Australia is today officially in recession for the first time in 29 years.

The Australian Bureau of Statistics (ABS) has just released data which confirms that Australia’s gross domestic product (GDP) fell by 7% in the quarter ending 30 June 2020. It’s the largest single drop in quarterly GDP for the Australian economy on record.

Australia in recession

GDP is the metric used to measure the monetary value of all goods and services sold in an economy. A recession is officially defined as 2 consecutive quarters of negative GDP growth. Seeing as the Australian economy recorded a fall in GDP of 0.3% for the quarter ending 31 March, today’s data means we are officially in recession for the first time in almost 3 decades.

Michael Smedes, the head of national accounts at the ABS, had this to say on the data:

The combined effect of the pandemic and the community and government responses to it led to movements of unprecedented size, not only in GDP but also in many of the other economic aggregates… The global pandemic and associated containment policies led to a 7.0 per cent fall in GDP for the June quarter. This is, by a wide margin, the largest fall in quarterly GDP since records began in 1959.

The drivers for this precipitous drop in GDP for the June quarter were a 7.9% drop in private demand, which in turn was triggered by a 12.1% fall in household consumption expenditure. Spending on services such as vehicle operations, transport, hotels, cafes and restaurants was down 17.6%.

Meanwhile, savings rates were unsurprisingly up for the quarter, with the savings-to-income ratio climbing from 6% to 19.8%. That was despite total hours worked falling by 9.8% (the sharpest on record). Social assistance benefits (such as JobSeeker) rose by a record 41.6% as well.

What do these numbers mean for ASX shares?

These numbers are a stark reminder that we are facing a once-in-a-generation economic event. Up until now, the effects of this economic catastrophe have been somewhat masked by the record levels of government assistance that have been pouring into the economy. This has helped many ASX businesses, in turn, stay afloat and even prosper during these tough times.

However, I think investors need to brace for the next 12 months, which will see programs like JobSeeker pared back substantially and eventually wound down. The first of these pare backs for the JobKeeper payment will come into effect on 28 September. The coronavirus supplement will also be curtailed on 24 September down to $250 a fortnight (down from the current $500). It is currently scheduled to end altogether on 31 December.

All ASX shares are going to have to ride this wave down, and some will fare better than others. It’s going to be a tough few years for the Australian economy. My advice is to make sure the companies in your portfolio are well-equipped for these tough times.

More reading

• Top brokers name 3 ASX shares to buy today
• Woolworths quietly launches new business
• New market analysis every ASX investor should read
• PayGroup share price tanks 11% on capital raise
• Some ASX winners and losers from a high Aussie dollar

Motley Fool contributor Sebastian Bowen 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 Australia officially in recession as GDP slumps 7% appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YWVqI4

Woolworths Group Ltd (ASX: WOW) has soft-launched a new business, to sell groceries to other companies.

The company kicked off its ‘Woolworths at Work’ business on Tuesday, without any announcement to the ASX.

Woolworths at Work general manager Jarad Nass said the new arm would make it easier for businesses across Australia to purchase food and essentials on a monthly invoice cycle.

“It includes their own dedicated website and features built specifically for their needs,” he wrote on a blog post.

“Our new digital platform allows for multiple shoppers and delivery locations. All your organisation’s spend is captured in your Work Account in real time, which means no more company credit cards or tedious reimbursements.”

Nass said buy now, pay later supplier Openpay Group Ltd (ASX: OPY) would facilitate a line of credit to corporate customers.

How Woolworths at Work fits into the family

The launch of the new business comes after Woolworths last month bought a 65% stake in PFD Food Services.

PFD is the number 2 player in the B2B food service sector, supplying hospitality businesses like pubs, restaurants, cafes and convenience stores.

The Woolworths at Work venture will target non-hospitality clients such as hospitals, childcare centres and white-collar corporates.

The online shopping experience sounds similar to the existing consumer-facing website.

“It’s supported by our nationwide delivery options, including free next day delivery for orders over $99 and Delivery Now, which sees your order picked, packed and delivered within two hours,” Nass said.

“[It’s] an extension of our existing online grocery business.”

Woolworths at Work will have more than 10,000 items of groceries, stationery and cleaning products available.

The supermarket is currently calling for expressions of interest in its new B2B store.

Woolworths had previously earmarked business customers as a new source of income, reportedly setting a target of $1 billion in revenue by 2024.

More reading

• PayPal scares investors in BNPL shares, time to sell?
• 3 ASX blue-chip shares I would buy at today’s prices
• Zip and Brainchip were among the most traded shares on the ASX last week
• 5 things to watch on the ASX 200 on Tuesday
• Why Fortescue, Openpay, Pointsbet, & Sezzle shares are dropping lower

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Woolworths quietly launches new business appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jBtDVt

This morning, Frank Uhlenbruch, investment strategist in the Janus Henderson Australian fixed interest team, released his latest Australian economic analysis and market outlook.

Uhlenbruch notes that the ever-increasing supply of government debt, alongside the US Fed’s shift towards an average 2% inflation target, has spurred risk appetite to the benefit of shares.

Meanwhile, investors hunting for yield in the low rate environment saw a sharp lift in longer-dated government bond yields, dragging on the sector’s returns.

Shorter-term Australian government bond yields were held in check by the Reserve Bank of Australia’s (RBA) forward guidance and yield curve control measures. The 3-year government bond yield ended August at 0.26%, down 0.01%.

With an eye on potential rising inflation, the 10-year government bond yield climbed 0.17% to close the month at 0.98%, and the 30-year government bond yield gained 0.26% to reach 1.91%.

Fiscal stimulus buoys retail spending

Uhlenbruch reported a 20% increase in retail sales between April and June. The overall 3.4% fall in the June quarter was better than expected, largely due to Jobseeker and Jobkeeper payments, alongside early access to Super.

Wages growth came in at just 0.2% for the June quarter, and unemployment rose slightly to 7.5% in July. The underemployment rate — those with work but seeking more hours — was more alarming, coming in at 18.7%.

According to Uhlenbruch, partial demand indicators show we should expect a historically large drop in output in the upcoming release of the national accounts.

Market outlook

The Janus Henderson Australian fixed interest team expects the economy to contract some 7% in the June quarter, with further pain in the September quarter. Uhlenbruch forecasts GDP to fall 5.75% in 2020 and grow 5.50% in 2021. He doesn’t see it reaching end of 2019 levels until the beginning of 2022.

Uhlenbruch states: “This implies a massive build up in slack that will take years to absorb and will exert downward pressure on wages and inflation. The RBA have the unemployment rate peaking at 10% at the end of this year and falling to 7% by end 2022.”

With an unemployment target of 4.5%, this means we can expect an extended period of accommodative policies from the RBA and the government.

Janus Henderson’s Australian fixed interest team remains attracted to spread sectors. But the team has shifted, “from accumulating holdings following the widening in spreads over March, to becoming more selective about the names and tenors” it is adding.

The team expects spread sectors to be supported by low yields on government bonds and the huge amount of central bank support for both sovereign and non-sovereign debt markets.

The team cautions that inflation in the medium to longer-term is a risk, stating “We think it remains prudent to hold a core exposure to inflation-protected securities while inflation protection remains cheap.”

More reading

• Top brokers name 3 ASX shares to buy today
• Australia officially in recession as GDP slumps 7%
• Woolworths quietly launches new business
• PayGroup share price tanks 11% on capital raise
• Some ASX winners and losers from a high Aussie dollar

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.

The post New market analysis every ASX investor should read appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31RyZWS

The PayGroup Ltd (ASX: PYG) share price has tanked more than 11% after the company announced a $3.5 million capital raise.

Details on PayGroup’s capital raise

PayGroup announced today that the company had successfully raised $3.5 million via institutional placement.

The payroll provider said new and existing investors supported the placement, in which 6 million new shares would be issued at 58 cents per share. That’s a 14.5% discount from the company’s last closing price.

PayGroup will use the capital raise to integrate its latest acquisition, TalentOz. The capital will also allow the company to pursue growth initiatives and working capital for its payroll platform, Astute One Limited.

In addition, PayGroup management said the placement would enable the company to capitalise on immediate growth opportunities, including possible further acquisitions. It noted PayGroup’s strong sales pipeline gave the company a positive outlook in FY21.

What does PayGroup do?

PayGroup is an Australian-based company that provides payroll and human capital management solutions to medium and large enterprises. The company services more than 915 client entities, representing more than 5 million payslips per annum.

In July, the company acquired Malaysian-based payroll provider TalentOz for $1.2 million. The new purchase follows PayGroup’s 2019 acquisition of the human capital management company, Asute One.

For the first quarter of FY21, PayGroup reported an operating cash flow surplus of $1 million. In addition, the company received $4.5 million in receipts over the period, as well as $3 million in new contract wins. PayGroup ended the first quarter of  FY21 with $2.1 million cash on hand and additional access to around $260,000 in unused finance facilities.

Securities in PayGroup were placed in a trading halt yesterday pending the release of today’s announcement. At the time of writing, the PayGroup share price has rallied slightly to 61 cents after tanking more than 11.5% earlier to an intra-day low of 60 cents.

More reading

• Top brokers name 3 ASX shares to buy today
• Australia officially in recession as GDP slumps 7%
• Woolworths quietly launches new business
• New market analysis every ASX investor should read
• Some ASX winners and losers from a high Aussie dollar

Motley Fool contributor Nikhil Gangaram 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 PayGroup share price tanks 11% on capital raise appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2DkyU4m

One of the biggest surprises on financial markets over the past 2 weeks has been the surging Australian dollar. The Aussie dollar is today asking 73.52 US cents after going as high as 74.1 US cents earlier in the week.

It’s been a remarkable 2 weeks for our national currency, which dipped as low as 71.3 US cents a fortnight ago. The Aussie is now more than 33% higher than the 55 US cents level it touched during the coronavirus-induced share market crash back in March.

The exchange rate is one of the largest single influencers of national economic activity, so with such a strong rise in the dollar, what does this mean for ASX shares?

Which ASX shares benefit from a rising dollar?

Whilst some people (mistakenly, in my view) see a strong dollar as a source of national pride, the reality is that a rising currency both helps and hinders the economy in different ways. That’s because when our dollar appreciates in value, it both lowers the cost of importing goods and services from other countries and increases the cost of exporting goods and services.

As such, the companies that are the biggest winners from a rising dollar are those that import what they sell. Shares like JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Wesfarmers Ltd (ASX: WES) will therefore be cheering a rising dollar.

Think of all the TVs, computers, and white goods that companies like JB Hi-Fi and Harvey Norman sell. Or the hardware and office supplies that Wesfarmers’ Bunnings and Officeworks chains stock. These are almost always manufactured overseas, and thus a rising dollar makes it cheaper for the companies to import these goods and sell them on to us. They can then pass on these savings to customers at no cost to their bottom lines, or else keep their prices steady and bank the profits.

Which ASX shares lose out from a rising dollar?

Hard truths cut both ways, and so does a rising dollar. Any company that exports goods or services to other countries around the world will be hurting from a stronger dollar. Most prominent will be our mining companies like BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), Newcrest Mining Limited (ASX: NCM) and Rio Tinto Ltd (ASX: RIO). These companies export their iron ore, gold and other resources to countries like the United States and China and will now be receiving less for these resources, in Australian dollar terms.

It’s also not good news for companies like the A2 Milk Company Ltd (ASX: A2M), Xero Limited (ASX: XRO), Afterpay Ltd (ASX: APT), Bubs Australia Ltd (ASX: BUB) and any other company trying to sell products and services beyond our shores. These companies will all be taking a hit when they convert their profits back to Aussie dollars and will either have to choose to raise prices to compensate, or otherwise just take the hit to the bottom line.

Foolish takeaway

A fluctuating exchange rate is just one of the inevitable variables that we investors have to accept as part of the investing process. Nevertheless, it’s important to understand how things like the Aussie dollar can affect the companies in your portfolio. Hopefully, you now have a better grasp of the impacts that a higher dollar can bring!

More reading

• Top brokers name 3 ASX shares to buy today
• Here’s why the Sezzle share price crashed 37% lower in just a few days
• Why we’re on track for more record ASX share prices
• UBS picks the best and worst ASX stocks from the reporting season
• Why the Zip share price is plummeting 15% today

Sebastian Bowen owns shares of Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Xero. The Motley Fool Australia owns shares of A2 Milk, AFTERPAY T FPO, and Wesfarmers Limited. The Motley Fool Australia 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.

The post Some ASX winners and losers from a high Aussie dollar appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34UmU4Y

The De Grey Mining Limited (ASX: DEG) share price has stormed higher in early afternoon trade on the back of positive news about a major new gold find at one of its sites.

At the time of writing, the De Grey share price is fetching $1.29, up 17% compared to the All Ordinaries Index (ASX: XAO), which is up 1.5% to 6,238 points.

What did De Grey report?

Earlier today, De Grey updated the market with the finding of new major gold deposits from drilling of its Aquila site at the Hemi gold discovery, located 60 km south of Port Hedland in Western Australia.

The company reported a new altered intrusion of 1.8 km long and up to 80 metres thick, logged in wide-spaced aircore drilling. Whilst De Grey continues to further drill over the 1.5 km space, the initial aircore results included:

• 21m @ 3.4 grams per tonne (g/t Au) from 40m and 19m @ 2.1g/t Au from 68m in BXAC501 (ends in mineralisation)
• 12m @ 2.0g/t Au from 93m in BXAC502 (ends in mineralisation)
• 21m @ 1.1g/t Au from 102m in BXAC506
• 29m @ 1.3g/t Au from 56m in BXAC546 (using a 0.3g/t lower cutoff)

Furthermore, the follow-up RC and diamond drilling showed consistent gold mineralisation with intense brecciation and alteration. Additional results included:

• 58m @ 2.1g/t Au from 64m in HERC232 (section 7691640N)-visible gold reported 5 August 2020
• 11m @ 1.2g/t Au from 199m in HERC231 (section 7691640N)
• 24m @ 0.8g/t Au from 167m in HERC233D (section 7691720N)-ended in mineralisation
• 31m @ 1.3g/t Au from 88m in HERC234 (section 7691800N)

De Grey advised that gold mineralisation has remained open beyond the current 1.8 km strike and is at depth.

What did management have to say?

Commenting on the positive findings, De Grey managing director Glenn Jardine said:

The discovery of the Falcon intrusion demonstrates the potential to significantly grow the gold endowment at Hemi as we expand our drilling footprint.

Reinterpretation of the overall geology shows the Aquila intrusion strikes for 1.2km in a southwest orientation and the new Falcon intrusion strikes for over 1.8km in a distinctly north-south orientation. Aircore drilling is continuing to track the Falcon intrusion to the south.

Jardine confirmed that the company has two aircore rigs in operation and is actively pursuing opportunities to extend the Hemi site and to identify “similar large scale, near surface Hemi-like intrusions in the Greater Hemi area”.

About the De Grey share price

The De Grey share price has stormed an astonishing 2,015% since the start of the calendar year. Although the gold mining company had a small hiccup between the end of June and middle of July, dropping 40%, it has since recovered reaching an all-time high today of $1.30.

De Grey is now valued at a market capitalisation of $1.51 billion.

Should you invest?

I think that a little bit of gold exposure is good for every portfolio. Personally, I would opt for established gold mining companies like Newcrest Mining Limited (ASX: NCM) or Northern Star Resources Limited (ASX: NST), so would only suggest allocating an extremely small portion of your investment funds to smaller exploration companies like De Grey.

As promising as the results look, and the traction the metal mining outfit has gained, it still remains a risky play. I will be adding De Grey shares to my watchlist for now.

More reading

• Why Brainchip, De Grey Mining, Nufarm, & Pointsbet shares are storming higher
• Gentrack share price higher on announcement of new CEO
• The Mosaic Brands share price surges 21% on lease deal
• Optimists 1, Pessimists 0
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality

Motley Fool contributor Aaron Teboneras 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 De Grey share price rockets 17% higher on new gold find appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gRyRuG

The Sezzle Inc (ASX: SZL) share price has come under pressure again on Wednesday.

At one stage today the buy now pay later provider’s shares were down as much as 15.5% to $7.40.

When they hit that level, it meant the Sezzle share price had lost a sizeable 37% of its value since peaking at $11.83 on Friday.

Why has the Sezzle share price been sold off?

A combination of profit taking and concerns about increasing competition in the buy now pay later market have been behind the Sezzle share price sell off.

In respect to the latter, overnight on Monday, payments giant Paypal announced its intention to enter the market with its Pay in 4 product.

Pay in 4 is a short-term payment solution that will allow consumers to make a purchase and pay over four interest-free instalments. Just like Afterpay Ltd (ASX: APT) and Sezzle offer.

Given the size of PayPal, US$245 billion at present, its entry into the market could pose a threat for some of the smaller players such as Sezzle and the US-based QuadPay business owned by Zip Co Ltd (ASX: Z1P).

At present Afterpay has 5.6 million active customers in the United States and appears well-positioned to take on PayPal. Whereas Sezzle and QuadPay have a more modest 1.5 million and 2 million active customers, respectively.

Should you be concerned?

It’s difficult to know at this stage what impact PayPal’s entry into the market will have.

I’m not overly concerned for Afterpay as I believe it has such a strong presence and brand, that the added competition won’t hinder its growth.

It is also worth remembering that the industry is still in its infancy in the United States, with only a small fraction of the US$5 trillion retail market going through buy now pay later providers.

This could mean there’s plenty of room for all these companies to grow successful businesses over the next decade.

More reading

• Why we’re on track for more record ASX share prices
• Why the Zip share price is plummeting 15% today
• ASX 200 jumps 1.6%: Afterpay tumbles, IOOF crashes, CBA pushes higher
• Why Afterpay, IOOF, Redbubble, & Zip shares are dropping lower
• PayPal scares investors in BNPL shares, time to sell?

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended 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.

The post Here’s why the Sezzle share price crashed 37% lower in just a few days appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2QICl8d

A look at share price performance on the ASX yesterday may have you wondering why the stars are still aligned for record ASX share prices.

We’ll get to that in a moment. But first a quick glance backwards.

Yesterday, the S&P/ASX 200 Index (ASX: XJO) tumbled 1.8%. That brought the index of the largest 200 listed ASX shares back to where it was a month ago, on August 3.

Buy now, pay later (BNPL) giant Afterpay Ltd (ASX: APT) counted among the biggest losers, down 8.4% yesterday. And in late morning trade today, the Afterpay share price is down another 1.5%.

Afterpay’s share price – and other ASX-listed BNPL shares like the Sezzle Inc (ASX: SZL), down 26% since Monday’s opening bell – are under pressure from PayPal. This comes after the payment giant announced it’s launching its own BNPL platform in the United States called Pay-in-4.

So much for moats…

Back to today, the ASX 200 is up 1.6% in late morning. It may well recoup all of its losses from yesterday, and more.

But here’s the thing.

These daily moves in the ASX are mostly just noise. It’s the longer-term trend that matters. And longer-term, the momentum is upwards. The average share price recovery of ASX shares since the March lows remains firmly in place, with the ASX 200 up 33% since March 23.

Marching to new record ASX share prices

From today’s levels, the ASX 200 needs to gain roughly 19% to exceed its February 20 highs.

In normal times, that’s a tall order. But these are anything but normal times.

With global governments and central banks in a co-ordinated effort to stave off the economic damage from COVID-19, there’s every reason to believe the ASX 200 could top 7,200 points by Christmas.

We’ll give a passing nod to the massive stimulus being pumped out in China, Japan, Europe and much of the rest of the world and focus in on the US and Australia.

Tailwinds in Australia

As you likely know, the Reserve Bank of Australia (RBA) had its monthly powwow yesterday, as it does on the first Tuesday of every month. As expected, the official cash rate will remain at its rock bottom 0.25% for the foreseeable future, a great tailwind for shares.

What was more than many expected was the huge increase in the RBA’s Term Funding Facility, which lends to banks at a 3-year fixed rate of 0.25%. That funding has now increased to $200 billion.

To date, the banks have drawn about $52 billion under the facility since March. This is money that will support households and business and, you guessed it, share prices.

RBA governor Philip Lowe also highlighted the bank’s resolve to do whatever it takes, for however long it takes, to get the Aussie economy back on track. Lowe said: “The board will maintain highly accommodative settings as long as is required and continues to consider how further monetary measures could support the recovery.”

Judging by the strong performance of the ASX today, investors certainly took note.

US share markets at new all-time highs … again

While the ASX 200 still has a hill to climb before hit new record highs, US markets are breaking records almost every day.

The strength of the underlying shares certainly deserves its own credit. But the rally is also being propelled by record stimulus.

US Republicans and Democrats are still debating the details of the next relief, but it promises to be huge. US Treasury Secretary Steven Mnuchin indicated the economy is in direct need of fiscal stimulus. The Republican package looks to be in the range of US$500 billion. The Democrats appear to be holding out for more.

In the meantime, Bloomberg reports that, “The Federal Reserve has snapped up $1 trillion of mortgage bonds since March, a record pace of purchasing … It now owns almost a third of bonds backed by home loans in the US”

This has effectively pushed mortgage rates down in the US, supporting the crucial economic component of consumer spending.

In yesterday’s trading (overnight Aussie time), the S&P 500 Index (INDEXSP: .INX) and Nasdaq Composite (INDEXNASDAQ: .IXIC) both closed in record territory again. The tech heavy Nasdaq is now up 31% in 2020, and up 74% from its March 23 low.

Another healthy diversification reminder

This offers another good reminder of why you should consider investing some of your share market funds outside of the ASX.

Don’t get me wrong, there are plenty of great shares on the ASX. And if you want exposure to the booming US tech shares, you can do so right here on the ASX with the Betashares Nasdaq 100 ETF (ASX: NDQ).

The exchange traded fund (ETF) comprises the 100 largest, non-financial businesses on the Nasdaq. Its top holdings include all the FAANG stocks and a raft of other big players.

The ETF’s share price is up 2.7% in intraday trading today. Year-to-date the share price is up 32%.

The Motley Fool’s own Scott Phillips cottoned on to the potential of this ASX-listed investment more than 3 years ago. He recommended it on 22 June 2017 to members of his Share Advisor service. Since then the share price is up more than 117%.

And Scott still maintains a buy rating on the ETF, believing technology shares have a lot more gains ahead.

More reading

• Here’s why the Sezzle share price crashed 37% lower in just a few days
• UBS picks the best and worst ASX stocks from the reporting season
• Why the Zip share price is plummeting 15% today
• ASX 200 jumps 1.6%: Afterpay tumbles, IOOF crashes, CBA pushes higher
• Why Afterpay, IOOF, Redbubble, & Zip shares are dropping lower

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS 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.

The post Why we’re on track for more record ASX share prices appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hTRrUm

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to record a strong gain. At the time of writing the benchmark index is up a sizeable 1.6% to 6,047.6 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

The Brainchip Holdings Ltd (ASX: BRN) share price has surged 25% higher to 38.7 cents. Investors have been buying the artificial intelligence technology company’s shares after it announced a collaboration with VORAGO Technologies. This collaboration is intended to support a Phase 1 NASA program for a neuromorphic processor that meets spaceflight requirements.

The De Grey Mining Limited (ASX: DEG) share price has jumped 16% to $1.28. The catalyst for this was the announcement of yet another major gold discovery by the mineral exploration company. Management commented: “The discovery of the Falcon intrusion demonstrates the potential to significantly grow the gold endowment at Hemi as we expand our drilling footprint.”

The Nufarm Limited (ASX: NUF) share price is up over 3.5% to $4.06. This morning the agricultural chemicals company announced its expectations for FY 2020. After accounting for non-cash impairments of $215 million for its European business, the company expects to report earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of $290 million to $300 million in FY 2020. This appears to be better than the market was expecting from Nufarm.

The Pointsbet Holdings Ltd (ASX: PBH) share price has bounced back from a heavy decline and is up 4.5% to $13.79. This morning analysts at Ord Minnett downgraded the sports betting company’s shares from a buy rating to a hold rating. However, they lifted their price target by more than 100% to $13.60. It suspects its deal with NBC Universal could create material brand awareness in key markets.

More reading

• De Grey share price rockets 17% higher on new gold find
• Brainchip share price rockets 30% higher on NASA program collaboration
• Nufarm share price charges higher on FY 2020 guidance
• Leading brokers name 3 ASX shares to sell today
• The Pointsbet share price rocketed 118% in August and our in-house pro says it’s still a long-term buy

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Why Brainchip, De Grey Mining, Nufarm, & Pointsbet shares are storming higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32NSnTJ

The Gentrack Group Limited (ASX: GTK) share price is pushing higher today, following the announcement of the appointment of new CEO Gary Miles.

At the time of writing, the Gentrack share price is trading at $1.47, up 1.03% compared with the All Ordinaries Index (ASX: XAO), which is up 1.51%.

What does Gentrack do?

Gentrack provides specialist software for energy utilities, water companies and airports, mainly in Australia and New Zealand. The company’s platform aims to develop, integrate and support billing and customer management solutions.

What did management say?

Commenting on the new appointment, Gentrack acting chair Fiona Oliver said:

The Board is delighted to welcome Gary to the Gentrack business. He brings a real focus on driving global growth and building a workplace that fosters innovation, diversity and collaboration. His combined software and services experience with cloud technologies will also help to accelerate our transition to SaaS and deliver more value to customers and shareholders. 

Incoming CEO Gary Miles added:

The utility industry is entering a new era where regulatory, technology and environmental forces are accelerating the digital transformation of the market. Gentrack has been successful in helping service providers in some of the world’s most dynamic markets and countries. I am excited to work with the Gentrack team to bring great, customer centric technologies to these and other service providers around the world.

Gary Miles’ resume includes extensive experience in technology innovation and cloud capabilities, most notably serving on the leadership team of Amdocs Limited (NASDAQ: DOX) as chief marketing officer. Amdocs is a provider of cloud business software and services in the communications industry.

Miles’ previous roles within the company included division president and CTO leading strategy development. This involved building the company’s product portfolio and sales organisation as well as overseeing its digital services, big data and mobile engagement segments.

Gary Miles is expected to assume the CEO position on 1 October.

How has the Gentrack share price performed?

The Gentrack share price has struggled over the past 12 months. The technology company is 73% lower from its 52-week high of $5.50. However, the Gentrack share price is up 89% since its March low of 77 cents.

Should you invest?

Whilst this is a positive announcement and could be the start of good things to come, I think that there are better opportunities on the market at present. I will be watching Gentrack from the sidelines instead.

More reading

• De Grey share price rockets 17% higher on new gold find
• The Mosaic Brands share price surges 21% on lease deal
• Optimists 1, Pessimists 0
• ASX 200 Weekly Wrap: Earnings drag ASX back to reality
• Why reporting season isn’t the bloodbath we expected

Motley Fool contributor Aaron Teboneras 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 Gentrack share price higher on announcement of new CEO appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2F0VTSk