The Regis Resources Limited (ASX: RRL) share price is pushing higher on Monday morning.

In early trade the gold miner’s shares are up almost 1% to $3.74.

What did Regis announce?

Investors have been buying the gold miner’s shares today after it announced that its board has approved the development of a new underground mine under the current Garden Well open pit.

This follows a recently completed positive Feasibility Study (FS) on the Garden Well South (GWS) underground gold project. That study revealed a maiden GWS underground mineral resource estimate of 2.4Mt at 3.6g/t gold for 270,000 ounces.

Management has advised that development will commence in the March 2021 quarter, with the processing of the first underground development ore scheduled for the December 2021 quarter. After which, stope production is scheduled to commence in the June 2022 quarter.

The project has an all-in sustaining cost (AISC) of A$950 to A$1,050 an ounce, with growth capital of A$15 million to A$20 million.

Pleasingly, it may not stop there for Regis. It notes that there is considerable opportunity for additional resources down plunge of the existing GWS resource.

“A major milestone.”

Regis Resources’ Managing Director, Jim Beyer, believes this is a major milestone for the company and its shareholders.

He commented: “The development decision for a second underground mine at our Duketon Operation is another major milestone in the Regis goal of delivering increased shareholder value through organic growth projects.”

“This new underground mine will be a key element in achieving and maintaining our aim for the Duketon Operation to become a reliable 400koz per annum producer. Further, we believe that the approved Garden Well underground is not only a robust investment in its current form but just as importantly has the potential to increase life and value through down plunge exploration,” Mr Beyer concluded.

More reading

• ASX 200 up 0.3%: Premier Investments update, big four banks rise, gold miners tumble
• Why the Regis (ASX:RRL) share price is up today despite sliding gold price

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. 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 Electro Optic Systems Hldg Ltd (ASX: EOS) share price is on the move on Monday after announcing a new contract win.

At the time of writing, the defence, space, and communications company’s shares are up 3% to $6.59.

What did Electro Optic Systems announce?

This morning Electro Optic Systems announced that it has been awarded a $34.4 million contract by the Commonwealth of Australia.

According to the release, the contract is for the Command Control Communications and Computers – Evolutionary Digital Ground Environment (C4 EDGE) program.

The contract sees EOS Defence Systems become the Prime Contractor for an all-Australian industry consortium to demonstrate a sovereign Battlegroup and Below Battlefield Command System (BG-BCS).

Management believes this commitment by the Morrison Government and the Australian Army will support the development of innovative local businesses capable of providing the armed forces with the critical, world-leading communications solutions they will require in the future.

EOS Defence Systems will lead 18 Australian businesses in the C4 EDGE program to demonstrate the local industry’s ability to provide battle critical communications solutions for the land domain.

What is the C4 EDGE solution?

The release explains that the C4 EDGE solution will see EOS Defence Systems incorporate locally sourced combat radios, satellite terminals, cryptography, networking middleware, command applications, user interfaces, batteries, and power management into a coherent system.

The program will utilise Australian design, production, workforce, intellectual property, and supply chain in the development and demonstration of this capability

The CEO of the EOS Defence Systems business, Grant Sanderson, sees a lot of promise in the C4 EDGE solution.

He said: “The C4 EDGE team represents the collaborative effort of world-class Australian companies for the benefit of the Australian Defence Force.”

“The design, development and demonstration of the C4 EDGE solution over the next year will showcase the ability of Australian companies to produce high-tech materiel which EOS will integrate with its own technologies into world-class military systems. The program provides a model to continue growing a capable, connected and resilient sovereign defence industry that employs more Australians,” Mr Sanderson added.

More reading

• Why the Electro Optic Systems (ASX:EOS) share price is shooting higher today

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. 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 Alcidion Group Ltd (ASX: ALC) share price is on the rise on Monday after the release of an announcement.

At the time of writing, the healthcare technology company’s shares are up 8% to 20.5 cents.

What did Alcidion announce?

This morning Alcidion announced an extension of its contract with South Tees Hospitals NHS Foundation Trust in the United Kingdom.

According to the release, the extension will include cloud hosting on Microsoft Azure, a managed service of the hosted environment, Alcidion’s Smartpage clinical communication solution, and business change management services.

The total contract value (TCV) for the extension is $2 million, which increases the TCV of the entire South Tees contract to $11.3 million.

This follows its milestone $9.3 million deal with South Tees for its flagship product suite Miya Precision and the Better OPENeP electronic prescribing and medicines administration (ePMA) system in November.

South Tees is the largest hospital trust in Tees Valley in the United Kingdom. It has over 1,000 beds, employs approximately 9,000 clinical and operational staff, and provides care for more than 1.5 million people.

What is involved with the new contract?

Alcidion’s Smartpage product will provide South Tees with clinical team communication and collaboration capabilities to the Miya Precision solution. This enables integrated secure alerting and escalation within and between clinical teams at South Tees.

Whereas the proposed cloud hosting and management service will provide South Tees with a secure hosting environment and the skills required to maintain the environment from Alcidion’s technical services team.

In addition, management notes that a program as large as this one requires business change management that focuses on managing the impact of changed systems and business processes. This is to ensure optimal adoption of the technology and the realisation of anticipated business benefits.

In light of this, South Tees has engaged Alcidion to map out the plan for a program of change management across the life of the project to support positive outcomes.

Alcidion’s Managing Director, Kate Quirke, said: “Following the initial announcement of our contract with South Tees for Miya Precision and Better’s OPENeP solution last month, we are pleased to build on our partnership.”

“With the addition of Smartpage, South Tees will now be utilising the complete Alcidion product suite, and we are glad to provide further hosting and managed services to best assist South Tees with the implementation of Alcidion’s technology to address their clinical and operational needs,” she added.

More reading

• The Alcidion (ASX:ALC) share price has rocketed up 9% today. Here’s why.
• This cheap ASX share is supplying US giants: fundie

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 Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group 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 Altium Limited (ASX: ALU) share price will be on watch today. This comes after the company announced it will divest it non-core TASKING business to shift its full support behind Altium 365.

Last Friday, the Altium share price finished the week at $36.16. It will be interesting to see which way its shares will move today.

Sale of business

According to the release, Altium advised that it has entered a definitive agreement to sell off its TASKING business to FSN Capital.

Established in 1999, FSN Capital is a private equity firm that manages 2.125 billion euros in the northern European region. The company focuses on software and technology investments.

The sale of the assets is for an agreed value of US$110 million, in which US$100 million will be first settled in cash up front. The remaining US$10 million will be received by Altium upon FSN Capital achieving revenue targets for TASKING in FY21.

The deal is expected to be finalised in the first quarter of the 2021 calendar year, subject to standard conditions and regulatory approval.

Transaction impact

Altium noted that the proceeds received will have a one-time positive impact on its earnings per share (EPS) for FY21. The first-half of the fiscal year will include the TASKING business, however the second half will be without.

Looking at the bigger picture, Altium reaffirmed its full-year guidance with its first-half performance on track, although the company said that its traditional 45/55 revenue split for the current financial year will be distorted. This is due to the combined effect of COVID-19 and the divestment of its TASKING business.

The full impact of the sale and its ongoing operations will be released in Altium’s half-year results on 15 February 2021.

What did management say?

Altium chair Mr Sam Weiss commented on the company’s decision to offload its TASKING business: 

We are generating real momentum with Altium 365, the world’s first cloud platform for PCB design and realization, and we believe that Altium 365 is critical to enhance long term shareholder value.

The divestment of TASKING enables us to singularly focus on our transformative vision and to fast track the building and acquisition of complementary assets

Altium CEO Mr Aram Mirkazemi added:

The strategic divestment of TASKING combined with our recent organizational changes and hard pivot to the cloud marks an inflection point for Altium in its pursuit of industry transformation. While TASKING is a great business, it does not play a central role in our design to realization strategy for the electronics industry, which is being delivered through our new cloud platform Altium 365. The divestment of TASKING will free up organizational capacity and allow Altium leadership to focus on our main game, which is to expand Altium 365 and accelerate its adoption.

About the Altium share price

The Altium share price reached an all-time high of $42.76 before COVID-19 hit the global economy in February. In the month following, its shares fell to a 52-week low of $23.11, and then rose steadily back up to the $35 range.

Over the past 7 months, the Altium share price has not moved much, only increasing 7%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 24% over the same period.

More reading

• 2 of the best ASX tech shares to buy and hold
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021

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 and recommends Altium. 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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Are you looking for investment options in the tech space? Then look no further! Listed below are two top ASX tech shares which have been tipped as buys.

They are as follows:

Altium Limited (ASX: ALU)

Inside almost all electronic devices you will find a printed circuit board (PCB). These circuit boards are highly complex and integral to the operation of these devices. As such, specialist software is required to design and manufacture them.

Altium is a leading PCB design software company which is aiming to dominate its industry this decade with its Altium Designer and cloud-based Altium 365 platforms. It has started strongly and is making big strides towards achieving this goal by FY 2026.

One broker that is confident on its prospects is Morgan Stanley. Its analysts have an overweight rating and $40.00 price target on the company’s shares.

Appen Ltd (ASX: APX)

Artificial intelligence (AI) is revolutionising our lives, often without us knowing. While the likes of Apple’s Siri and Amazon’s Alexa are clear and obvious examples of AI, there are other more subtle uses that impact our everyday lives. This includes shopping recommendations, facial recognition, healthcare diagnoses, your Uber ride, and social media feeds.

In order for AI models to work successfully, they need to be trained. This is where Appen comes in. Through its team of over one million skilled contractors, the company provides or prepares the training data for AI models. A testament to the quality of its service is its customer base. This includes Amazon, Facebook, Google, and Microsoft.

COVID-19 has put a dampener on its growth this year, but management expects to bounce back strongly in FY 2021. As do the analysts at UBS. Last week they retained their buy rating and $44.00 price target on its shares following its trading update.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• 10 highly rated ASX shares to buy in 2021
• Top brokers name 3 ASX shares to buy next week
• Westpac (ASX:WBC) tips Australian dollar to hit 80 US cents in 2021
• 3 ASX growth shares to add to your portfolio in 2021

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen 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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The S&P/ASX 200 Index (ASX: XJO) has just hit a 6! Cricket metaphors aside, the ASX 200 has just notched up its sixth straight week of gains, leaving it just below the level at which it started the year. It’s worth saying that even though last week kept this streak alive, it was only by a wicket (sorry!).

After a strong start to the week, losses later on pulled the ASX back to Earth, and resulted in the index notching up a week-to-week gain of just 0.1%. Even so, it doesn’t matter if you win by an inch or a mile, to quote a great racing film, and at the same time this week, we will see if the streak runs (I’ll stop now) to 7.

The iron price pays

We can probably thank the resources sector for the ASX’s week in the green, specifically those companies that mine iron. Iron ore had another incredible week, topping US$150 per tonne (and reaching as high as US$156) for the first time since 2013. This saw the share prices of iron ore miners go ballistic. Fortescue Metals Group Limited (ASX: FMG) was the headline act in this show, with the Fortescue share price reaching a new, all-time high of $23.27 on Friday. That share price means Fortescue is now up more than 112% year to date, and up an incredible 1,226% over the past 5 years.

It also means that Fortescue’s market position has never been stronger. With a current market capitalisation of more than $70 billion, Fortescue is now larger than Australia and New Zealand Banking Group Ltd (ASX: ANZ). That would have been an almost inconceivable proposition for most ASX investors to imagine even just a few months ago.

It wasn’t just Fortescue basking in the reflection of the surging iron ore price though. The ‘Big Australian’ BHP Group Ltd (ASX: BHP) is also at a 9-year high, with its share price having hit a peak of $43.30 on Friday. It’s a similar story with Rio Tinto Limited (ASX: RIO). The Rio share price hit a post-GFC high of $117.12 on Friday.

Oil and vaccines

But it’s not just iron ore companies feeling the love from commodity investors. Crude oil is also trading at (a less impressive) post-March high after hitting US$50 a barrel last week. As a result, we saw ASX oil drillers like Woodside Petroleum Limited (ASX: WPL) continue their recent run of performance as well.

One ASX 200 blue chip share not feeling the love last week though was CSL Limited (ASX: CSL). The CSL share price lost almost 5% of its value between Wednesday’s open and Friday’s close. The catalyst? It unfortunately became clear the coronavirus vaccine the company had been working on in conjunction with the University of Queensland would not be progressing to Phase 2 or 3 clinical trials. CSL shares closed at $291.53 on Friday.

How did the markets end the week?

It was a haphazard week on the ASX 200 last week. The Index started off at 6,634.3 points and finished up at 6,642.6 points to eke out a week-to-week gain of 0.1% as we discussed earlier.

Monday kicked things off with a 0.6% gain, which was backed up on Tuesday with another 0.2% rise. Wednesday added another 0.6%, but Thursday and Friday saw sentiment turn, delivering 0.7% and 0.6% losses respectively.

Meanwhile, the All Ordinaries Index (ASX: XAO) also managed to squeak out a gain for the week, rising from 6,874.8 points to 6,886.4 points, a week-to-week gain of 0.3%.

Which ASX 200 shares were the biggest winners and losers?

Time now for our Foolish gossip page. So fetch the tea while we start with the worst-performing ASX 200 shares from last week:

Worst ASX 200 losers	% loss for the week
Appen Ltd (ASX: APX)	(14.5%)
IDP Education Ltd (ASX: IEL)	(8.9%)
Webjet Limited (ASX: WEB)	(8.7%)
Pendal Group Ltd (ASX: PDL)	(8.2%)

WAAAX growth share Appen led the losses last week and receives the wooden spoon. Investors were swiping left on Appen after the company downgraded its guidance, citing lockdowns over in the United States and a stronger Aussie dollar.

Higher education company IDP was also in the firing line last week, with a near 9% drop. This could be being driven by concerns over the ongoing diplomatic spat between Australia and China that is spilling into trade. Chinese international students are a significant customer base of IDP Education.

Meanwhile, Webjet and Pendal both fell for no obvious reason. However, both companies enjoyed strong gains over November, which might indicate some investors were taking profits off the table.

With the losers out of the way, let’s now look at some of last week’s ASX 200 winners:

Best ASX 200 gainers	% gain for the week
IGO Ltd (ASX: IGO)	14.77%
Link Administration Holdings Ltd (ASX: LNK)	13.57%
Fortescue Metals Group Limited (ASX: FMG)	13.52%
Viva Energy Group Ltd (ASX: VEA)	11.81%

Last week’s winning share was nickel miner IGO. IGO has recently completed a share purchase plan, which is intended to fund a new 49% stake in Tianqi Lithium Energy Australia. Investors have seemingly endorsed this with enthusiasm.

Meanwhile, Link Administration has been the subject of a second takeover offer. This time it’s from SS&C Technology, which values Link at $5.85 a share. No wonder investors are chasing the Link share price towards this mark.

We’ve already discussed Fortescue’s remarkable week, while Viva Energy was in investors’ sights after a positive update over its Geelong Energy hub.

What does this week look like for the ASX 200?

There’s a couple of things to look out for this week on the ASX 200. Firstly is the Index’s quarterly rebalance. This is set to take place on 21 December, and will result in Kogan.com Ltd (ASX: KGN) and Reece Ltd (ASX: REH) joining the club. Even though the rebalance date is not this week, the index funds that track the ASX 200 are very large, and have to make this pivot slowly (kind of like steering a large ship). As such, we could see some funny things happening with the affected shares’ pricing this week.

Additionally, ASX banks ANZ and National Australia Bank Ltd (ASX: NAB) are both holding their annual general meetings this week, on Wednesday and Friday respectively. It will be interesting to see what comes out of these, especially if it involves dividend news.

Before we go, here is a look at the major ASX 200 blue chip shares as we start on another week (make Fortescue feel welcome):

More reading

• These are the 10 most shorted shares on the ASX
• 2 ASX dividend shares to buy this week
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021

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 Appen Ltd, CSL Ltd., Idp Education Pty Ltd, and Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Telstra Limited, and Webjet Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) will welcome 2 new companies next week while kicking out 3.

The quarterly rebalance will take place for the start of trade Monday 21 December.

The share price of the 2 additions will be keenly watched that day as index funds will be forced to buy them up to synchronise with the ASX 200.

After a spectacular rise in its share price in 2020, Kogan.com Ltd (ASX: KGN) is a high-profile entrant.

The retailer has been a massive beneficiary of the COVID-19 pandemic and the resultant consumer shift to online shopping.

The Kogan share price started the year at $7.47 but had risen to $18.16 as of close of trade Friday. This represents a 143% climb, and that’s even after a correction from its dizzy high of $25.57 a couple of months ago.

Even with the effects of coronavirus starting to fade and e-commerce shares starting to rotate out of favour, some analysts are still bullish.

Kogan’s acquisition of Kiwi merchant Mighty Ape last week prompted Credit Suisse to whack a price target of $20.60 on the e-tailer’s shares.

Even a $350,000 fine for misleading conduct on the same day could not dampen investor enthusiasm.

Perhaps a less glamorous entrant to the ASX 200 is Reece Ltd (ASX: REH).

Reece is a more traditional retailer, with showrooms all over Australia selling bathroom and plumbing supplies.

The Reece share price has also fared well, starting the year at $11.38 but is now sitting at $14.96, which is a 31% increase.

With Australians performing more renovations while forced to stay at home may have had an effect, the company’s full year results in August also showed its business in the United States was booming.

Reece now has a market capitalisation of $9.66 billion while Kogan is $1.92 billion.

Why are there 3 removed and 2 added?

Despite only 2 additions, there are 3 removals this quarter because miner Iluka Resources Limited (ASX: ILU) demerged its royalty arm into Deterra Royalties Ltd (ASX: DRR). Both companies were retained in the ASX 200, meaning there was an excess member.

The 3 companies that will be making way for these rising stars are Avita Therapeutics Inc (ASX: AVH), Cooper Energy Ltd (ASX: COE) and Western Areas Ltd (ASX: WSA).

The share prices of this trio will also be on watch on 21 December, as index funds will be compelled to sell them off to remain faithful to the index.

More reading

• These are the 10 most shorted shares on the ASX
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 10 highly rated ASX shares to buy in 2021
• 5 things to watch on the ASX 200 next week

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Kogan.com ltd. The Motley Fool Australia has recommended Avita Medical Limited and Kogan.com 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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Every Monday I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well 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:

• Webjet Limited (ASX: WEB) continues to be the most shorted share on the ASX by some distance. The online travel agent has short interest of 15%, which is flat week on week. Although its outlook is improving, short sellers appear to believe its shares are severely overvalued.
• Western Areas Ltd (ASX: WSA) has seen its short interest reduce slightly to 11.4%. This nickel producer’s shares crashed lower recently after management downgraded its production guidance. However, they have bounced back now, much to the dismay of short sellers.
• Tassal Group Limited (ASX: TGR) has seen its short interest rise to 9.3%. Short sellers have been rapidly increasing their positions in this salmon producer. There are concerns that salmon could be another item that China slaps tariffs on.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest jump sharply to 9.1%. Short sellers have been increasing their interest in this department store operator amid concerns it is being left behind due to changing consumer habits.
• Speedcast International Ltd (ASX: SDA) still has short interest of 9%. The communications satellite technology provider’s shares have been suspended for almost the entire year as it undertakes a recapitalisation.
• Flight Centre Travel Group Ltd (ASX: FLT) is back in the top ten with short interest of 8.9%. As with Webjet, things are looking better for the travel agent, but short sellers appear to believe the market is expecting too much.
• Metcash Limited (ASX: MTS) is also back in the top ten with 8.7% of its shares held short. Though, with the wholesale distributor’s shares hitting a 52-week high last week, they may be regretting this one.
• InvoCare Limited (ASX: IVC) has short interest of 8.5%, which is down slightly week on week. There are concerns that this funerals company has been losing market share, which could drag on its earnings.
• AVITA Therapeutics Inc (ASX: AVH) has 8.3% of its shares held short, which is up sharply week on week. The regenerative medicine company’s shares will be dumped out of the ASX 200 at the December quarterly rebalance. Its sales have fallen heavily this year because of COVID-19.
• Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is flat week on week. Although the poultry company’s performance has improved in FY 2021, some short sellers appear to believe it isn’t over the worst of its issues just yet.

More reading

• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week
• These were the worst performing ASX 200 shares last week
• This is when ASX airport shares will take off

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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited, Flight Centre Travel Group Limited, and InvoCare 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 Robinhood smartphone app has been both praised for making investing accessible to the average folk and criticised for triggering addiction.

But one undisputed legacy is that it has made $0 brokerage standard in the United States. 

When the app launched in 2013, first-time investors absolutely loved the idea of not paying a fee for every small transaction. So after just 7 years, more than 13 million users have flocked to Robinhood.

Its popularity forced the older platforms to follow. Even most of the online brokers operated by the big 100-year-old companies now offer a free option.

But what about Australia? We’ve not yet seen a ‘zero fee’ platform for trading shares on the ASX.

Like so many financial and cultural trends, will it head across the Pacific to our shores?

Unfortunately the short answer is ‘no’.

ASX’s monopoly means it can charge whatever

The main reason ‘no fee’ can never happen in Australia is that ASX Ltd (ASX: ASX) runs an effective monopoly in this country.

Stake is a trading platform especially designed for Australians to invest in American markets.

The company’s chief executive Matt Leibowitz told The Motley Fool that there are 13 exchanges in the US, meaning they are all competing for liquidity – or “flow”, in industry parlance.

“So what they do to provide liquidity is they actually provide a rebate,” he said.

“So if you make liquidity you get paid, say 10 cents. If you take liquidity, you pay 15.”

The exchange thus makes money from that 5 cent difference. 

This rebate mechanism, called ‘payment for order flow’, is how each of the exchanges – like NASDAQ or NYSE – try to lure business away from its rivals.

And online broking platforms can afford to execute customers’ trades for free by living off the PFOF rebate.

But the ASX has no such need to show such generosity.

“In Australia you’ve got a monopoly… The ASX is actually charging a per-trade fee, regardless if you make or take liquidity,” Leibowitz said.

The ASX knows that if you want to buy or sell shares, it’s the only game in town.

ASX’s monopoly has other impacts too

The ASX infamously had a systems outage last month when the entire trading day was cancelled after just 24 minutes of operation.

The Australian Investments and Securities Commission was unusually stinging in its criticism of the outage, even questioning the exchange’s fitness to hold its market licence.

“Market licensees are required to operate a market that, to the extent reasonably practicable, is fair, orderly and transparent, and to have sufficient resources (financial, technological and human) to operate the market, including for any outsourced services,” the corporate watchdog stated at the time.

“Well-functioning financial market infrastructure is critical to the integrity and reputation of the Australian equity market and the trust and confidence investors have in it.”

Some market participants publicly stated ASX has no incentive to properly fund its systems because it doesn’t have any competitive pressure.

The same criticism was made in October when the new website crashed, leaving users unable to view company announcements.

In Britain, listed companies may choose from a range of providers to distribute their market announcements and meet their disclosure obligations. These suppliers include news agencies.

But all ASX-listed companies must go through the ASX to post announcements.

OpenMarkets chief Ivan Tchourilov told the Australian Financial Review at the time the situation was not serving the best interests of the market.

“The industry is concerned that ASX has too much power to dictate play and there isn’t much of an opportunity for competitors to create a diverse environment that will ultimately benefit customers.”

More reading

• Top brokers name 3 ASX shares to sell next week
• Will ASX kick out companies that don’t have board diversity?
• Meet the most unpopular ASX large cap stock according to analysts
• Why ASX, Kogan, Myer, & Northern Star shares are dropping lower
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage

Motley Fool contributor Tony Yoo 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 Why zero-fee apps will never exist for ASX shares appeared first on The Motley Fool Australia.

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If you’re looking to add some dividend shares to your portfolio, then the two listed below might be ones to consider.

Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

National Storage is one of the region’s leading self-storage operators. It tailors self-storage solutions to residential and commercial customers across Australia and New Zealand.

At present, the company operates approximately 190 storage centres across the region. While this sounds like a large number, management believes there is still significant room to grow. In fact, it has completed eight acquisitions totalling $139 million since the end of FY 2020. In addition to this, management advised that its forward-looking acquisition pipeline remains strong and it is has a number of development projects.

According to a note out of Ord Minnett, its analysts have an accumulate rating and $2.05 price target on its shares. The broker is forecasting an 8 cents per share dividend in FY 2021. This represents a 3.9% dividend yield.

Westpac Banking Corp (ASX: WBC)

If you don’t have exposure to the big four banks, then Westpac could be worth considering. While the banking sector has been having a very tough time in recent years, there are signs that it is now over the worst of its issues. This is thanks partly to the improving housing market, the relaxing of responsible lending rules, and the quicker than expected economic recovery from the pandemic.

Analysts at Macquarie believe now could be the time to invest. Earlier this month they put an outperform rating and $21.50 price target on the bank’s shares. They are also forecasting a 70 cents per share dividend in FY 2021 and an 85 cents per share dividend in FY 2022. This represents fully franked 3.5% and 4.2% dividend yields, respectively, over the next two years.

More reading

• These ASX dividend shares will help you overcome low interest rates
• Westpac (ASX:WBC) tips Australian dollar to hit 80 US cents in 2021
• ASX 200 down 0.3%: CSL sinks, Zip’s Facebook deal, IGO rockets
• Westpac (ASX:WBC) share price lower on AGM update
• 2 ASX dividend shares with attractive yields

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 ASX dividend shares to buy this week appeared first on The Motley Fool Australia.

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