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Mineral Resources Ltd (ASX: MIN) shares are edging lower on Thursday morning.

At the time of writing, the mining and mining services company’s shares are down 1% to $60.00.

Why are Mineral Resources shares falling?

Investors have been selling the company’s shares today in response to the release of a big announcement after the market close on Wednesday.

According to the release, Mineral Resources has completed a comprehensive assessment of the viability of the Yilgarn Hub iron ore operation.

Management notes that having carefully considered all options, the assessment confirmed that the continuity of the Yilgarn Hub is not financially viable beyond the end of 2024. As a result, it has made the decision to cease Yilgarn Hub iron ore shipments by 31 December.

Mineral Resources points out that the decision has been influenced by a combination of factors. This includes the limited remaining mine life across five operating mines that are spread over 220 kilometres, and the significant capital cost and lead time required to develop new resources to ensure continuity of supply.

What’s next?

The company intends to safely ramp down the Yilgarn Hub operations in a staged approach over the next six months. This is expected to see up to four million wet metric tonnes shipped by the end of the calendar year.

Mining operations will then transition into care and maintenance from early 2025.

And while approximately 1,000 employees will be impacted by this change, Mineral Resources notes that it will work with them on redeployment opportunities across other operations. It has almost 800 vacancies across the business, with many more to open in coming months. This includes through the ramp up of the Onslow Iron project.

Mineral Resources’ managing director, Chris Ellison, commented:

This prudent but difficult decision was not taken lightly and follows years of investment to extend the life of our operations in the Yilgarn. MinRes has operated in the region since our maiden shipment from Carina in 2011. In 2018, with the support of the WA Government, we stepped in to save hundreds of Western Australian jobs at Koolyanobbing that were set to be lost with the departure of Cliffs.

By the end of this year, we will have operated Koolyanobbing for six and a half years, exported almost 45 million tonnes via the Port of Esperance and spent $4.2 billion running our Yilgarn operation, exceeding our commitments. I want to thank everyone whose hard work and dedication over the past 13 years made this challenging operation a great success.

Mineral Resources shares are down 19% over the last 12 months.

The post Mineral Resources shares fall on big iron ore news appeared first on The Motley Fool Australia.

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• Buy Rio Tinto and these 4 ASX mining stocks in June
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• Mineral Resources shares race higher on $1.3b asset sale

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price will be one to watch closely this week.

That’s because the clinical dermatology company has just announced some very big news..

Why is the Botanix Pharmaceuticals share price on watch?

This morning, the company released a highly anticipated announcement relating to its Sofdra product.

According to the release, the US Food and Drug Administration (FDA) has approved Sofdra as a prescription medicine used to treat primary axillary hyperhidrosis (excessive underarm sweating) in adults and children 9 years and older.

This FDA approval was supported by results from two pivotal Phase 3 studies evaluating its efficacy and safety in 701 patients with the condition.

Management notes that this makes it the first and only new chemical entity approved by the FDA to treat primary axillary hyperhidrosis and presents a novel safe and effective solution for patients who have lacked treatment options for this socially challenging medical condition.

There is a larger addressable market for this than you might think. Botanix highlights that there are approximately 10 million people in the United States with primary axillary hyperhidrosis, with few effective treatments available for patients.

What now?

Management advised that it plans to launch its patient experience program in the first quarter of 2024. After which, it is anticipating its first revenue from Sofdra early in the fourth quarter of the year.

Botanix’s chief executive officer, Dr Howie McKibbon, was very pleased with the news and described it as a “transformative event” for the company. He commented:

We are pleased to share this accomplishment with our dedicated Botanix team and dermatologist partners, patients who participated in the clinical studies and our shareholders who made this approval possible. This is a transformative event for Botanix as we transition from a development stage to a revenue generating dermatology company.

This sentiment was echoed by the company’s executive chairman, Vince Ippolito. He said:

We are very excited to provide a new option for the 10 million patients with primary axillary hyperhidrosis in the United States. As the first and only new chemical entity, Sofdra represents a new therapeutic approach for dermatologists to treat patients with this disabling medical condition.

Capital raising

The Botanix Pharmaceuticals share price will remain in its trading halt despite the release of this announcement.

This is because it is looking to leverage this good news to raise capital from investors. It said:

The Company will remain in halt pending an announcement of the results of a potential capital raising, which is expected no later than opening of trading on Friday, 21 June 2024.

The Botanix Pharmaceuticals share price is up 204% in 12 months.

The post Botanix Pharmaceuticals share price on watch amid FDA news and ‘transformative event’ appeared first on The Motley Fool Australia.

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• Guess which high-flying ASX All Ords stock was just halted ahead of a key FDA decision
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

The iShares S&P 500 ETF (ASX: IVV) has been a very strong performer over the past year, rising close to 30%. That’s much better than the S&P/ASX 200 Index (ASX: XJO), which has only risen by 6%.

As the disclaimer usually says – past performance can’t be relied upon for future performance. So I probably wouldn’t expect the next 12 months to be as good as that, but can the exchange-traded fund (ETF) keep rising over the longer term?

Businesses can keep growing profit

The performance of an ETF is decided by the underlying investment returns of the holdings.

It’s impossible to predict the investment returns of every business within the IVV ETF, particularly in the short term.

However, the market tends to reward businesses that grow their profit over time. When profit compounds, it can grow into a much bigger profit number after three or five years.

A lot of the US share market’s returns have been driven by the major players of Nvidia, Microsoft, Apple, Alphabet, Amazon and Meta Platforms. Each of them is growing earnings, with exposure to themes like AI, cloud computing, online video, global digitalisation and e-commerce.

As a whole, the businesses within the IVV ETF could keep growing their underlying value as the US and other developed economies experience population growth, and those companies introduce new products and services.

When we look at the chart below, we can see the effect of historical profit growth on long-term returns, with some regular volatility along the way.

Is the IVV ETF too expensive?

The fund provider Blackrock regularly tells investors what the investor metrics of the ETF are.

At the end of May 2024, the IVV ETF had a price/earnings (P/E) ratio of around 26 and a price-to-book ratio of 4.5 times. These numbers seem historically high, but I don’t think it’s too useful to compare to other decades because the composition of the S&P 500 has changed.

Technology businesses usually trade on a higher P/E ratio because their operations don’t require huge balance sheets, and the market is pricing in stronger-than-average long-term earnings growth.

On top of that, US interest rates are likely to start coming down eventually – even if it’s taking longer than expected. Lower rates could help justify a higher price for those companies’ earnings.

The one speed bump I can see in FY25 is the uncertainty of the US election. Depending on what happens, there could be a fair bit of volatility. However, the last several decades have shown that the share market can keep performing no matter who is in the White House, so I wouldn’t say one person winning necessarily changes anything for the long term.

The post Can the iShares S&P 500 ETF (IVV) continue its strong run in FY25? appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you looking to make some changes to your portfolio? If you are, then it could be worth checking out exchange traded funds (ETFs). But which ones could be buys?

Five highly rated ASX ETFs to consider buying right now are listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF for investors to consider buying is the BetaShares Global Cybersecurity ETF. This ETF provides investors with access to the cybersecurity sector, which has been tipped to grow strongly over the coming decades as cybercrime becomes even more prevalent. This bodes well for the companies included in the fund, such as Accenture and Palo Alto Networks.

Betashares Global Quality Leaders ETF (ASX: QLTY)

A second ASX ETF to look at is the Betashares Global Quality Leaders ETF. It could be another good option for investors and was recommended by the fund manager’s chief economist, David Bassanese, last year. This ETF is focused on approximately 150 global companies that rank highly on four quality metrics. This ensures that you are buying a slice of the very best companies that the world has to offer.

Betashares Global Uranium ETF (ASX: URNM)

Another ASX ETF for investors to look at is the Betashares Global Uranium ETF. This ETF aims to track the performance of an index that provides exposure to a portfolio of leading companies in the global uranium industry. These companies look well-placed for growth over the next decade thanks to strong demand for uranium for use in nuclear power and weak supply of the chemical element. Among its holdings are locally listed uranium shares Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A fourth ASX ETF for investors to consider buying is the VanEck Vectors Video Gaming and eSports ETF. It gives investors access to the leading players in a global video game market estimated to comprise almost 3 billion active gamers and growing. Among its largest holdings are game developers such as Electronic Arts, Roblox, and Take-Two.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF that could be a great option for investors is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with access to approximately 1,500 of the world’s largest listed companies from major developed countries. Vanguard highlights that this gives investors low-cost exposure to a broadly diversified range of stocks that allow them to participate in the long-term growth potential of international economies. Among its holdings are companies from countries including the US, Japan, UK, France, Canada, and the Netherlands.

The post Why these 5 ASX ETFs could be quality options for investors appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Accenture Plc, BetaShares Global Cybersecurity ETF, Palo Alto Networks, Roblox, and Take-Two Interactive Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts and has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Global Uranium Etf and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WA1 Resources Ltd (ASX: WA1) shares were on fire on Wednesday.

The ASX mining stock rocketed 27% to $20.69.

This latest gain means that the niobium explorer’s shares are up 283% since this time last year.

But if you thought the gains were over, think again. That’s because analysts at Bell Potter have just put out a very bullish broker note.

What’s going on with this ASX mining stock?

Investors were scrambling to buy the ASX mining stock yesterday following the release of results from its initial metallurgical testwork program on niobium mineralisation at the Luni deposit of the 100% owned West Arunta Project.

As you might have guessed from the share price reaction, the program delivered strong results. It produced high-grade niobium concentrates with low impurities and at industry-comparable recovery rates through a practical two stage flotation regime.

WA1 Resources’ managing director, Paul Savich, commented:

We consider this an excellent outcome towards unlocking the significant inherent strategic value of Luni. Flotation of niobium minerals is widely recognised as the key challenge to developing a conventional process flowsheet for a niobium deposit.

Broker response

Bell Potter was very pleased with the news and described it as a major de-risking event. It commented:

WA1 have passed a significant de-risking hurdle in confirming that niobium minerals from its Luni project can be concentrated via a two-stage floatation circuit with recoveries and concentrate grades in-line with dominant global producers.

This is important for two reasons; 1) niobium recovery is difficult, with typically low recoveries (as low as 30%) making most projects uneconomic and 2) we held the view that recoveries through to an end product would range between 40-45%. The fact they have exceeded that in a first pass is positive, with pathways for optimisation (eg introducing magnetic separation) providing a material value uplift.

Big returns still possible

In response, the broker has reaffirmed its speculative buy rating and upgraded its price target by almost 59% to $28.00 (from $17.65). Based on its current share price, this implies potential upside of 35% for this ASX mining stock over the next 12 months.

Bell Potter concludes:

We increase our valuation for WA1 to $28.00/sh (previously $17.65/sh) and maintain Our Speculative Buy recommendation. Our valuation for WA1 is based on a notional development scenario (NDS) for the Luni prospect. We then apply a 40% risk discount to account for the early stage of the project.

We see the potential for Luni to be a globally significant niobium project, capable of generating on average A$514m in annual EBITDA. Using Lynas (LYC, Buy TP $7.55/sh) as a comp, which trades on a 10.9x EV/EBITDA multiple, yields an enterprise value of A$5.6bn for WA1.

The post Why this ASX mining stock just got a huge broker upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It’s impossible to ignore the effect artificial intelligence (AI) has had on the technology landscape over the past year or so, and Nvidia (NASDAQ: NVDA) has been the standard bearer. The company’s chips are at the heart of the AI revolution, providing the computational horsepower that makes it all possible. This, in turn, has sent the stock soaring, up 215% over the past year. These gains led to Nvidia’s high-profile 10-for-1 stock split, which was completed just last week.

After the stock’s epic run to a $3 trillion market cap, Wall Street is reevaluating Nvidia’s future prospects. There’s a new price target from one analyst that should be of particular interest to shareholders.

 Next stop: $5 trillion?

Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on Nvidia stock and increased his price to $200. That represents potential upside for investors of 53% compared to Monday’s closing price, and would push Nvidia’s market cap within striking distance of $5 trillion. One aspect of Nvidia’s business that’s being overlooked by investors is the software side. “The real narrative lies in the software that complements all the hardware goodness,” the analyst wrote.

He went on to suggest that demand for software will increase over the course of “the next decade in terms of overall sales mix.”

I think the analyst hit the nail on the head. Nvidia’s edge lies not only in the hardware but also in the associated software that helps provide peak performance. Cathie Wood of Ark Invest estimates that the total addressable market for AI software could be worth $13 trillion by 2030, helping illustrate the magnitude of the opportunity ahead.

Furthermore, Nvidia will begin shipping its next-generation Blackwell processors later this year, which will cement the company’s increasing lead in the AI chip space.

Nvidia’s stock is currently selling for 51 times forward earnings. While that’s a premium valuation, it’s an attractive price for a stock that has generated gains of 27,450% over the past 10 years.

There’s a long runway ahead, which is why Nvidia stock is a buy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia stock going to $200 in the wake of its 10-for-1 stock split? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. Danny Vena has positions in Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owners of Woodside Energy Group Ltd (ASX: WDS) shares may like to know how much their company has contributed to Australia’s finances.

As a major commodity business, Woodside is obliged to pay taxes and royalties to state and national governments. Woodside chief financial officer Graham Tiver had this to say:

We are steadfast in our belief that governments and local communities should receive a fair return for the finite resources we extract. A balanced appreciation of this protects energy security and local jobs, as well as encouraging the future investment required to support the energy transition.

We believe in paying tax where value is created and applying arm’s length principles to our international related party dealings. We do not support the use of artificial arrangements or the transfer of value to low tax or so-called tax haven jurisdictions.

Australian government payments

Woodside’s total payments to governments around the world totalled US$3.7 billion in 2023, which was a record for Woodside. This was mostly driven by “earlier commodity price highs”, which also helped propel the Woodside share price above $38.

The ASX oil and gas share is one of the largest taxpayers in Australia. This is where its headquarters and the majority of its core producing assets are located.

In Australia, it paid a total of US$3.25 billion to governments. Of that total, Woodside paid $2.91 billion to the Australian Taxation Office, and $325 million was paid in royalties, split between the WA state government and the federal government. It also paid $12 million in various fees to different Australian departments and authorities.

Woodside noted the company expected its growth projects to “support energy security and prosperity for decades to come”. For example, the energy share expects its Scarborough energy project in Western Australia to generate “tens of billions of dollars in Australian taxes and thousands of local jobs”.

Payments to other countries

The rest of the world received close to US$500 million in payments from Woodside.

The company paid the United States US$350.3 million, Trinidad and Tobago US$135.5 million, and Mexico US$3.6 million. Canada received US$0.4 million, and Timor-Leste US$0.3 million.

Woodside share price snapshot

Since the start of 2024, the Woodside share price has fallen by 13.29%. The S&P/ASX 200 Index (ASX: XJO) has lifted almost 2% in 2024 so far, meaning the company has significantly underperformed the index.

The post Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

There are plenty of ASX dividend shares out there for investors to choose from, but which ones could be in the buy zone right now?

Three that analysts have recently named as buys are listed below. Here’s what they are saying about them and the dividend yields they are forecasting in the near term:

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs thinks that Endeavour Group could be a great ASX dividend share to buy. It is the leading company in alcohol retail and the owner of BWS and Dan Murphy’s.

The broker likes its market leadership position and the defensive nature of the alcohol retail market.

As for dividends, Goldman is forecasting fully franked dividends of approximately 22 cents per share in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.08, this will mean dividend yields of 4.3% for both years.

Another positive is that the broker sees plenty of upside for its shares at current levels. It currently has a buy rating and $6.20 price target on them.

Inghams Group Ltd (ASX: ING)

Analysts at Morgans think that Inghams could be an ASX dividend share to buy. It is Australia’s leading poultry producer and supplier.

The broker is feeling bullish on the company due to its market leadership position, favourable consumer trends, and valuation. It has described Ingham’s shares as “undervalued” at current levels.

Morgans is also expecting some good dividend yields in the near term. It is forecasting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.55, this equates to dividend yields of 6.2% and 6.5%, respectively.

Morgans has an add rating and $4.40 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Over at Goldman Sachs, its analysts also think that Suncorp could be a top ASX dividend share to buy. It is one of Australia’s largest insurance companies.

Goldman believes that Suncorp is well-placed to benefit from tailwinds in the general insurance market.

The broker expects this to support the payment of fully franked dividends per share of 78 cents in FY 2024 and then 83 cents in FY 2025. Based on the current Suncorp share price of $16.51, this will mean dividend yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $17.54 price target on the company’s shares.

The post 3 excellent ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

I agree that Pro Medicus Ltd (ASX: PME) shares are expensive, trading at a triple-digit earning multiple.

In an ideal world of investing, we all want to find high-quality companies trading at cheap multiples. But with so many eyes on the same pool of companies, it’s often easier said than done.

If I had to choose between a cheap, mediocre company and a great growth company trading at high valuation multiples, I’d always go for the latter.

As Charlie Munger — the late business partner of Warren Buffett — said, it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Investing in these high-quality companies can pay off in the long run, even if it means paying a premium today.

Excellent business model

Pro Medicus provides advanced medical imaging software and services globally, especially doing well in the United States.

When you visit a doctor for issues like bone fractures or persistent headaches, there’s a good chance you’ll need medical imaging for an accurate diagnosis. Post-pandemic medical imaging has swiftly transitioned to digital methods, eliminating the need to carry physical X-ray or ultrasound films.

This digital shift enhances efficiency and accessibility, underscoring the importance of companies like Pro Medicus in modern healthcare.

Pro Medicus generates revenue from subscription fees as well as a small fee charged per each medical imaging done on its platform. To be specific, the revenue is based on a software-as-a-service model using transaction minimums. And there’s further upside as client examination volumes grow over time. This is a great scalability.

In 1H FY24, its revenue grew 30% to $74.1 million, with an operating margin of 66%. Its net profit after tax was up 33% to $36.3 million.

The company is debt-free due to its strong operating cash flows and requires little capital investment to operate.

It ticks other investment considerations like a high insider ownership of approximately 52% and a high return on investment of 50%.

Expensive, for now

The Pro Medicus shares aren’t cheap however you cut it. Using estimates by S&P Capital IQ, the shares are trading at:

• Price-to-earnings (P/E) multiple of 175x on FY24 earnings estimates
• P/E ratio of 134x on FY25 earnings estimates
• P/E ratio of 105x on FY26 earnings estimates
• Enterprise value to revenue multiple of 67x on FY25 estimates
• Free cash flow yield of 0.5%
• Dividend yield of 0.26%

But as you might have noticed, these earnings multiples rapidly reduce as we go out by a year. This is because of its healthy earnings growth.

Should we wait for a better entry point?

The Pro Medicus share price has nearly doubled in the past year, currently trading at $134.5. This might make you wonder if it’s better to wait for the share price to weaken before investing.

I’m not completely against this idea, as events like another pandemic or economic downturns can impact the share market. The trouble is that it’s impossible to predict when they might happen, so they often surprise the market.

Rather than waiting for the ideal moment, starting with a small investment now and gradually increasing it could be more beneficial in the long run, as any current price changes might appear minor in hindsight.

The post Bull market buys: 1 magnificent ASX stock to own for the long run appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX healthcare shares smashing new 52-week highs today
• 2 top ASX growth shares to buy today and hold for 10 years
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Top ASX AI stocks to buy in June 2024

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged lower. The benchmark index fell 0.1% to 7,769.7 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower this morning. In the United States, the Dow Jones was up 0.15%, the S&P 500 rose 0.25% and the Nasdaq edged higher. The S&P 500 closed at a new record high overnight.

Oil prices soften

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$81.47 a barrel and the Brent crude oil price is down 0.1% to US$85.27 a barrel. Traders may have been taking profit after oil prices hit a seven-week high.

Buy QBE shares

QBE Insurance Group Ltd (ASX: QBE) shares are good value according to analysts at Goldman Sachs. In response to its half-year trading update and North American strategic review, the broker has reiterated its buy rating with a trimmed price target of $20.60. The broker commented: “North America de-risking positive but New Caledonia eliminates CAT buffer.”

Gold price falls

It could be a soft session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$2,342.7 an ounce. This appears to have also been driven by profit taking.

Helia rated neutral

The Helia Group Ltd (ASX: HLI) share price crashed 20% yesterday amid news that Commonwealth Bank of Australia (ASX: CBA) intends to issue a request for proposal relating to its external Lenders Mortgage Insurance (LMI) requirements for the whole CBA group. This sparked fears that Helia could lose a contract that represented approximately 53% of its gross written premium in FY 2023. Goldman Sachs has responded by holding firm with its neutral rating and $4.53 price target. It said: “Importantly, our discussion with the company today has left us confident that, to the extent it was to lose the CBA contract, it should be able to distribute the resulting capital release.”

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

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.