Yesterday I 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 ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $6.00 price target on this infant formula company’s shares. Citi has been looking through recent peer updates and believes they indicate that the daigou channel will remain challenged in the short term. And while the a2 Milk share price has pulled back recently, the broker is sticking with its sell rating. This is due to its belief that there are risks to medium- and long-term margins due to an increased focus on the China offline channel. The A2 Milk share price is trading at $6.16 today.

IGO Ltd (ASX: IGO)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.40 price target on this nickel producer’s shares. This follows the release of the company’s fourth quarter update. While Morgan Stanley acknowledges that IGO had a solid finish to the year, it was disappointed with its guidance for FY 2022. It notes that its production guidance is softer than expected and its costs are higher than predicted. The IGO share price is currently fetching $8.98.

Rio Tinto Limited (ASX: RIO)

Analysts at UBS have retained their sell rating and $104.00 price target on this mining giant’s shares. This follows the release of Rio Tinto’s half year results, which fell a touch short of the broker’s expectations. Overall, the broker believes the risks are to the downside due to its belief that the iron ore price will pull back sharply over the next 12 months. The Rio Tinto share price was trading at $134.17 on Thursday.

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

More reading

• The ASX 200’s new record high is flimsier than you might think. Here’s why
• Why a2 Milk, Airtasker, IRESS, & Regis shares are charging higher
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• Why is the A2 Milk (ASX:A2M) share price up 5% on Thursday?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update

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 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 big news on the ASX share market this July has been the series of new all-time record highs that the S&P/ASX 200 Index (ASX: XJO) has been regularly hitting.

Having first crossed 7,300 points and then 7,400 points for the first time ever back in June, July has seen the ASX 200 consolidate these gains, and push as high as 7,443 points.

Whilst this is an event that will probably be celebrated by most ASX 200 investors, I think it merits a deeper dive into what’s been pushing the index up so high recently.

Well, it’s not the big four banks, that’s for sure. Take Commonwealth Bank of Australia (ASX: CBA). After hitting $100 a share for the first time ever back in May, CBA shares have gone backwards over July, falling by roughly 0.42% over the month so far.

The other 3 major ASX banks have fared even worse. Westpac Banking Corp (ASX: WBC) takes the crown of thorns, with a 5% reversal since 30 June.

Since the ASX 200 is dominated by these four banking shares (the ASX 200’s first, fourth, fifth and sixth companies respectively by market capitalisation), the recent gains must be coming from somewhere else.

CSL Limited (ASX: CSL) perhaps? CSL is the ASX 200’s third-largest company. Sure, it’s put on 2.13% since 30 June. But that’s not enough to counterbalance the ASX banks.

That leaves ASX resources shares like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). These are the ASX 200’s second and tenth-largest companies. And they have been on fire lately.

BHP and other ASX miners push up the ASX 200

BHP shares are currently at a record high, having climbed an astonishing 9.9% since 30 June. Rio shares have fared pretty well too, with a 6.3% gain.

We have to mention Fortescue Metals Group Limited (ASX: FMG) too, which is the ASX 200’s twelfth largest company. It’s put on a very impressive 12.25% since 30 June.

Why have these miners been enjoying such robust gains? We can probably thank robust iron ore prices, as well as a falling Aussie dollar.

Rio’s monster dividend that was announced yesterday probably didn’t hurt either.

And there you have it, the stars of the share market’s July show. Long story short, investors can thank these companies for the record high that the ASX 200 is trading at today.

But this also exposes a potential weakness in the surging ASX share market. If these companies were to drop back to even where they were a month ago, it would be fairly deleterious to the ASX 200’s standing as a whole.

It’s a very different, and dare I say flimsier, situation than if the index’s performance was supported by an equally rising tide with gains across all of the ASX blue chips, rather than just one sector.

Something to keep in mind for anyone exposed to the ASX 200 right now.

The post The ASX 200’s new record high is flimsier than you might think. Here’s why appeared first on The Motley Fool Australia.

More reading

• These are the latest 3 ASX shares to be downgraded by brokers
• Here’s why the Zip Co (ASX:Z1P) share price is leaping 5% today
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Fortescue (ASX:FMG) share price rallies 3% to record high after quarterly results

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 shares of and has recommended CSL Ltd. 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 on course to record a solid gain. At the time of writing, the benchmark index is up 0.45% to 7,413.6 points.

Four ASX shares that are failing to follow the market higher today are listed below. Here’s why they are dropping:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price is down 7% to 19.5 cents. This follows the release of the lithium explorer’s quarterly update this morning. Investors appear concerned with AVZ Minerals’ weakening balance sheet, which could require a capital injection in the very near future. The company ended the period with cash of $2.85 million, down from just under $6 million three months earlier.

Imugene Limited (ASX: IMU)

The Imugene share price has sunk 10% to 29.7 cents after returning from a trading halt. This morning the biotech company announced the completion of a $90 million institutional placement. The company raised the funds at a 9.1% discount of 30 cents per new share. The company is now seeking to raise a further $5 million from retail investors at the same price. The proceeds will be used to fund Imugene’s clinical trial pipeline through to the end of 2025.

Pointerra Ltd (ASX: 3DP)

The Pointerra share price has fallen 10% to 42.7 cents. This follows the release of a quarterly update from the 3D geospatial data technology company. Pointerra reported a 24% quarterly increase in annual contract value (ACV) to US$9.8 million over the three months ended 29 July. Investors appear to have been expecting much stronger growth from the company.

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price is down 8% to 52 cents. This follows the release of a disappointing second quarter update by the gold miner. That update revealed weaker production, higher costs, and softer sales. In light of its poor performance, the company has downgraded its full year guidance.

The post Why AVZ Minerals, Imugene, Pointerra, & Resolute shares are dropping appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Pointerra (ASX:3DP) share price today?
• Capital keeps flowing into ASX Biotech shares in 2021
• Why the Resolute Mining (ASX:RSG) share price is crashing 8% today
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Why BARD1, Imugene, Northern Star, & Silver Lake shares are sinking

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 Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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 Bellevue Gold Ltd (ASX: BLG) share price has walked through today’s session in the green, hitting an intraday high of 99.5 cents.

Today’s gain comes as the company released its quarterly results before the market open.

Let’s comb over Bellevue’s results in a bit finer detail.

A quick recap on Bellevue Gold

Bellevue Gold is in the gold exploration business. It primarily engages in the exploration and evaluation of precious metals in Australia.

Its flagship interest is the Bellevue Gold project, but it also has interests in the South Yandal gold project.

At the time of writing, Bellevue Gold has a market capitalisation of $815 million.

Bellevue’s quarterly results

The company outlined a raft of progress points achieved throughout the quarter in its report.

Bellevue saw global resources increase to 3 million ounces (Moz), a 25% increase from the “stage 1 feasibility study”.

Indicated resources also grew 34% from the study to 1.4Moz. This will “form the basis of the stage 2 feasibility study” alongside an “upgrade to the 690 thousand ounce maiden ore reserve from stage 1”.

Recall that the stage 1 feasibility study forecasted Bellevue will “generate $1.6 billion in [earnings before interest, tax, depreciation and amortisation] EBITDA” over the life of the mine.

Moreover, the stage 1 study estimated that the company will generate an “average free cash flow of $190 million a year, pre-tax” when assuming a $2,300/ounce realised gold price.

Back to the quarter, Bellevue also recognised a “non-binding debt” offer of up to $289 million that came from “12 leading domestic and offshore financial institutions”. It did not specify which institutions were included on the list in the report.

Additionally, its global resource has demonstrated a run-rate of “~70,000 ounces per month…since the discovery hole in November 2017”.

Additional takeouts from the report

The company established a “second underground diamond rig” this quarter.

Bellevue states this is garnering a “substantial reduction in cost” and permitting “further exploration into the Deacon corridor”.

Regarding progress this quarter, the company stated:

The robust nature of the Bellevue Lode Resource has also been highlighted with exceptional grade control results received from early grade control drilling. The Company continues to invest in drilling to support Resource growth, further Resource conversion and, importantly, grade control, well ahead of the mine schedule.

Investors seem to have favoured the announcement and have pushed the Bellevue Gold share price into the green since the start of trading.

Bellevue Gold shares are now exchanging hands at 98.75 cents apiece, a 3.7% gain from the market open.

Bellevue Gold share price snapshot

The Bellevue Gold share price has had a choppy year to date, posting a loss of 12% since January 1. This extends the previous 12 month’s loss of 8.4%.

Both of these returns have lagged the S&P / ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.

The post Bellevue (ASX:BGL) share price leaps on 25% resource growth appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bellevue Gold (ASX:BGL) share price is higher today

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 market may be testing record highs but it isn’t all good news for investors as brokers have just downgraded these three ASX shares.

The S&P/ASX 200 Index (Index:^AXJO) jumped 0.4% in the last hour of trade and is within striking distance to its all-time high.

But some ASX shares are being left behind, like the National Australia Bank Ltd. (ASX: NAB) share price.

ASX shares copping a downgrade

The NAB share price shed 0.7% to $25.72 at the time of writing. It doesn’t help that Bell Potter downgraded the shares ahead of NAB’s quarterly results next month.

It’s not that the broker is expecting it to be a disaster. If anything, NAB’s outlook for the current financial year is positive thanks to falling impairment charges and cost cutting.

“On the other hand, there was minimal change to net operating income in every year,” said the broker.

“The key difference lies in FY21e with its 66% jump in cash earnings, and this falls to 5% in FY24e and onwards.”

Bell Potter cut its recommendation on the NAB share price to “hold” from “buy” with a 12-month price target of $27.50 a share.

Production risk triggers downgrade for this ASX share

Another ASX share that is on the wrong side of breakeven today is the St Barbara Ltd (ASX: SBM) share price.

The gold miner lost 1.7% to $1.72 in late trade after Citigroup downgraded the St Barbara share price to “neutral/high risk” from “buy/high risk” following the quarterly production update.

Lack of confidence

“FY22 prodn guidance relying heavily on replicating JunQ performance at Gwalia, raising concerns given past poor performance,” said Citi.

“Gwalia must consistently replicate JunQ to achieve bottom guidance 180koz. Costs to remain high $1710-1860/oz vs FY21a $1616/oz.”

The broker’s belief that the gold price has past its peak also isn’t helping. Citi’s 12-month price target on the St Barbara share price is $1.75 a share.

Gold’s outlook losing its shine

Talking about gold, Macquarie Group Ltd (ASX: MQG) cut its rating on the West African Resources Ltd (ASX: WAF) share price to “neutral” with a 12-month price target of $1.15 a share.

The broker noted that gold prices failed to rally even as the US 10-year inflation adjusted government bond (US 10y TIPS) yield hit new lows recently.

“US 10y TIPS have made new lows around -1.15% but gold is still failing to rally, trading around the [US]$1,800/oz mark,” said Macquarie.

“Without either a reappraisal of inflation or materially negative turn in the path of the virus (e.g. mutation which rendered current vaccines ineffectual), they also struggle to see gold building significant momentum.”

Against this backdrop and the fact that the West African Resources share price has outperformed recently, the broker decided that there isn’t enough upside left for the ASX miner.

The post These are the latest 3 ASX shares to be downgraded by brokers appeared first on The Motley Fool Australia.

More reading

• Here’s why the Zip Co (ASX:Z1P) share price is leaping 5% today
• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?
• Yes, share markets are high. But don’t sell

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The Tesoro Resources Limited (ASX: TSO) share price is soaring 9% higher today. At the time of writing, shares are up 8.7% to 12.5 cents, having earlier seen gains of 13%.

After rallying in early trade, shares in the mining company entered a trading halt before being reinstated.

Here’s why the company was in a trading halt and why investors are jumping on shares in Tesoro.

Tesoro share price reinstated after temporary pause

Earlier today, Tesoro notified investors that shares in the company would be temporarily paused. The company cited a further announcement as reasoning for the pause in trading.

Shares in Tesoro were shortly reinstated after the company retracted and replaced a previous presentation.

The company told investors unclassified material in the previous investor presentation was not in accordance with guidelines. As a result, Tesoro retracted the statements from the previous presentation and provided a replacement presentation.

The announcement follows the company’s managing director presenting a webinar on Tesoro’s El Zorro Gold Project earlier today.

Overview of Tesoro

Tesoro is a mining exploration and development company with projects in the Coastal Cordillera region in Chile. The region hosts multiple copper and gold mines, with much of the area remaining unexplored due to the nature of mining concession ownership in Chile.

Via its in-country network, Tesoro has secured the rights to scale gold projects in the region, with the company holding the rights to 85% of the El Zorro Gold Project.

Snapshot of the Tesoro share price

The Tesoro share price has come under fire recently.

Despite rallying in today’s trading session, shares in Tesoro are more than 58% lower since the start of the year.

Shares in the mining exploration company suffered a blow yesterday, tumbling by more than 30%.

The Tesoro share price was on the receiving end of hard selling after reporting its maiden Mineral Resource Estimate (MRE) for the Ternera Deposit at its El Zorro Gold Project.

The company reported an MRE of 25.1 million tonnes at 0.8 grams per tonne for 660,000 ounces of gold. Investors did not seem pleased with the result, sending the Tesoro share price tumbling.

As noted previously, shares in Tesoro are stronger today. At the time of writing shares in the mining explorer are 8.7% higher for the day at 12.5 cents, down from an intra-day high of 13 cents.

The post Here’s why the Tesoro (ASX:TSO) share price is flying 9% higher today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Tesoro Resources (ASX:TSO) share price is tumbling 31% today
• Tesoro Resources (ASX:TSO) share price climbs on quarterly update

Motley Fool contributor Nikhil Gangaram 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 Betmakers Technology Group Ltd (ASX: BET) share price is going for gold. At the time of writing, shares in the wagering technology company are trading for $1 each – up 7.57%.

While the company hasn’t made any price sensitive announcements for the past 3 days, there are several external factors that might be playing a role in today’s massive price rise.

Let’s take a closer look.

Tech shares are up

It’s not just the Betmakers share price that’s going gangbusters. Other tech shares like Zip Co Ltd (ASX: Z1P) and WISR Ltd (ASX: WZR) are up 4.7% and 9% respectively. In fact, the entire S&P ASX All Technology index (ASX: XTX) is 2.17% higher at the time of writing.

Why is that? One answer might lie across the Pacific Ocean.

As Motley Fool’s own Scott Phillips has previously told this reporter:

The old saying is ‘when America sneezes, Australia catches a cold’.

In other words, when American markets are down, Aussie markets are down. When US markets are up, so is the ASX.

The tech heavy NASDAQ Composite rose 0.7% overnight after a fall in US 10-year treasury bond yields.

According to the Financial Times, comments by US Federal Reserve Chair, Jerome Powell, about a possible tapering of bond buybacks sent yields falling.

According to FT, analysts are reading Powell’s comments to mean a slowdown in quantitative easing happening soon, but not too soon. This sent bond prices rising and thus yields falling as they are inversely related.

The relationship between 10-year bond yields and tech shares is also inversely related.

Why else would the Betmakers share price be flying?

Another reason the Betmakers share price might be doing so well is recent news by industry compatriot PointsBet Holdings Ltd (ASX: PBH). PointsBet has announced an underwritten capital raising of approximately $400 million.

PointsBet will be selling about 23 million new shares, with retail trading rights, for $8.00 per new unit. This is a discount of 29% on the current PointsBet share price.

As more shares will be on the market, this will increase their supply and thus decrease their price.

This capital raising by a fellow wagering company might be having an impact on the Betmakers share price.

Betmakers share price snapshot

Over the past 12 months, the Betmakers share price has increased 126%. Year-to-date it is 42.1% higher. Its 52-week high is $1.65 and its low in that period is 38 cents per share.

Betmakers has a market capitalisation of $838 million.

The post Why the Betmakers (ASX:BET) share price is rocketing 8% today appeared first on The Motley Fool Australia.

More reading

• BetMakers (ASX:BET) share price up on record results
• Here are the 3 most heavily traded ASX 200 shares this Monday
• Why the BetMakers (ASX:BET) share price is racing 6% higher on Friday
• The Betmakers (ASX:BET) share price is 35% off its 52-week high
• Why the BetMakers (ASX:BET) share price finished the day 5% higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Betmakers Technology Group Ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Betmakers Technology Group Ltd and 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 AMP Ltd (ASX: AMP) share price has been a very well known clanger for ASX investors over the past five years. Perhaps due to its former size and scale, both in terms of market capitalisation, and presence on the Australian psyche, AMP’s fall from grace has been especially well documented.

As it stands today, AMP shares are trading at a price of $1.06. That’s just a hair’s breadth from the company’s 52-week (and all-time) low of $1.05. That’s also far cry from the $13-plus this company was trading at back in 1999.

This was just a few years after its demutualisation and ASX IPO. AMP is now down more than 92% from those highs, as well as down 81.72% from where it was just five years ago at $5.81 a share.

Losses like these are catastrophic for an investors’ wealth – representing a loss of 80-90 cents for every $1 invested in AMP shares.

But just like most ASX financials shares, AMP, at least until recently, was also one known as an ASX dividend heavyweight. Could these past dividends make up for these significant capital losses that investors have experienced with ‘the AMP’?

Well, let’s get the nasty stuff out of the way first. If an investor purchased $10,000 worth of AMP shares exactly five years ago, they would have received approximately 1,721 shares. Those 1,721 shares would today have a value of $1,824.40. Ouch.

But what about AMP’s dividends?

AMP’s dividends

Here is a complete summary of all of the dividends AMP Ltd has paid out since July 2016:

• October 2016 – 14 cents per share
• March 2017 – 14 cents per share
• September 2017 – 14.5 cents per share
• March 2018 – 14.5 cents per share
• September 2018 – 10 cents per share
• March 2019 – 4 cents per share
• October 2020 – special dividend of 10 cents per share

And…. that’s it.

First of all, it’s worth noting that AMP’s dividend peaked in 2008 when the company sent 24 cents per share out the door every 6 months. It’s been more or less downhill ever since.

Secondly, it’s also worth taking into account that these dividends all came with franking credits. These were franked to 90% (with the exception of the 2020 special dividend, which was fully franked).

So, as you can probably gather, these dividends do not make up for AMP’s dismal share price performance over the past five years. But let’s see how the shortfall looks.

The dividends listed above amount to a total of 81 cents per share. So with our 1,721 shares, we would have expected to receive approximately $1,394 in dividend payments. Adding that to our capital that we have left after the past five years, and we get to a figure of $3,218.40.

So even with AMP’s dividends included, we have still lost around $6,780. Or close to 68% of our initial investment. The marginal benefits of AMP’s partial franking would narrow this gap, but only slightly.

Long story short, AMP has been a dreadful investment over the past five years, even if you include the dividend payments investors would have received over this period.

No doubt investors today would be praying that the next five years look a lot better for the AMP share price.

The post The AMP share price is down 80% over 5 years. But have the dividends paid off? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• How does the dividend for AMP (ASX:AMP) shares compare to the financial services sector?
• Why the AMP (ASX:AMP) share price will be one to watch today
• The AMP (ASX: AMP) share price is trailing the ASX 200 by 60% over the past year
• AMP (ASX:AMP) share price slides as ASIC ends criminal proceedings

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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The Telstra Corporation Ltd (ASX: TLS) share price has been one of the best performing out of the top 50 ASX-listed shares so far in 2021. On a year-to-date (YTD) basis the telecommunications company has delivered a return of ~25%.

While such returns are truly exceptional for an ASX-listed blue-chip share, Perennial Value Management is betting on even better things to come.

Promising future for Telstra share price

Perennial discussed the prospects of the well-known telco in its June monthly report. Telstra holds a spot in the Perennial Value Australian Shares Trust, a trust fund that is geared towards ‘value’ orientated ASX shares.

According to the report, Perennial foresees headwinds subsiding as the NBN roll-out nears its completion. While in the past the likes of Telstra and TPG Telecom Ltd (ASX: TPG) have been hit by the impact on their fixed-line businesses, Perennial expects mobile segments to perform strongly.

Both the adoption of 5G technology and increasing data needs have the fund looking positively towards the sector. This bodes well for the Telstra share price, being the leader in 5G coverage across Australia.

Further to this, the consolidation in the telecommunications industry appears to be developing a tailwind for the sector. On this topic Perennial said:

The recent merger of TPG with Vodafone has improved the industry structure, effectively locking in a three-player market. This is likely to lead to a rational competitive environment and recent pricing increases suggest this is occurring.

These remarks reiterate comments made by CEO Andy Penn from earlier in the year regarding growth. That’s right, the ‘G’ word – growth… not a word that has been in the vocabulary of Telstra investors for quite some time.

Mr Penn suggested Telstra was aiming for earnings before interest, taxes, depreciation, and amortisation (EBITDA) to increase in FY22, and climb further the following year. Certainly providing positive sentiment towards the Telstra share price.

Value in telecommunications infrastructure

The fund also covered the evident value proposition in telecommunications assets to infrastructure investors. In particular, Telstra managed to sell 49% of its stake in its mobile towers at a 28 times EBITDA multiple.

As a result, Telstra will receive $2.8 billion in proceeds. The company has slated half of the funds to be returned to shareholders in FY22. Perennial suggested these improving sector dynamics place telcos as one of its preferred defensive exposures.

The telco giant holds a market capitalisation of $44.78 billion based on the current Telstra share price.

The post Telstra (ASX:TLS) share price and improving sector dynamics – Expert appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares have just hit 52-week highs
• These ASX 200 shares were flying around the share market today
• Here’s why the Telstra (ASX:TLS) share price just hit a new 52-week high
• When will the Telstra (ASX:TLS) dividend increase again?
• The Westpac (ASX: WBC) share price is down 20% in 5 years. But have the dividends paid off?

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 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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The Commonwealth Bank of Australia (ASX: CBA) share price is struggling today and it seems regulators are as well.

The Commonwealth Bank is among a number of bodies worried about the foray into the financial system of Apple Inc (NASDAQ: APPL) and Alphabet Inc‘s (NASDAQ: GOOGL) Google.

However, as the Australian Financial Review reports, regulators are arguing about who should be in charge of looking into international tech giants’ position in the financial sector.

Right now, the CBA share price is in the green by 0.06%, trading for $99.36. However, it’s been seesawing since the market opened this morning.

Let’s take a look at CBA’s newly born campaign against Apple’s payments system.

Who’s meant to regulate Apple and Google?

The CBA share price is wobbling while Australia’s regulators reportedly pass the potato on holding Apple and Google to account.

According to the Australian Financial Review, the Reserve Bank of Australia, the Australian Competition and Consumer Commission (ACCC), the Australian Prudential Regulation Authority (APRA), and the Australian Securities and Investments Commission (ASIC) have all shirked responsibility for the time being.

Commonwealth Bank’s CEO Matt Comyn brought the issue up at a parliamentary joint committee on corporations and financial services on Tuesday.

He said Apple Pay accounts for 80% of iPhone ‘tap and go’ payments. The payments are processed by banks but the banks have no access to an iPhone’s near field communication (NFC) abilities.

This apparently means Apple has cemented itself as the sole provider of ‘tap and go’ payments. It also means banks’ apps are less useful than they could otherwise be.

Apple also communicated with the committee. Unsurprisingly, it disagreed with Comyn’s statements and claimed its Apple Wallet feature encouraged competition.

The Australian Financial Review reported the Australian Treasury has received a report on the matter.

APRA and ASIC are said to be waiting until the report is made public before deciding on regulatory directions.

CBA share price snapshot

Despite today’s wobbles, the CBA share price has been performing well lately.

It has gained 18% year to date. It is also 36% higher than it was this time last year.

The post CBA (ASX:CBA) share price wobbles amid regulatory confusion over Apple appeared first on The Motley Fool Australia.

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• Google (NASDAQ:GOOG) share price climbs on blockbuster earnings
• CBA (ASX:CBA) share price lower following major regional branch changes

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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