Last week, the S&P/ASX 200 Index (ASX: XJO) managed to shake off its jitters and push decisively back above the 6,000 point threshold.

It was a stunning week for ASX shares. Gains were enjoyed by blue chips and small caps alike, but it was growth shares in the tech and payments space that really stole the show. As it usually is these days, Afterpay Ltd (ASX: APT) was in the hot seat. Afterpay shares had yet another resoundingly successful week, rising by more than 18% to print a succession of new all-time highs. The Afterpay share price was trading at $67.50 on Friday afternoon after rising as high as $70 (the new highwater mark) earlier in the day. Since Afterpay reached lows of $8.01 in late March, the shares have now soared more than 742%, truly extraordinary stuff for a 3-month period. At this rate, Afterpay is now looking at membership of the exclusive ASX 20 club — unthinkable just a few months ago.

Afterpay and ASX tech shares push ASX 200 higher

The ASX 200 is now at a 3-week high and back above the psychologically important 6,000 point mark, which it briefly breached in early June before getting cold feet.

It wasn’t just Afterpay that was inducing giddiness in the markets last week though. Xero Limited (ASX: XRO) managed a new all-time high on Friday ($93.26 to be precise), and was also joined intra-day by Nextdc Ltd (ASX: NXT) at $11.12 and Temple & Webster Group Ltd (ASX: TPW) at $7.59.

Illustrating just how much tech shares were influencing the broader market last week, take note of how the S&P/ASX All Technology Index (ASX: XTX) rose by more than 6% over the week.

But the party couldn’t be contained to just ASX tech shares. ASX blue chips like Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS) notched up 5.01% and 7.35% gains respectively. Even Commonwealth Bank of Australia (ASX: CBA) managed to eke out a 3.32% rise over the 5 days.

We also saw the ‘new’ TPG Telecom Ltd (ASX: TPG) in action for the first time after the old TPG successfully completed its merger with Vodafone and joined forces in matrimony. Singapore-based TPG-spinoff Tuas Ltd (ASX: TUA) also hit the boards last week.

Oh, and National Australia Bank Ltd. (ASX: NAB) paid its first post-COVID dividend of 30 cents per share, well below the 80+ cents per share shareholders are normally accustomed to.

How did the markets end the week?

After finishing the week prior at 5,904.1 points, the ASX 200 managed to finish last week 153.8 points higher at 6,057.9 points – a healthy 2.6% increase. Monday ended up being the only day when the ASX 200 shed value last week, banking a hefty 1.8% loss. But Tuesday, Wednesday, Thursday and Friday all saw this loss erased and new gains made. Thursday was the standout performer, delivering a 1.8% surge.

Meanwhile, the All Ordinaries (INDEXASX: XAO) also had a strong week, rising from 6,011.8 points to 6,163.7 points for a 2.5% gain.

Which ASX 200 shares were the biggest winners and losers?

Now, let’s kick back and indulge in some gossip over last week’s best and worst performers. As always, we’ll start with the losers:

Worst ASX 200 losers	% loss for the week
Adbri Ltd (ASX: ABC)	(26.1%)
Perenti Global Ltd (ASX: PRN)	(8.3%)
Southern Cross Media Group Ltd (ASX: SXL)	(7.9%)
Reliance Worldwide Corporation Ltd (ASX: RWC)	(6.21%)

Taking out last week’s wooden spoon was Adbri (formerly known as Adelaide Brighton). This construction materials company was not in ASX investors’ good books last week after US-based aluminium producer Alcoa decided not to renew a lime supply contract with the company.

Mining engineer Perenti was also not in favour after reporting that its profits for the 2020 financial year are expected to come in around 4-8% lower than it initially expected.

Perennial loser Southern Cross couldn’t keep itself out of the bad books last week either. This advertising company has been hammered hard during the coronavirus crisis, with economy-wide cuts to advertising expenditure hurting this company badly.

Now the losers are out of the way, let’s take a look at who was taking home trophies last week:

Best ASX 200 gainers	% gain for the week
Afterpay Ltd (ASX: APT)	18.4%
Nearmap Ltd (ASX: NEA)	17.5%
NextDC Ltd (ASX: NXT)	14.6%
Domain Holdings Australia Ltd (ASX: DHG)	14.3%

As we discussed earlier, Afterpay went home with the silver spoon last week. Investors simply can’t get enough of this buy now, pay later (BNPL) company and now look to be happy owning it at any cost.

Meanwhile, aerial mapping company Nearmap took out the second spot last week after some favourable broker notes bumped up this share on investors’ horizons.

NextDC was another winner, which investors started climbing into after the company announced the signing of several new and exciting contracts for New South Wales.

Finally, Fairfax’s old online property marketplace Domain also had a stellar week, despite no obvious reason why.

What is this week looking like for the ASX 200?

New cases of coronavirus infections in Victoria last week, as well as ongoing social unrest over in the United States, didn’t seem to bother investors at all.

Even so, I think these two areas are the spaces to watch as we start another week in paradise. Investor sentiment (although surprisingly robust in recent times) can still turn on a dime, and, in my view, all ASX investors should keep this in mind.

So before we go, here’s a look at how the major ASX blue chip shares are looking:

And finally, here is the lay of the land for some leading market indicators:

•     S&P/ASX 200 (XJO) at 6,057.9 points
•     All Ordinaries (XAO) at 6,163.7 points
•     Dow Jones Industrial Average at 25,827.36 points after rising 0.36% on Thursday night (our time)
•     Gold (Spot) swapping hands for US$1,784.50 per troy ounce
•     Iron ore asking US$98.94 per tonne
•     Crude oil (Brent) trading at US$42.85 per barrel
•     Crude oil (WTI) going for US$40.30 per barrel
•     Australian dollar buying 69.37 US cents
•    10-year Australian Government bonds yielding 0.90% per annum

Foolish takeaway

Market exuberance (the likes of which we may be seeing in shares like Afterpay) is always fun to watch (and even better to gain from). But like investing legend Benjamin Graham once said, the market is a voting machine in the short term, and a weighing machine in the long term.

Right now, investors are certainly voting Afterpay and other ASX tech shares higher. But I would say to anyone who wants to join the bandwagon, make sure you’re buying assets with weight behind them. Otherwise, you might be caught short if and when the voters stampede the other way. So, as always, stay safe, stay rational and stay Foolish!

More reading

• Altium and 2 more ASX 200 shares to watch this week
• Why Domino’s and these ASX 200 shares have just hit new highs
• Why I would buy Wesfarmers and these quality ASX dividend shares
• These are 10 most shorted shares on the ASX
• 5 things to watch on the ASX 200 on Monday

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Nearmap Ltd., Reliance Worldwide Limited, and Xero. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Nearmap Ltd. and Reliance Worldwide 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.

The post ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000 appeared first on Motley Fool Australia.

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If you’re looking to add some dividend shares to your portfolio this week, then you’re in luck.

Listed below are three top ASX dividend shares which I think are in the buy zone right now. Here’s why I like them:

Aventus Group (ASX: AVN)

I think this retail property company could be a dividend share to buy. Aventus specialises in large format retail parks and has a portfolio of 20 centres across Australia. I like the company due to the fact that its rental income has a reasonably high weighting towards everyday needs. I believe this leaves it better positioned than others in the sector to navigate the tough trading conditions. In addition to this, thanks to a sharp pullback in the Aventus share price, I estimate that it offers investors a very generous 7% FY 2021 distribution yield at present. 

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software which has continued its solid form during the pandemic. Last week it released a half year update and revealed unaudited first half revenue of $1 billion and net profit before tax of $40 million. This was an increase of 18.3% and 25%, respectively, on the prior corresponding period. Looking ahead, the company intends to lift its dividend to 35.5 cents per share this year. Based on the latest Dicker Data share price, this equates to a fully franked 4.6% dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is this conglomerate. I like Wesfarmers due to its portfolio of strong businesses, high quality management team, and its sizeable cash balance. I suspect the latter two will combine in the near future to make some earnings accretive acquisitions that bolster its growth over the 2020s. Combined with the positive outlooks of its key businesses such as Bunnings and Kmart, I believe Wesfarmers is well-placed to grow its dividend at a solid rate for the foreseeable future. Based on the current Wesfarmers share price, I estimate that it offers a fully franked 3.4% FY 2021 dividend yield.

More reading

• Diversify your portfolio with BHP, ResMed, and Wesfarmers shares
• Why I think these ASX dividend shares are strong buys
• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• Dicker Data share price surges higher after revealing strong first half profit growth
• 3 top ASX dividend shares to buy for FY21

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

The post Why I would buy Wesfarmers and these quality ASX dividend shares appeared first on Motley Fool Australia.

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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Myer Holdings Ltd (ASX: MYR) continues to be the most shorted ASX share with short interest of 12.6%. Investors appear concerned that the department store operator could be left behind by the accelerating shift to online shopping. Also of note is news that QBE Insurance Group Ltd (ASX: QBE) has stopped providing insurance to suppliers who want to cover the risk of not getting paid by Myer.
• Speedcast International Ltd (ASX: SDA) has short interest of 11.7%. This communications satellite technology provider’s shares have been suspended for many months as it declares itself bankrupt.
• Inghams Group Ltd (ASX: ING) has 9.35% of its shares held short, which is up slightly week on week. Earlier this year the poultry company warned that the pandemic had caused an unfavourable shift in its sales mix. This looks set to lead to a disappointing result in FY 2020.
• Webjet Limited (ASX: WEB) has seen its short interest reduce to 9.1%. Short sellers appear to believe that Webjet’s shares are overvalued and that the market is expecting too much from the travel booker in the near term.
• Bank of Queensland Limited (ASX: BOQ) has seen its short interest reduce to 8.6%. Short sellers have been going after the regional bank following a soft half year result and a weak outlook.
• Nearmap Ltd (ASX: NEA) has seen its short interest edge lower again to 8.5%. Short sellers may be regretting this one. Last week the aerial imagery and location data technology company’s shares rocketed higher after being the subject of a positive broker note.
• Southern Cross Media Group Ltd (ASX: SXL) has seen its short interest rise to 8.3%. The media company appears to have been targeted due to weak advertising markets. Some of its rivals have noted that advertisers are pushing back campaigns until later this year because of the pandemic.
• Galaxy Resources Limited (ASX: GXY) has 8.1% of its shares held short, which up week on week. Short sellers have been targeting Galaxy due to the sustained weakness in lithium prices.
• Clinuvel Pharmaceuticals Limited (ASX: CUV) has seen its short interest fall to 8%. I suspect that short sellers are going after this biopharmaceutical company due to its lofty valuation.
• JB Hi-Fi Limited (ASX: JBH) has returned to the top ten with 7.7% of its shares held short. Short sellers refuse to give up on the retail giant despite its strong performance during the pandemic.

More reading

• The Webjet share price is dividing analysts even as it becomes a likely takeover target
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Where to invest $5,000 into ASX 200 shares immediately

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Nearmap 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.

The post These are 10 most shorted shares on the ASX appeared first on Motley Fool Australia.

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The Electro Optic Systems Hldg Ltd (ASX: EOS) share price is due to return from its trading halt this morning and will be one to watch.

This follows the release of a major announcement by the aerospace and defence-focused technology company on Friday evening.

What did Electro Optic Systems announce?

Electro Optic Systems has announced that it has entered into contract negotiations with the Commonwealth of Australia for the acquisition of 251 Remote Weapon Stations and related materiel.

According to the release, this acquisition activity is part of the $270 billion capability upgrade for the Australian Defence Force, under the new 2020 Force Structure Plan.

Prime Minister Scott Morrison commented: “The Federal Government is committed to ensuring Australian Defence Force personnel have the tools they need to protect themselves and keep Australians safe.”

“At the same time we must have a robust and resilient defence industry that maximises opportunities for small businesses and supports Australian jobs and local investment,” he added.

Minister for Defence Senator Linda Reynolds CSC notes that the 2020 Force Structure Plan will strengthen the Australian Defence Force’s (ADF) capabilities to respond to an increasingly challenging strategic environment.

Senator Reynolds explained: “The Morrison Government is investing a record $270 billion in Defence capability and infrastructure over the next decade. Investments such as the acquisition of Remote Weapon Stations will make the ADF more capable for the wide range of potential scenarios and threats Australia will face in the future.”

What are Remote Weapon Stations?

Electro Optic Systems’ offers a range of fully stabilised remotely operated weapon stations that can be integrated on various vehicle platforms and used for different mission profiles.

Its remote weapon systems ensure full weapon readiness while the crew operate the system protected within the vehicle. All its stations have been designed with a high level of commonality and modularity to offer users a flexible firepower solution.

What now?

Management advised that the execution of a formal agreement with the Commonwealth of Australia is subject to negotiation and may be subject to certain conditions.

It intends to provide further details when negotiations are complete and a contract has been executed.

Importantly, the acquisition will not interfere with any existing export orders because those have been deferred by customers for up to 12 months and will remain in backlog for later delivery.

Foolish Takeaway.

This is undoubtedly a major milestone for Electro Optic Systems and its shareholders.

And while the contract terms have yet to be released, I suspect this news could propel the Electro Optic Systems share price materially higher during trade on Monday.

More reading

• Best growth shares to buy with $4,000
• Keep a watch on these 3 ASX trends next week

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 Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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.

The post Electro Optic Systems share price on watch after winning major government defence contract appeared first on Motley Fool Australia.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a high. The benchmark index rose 0.4% to 6,057.9 points.

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

ASX 200 set to edge lower.

The ASX 200 looks set to give back some of its gains on Monday. According to the latest SPI futures, the benchmark index is expected to open the week 35 points or 0.6% lower this morning. Wall Street was closed on Friday for the Independence Day holiday. In Europe the Dax fell 0.65% and the FTSE tumbled 1.3% lower after coronavirus cases jumped again.

Oil prices drop lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.8% to US$40.32 a barrel and the Brent crude oil price fell 0.8% to US$42.80 a barrel. Oil prices fell after growing coronavirus cases led to fuel demand worries.

Gold price softens.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price softened. According to CNBC, the spot gold price fell 0.15% to US$1,787.80 an ounce despite European equities tumbling lower.

Adbri rated neutral.

The Adbri Ltd (ASX: ABC) share price was a very poor performer on Friday after announcing the non-renewal of a supply contract with Alcoa of Australia. One broker that is concerned by this news is Goldman Sachs. It commented: “Lime import pressures have been an ongoing risk in the WA market, with the contractual loss impacted by a decision to displace local production with a single importer sourcing from a number of locations throughout the region. ABC have also historically priced contracts vs IPP, implying the loss may have been driven by additional factors beyond price.” It has a neutral rating and $2.61 price target on Adbri’s shares.

Iron ore price rises.

It could be a positive day of trade for miners such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) after the iron ore price jumped. According to the AFR, the spot benchmark iron ore price rose a solid 1.2% on Friday to end the week at US$100.65 a tonne.

More reading

• 5 ASX shares rated as strong buys by brokers
• Gold at record highs! Are ASX gold miners or ETFs a better bet?
• The Webjet share price is dividing analysts even as it becomes a likely takeover target
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

Motley Fool contributor James Mickleboro 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.

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

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