Gold prices are sensitive to market forces such as interest rates and often there is a conception that gold, on its own, is a reasonable hedge against inflation. There is debate on whether it is or not.

As the uncertainties on interest rates continue in Australia, this may have some bearing on ASX gold shares as we walk through the remainder of 2021.

The post What’s up with ASX 200 gold shares on Tuesday? appeared first on The Motley Fool Australia.

More reading

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• 3 high conviction ASX 200 shares that could be buys this August
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• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs

The author Zach Bristow 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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The S&P/ASX 200 Index (ASX: XJO) went up by 0.3% to 7,563 points.

Here are some of the highlights from the ASX today:

James Hardie Industries plc (ASX: JHX)

The James Hardie share price went up 3% today after releasing its result for the first quarter of FY22.

In the first three months of the financial year, to 30 June 2021, it saw total net sales increase by 35% to US$843.3 million. Net profit surged 1,191% higher to US$121.4 million. Global adjusted earnings before interest and tax (EBIT) increased 45% to US$180.5 million with the adjusted EBIT margin rising 150 basis points to 21.4%.

The North American and Asia Pacific divisions were what drove the EBIT higher. The North America division saw adjusted EBIT grow 29% to US$169.3 million and Asia Pacific adjusted EBIT rose 50% to A$50.4 million.

James Hardie CEO Dr Jack Truong said:

I am very pleased that this first quarter marked our ninth consecutive quarter of delivering growth above market and strong returns. In our investor day at the end of May, we described our three critical initiatives for FY22 through to FY24: One, market directly to homeowners to accelerate demand creation, two, penetrate and drive profitable growth in existing and new segments and, three, commercialise global innovations by expanding into new categories. Further, we discussed our focus on driving a high value product mix in all three regions.

The company raised its guidance for FY22. It’s now expecting adjusted net income to be between US$550 million to US$590 million, up from the previous guidance of US$520 million to US$570 million. That compares to FY21 adjusted net income of US$458 million.

The James Hardie share price was one of the better performers in the ASX 200.

Challenger Ltd (ASX: CGF)

The Challenger share price went up more than 1% after the annuity business released its FY21 result.

It said that group assets under management (AUM) grew by 29% to $110 billion, with life book growth of 14% and funds management net flows of $16 billion.

The company said that its profit was within its guidance range. Normalised net profit before tax was $396 million, down 22%, reflecting a proactive decision to maintain more defensive portfolio settings during the pandemic.

It generated a statutory net profit after tax of $592 million, which included positive investment gains.

Challenger said that it has a strong capital position, with Challenger Life having $1.6 billion of excess regulatory capital.

The full year dividend was increased by 14% to 20 cents per share.

Challenger managing director and CEO Richard Howes, said:

This year, we have taken decision action to set up the business for future growth – executing our strategy to diversify revenue, repositioning our investment portfolio and strengthening our balance sheet.

Following our decision to reposition the investment portfolio during the early stages of the pandemic, as flagged, we gradually deployed significant cash balances into higher returning assets throughout the year, with the full benefits to be realised next year.

Mr Howes also announced his intention to retire, set for March 2022. 

Megaport Ltd (ASX: MP1)

Megaport was another ASX 200 share to report its result to investors today. The Megaport share price increased by 3%.

It said that annual revenue increased by 35% to $78.28 million, whilst customers went up 24% to 2,285.

Monthly recurring revenue (MRR) for the month of June 2021 was $7.5 million, an increase of 32% year on year.

Megaport said that it generated a profit after direct network costs during the year of $42.1 million, an increase of 43% year on year. It achieved breakeven earnings before interest, tax, depreciation and amortisation (EBITDA) in June 2021.

The Asia Pacific region saw a profit after direct network costs margin of 73%.

However, the bottom line for the year was a net loss of $55 million. It finished with a cash position of $136.3 million.

It’s planning to continue to invest for growth of its market share, invest in its product and service, and invest in its people.

The ASX 200 company also announced the acquisition of InnovoEdge for up to US$15 million, including US$7.5 million of cash. It was described as an AI-powered, multicloud and edge application orchestration company. 

The post ASX 200 rises, Challenger and James Hardie up on results appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares were the most traded this Tuesday
• Why ASX lithium shares are surging to new highs today
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher
• ASX 200 midday update: James Hardie hits record high, Pilbara Minerals rockets

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended MEGAPORT 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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Today, the S&P/ASX 200 Index (ASX: XJO) finished the day in the green. The benchmark index added 0.32%, climbing to 7,562.6 points.

The question is: which shares delivered the most generously to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Pilbara Minerals Ltd (ASX: PLS) was the biggest gainer today. Shares in the company increased 11% following a push for further electrification on the back of the latest IPCC climate report. Find out more about Pilbara Minerals here.

The next biggest gaining ASX share today was PointsBet Holdings Ltd (ASX: PBH). The sports betting company surged 10.2% to $11.17. Uncover the latest PointsBet details here.

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

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$2.33	10.95%
PointsBet Holdings Ltd (ASX: PBH)	$11.14	9.86%
Orocobre Ltd (ASX: ORE)	$9.33	8.74%
Galaxy Resources Ltd (ASX: GXY)	$5.30	8.61%
Whitehaven Coal Ltd (ASX: WHC)	$2.30	5.99%
Zimplats Holdings Ltd (ASX: ZIM)	$24.70	4.09%
Sims Ltd (ASX: SGM)	$16.12	3.4%
Afterpay Ltd (ASX: APT)	$143.27	3.24%
Netwealth Group Ltd (ASX: NWL)	$15.89	2.98%
James Hardie Industries PLC (ASX: JHX)	$49.32	2.90%

Our top 10 ASX shares 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

• These 3 ASX 200 shares were the most traded this Tuesday
• Here’s why ASX 200 lithium shares surged higher on Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why ASX lithium shares are surging to new highs today
• Pilbara Minerals (ASX: PLS) share price up 9% to all-time high

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Netwealth, and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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) is having a decent, if not inspiring, day of trading this Tuesday. At market close, the ASX 200 is a fair 0.32% to 7,563 points after making a fresh new all-time high of 7,576.3 points earlier this morning.

But let’s now take a deeper look into the ASX 200 shares that are topping the charts today in terms of trading volumes.

3 ASX 200 shares flying around the markets today

Telstra Corporation Ltd (ASX: TLS)

Our first ASX 200 share is the telco giant Telstra. Today, a hefty 13.1 million telstra shares traded on the share market.

This is probably a result of the telco hitting a new 52-week high this morning. Telstra shares rose all the way up to $3.88 a share earlier today, before subsequently cooling off a little. Telstra finished the day at $3.86, up a still-robust 0.92% for the day.

Novonix Ltd (ASX: NVX)

ASX 200 graphite and battery company Novonix is next up on this list. This materials share has had a dramatic resumption of trading today after a recent share price halt. After outlining a capital raising program and an investment by the US oil giant Phillips 66 (NYSE: PSX), the Novinix share price resumed trading today.

And it was something to behold. At market close, Novonix shares finished at $3.43 a share, up 13.58%. This is probably the reason why a substantial 14.7 million NVX shares traded today.

Pilbara Minerals Ltd (ASX: PLS)

And last but certainly not least we have ASX 200 lithium producer Pilbara Minerals. Pilbara tops the ASX 200 charts today in terms of trading volume – and by a mile too. A staggering 33.7 million Pilbara shares were traded today.

Once again, this seems to be the result of a dramatic jump in this company’s valuation today. At market close, Pilbara finished up a whopping 10.95% higher to $2.33 a share. This seems to be in response to some love from broker JPMorgan, which has upgraded its outlook on the entire ASX lithium sector.

The post These 3 ASX 200 shares were the most traded on the share market this Tuesday appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 lithium shares surged higher on Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why ASX lithium shares are surging to new highs today
• The Telstra (ASX:TLS) share price just hit another new 52-week high
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns shares of JPMorgan Chase and 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 shares of 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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S&P/ASX 200 Index (ASX: XJO) lithium shares soared today amid the release of a report magnifying the risks of climate change. The report looks set to recharge the global push towards renewable energy.

Shares in both Galaxy Resources Limited (ASX: GXY) and Orocobre Limited (ASX: ORE) finished the day trading more than 8% higher than their previous closing prices. But it was Pilbara Minerals Ltd (ASX: PLS) who led the pack. Its share price gained 10.95% on Tuesday.

And while it’s not part of the ASX 200, fan favourite Vulcan Energy Resources (ASX: VUL) shares also gained 6.94%.

It’s difficult to say what caused the gains.

However, they might have been tied to renewed interest in fighting climate change, driven by a worrying report out of the Intergovernmental Panel on Climate Change (IPCC). Or, perhaps, by JPMorgan’s enthusiasm for lithium.

Let’s take a closer look at what might be making the market excited about ASX 200 lithium shares.

What drove ASX 200 lithium shares higher on Tuesday?

IPCC report

First off the bat is the report released by the IPCC today that United Nations secretary-general António Guterres described as “a code red for humanity”.

The report found in order to limit global warming to 1.5 degrees, we need to reduce our use of fossil fuels.

It also found Australia is already affected by climate change. Our shorelines are eroding and our fire seasons are becoming more deadly. These trends are set to worsen if carbon emissions aren’t limited, the report found.

Of course, that may have pushed the conversation towards topics like electric vehicles and lithium-ion battery power.

Lithium is crucial in the push for renewable energy storage. To many, it also presents a way of lessening the world’s reliance on fossil fuels.

Maybe talk of the future helped push ASX 200 lithium shares higher today.

Bullish on lithium

Additionally, ASX 200 lithium shares may have been boosted by JPMorgan’s lithium outlook.

As The Motley Fool Australia reported earlier today, the broker foresees a bright future for lithium producers.

JPMorgan also upped its long-term lithium spodumene price by 31%. It expects it to reach $850 per tonne in the future.

The post Here’s why ASX 200 lithium shares surged higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Which shares are leading the ASX 300 on Tuesday?
• Why the Orocobre (ASX:ORE) share price is up 9% to an all-time record high on Tuesday
• Why ASX lithium shares are surging to new highs today
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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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The Zip Co Ltd (ASX: Z1P) share price was on form again on Tuesday and continued its positive run.

The buy now pay later (BNPL) provider’s shares climbed 1.5% to end the day at $7.99.

This latest gain means that the Zip share price is now up an impressive 20% since the start of the month.

Why is the Zip share price up 20% in 10 days?

Investors have been bidding the Zip share price higher this month following news that rival Afterpay Ltd (ASX: APT) is to be acquired by US payments giant Square.

This has sparked hopes that Zip may also receive a takeover approach of its own in the near future. Particularly given how another larger BNPL rival, Klarna, is rumoured to have been building up a strategic stake in the company.

Is it too late for investors to buy its shares?

The good news is that the team at Citi still see a fair bit of value in the Zip share price at the current level.

This month the broker retained its buy rating and $8.90 price target on the company’s shares. This is despite its belief that the Afterpay-Square deal has mixed implications for Zip.

Commenting on the news, Citi said: “We see mixed read-throughs for Zip from Square’s takeover of Afterpay – on the one hand it increases the takeover appeal for Zip, especially given the fast growing US business. However, arguably the Afterpay sale speaks to the importance of scale especially given increasing competition and our concern is that the combination of Square and Afterpay increases the medium-term risk for Zip given it increases.”

Based on the current Zip share price of $7.99, Citi’s price target implies potential upside of just over 11% over the next 12 months.

The post Up 20% in 10 days: Can the Zip (ASX:Z1P) share price keep rising? appeared first on The Motley Fool Australia.

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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 shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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