Brainchip Holdings Ltd (ASX: BRN) shares are once again topping the ASX charts today. You might think it would be because of a share price movement. After all, the Brainchip share price has quickly become one of the hottest stocks of discussion around the proverbial watercooler in recent weeks. That’s what tends to happen when a share goes from 5 cents in May to 75 cents by September (a 1,400% return). In fact, just today, Brainship shares have fluctuated between 97 cents and 64 cents a share. Talk about volatile!

But no, Brainship’s share price movements today are not what we’re here to talk about. At the time of writing, the shares are ‘only’ up 2.74%. Very ‘ho-hum’ when you consider other All Ordinaries Index (ASX: XAO) shares like Nitro Software Ltd (ASX: NTO) are up more than 5%.

No, today we’re talking about Brainchip in terms of volume.

Volume refers to the sheer number of shares that are swapping hands on any given day. Normally, it’s the S&P/ASX 200 Index (ASX: XJO) blue chip shares like Westpac Banking Corp (ASX: WBC), Telstra Corporation Ltd (ASX: TLS) and CSL Limited (ASX: CSL) that top the volume charts most days, as they are the largest, most liquid and most heavily traded companies on the market.

So according to data from Commonwealth Bank of Australia‘s (ASX: CBA) CommSec platform, around 10.28 million Westpac shares have been traded today. For Telstra, it’s 53.33 million. CSL shares? Just 1.14 million (probably explained by CSL’s relatively large share price).

Brainchip?

Hold onto your seats. According to CommSec, 367.15 million Brainchip shares have changed hands today. That’s more than Westpac, Telstra, CSL, CBA, Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) — put together.

Yowser! No wonder Brainship went from 97 cents to 64 cents back up to 76 cents in one day.

Why Brainship shares are topping the volume charts today

This mindboggling volume figure can only be put down to one thing in my view – short-term trading. When a share like Brainchip gives investors such ridiculous gains in a very short space of time, you are going to see a lot of investors flood in to try and make a quick 10-20%. Those kinds of investors typically have a lot riding on the ‘bet’, so they tend to be very ‘trigger-happy’ with their buying and selling.

We Fools don’t really like to see this kind of thing play out. It’s opportunism at its worst and just evident of pure gambling in my view. So if you’re bullish on Brainchip, just ignore this kind of noise and focus on your long-term thesis. If you’re looking to buy into Brainchip (hopefully not because of its recent share price moves alone), I think waiting until some of this froth has subsided is probably a good idea.

More reading

• Why the Clean TeQ (ASX:CLQ) share price fell 10% today
• ASX banks facing new battle with zombie army
• Why you should use the market sell-off to buy these ASX stocks
• Correction or crash for ASX 200 shares?
• ‘We could be heading for a lot of pain’

Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Nitro Software Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Graincorp Ltd (ASX: GNC) share price fell sharply today, closing the day down 8.86%.

That’s a far steeper loss than the All Ordinaries Index (ASX: XAO), which finished the day down 2.1%.

Year-to-date, however, Graincorp has handily beaten the index, with a share price gain of 8.7%, even after today’s losses. Meanwhile, the All Ords is still down 11% since 2 January.

What does Graincorp do?

GrainCorp is an Australian agribusiness founded in 1916, when it was administered as a branch of New South Wales’ Department of Agriculture. Today it operates in more than 30 countries, providing a range of products and services with a focus on grains, oilseeds, pulses, edible oils and feeds.

The company has an integrated supply chain, starting from accumulation and storage which links up to road and rail freight options as well as port facilities. GrainCorp’s malt segment was spun-off into a new ASX-listed entity, United Malt Group Ltd (ASX: UMG), in early

Graincorp’s shares first began trading on the ASX in 1998.

Why could the Graincorp share price run higher from here?

A large part of Graincorp’s business stems from the storage and transport of grains. Logically then, if the grain harvest goes up, so too does Graincorp’s business, and potentially its share price.

That’s where the latest Australian crop report – released yesterday by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) – comes in handy. And the report indicates Australia’s agricultural output, overall, is in for a large uptick.

That’s largely due to the solid rainfall and favourable weather patterns most regions experienced in spring, seeing winter crops flourish and offering a good start for the coming summer crops.

ABARES forecasts that Australia’s winter crop production will increase by 64% in 2020–21. If that proves correct, production will be at levels 20% higher than the previous 10-year average.

Wheat is looking particularly strong, with production forecast to increase 91% year-on-year, up 22% from its 10-year average. Barley production is also forecast to swell, up 23% from the 10-year average.

With crops, as a whole, off to a good start in spring, ABARES is also forecasting a 194% increase in Australia’s summer crop output.

With the Graincorp share price down over 11% since Tuesday’s opening bell, investors don’t appear to be pricing in a likely big increase in the demand for its services over the coming months. But if the ABARES forecast pans out, that increase should be coming.

More reading

• Top brokers are urging you to buy these ASX stocks in this market meltdown

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With interest rates at record lows and unlikely to be lifting any time soon, if I had $10,000 in a savings account, I would consider putting it to work in the share market instead.

After all, the potential returns on offer from the share market are many times greater than the return you’ll get from a bank account.

But where should you invest $10,000 right now? Here are four ASX shares I would buy with these funds:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to consider investing $10,000 into is Aristocrat Leisure. Although this gaming technology company’s poker machine business has been hit hard by the pandemic, the majority of casinos globally are now open again. I expect this to lead to a rebound in demand for its industry-leading machines in the near future. This could mean that both its core business and its fast-growing Digital business will soon be pulling together.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a fast-growing donor management platform provider for the faith and not-for-profit sectors. I think it would be an excellent place to invest $10,000. Pushpay has been growing at an impressive rate over the last few years and shows no signs of stopping any time soon. It recently provided guidance for more strong growth in FY 2021. Looking even further ahead, the company is targeting a 50% share of the medium to large church market. This is a US$1 billion opportunity, which is many times greater than its current revenue.

REA Group Limited (ASX: REA)

Another option to consider is REA Group. It is the owner and operator of the dominant realestate.com.au website and several international equivalents. I’ve been very impressed with the resilience of its business and the way it has successfully delivered earnings growth even in the toughest of trading conditions. I’m optimistic that conditions will improve greatly once the pandemic passes, and its growth will accelerate.

ResMed Inc. (ASX: RMD)

A final ASX share to consider investing $10,000 into is ResMed. It is a medical device company which is focused on the sleep treatment market. Thanks to its world class products, growing addressable market, and exciting software business, I believe it is well-placed to deliver strong earnings growth over the long term.

More reading

• 2 top ASX shares I’d buy with $2,000
• 3 ASX shares I’d buy to quickly add diversification
• A practical guide on how to invest in ASX shares
• 3 unstoppable ASX shares to invest $2,000 into right now
• Invest like Warren Buffett and buy and hold these ASX shares

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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX, REA Group Limited, and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for a little exposure to the small side of the market, then you’re in luck.

I believe there are a good number of small cap shares on the Australian share market which have strong long-term growth potential.

Three to add to your watchlist this week are listed below. Here’s why I like them:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider. It is best known for its innovative Dante audio over IP networking solution which is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. Demand for its industry-leading products has been hit this year because of the pandemic, but I’m confident it will bounce back strongly once the crisis passes.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap to watch is Bigtincan. It is a fast-growing provider of sales enablement software. This increasingly popular software provides businesses with the information, content, and tools sales teams need to sell more effectively. Demand for its platform has been growing strongly in recent years and even during the pandemic. This led to it recording strong recurring revenue growth in FY 2020 and guiding to more of the same this year.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap share to watch is Volpara. It is a provider of very smart software that uses artificial intelligence imaging algorithms to support the early detection of breast and lung cancer. Volpara has been growing its recurring revenues at a very strong rate over the last few years. This has been driven by its increasing market share in North America and value enhancing acquisitions. The good news is that due to the growing popularity of its software with radiologists and those recent acquisitions, I expect this positive form to continue in the coming years.

More reading

• 3 small cap ASX growth shares I’d buy with $1,000
• Broker picks best ASX small cap stocks to buy from the reporting season
• New to investing? More ASX growth shares to buy now
• 4 exciting small cap ASX tech shares to watch
• Why Brainchip and these ASX shares just surged to new highs

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 recommends BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended AUDINATEGL FPO, BIGTINCAN FPO, and VOLPARA FPO NZ. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The current market sell-off has created some great opportunities to add some ASX shares to your portfolio. At times like these, you should be looking at the ASX shares that you’ve always wanted to buy but were previously too expensive.

While no one can predict the absolute bottom of the market, choosing quality ASX shares coupled with time is a fool-proof way to build wealth.

Listed below is my top three ASX shares that I believe won’t be trading at bargain prices for very long.

Origin Energy Ltd (ASX: ORG)

As one of Australia’s leading energy retailers, Origin operates across a number of portfolios. Its diversified business model includes energy sales to customers, renewable energy such as wind and solar, gas exploration and production, and power generation from traditional fuels.

The slump in oil prices overnight has had an adverse effect on the Origin share price. At the time of writing, the Origin share price is trading at $4.84, down 5.1%. This reflects a total loss of 45% from its 52-week high of $8.89 achieved in January.

I believe the weakness in this ASX share presents a buying opportunity for long-term investors. Oil is symbolised as the engine of the world, and although it has come to a halt for now, the economy will eventually recover. In light of this, I would be happy to add Origin to my portfolio at its current price.

Cochlear Limited (ASX: COH)

Another ASX share that I think is undervalued is Cochlear. The company is a world leader in implantable hearing solutions. The impacts from COVID-19 have caused difficult trading conditions for this medical business.

During early February, the Cochlear share price reached an all-time high of $254.40 but has since pulled back to $189.55 at the time of writing. This represents a discount of 25% in just a number of months for this quality ASX share.

While management has noted a small fall in patient assessments for cochlear and acoustic implants, the company remains confident that sales will resume post COVID-19. I agree with this statement and think that the Cochlear share price trading at a bargain price.

Woolworths Group Ltd (ASX: WOW)

Woolworths is an Australian conglomerate that has diversified interests in supermarket, liqueur and drink outlets, discount retail chains, and hotels.

Woolworths performed with mixed results of recent times. Its supermarket business has been delivering strong growth while its hotel portfolio has been weighing down group earnings. The company is awaiting approval of its $552 million acquisition of PFD Food Services, a distributor and wholesaler or fresh produce.

The Woolworths share price is down 1.6% today to $36.75 at the time of writing. However, the supermarket giant has tumbled 16% from its all-time high of $43.96 in February.

Woolworths is in the middle of a process to demerge its hotel division to seek a leaner business model. I believe that the Woolworths share price presents value and would class it as a buy.

More reading

• Saudi oil price cut to hit ASX shares
• Here’s why some ASX dividend shares just go nowhere
• Leading brokers name 3 ASX shares to sell today
• 5 things to watch on the ASX 200 on Tuesday
• Here’s why stock-picking is hard (but you should do it, anyway)…

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bubs Australia Ltd (ASX: BUB) share price fell today by 4.65% at the time of writing to 82 cents. This came as the company’s share purchase plan opened to retail shareholders.

What are the terms of the share purchase plan?

The company advised that eligible shareholders would be able to apply to buy up to $30,000 of new fully paid ordinary shares at a price of 80 cents per share.

To participate, eligible shareholders need to have been holding Bubs shares on 2 September 2020 at 7pm Sydney time, with a registered address in Australia or New Zealand. Additionally, those who participated in the company’s previous share purchase plan in December 2019 could only apply for $30,000 less the amount that they subscribed for under the previous share purchase plan. The share purchase plan may be scaled back if retail shareholders apply for more than $11.7 million of shares or at the company’s discretion.

The share purchase plan closes on 23 September 2020 at 5pm Sydney time.

Earlier this month, Bubs Australia raised $28.3 million through a placement to institutional and sophisticated investors at a price of 80 cents per share.

The funds raised by the company will be used to improve balance sheet flexibility, grow the company’s capital, acquire an ownership interest in an infant formula manufacturing facility in China and to expand into new markets with ‘in market’ manufacturing where possible.

About the Bubs Australia share price

Bubs Australia is a producer of infant formula and nutritional products in Australia. Its products are supplied to Australia, China and various other countries in Asia and the Middle East. It has been listed on the ASX since 2017. 

In the year to 30 June 2020, Bubs Australia’s revenue increased 32% to $62 million. Infant formula sales increased 58% to $30 million. The company posted a statutory loss after tax of $8 million in the 2020 financial year compared to a loss of $36 million in the 2019 financial year. 

In July, Bubs Australia entered a memorandum of understanding to produce infant formula in China with the use of Australian goat milk.

Also in July, the company announced that it had appointed celebrity Jennifer Hawkins as its global brand ambassador. 

The Bubs Australia share price is up 107.5% since its 52-week low of 40 cents. However, it has fallen 14.43% since the beginning of the year. The Bubs Australia share price has fallen 29.66% since this time last year.  

More reading

• 2 ASX shares I’d buy with $750 right now
• Bubs share price trading at a 5-month low. Is this a buying opportunity?
• Here’s how to make a $1 million portfolio by investing $1,000 a month
• ASX 200 rises 0.8%, investors bet on SkyCity
• Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Laybuy Holdings Ltd (ASX: LBY) share price is tanking today, down 6.55% at the time of writing to $1.92 a share. LBY shares opened at $1.94 this morning and have essentially remained flat for the rest of the trading day after closing at $2.06 yesterday.

It’s been a topsy-turvy ride for Laybuy, the ASX’s newest buy now, pay later (BNPL) share to get investors’ blood pumping. Laybuy only IPOed on the ASX boards earlier this week. We are talking about an ASX baby here.

That being said, the company has been around since 2017 and has been growing quickly in Australia as well as New Zealand and the United Kingdom. It is not even close to being in fellow BNPL rivals’ Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) in terms of market capitalisation. Even so, today’s moves still value the company at around $360 million, which is nothing to sneeze at given the company has just joined the share market.

A recent IPO

And what an entrance it was. The IPO listing price for Laybuy shares was just $1.41, which the share price handily breezed past when the shares hit the market. Even though Laybuy shares finished at $2.08 on its first day of trading (41% above its IPO price), at one point the shares were asking $2.30, a good 63% above where it started.

Laybuy shares, however, have been in a downwards trend ever since, a trend that today’s trading has only added to.

Why has the Laybuy share price tanked today?

You have to pity this company’s IPO timing. BNPL shares have not had a good 2 weeks. Afterpay is down more than 20% since 25 August, whilst Zip shares are down 31.5% over a similar period. Investors have been bailing out of BNPL shares ever since it was announced that global payments giant PayPal Holdings Inc (NASDAQ: PYPL) will be joining the BNPL fray with its own product offering ‘Pay in 4’.

Add that to the global sell-off in tech shares we’ve seen over the last few days and we can see why the Laybuy share price has been cooling off over the week and today.

Laybuy or Laylow?

Laybuys’ prospects as an investment do look promising. The company has told investors that the gross merchandise value (GMV) of the payments going through its system was up 161% year on year for July and August 2020.

However, I’m increasingly worried about the BNPL sector today. We are now seeing a lot of different players all vying for the relatively small (albeit rapidly growing) BNPL pie. Not only do we have the market leaders in Afterpay and Zip, but we also have Sezzle Inc (ASX: SZL), Splitit Ltd (ASX: SPT), Openpay Group Ltd (ASX: OPY) and the soon to be renamed FlexiGroup Ltd (ASX: FXL). And that’s just on the ASX alone. There’s also Paypal, American Express Company (NYSE: AXP), Mastercard Inc. (NYSE: MA) and Visa Inc (NYSE: V) to think about.

As such, I’m staying away from the sector, and especially from smaller players like Laybuy that still (in my view) have a lot to prove. This is a growing space to be sure, but I don’t think the rising tide will lift all boats.

More reading

• ‘We could be heading for a lot of pain’
• Why the Afterpay Ltd (ASX:APT) share price is falling again
• Why Accent, Afterpay, Nine, & PointsBet shares are dropping lower today
• Tech share prices are down but not out. When should you buy?
• ASX 200 down 2.4%: Afterpay (ASX:APT) and Oil Search (ASX:OSH) sinking lower

Sebastian Bowen owns shares of American Express, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Mastercard, PayPal Holdings, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended FlexiGroup Limited, Mastercard, PayPal Holdings, and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX bank stocks are leading the crash on the S&P/ASX 200 Index (Index:^AXJO) as they have a lot to lose from the COVID-19 fallout.

The battle to recovery for our largest financial institutions may have just gotten tougher by the impending rise of a “zombie army”.

This army isn’t from beyond the graves, although it should still send chills down the spines of ASX investors.

Expected surge in bankruptcies

Data from CreditWatch pointed to a 59% drop in the number of companies going into voluntary administration in August when compared to the 2019 average, reported the Australian Financial Review.

This implies that the government and other COVID-19 support packages are the only lifeline stopping small and medium enterprises (SMEs) from falling over.

It isn’t only JobKeeper wage subsidies that’s allowing the army of fallen companies to keep on trading. The federal government’s moratorium on insolvent trading laws is breathing life into the undead.

ASX Bank earnings risks are growing

But the life support measures are scheduled to be turned off in 2021, which will pose a risk to ASX bank earnings. This is particularly so for National Australia Bank Ltd. (ASX: NAB) as it’s most exposed to SME lending, although the other big banks are also in the firing line.

These include the Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking GrpLtd (ASX: ANZ).

What’s also worrying is the blowout in late payments from businesses. The time it takes for companies to make payment increased to 43 days last month, or 2.9 times longer than in 2019, noted CreditWatch.

D-day for ASX banks in mid-2021

If this isn’t enough to scare you, experts believe full impact of SME loan defaults will only be felt around the middle of next year – roughly the same time as when troubled home loans are expected to hit bank bottom-lines.

The home loan issue comes from distressed mortgagees who have lost their jobs or suffered a wage cut due to COVID-19.

Slumping house prices are making this task more complicated as some borrowers may be forced to sell their homes into a weakening market.

While the worst of the COVID-19 earnings hit seems to have passed for most ASX stocks, things could get uglier for ASX banks in 2021.

ASX bank investors better ready themselves for a fight!

More reading

• Big 4 ASX banks lower in share market selloff
• Why you should use the market sell-off to buy these ASX stocks
• Correction or crash for ASX 200 shares?
• Why the Afterpay Ltd (ASX:APT) share price is falling again
• ASX 200 down 2.4%: Afterpay (ASX:APT) and Oil Search (ASX:OSH) sinking lower

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Anteotech Ltd (ASX: ADO) share price is up 18.75% in late afternoon trading, after initially leaping by nearly 23% this morning. The surge in the Anteotech share price comes on the heels of the company’s announcement to the ASX just after today’s market open. The announcement revealed progress with Anteotech’s high sensitivity COVID-19 antigen rapid test moving toward full commercialisation.

Year to date, the Anteotech share price is now up 90%. That compares to an 11% loss for the All Ordinaries Index (ASX: XAO).

What does Anteotech do?

Anteotech is a surface chemistry company holding IP rights over its core technology product groups. Those are AnteoCoat, AnteoBind and AnteoRelease. The company seeks to solve global industry problems through value-added solutions for its clients, including in the diagnostics, life sciences and energy markets.

Anteotech shares first began trading on the ASX in April 2000.

What’s moving the Anteotech share price?

This morning Anteotech announced it completed the second phase of the development of its COVID-19 high sensitivity antigen test, ‘design verification’, earlier than forecast. The company is now progressing to the third phase of development, ‘design validation’. This phase includes clinical trials to gain regulatory approval.

Anteotech also announced it will roll out its stand alone COVID-19 antigen first to meet urgent demand needs. It will roll out its COVID-19 Flu A / Flu B multiplex test in a second stage later in 2020.

Should clinical trials for the COVID-19 stand alone tests prove successful, the company plans to apply for regulatory approval in Australia and the United States simultaneously. Anteotech estimates that the trials and subsequent approval process will take 5 to 8 months to complete.

Addressing the progress, Anteotech’s CEO, Derek Thomson, said:

We are very pleased with the progress we are making on the COVID-19 antigen Flu A / Flu B test development. We believe we have a proven working COVID-19 test with sensitivity far higher than we originally anticipated and this provides us with confidence that we can make a significant contribution to the fight against COVID-19. Our development program is on track and I thank the Life Sciences team for their continued commitment to this very important project.

Anteotech is currently in discussions with the Therapeutic Goods Administration to determine the precise requirements for the clinical trial in the Australian market.

More reading

• Big 4 ASX banks lower in share market selloff
• How to protect your super in an ASX market crash
• Why you should use the market sell-off to buy these ASX stocks
• Correction or crash for ASX 200 shares?
• 2 ASX ETFs that can solve your income needs

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share prices of the big four ASX banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are all lower. 

It is a tough day for the S&P/ASX 200 Index (ASX: XJO) with the Australian share market being down more than 2%.

The CBA share price is currently down 2.6%. It’s a similar story for the other banks. The Westpac share price is down 3.4%. National Australia Bank Ltd’s (ASX: NAB) share price is down 2.7% and the Australia and New Zealand Banking Group (ASX: ANZ) share price is down 3.4%.

What’s going on?

Most shares in the ASX 200 are down and the big four ASX banks certainly aren’t showing the worst declines at the moment. The unwanted title of worst performer in the ASX 200 currently goes to Graincorp Ltd (ASX: GNC) which is down 8.4%.

There has been large scale selling overseas. Since the start of September there has been steady selling in the US. For example, overnight the Apple share price dropped 6.7% and it’s actually down by 16% since 1 September 2020.

It’s a similar story for many of the US tech shares like Microsoft and Alphabet which have also been sold off heavily.

The selloff has been particularly painful for electric car manufacturer Tesla. It dropped 21% overnight and it’s down 34% since the end of August 2020.

The ASX is heavily influenced in the short-term by what happens in the US share market.

The US share market is often a barometer for the global market because many of the biggest US businesses generate their earnings from across the world. Facebook and Alphabet advertise across the world. Microsoft sells its software across the world. And so on.

Other negative news for the big four ASX banks

COVID-19 has already caused severe impacts across world both in human terms and economic damage.

One of the main things that the world is hoping for is a vaccine. An effective vaccine may allow the world to go back to normal. Or at least a new normal – the world may never be the same again.

However, there has been some unhelpful news from the UK. One of the main vaccine candidates, which is being developed by the University of Oxford and AstraZeneca, has been suspended because a phase 3 trial participant has suffered a potentially unexplained illness according to reporting.

There are 50,000 participants in the trial across the world, with 30,000 people in the United States.

If the whole world could go back to normal then plenty of troubled Australian businesses could see a return of activity. That would be good news for the big four ASX banks because it has loans across many different sectors. Industries like travel, tourism and international education could quickly rebound if people feel safe (and are allowed) to travel.

The big four ASX banks have already recognised billions of dollars of COVID-19 related provisions. Hopefully there aren’t any more large unwanted surprises.

Are they buys?

Every ASX share could be worth a buy if it goes cheap enough. The banks have been drifting lower since the first half of June 2020. But I’m not sure they are clear buys yet.

There is still a lot of uncertainty and the economy could still go through a rough patch, particularly if the vaccine takes longer than expected to recover.

Out of the big four banks, I’d probably prefer CBA because it has a strong balance sheet, a solid dividend in this environment and it seems to have very good leadership which is important under the current conditions.

More reading

• Here’s why some ASX dividend shares just go nowhere
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• ASX 200 up 0.95%: Big four banks rise, Scentre collections improve, Nufarm jumps
• 2 ASX dividend shares to buy instead of CBA
• Will ASX bank shares be dragged down by mortgage pain?

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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