The IOOF Holdings Limited (ASX: IFL) share price will be on watch this morning after the release of an announcement.

What did IOOF announce?

This morning IOOF announced that it has made changes to its arrangements with external platform providers.

According to the release, effective yesterday, IOOF and Westpac Banking Corp (ASX: WBC) have agreed to terminate the existing relationship agreement between IOOF and Westpac’s BT brand.

IOOF’s CEO, Renato Mota, commented, “IOOF and BT worked collaboratively to reach agreement with regard to the future of our arrangement. As IOOF embarks on its own platform simplification strategy, alignment with providers who fit within our open architecture approach will be key to continuing to enable choice for our clients.”

The release explains that IOOF’s agreement with BT included termination rights for both parties on 12 months’ notice. It also provided IOOF with the right to unwind the current arrangements and transition clients and funds to other providers.

However, the latter option was ruled out by management. It estimated that the cost of such a transition from BT would cost IOOF between $30 million to $70 million. When combined with anticipated customer attrition, this strategy was deemed unattractive.

What now?

IOOF has entered into an agreement with HUB24 Ltd (ASX: HUB).

Subject to trustee and service operator approvals, under this agreement, HUB24 would act as the platform administration and custody provider and IOOF and HUB24 would collaborate to develop a range of solutions.

This includes private label super and investment products with IOOF entities as the responsible governing entities.

Mr Mota commented: “The new partnership arrangement with HUB24 is a positive step forward for IOOF. We continue to focus on our proprietary Evolve platform however, it is important that we continue to work with partners whose long-term business strategy and ability to enable choice aligns with our own.”

Financial impact.

In a separate announcement, Westpac advised that to avoid complex, costly, and time-consuming separation provisions, the bank will pay IOOF a one-off amount of $80 million.

However, as the agreement will see BT continue to provide platform and related services to clients and advisers including those with a relationship with IOOF, Westpac expects the one-off amount to be partially offset by other net platform revenues.

As for IOOF, it expects its FY 2021 revenue to decrease by approximately $15 million pre-tax on $18.8 billion Funds under Advice as at 30 November 2020.

More reading

• 2 quality ASX dividend shares with 5%+ yields
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• Here are the best 5 ASX financials shares of 2020
• The ASX bank with the best dividend yield under APRA’s new guidelines
• Here’s how ASX 200 bank shares have performed in 2020 so far

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the IOOF (ASX:IFL) share price is one to watch on Friday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mxEDnU

The corporate regulator has revealed it’s had to make enquiries with 27 ASX listed companies about their 2020 financial reports.

The Australian Securities and Investments Commission (ASIC) announced Thursday that it had reviewed financial reports for the year ending 30 June 2020 for 170 listed companies.

This resulted in the regulator contacting 27 companies regarding 58 different matters to demand a ‘please explain’.

Issues around disclosures about the effect of COVID-19 dominated this year’s enquiries.

“Many companies made useful and meaningful disclosures on the impact of COVID-19 conditions. However, some entities with businesses adversely affected by the pandemic did not appear to give sufficient attention to the reporting of asset values and financial position,” stated ASIC.

The commission also enquired when it thought the company “made unrealistic and unsupportable assumptions about future cash flows“.

Four of the 27 companies have been let off so far, while investigations into the other 23 are continuing.

$60 million of profit wiped from 4 companies

An ASX company is sometimes compelled to amend its reported numbers after an ASIC enquiry.

This has already happened to Nitro Software Ltd (ASX: NTO), Kresta Holdings Ltd (ASX: KRS), Elixinol Global Ltd (ASX: EXL) and Lawfinance Ltd (ASX: LAW) for their 30 June 2020 reports.

Collectively $60 million of profit was wiped from these companies due to the corrections.

ASIC did acknowledge that the coronavirus pandemic would have forced many companies to use “probability-weighted scenarios” to come up with their figures.

A simple disclosure of assumptions in the financial report would have covered this, according to the commission.

Listed companies need to improve to keep investors sufficiently informed.

“Our findings emphasise that directors and auditors need to focus on impairment of non-financial assets given the extended impact of the COVID-19 pandemic, to ensure that the market is properly informed about asset values and the expected future performance implied by those values,” stated ASIC.

ASIC had previously warned that directors are “primarily responsible” for the quality of the company’s financial report. 

“Companies should apply appropriate experience and expertise, particularly in more difficult and complex areas of accounting policies and estimates.”

More reading

• 3 ASX tech shares that have delivered strong returns in 2020
• Elixinol (ASX:EXL) share price tumbles on capital raising update
• Why the Elixinol (ASX:EXL) share price popped 43% today
• The Nitro (ASX:NTO) share price is down 20% in a month. Time to invest?

Motley Fool contributor Tony Yoo owns shares of Nitro Software Limited. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 27 ASX companies just got an unwanted knock on the door appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37tCkyb

With the market continuing its ascent this week, it will come as no surprise to learn that a number of shares have climbed to 52-week highs or better.

Three ASX shares that have just given investors an early Christmas present are listed below. Here’s why they are flying high right now:

Accent Group Ltd (ASX: AX1)

The Accent share price hit a record high of $2.31 yesterday. Investors have been buying the footwear-focused retailer’s shares this year thanks largely to its strong performance during the pandemic. At a time when many retailers were struggling, Accent was experiencing a surge in its sales. Pleasingly, this positive form has continued in FY 2021, with Accent on course to deliver a strong half year result in February. In addition to this, the company has continued opening new stores to strengthen its market position. It plans to add 80 new stores to its network in FY 2021, this includes stores from new brands Pivot and Australian Stylerunner.

Afterpay Ltd (ASX: APT)

The Afterpay share price stormed to another record high of $120.77 on Thursday. When the payments company’s shares hit that level, it meant they were up a remarkable 294% since the start of the year. There have been a number of catalysts for this impressive gain. These include its explosive sales growth in 2020, global expansion plans, the upcoming launch of new financial products, and, most recently, its inclusion in the ultra-exclusive ASX 20 index.

Metcash Limited (ASX: MTS)

The Metcash share price continued its strong run and hit a two-year high of $3.60 yesterday. This means the wholesale distributor’s shares have now risen 36% since the start of October. Investors have been buying Metcash’s shares following the release of a very strong first half result. Thanks to positive performances across its business, Metcash reported a 12.2% increase in group revenue to $7.1 billion and a 43% lift in underlying profit after tax to $129.6 million. Pleasingly, the company revealed that it has started the second half strongly, with all segments continuing their positive sales momentum.

More reading

• These are the 7 best ASX retail shares in 2020
• Why the Afterpay (ASX:APT) share price just smashed its record high
• Why 2021 may be an even better year for ASX investors
• The Tyro (ASX:TYR) share price is down 20% in one month. Time to buy?
• Openpay (ASX: OPY) share price rockets up 8% after major announcement

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Afterpay (ASX:APT) and these ASX shares just hit 52-week highs or better appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3gVTo2R

The People Infrastructure Ltd (ASX: PPE) share price will be on watch this morning. This comes following the company’s announcement after yesterday’s market close that it will acquire a leading technology staffing firm.

The People Infrastructure share price finished Thursday’s trading session at $3.41, up 0.89%

People Infrastructure focuses on the delivery of workforce management, contract staffing, recruitment and human resources outsourcing services. The company operates under four main industry sectors being healthcare, information technology, specialist services and labour hire.

What did People Infrastructure announce?

In the release, People Infrastructure advised is has entered an agreement to acquire eCareer Employment Services Pty Ltd and Illuminate Search and Consulting Pty Ltd.

According to People Infrastructure, the businesses were established in 1999 and, together represent a leading technology staffing firm focused on the New South Wales market but also with Victoria operations.

The firms mainly provide workforce personnel to the New South Wales Government, as well as large corporations in the banking, finance and insurance industries. They have 16 employees and around 200 technology contractors that have been on-hired by customers. 

Terms of the deal

People Infrastructure will acquire both businesses for $5.15 million. The transaction is due to be finalised in the coming weeks, pending customary conditions.

The purchase of the businesses will come from People Infrastructure’s existing cash reserves.

Furthermore, the company is projecting the procurement will generate $1.3 million in earnings before interest, tax, depreciation and amortisation (EBITDA) over the next 12 months.

What did the CEO say?

Mr David Cuda, People Infrastructure CEO, commented on the takeover, saying:

The acquisition of eCareer and Illuminate is highly complementary to our existing Victorian and Queensland focused technology staffing businesses. The Business is well entrenched in the NSW market and will enable further growth in the technology on-hire contracting market to NSW government departments, large banking, finance and insurance organisations, all of whom are large users of on-hire staffing services.

People Infrastructure is especially attracted to the Business due to its strong position in the NSW technology on-hire contracting market, its long-term relationships with its customers and proven leadership team who all have significant tenures within the Business and technology staffing industry.

About the People Infrastructure share price

The People Infrastructure share price has rebounded strongly since its March lows of 90 cents. Since the beginning of the year, the company’s shares have risen by around 8%, outperforming the All Ordinaries Index (ASX: XAO).

People Infrastructure has a market capitalisation of $314.9 million and a price-to-earnings (P/E) ratio of 16.7.

More reading

• 3 small cap ASX tech shares growing at a rapid rate
• 3 little-known ASX shares rated as buys by fundie

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the People Infrastructure (ASX:PPE) share price will be on watch today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oUqjrk

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 12.7% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 8.5%.

These are the two ASX shares that WAM outlined in its most recent monthly update and were one of WAM Leaders’ biggest 20 positions:

National Australia Bank Ltd (ASX: NAB)

WAM Leaders said that November marked a turning point on sentiment for the banking sector, driven by falling mortgage deferrals, the US presidential election result and several coronavirus vaccine developments.

The LIC also pointed out a positive from NAB’s FY20 result in early November compared to the other major banks was that the net interest margin (NIM) only declined by three basis points, whereas the other big major banks showed double digit NIM declines.

NAB also reported that its underlying profit in FY20 only fell by 12% to $8.2 billion. However, cash earnings dropped 36.6% to $3.7 billion and statutory profit fell 46.7% to $2.56 billion. Statutory earnings per share (EPS) declined by 51% to 80.5 cents.

FY20 credit charges for the ASX share included $1.86 billion of provisions to reflect the potential COVID-19 impacts, which included $388 million for targeted sectors experiencing elevated levels of risk including aviation, tourism, hospitality and entertainment, retail trade and commercial property.

The decline in profit caused the bank to reduce its full year dividend by 64% to 60 cents per share.

The fundie said that with a new management team driving a turnaround strategy, conservative provisions and a strong balance sheet, the investment team is confident on the outlook for NAB and expect the positive recovery trends to continue into 2021.

Santos Ltd (ASX: STO)

In November, WAM Leaders positioned the portfolio to take advantage of the rotation towards base metals and oil companies.

Santos is headquartered in Adelaide and it’s Australia’s second largest oil and gas producer.

The outperformance of the Santos share price during November was driven by oil prices reaching an eight month high in late November amid a weakening US dollar, a surprise decline in US crude supplies and coronavirus vaccine news.

On 1 December, Santos upgraded its 2020 production guidance to 87 to 89 million barrels of oil, and WAM Leaders believes it is well positioned to benefit from the economic recovery going forward. The new guidance represents 15% to 18% production growth for the year and it’s growth of more than 50% since 2015.

The ASX share also said that it’s on track to deliver production cost reductions announced in March in response to the COVID-19 pandemic, which sees 2020 guidance lowered to $8 to $8.50 per barrel of oil.

Santos CEO and managing director Kevin Gallagher said: “Our strategy has been to establish a disciplined low-cost operating model that delivers strong free cash flows through the oil price cycle. Our 2020 forecast free cash flow breakeven oil price is less than US$25 per barrel before hedging and around US$20 per barrel after hedging.”

Santos has been a core position in WAM Leaders due to management’s cost discipline and focus on profitable projects.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• NAB almost had $22m defrauded before man’s arrest
• Are ASX energy shares the best pandemic recovery play in 2021?
• Why the NAB (ASX:NAB) share price climbed higher today

Motley Fool contributor Tristan Harrison 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.

The post Wilson Asset Management thinks these 2 ASX shares are a buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38hYuCm

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 12.7% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 8.5%.

These are the two ASX shares that WAM outlined in its most recent monthly update and were one of WAM Leaders’ biggest 20 positions:

National Australia Bank Ltd (ASX: NAB)

WAM Leaders said that November marked a turning point on sentiment for the banking sector, driven by falling mortgage deferrals, the US presidential election result and several coronavirus vaccine developments.

The LIC also pointed out a positive from NAB’s FY20 result in early November compared to the other major banks was that the net interest margin (NIM) only declined by three basis points, whereas the other big major banks showed double digit NIM declines.

NAB also reported that its underlying profit in FY20 only fell by 12% to $8.2 billion. However, cash earnings dropped 36.6% to $3.7 billion and statutory profit fell 46.7% to $2.56 billion. Statutory earnings per share (EPS) declined by 51% to 80.5 cents.

FY20 credit charges for the ASX share included $1.86 billion of provisions to reflect the potential COVID-19 impacts, which included $388 million for targeted sectors experiencing elevated levels of risk including aviation, tourism, hospitality and entertainment, retail trade and commercial property.

The decline in profit caused the bank to reduce its full year dividend by 64% to 60 cents per share.

The fundie said that with a new management team driving a turnaround strategy, conservative provisions and a strong balance sheet, the investment team is confident on the outlook for NAB and expect the positive recovery trends to continue into 2021.

Santos Ltd (ASX: STO)

In November, WAM Leaders positioned the portfolio to take advantage of the rotation towards base metals and oil companies.

Santos is headquartered in Adelaide and it’s Australia’s second largest oil and gas producer.

The outperformance of the Santos share price during November was driven by oil prices reaching an eight month high in late November amid a weakening US dollar, a surprise decline in US crude supplies and coronavirus vaccine news.

On 1 December, Santos upgraded its 2020 production guidance to 87 to 89 million barrels of oil, and WAM Leaders believes it is well positioned to benefit from the economic recovery going forward. The new guidance represents 15% to 18% production growth for the year and it’s growth of more than 50% since 2015.

The ASX share also said that it’s on track to deliver production cost reductions announced in March in response to the COVID-19 pandemic, which sees 2020 guidance lowered to $8 to $8.50 per barrel of oil.

Santos CEO and managing director Kevin Gallagher said: “Our strategy has been to establish a disciplined low-cost operating model that delivers strong free cash flows through the oil price cycle. Our 2020 forecast free cash flow breakeven oil price is less than US$25 per barrel before hedging and around US$20 per barrel after hedging.”

Santos has been a core position in WAM Leaders due to management’s cost discipline and focus on profitable projects.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• NAB almost had $22m defrauded before man’s arrest
• Are ASX energy shares the best pandemic recovery play in 2021?
• Why the NAB (ASX:NAB) share price climbed higher today

Motley Fool contributor Tristan Harrison 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.

The post Wilson Asset Management thinks these 2 ASX shares are a buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38hYuCm

The REA Group Limited (ASX: REA) share price will be on watch this morning after a late announcement on Thursday.

What did REA Group announce?

After the market close on Thursday, the property listings company provided an update on its stake in India-based Elara Technologies.

At the end of October, REA Group announced an agreement to increase its holding in Elara. This was to be achieved through a combination of subscribing for new preference shares and the acquisition of the existing shareholdings of certain minority shareholders.

According to the release, REA Group’s shareholding in Elara now has increased from 13.5% to 54.3%. The company also now has the right to appoint 5 out of 9 Elara board seats and will consolidate Elara’s financial results effective 31 December 2020.

What is Elara Technologies?

Elara Technologies is the operator of India’s fastest growing digital real estate business based on audience size.

It has established brands Housing.com, PropTiger.com and Makaan.com operating in the world’s fastest growing trillion-dollar economy. Management notes that it has continued to increase its market share during the pandemic, delivering excellent audience and customer growth over the past two years.

What did this cost REA Group?

The release reveals that REA Group has paid a total of US$34.5 million in cash (A$48.9 million) and issued of 318,323 new shares with a market value of A$46.8 million. This brings the total consideration to A$95.7 million.

In addition to this, REA Group revealed that its majority shareholder, News Corporation (ASX: NWS), has subscribed for US$34.5 million of preference shares in Elara. This has increased the media giant’s shareholding in Elara to 39%. This means that REA Group and News Corp now own 93.3% of Elara.

Following the subscription of preference shares, Elara has repaid its debt facility.

What now?

REA Group has offered to acquire the remaining 6.7% minority interest in Elara and this process is expected to complete prior to the end of the calendar year.

If fully accepted, the consideration for the remaining minority interest will be paid by the issue of a maximum of 107,355 REA Group shares with an estimated market value of approximately A$15.8 million.

Management has advised that the final position will be updated with the release of its half year results in February.

More reading

• Top brokers name 3 ASX shares to sell today
• Why the REA Group (ASX:REA) share price just hit a new record high
• 3 ASX growth shares to add to your portfolio in 2021
• 2 outstanding blue chip ASX shares to buy in 2021
• News Corp (ASX:NWS) shares sink after Foxtel buyout rejected

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post REA Group (ASX:REA) share price on watch after acquisition update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2KieMDn

If you’re looking for strong returns over the next decade, but small caps are too risky for your tastes, then you might want to take a look at the mid cap space.

This is because mid cap shares traditionally carry less risk than small caps but offer stronger potential returns than large caps.

With that in mind, I have picked out two top mid cap ASX shares which are highly rated:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a leading online retailer of beauty and personal care products. At the last count, the company had over 590,000 Active Customers across the ANZ region and was expecting to generate first half revenue of approximately $95.2 million from them. This is almost double what it achieved in the prior corresponding period.

Even if you annualise the figure to ~$180 million, this is still only a very small slice of an ANZ beauty and personal care products market that was worth $10.9 billion in 2019. This gives Adore Beauty a significant runway for growth in the 2020s.

One broker that likes what it sees here is Morgan Stanley. Earlier this month it put an overweight rating and $8.35 price target on the company’s shares. This compares to the current Adore Beauty share price of $5.20.

Collins Foods Ltd (ASX: CKF)

Another ASX mid cap share to look at is Collins Foods. It is a major KFC franchisee in Australia and Europe and a Taco Bell franchisee in Australia. At present, Collins Foods operates 243 KFC restaurants across Australia and 41 restaurants across Germany and the Netherlands.

It has been a strong performer in 2020 and recently revealed an 11.3% increase in half year revenue to $499.6 million. Things were even better on the bottom line, with the company reporting a 15.1% jumped in underlying net profit after tax to $27.5 million.

Analysts at UBS were impressed with this result, which smashed their estimates. The broker also appears confident that a number of favourable trends will keep this positive form going. In light of this, it put a buy rating and $11.65 price target on the company’s shares. This compares to the latest Collins Foods share price of $10.13.

More reading

• 2 ASX shares to buy with big international growth plans
• Why this analyst thinks the Domino’s (ASX:DMP) share price is a ‘buy’
• Top ASX shares to buy in December 2020
• Top brokers name 3 ASX shares to buy today
• ASX 200 rises on Tuesday

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 highly rated mid cap ASX shares to buy for 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37r3qG4

With the interest rates on term deposits falling to ultra low levels, it has become very hard for investors to generate a sufficient income from this popular financial asset.

Fortunately, there are a good number of dividend shares which can replace your term deposits and provide you with generous yields.

Two to consider are listed below. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The Big Australian is one of the world’s largest miners and the owner of a portfolio of world class and low cost operations. With iron ore and copper prices trading at lofty levels and oil prices hitting nine-month highs this week, the company is in a great position to deliver another strong full year result in FY 2021.

Analysts at Macquarie certainly expect this to be the case. Last week the broker put an outperform rating and $46.00 price target on the miner’s shares. It is also forecasting a fully franked ~$3.85 per share dividend in FY 2021. Based on the current BHP share price, this represents a very generous 8.9% dividend yield.

Westpac Banking Corp (ASX: WBC)

With the banking sector appearing to be over the worst of its COVID issues, APRA allowing unrestricted dividend payments, and house prices tipped to climb materially next year, the big four banks have become very popular with investors in recent months. The good news is that one leading broker doesn’t believe it is too late to invest.

According to a recent note out of UBS, its analysts have a buy rating and $22.00 price target. The broker is also forecasting a $1.00 per share dividend in FY 2021 and then a $1.20 per share dividend in FY 2022. Based on the current Westpac share price, this represents fully franked ~5% and 5.9% dividend yields, respectively.

More reading

• What today’s economic outlook means for the BHP (ASX:BHP) share price
• Top brokers name 3 ASX shares to buy today
• Brokers warning high iron ore prices are unsustainable
• The ASX bank with the best dividend yield under APRA’s new guidelines
• Here’s how ASX 200 bank shares have performed in 2020 so far

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

The post 2 quality ASX dividend shares with 5%+ yields appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34l7eXk

On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed higher. The benchmark index rose 1.15% to 6,756.7 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 futures pointing lower.

The Australian share market looks set to end the week in a subdued manner. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points lower. This is despite US stocks climbing higher overnight. In late trade the Dow Jones is up 0.4%, the S&P 500 is up 0.5%, and the Nasdaq is up 0.7%

Rio Tinto names its new chief executive.

The Rio Tinto Limited (ASX: RIO) share price could be on the move today after announcing the appointment of its new chief executive. The mining giant is replacing outgoing Chief Executive, J-S Jacques, with its Executive Director and Chief Financial Officer, Jakob Stausholm. He will commence in the role on 1 January 2021. The company notes that since joining Rio Tinto in 2018, Mr Stausholm has played a leading role in its strong performance.

Oil prices push higher again.

Energy producers including Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) could end the week on a high after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 0.85% to US$48.23 a barrel and the Brent crude oil price is 0.45% higher to US$51.31 a barrel. Oil prices climbed to nine-month highs thanks to positive progress with US stimulus.

A2 Milk to return

The A2 Milk Company Ltd (ASX: A2M) share price will be one to watch closely on Friday. On Thursday the infant formula and fresh milk company requested a trading halt after it became aware of “information” that could impact its guidance for FY 2021. No further details were revealed, but there is speculation that a downgrade is coming

Gold price jumps.

Gold miners such as Newcrest Mining Ltd (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could finish the week strongly after the gold price jumped overnight. According to CNBC, the spot gold price is up a sizeable 1.55% to US$1,887.90 an ounce. The precious metal was given a boost when the US made significant progress with its COVID stimulus.

More reading

• Rio Tinto (ASX:RIO) share price on watch after naming new CEO
• ASX 200 rises on Thursday
• Leading broker just upgraded these ASX gold stocks to “buy”
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• Why the ASX 200 could be the Nasdaq of 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3p2B0bc