Tag: Motley Fool Australia

The August earnings season is upon us and I’ve got my eye on ASX retail shares.

Why am I watching ASX retail shares?

Let’s rewind to January 2020. Aussie retailers were under pressure and we saw big names like Jeanswest fall into voluntary administration.

The February earnings season saw a mixed bag of results before the coronavirus pandemic sent ASX retail shares plummeting.

That investor fear was not unfounded. Higher unemployment normally translates to lower discretionary income and fewer retail sales.

However, government stimulus and strong central bank support helped prop up the economy. In fact, the pandemic restrictions boosted sales for a number of ASX retail shares.

All of that is in the rear-vision mirror now. I’m looking ahead to the August earnings season and which ASX retail shares are in the buy zone.

Why Super Retail and 2 others are worth watching

The Super Retail Group Ltd (ASX SUL) share price shot 9.5% higher last Friday after a strong earnings guidance update.

The company’s unaudited full-year results show a 4.2% increase in total sales for FY20. That includes positive contributions from Supercheap Auto, Rebel and BCF, while Macpac sales fell 5.0%.

That saw investors pile into the ASX retail share on Friday. In fact, Super Retail shares are now up more than 150% since the March bear market.

There are still some concerns about the impact of Victoria’s stage 4 restrictions and those across the other states on non-discretionary retailers. I’ll be watching the group’s August 24 full-year results announcement for any further guidance.

I think Harvey Norman Holdings Limited (ASX: HVN) is another one to watch in August.

Harvey Norman could see some solid sales numbers thanks to strong electronics sales. The Aussie retailer already announced a special dividend thanks to stronger than expected sales.

The Harvey Norman share price is down 9.6% for the year but trading 1.52% higher in today’s session.

I’m not sure when Harvey Norman will announce this year’s annual results, but its FY19 report was released on 27 September last year, which is later than most.

It’s not just the retailers I’m watching. I think Aussie real estate investment trusts (REITs) with strong retail exposure are worth keeping an eye on too.

Scentre Group (ASX: SCG) is also on my watchlist for August. Scentre owns and operates the Westfield shopping centres across Australia and New Zealand.

I think the ASX retail REIT share is one to watch, but I wouldn’t hold my breath for a strong result.

Shopping centre traffic numbers are down, which isn’t good news for the REITs or their tenants. However, Scentre shares are down 47.0% this year, so it looks like a disappointing result is already being priced in.

Scentre is set to release its half-year earnings result on 25 August and I’m sure it’ll be one worth watching.

Foolish takeaway

There are a number of ASX retail shares that have struggled to climb higher this year.

Despite some solid gains since March, I think we could see Super Retail and other shares continue to climb on the back of strong August earnings.

More reading

• The ASX stocks hit by Victoria’s stage 4 forced shutdowns
• Why you should buy ASX shares in this resilient market
• Leading brokers name 3 ASX shares to buy today
• AMP and 2 other ASX 200 shares to watch this week
• Top ASX Stock Picks for August 2020

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Scentre Group. 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 Super Retail and 2 other ASX retail shares to watch in August appeared first on Motley Fool Australia.

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Although not widely followed by investors, the S&P/ASX 50 index is one of Australia’s most important large-cap equity indices.

It represents 50 of the largest and most liquid ASX shares by float-adjusted market capitalisation. These include some of the most well-known companies in the country.

And while I wouldn’t be investing in all the shares on the index, I think there are a handful that would be fantastic options for investors.

Two ASX 50 shares I would buy today are listed below:

CSL Limited (ASX: CSL)

My favourite ASX 50 share is this global biotherapeutics giant. I think CSL would be a quality long term investment option due to its in-demand therapies, growing plasma collection network, and its burgeoning product pipeline. The latter is underpinned by the company’s material investment in research and development (R&D) activities each year. CSL tends to invest somewhere in the region of 10% to 11% of sales into its R&D efforts. This resulted in the company investing a massive US$832 million in R&D across its businesses in FY 2019. And a similar level of investment will be made this year. I expect these investments to allow CSL to maintain its industry-leading position and support solid profit growth for years to come.

Goodman Group (ASX: GMG)

Another ASX 50 share to buy is Goodman Group. It is an integrated commercial and industrial property group which owns, develops, and manages high quality industrial real estate globally. Goodman Group’s portfolio has been expertly curated over the last few years to give it exposure to industries experiencing positive tailwinds such as ecommerce, logistics, food, consumer goods, and the digital economy. I’m particularly positive on its prospects due to its exposure to the rapidly growing ecommerce market. It achieves this with relationships with the likes of Amazon, DHL, and Walmart. All in all, I believe Goodman Group is well-placed to deliver solid earnings and distribution growth over the next decade. This could result in the Goodman Group share price generating market beating returns over the period.

More reading

• Why I would buy and hold CSL and these ASX healthcare shares
• CSL and 1 other ASX 200 growth share to buy for long-term growth
• 5 things to watch on the ASX 200 on Monday
• Top ASX Stock Picks for August 2020
• Top brokers name 3 ASX shares to buy next week

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

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Tech shares are once again dominating the financial headlines today.

Many listed tech companies are trading at or near record highs. And many could see their share prices run far higher from here.

The massive growth we’re witnessing in the technology sector isn’t anything new. The trend was already well-established back in the 80s.

Before moving on, let’s address the ageing elephant in the room. That’s right, the dreaded dot-com bubble. Though long dead, its spectre still scares some investors away from tech shares, even to this day.

We’ll get to why I think that’s a mistake in a moment. But first…

The price of chasing the herd

I’m sure you know what happened to technology shares in the early 2000s. After driving the tech heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) to rapid record highs, the tech bubble burst. Badly.

From March 1995 through March 2000, the Nasdaq gained a whopping 518%. From March 2000 to September 2002 it gave back a lot of those gain, falling a gut-wrenching 75%.

But here’s the thing.

The blistering gains achieved by many of the technology shares in the late 1990s were driven by wild speculations. It was the dawn of the age of the internet. Everyone and their dog were buying computers to get connected to the web. And investors were paying wild sums of money for a stake in things as relatively trivial as domain names.

The resulting bust sent a slew of stocks into bankruptcy. But most of the quality companies survived.

Take Amazon.com, Inc. (NASDAQ: AMZN), for example. The share price dropped more than 50% during the dot-com bust. But today it’s up an astounding 2,800% from its peak before the bust.

It’s companies like Amazon that are driving the Nasdaq to almost daily new highs. After closing for another new record high yesterday (overnight Aussie time), the Nasdaq stands 120% higher than it did at the very peak of the dot-com bubble. And it’s up more than 793% from the September 2002 trough.

These are the kinds of companies you want in your portfolio. And as I’ll show you below, it’s not just United States listed technology shares you’ll want to consider owning. There are plenty of great ASX tech shares right here in Australia with sky-high potential.

This is no dot-com bubble

I believe the big gains we’re witnessing in the technology sector today are far different from what we saw in the late 90s.

Sure, there is some speculation going on. And yes, some tech shares are overvalued and will lose some — or all — of that value in time.

However, I believe many technology shares are a great place to invest some of your money for the longer term.

As we’ve all witnessed over the past decades, the pace of technological innovation is speeding up. And with the rise of deep learning machines and eventually true artificial intelligence, this is only likely to increase.

A more immediate tailwind for many tech shares is the COVID-19 pandemic. Or more specifically the lockdown measures that are seeing millions (if not billions) of people turn to working, shopping and socialising from home.

3 investments for diversified exposure to tech shares

For a truly diversified technology portfolio, you not only want to own shares in 15 or more shares, you also want to own shares in some international companies.

If you don’t have the time or resources to research that many shares, a simpler way to gain that diversified exposure is with ASX listed exchange traded funds (ETFs).

So, let’s get to it…

First up is VE CH NEW/ETF (ASX: CNEW), or the VanEck China New Economy ETF. This ETF isn’t strictly a technology fund. Chinese tech companies do make up the majority of its top holdings. But it also holds healthcare, consumer staples and discretionary stocks.

CNEW commenced trading on the ASX in November 2018. Since then, the share price is up 97.8%. Year-to-date it has gained 40.3%.

Despite ructions with the US and other Western governments, I believe that, long term, China’s technology sector has huge growth potential ahead. CNEW is one way to get in on that growth.

Next up we look to the US. As mentioned above the Nasdaq just reached another new record high. And I believe the best stocks in the index will, long term, go far higher.

One way to gain immediate broad exposure to US tech shares is with the Betashares NASDAQ 100 ETF (ASX: NDQ). It holds the 100 largest, non-financial companies listed on the Nasdaq. The top 10 are all household names.

NDQ started trading on the ASX in May 2015. Since then, the share price is up 150.5%. Year-to-date it has gained 21.1%.

Last, but certainly not least, we turn to ASX tech shares. Australia hasn’t always been a leading player in the tech sector. But that’s changing rapidly.

If you’re looking to gain exposure to a broad range of leading ASX tech shares, I recommend looking into BETAATEC/ETF (ASX: ATEC), aka the BetaShares S&P/ASX Australian Technology ETF.

ATEC holds some of Australia’s largest and most innovative tech companies. It’s a new arrival on the ASX, trading since 6 March 2020. It was an inauspicious time to launch, as the share price tanked 25% over the next two weeks. But since 20 March, it has been on a tear, up more than 72%.

I know all these recent gains can make it feel like the ship has sailed on these investments. But if you’ve got a longer-term investment horizon (say 3 to 5 years), I believe there are far more gains ahead for them.

More reading

• Better Buy: Netflix vs. Amazon
• 1 ASX share to take advantage of the strong FAANG shares
• Why Amazon’s share price is set to leap on the opening bell
• US tech shares deliver massive results – what does it mean for ASX tech shares?
• These could be outstanding buy and hold options for ASX investors

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At the time of writing, the Pensana Metals Ltd (ASX: PM8) share price is up 14.29% to 4.8 cents following the announcement of drilling results by the company.

What was in the announcement?

The company reported results from the last 86 holes of its 8,000 metre drill program, completed at its Longonjo project in Angola.

Pensana Metals identified fresh rock mineralisation that, according to the announcement, adds a whole new dimension to its Longonjo project. The company identified wide, continuous high intersections with 2% to 4% rare earth oxides. These were returned from fresh rock immediately below the weathered zone.

Pensana Metals has commenced work on an updated mineral resource estimate that, according to the company, will be reported in September.

According to the Pensana Metals COO and Executive Director, Dave Hammond, the results will allow the company to upgrade its existing resource categories and extend the life of the mine. He stated;

“These final results have further highlighted the world-class opportunity at the Longonjo project. The drilling continues to prove the continuity of the weathered mineralisation, returning significant grades from surface outside our current mine plan. We expect these infill drilling results will allow us to upgrade the existing resource categories and extend the mine life.”

About the Pensana Metals share price

Pensana Metals is a rare earth minerals explorer and mine developer. Its current project is located in Angola where the company aims to become a producer of Neodymium-Praseodymium. Pensana Metals (also known as Pensana Rare Earths) is listed on the ASX and the London Stock Exchange.

In the quarter to 30 June, 2020, Pensana Metals received a mining title for its Longonjo rare earth mining project in Angola, with the mining title renewable for up to 35 years. The company also received an equity investment of $7.25 million from the Angola sovereign wealth fund.

Pensana Metals announced high grade drill results during the June quarter of 2020.

At the end of the June quarter, Pensana Metals had cash of $5,981,000 up from $2,015,000 at the end of the previous quarter.

The Pensana Metals share price is up 380% from its 52 week low of 10 cents. It has returned 167% since the beginning of the year. The Pensana Metals share price is up 108.7% since this time last year.

More reading

• Buy these outstanding ASX 50 shares for strong potential returns
• 3 ways to play the skyrocketing tech shares
• Leading brokers name 3 ASX shares to sell today
• Alterity Therapeutics share price rockets 70% on new data
• 2 ASX tech shares to buy and hold beyond 2026

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

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Adbri Ltd (ASX: ABC)

According to a note out of UBS, its analysts have retained their sell rating and lifted the price target on this building products company’s shares slightly to $2.03. The broker appears concerned by the loss of a major and long-standing supply contract with Alcoa Australia. It notes that the loss of this contract has raised questions about its lime business. The Adbri share price is changing hands for $2.25 this afternoon.

Cochlear Limited (ASX: COH)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $159.00 price target on this hearing solutions company. Although Goldman notes that elective surgeries resumed ahead of its expectations, recent restrictions in certain regions have stifled the recovery. The broker also has concerns that more urgent elective work will be prioritised by hospitals, which could weigh on cochlear implant sales. In addition to this, it suspects that many potential users of its products may defer doing so until the pandemic passes. Especially given how many of its target market are in a higher risk age category. In light of this, it feels the market may be expecting too much from Cochlear in the medium term. The Cochlear share price is trading at $197.00 on Tuesday.

Suncorp Group Ltd (ASX: SUN)

Analysts at Credit Suisse have retained their underperform rating and $8.75 price target on this insurance and banking giant’s shares. The broker believes Suncorp could disappoint when it releases its full year results later this month. It notes pressure on both revenue and margins. In addition to this, the broker expects Suncorp to cut its final dividend by almost 80% to 9 cents per share. The Suncorp share price is currently fetching $8.78.

More reading

• How will Victoria’s stage 4 lockdowns impact ASX shares?
• Why Alliance Aviation, Cochlear, Kogan, & Netwealth shares are storming higher
• ASX 200 up 0.1%: Big four banks tumble, Flight Centre sinks, SEEK cancels final dividend
• These were the worst performing shares on the ASX 200 in July
• 3 underloved ASX healthcare shares with strong comeback potential

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

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The Alterity Therapeutics Ltd (ASX: ATH) share price has surged more than 70% in early trade after the company released new clinical data.

What new data has Alterity released?

Earlier today, Alterity released an announcement informing the market of new clinical and experimental pharmacology data for its lead drug candidate ‘ATH434’. The new data was generated from experiment testing ATH434 in an animal model of Multiple System Atrophy (MSA) and confirmed that the drug reduces alpha-synuclein pathology, preserves neurons and improves motor performance in patients with MSA.

As a result, Alterity noted that the new data has been selected for presentation at the 2020 International Congress of Parkinson’s Disease and Movement Disorders and the American Neurological Association’s annual meeting. In addition, Alterity will also present cardiac safety data from its Phase 1 study of ATH434, which will be the first-time information will be shared with international clinicians and researchers.

What does Alterity do?

Alterity is a biotechnology company that is focused on therapies for neurodegenerative diseases. The company’s lead candidate, ATH434, is an orally bio-available, brain penetrant that’s designed to inhibit the accumulation of pathological proteins involved in neurodegeneration. As indicated by today’s news, ATH434 has been shown to reduce the accumulation of alpha-synuclein proteins in animal models and acts by redistributing labile iron in the brain.

As a result, Alterity’s therapy has the potential to treat Parkinson’s disease and other atypical forms of the disease such as MSA. MSA is a rare, rapidly progressive neurological disorder affecting adults and has no known cause. According to Alterity’s management, there is an unmet medical need for new treatments for MSA with most symptoms of the disease remaining unaddressed by available drugs for Parkinson’s disease.

In late June, Alterity announced that that it had received guidance from the United States Food and Drug Administration (FDA) for a development pathway for ATH434, with the company aiming to undertake a global development strategy.

Foolish takeaway

At the time of writing, the Alterity share price is trading more than 58% higher for the day at 5.4 cents, after hitting an intraday high of 5.8 cents earlier.

More reading

• Why Etherstack and these shares were the most traded on the ASX last week

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.

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The Australian tech sector is immature compared to the much larger US tech market. However, a broad range of interesting ASX tech shares is now emerging.

Here we look at 2 ASX tech shares that I believe have strong long-term growth potential: NextDC Ltd (ASX: NXT) and Appen Ltd (ASX: APX).

2 ASX tech shares to buy and hold for the long term

NextDC

Local data centre services provider NextDC has evolved significantly over the past decade. It is now Australia’s largest locally based data centre operator. NextDC’s customer base has grown at a very impressive compound annual growth rate (CAGR) of 21% over the past 4 years.  The local data centre operator now rivals some of its larger global competitors such as Equinix and Global Switch, in terms of the size of its data centre footprint throughout Australia.

Strong growth in its customer base is reflected in the company’s recent share price growth. The NextDC share price has grown from $6.49 a year ago to now be trading at $12.03, an increase of 85%.

I am confident that there is potential for further growth for the NextDC share price in the years to come. NextDC is continuing to build newer and more energy-efficient Tier IV data centres, which is likely to lead to growing margins and higher recurring revenues.

Appen

Appen has evolved over the past few years to become a global leader in providing data for machine learning and artificial intelligence (AI).  Clients include global tech giants such as Apple and Alphabet.

Like NextDC, Appen has experienced strong share price growth over the past year, particularly over the past few months. The Appen share price risen from to $17.14 in mid-March, to now be trading at $38.09 at the time of writing. In a recent update, Appen informed the market that there no been any major impact to its business operations during the coronavirus pandemic so far.

I believe that there is potential for more strong growth in the years ahead for the Appen share price. The global demand for AI products and machine-learning markets is only likely to surge higher.

Foolish takeaway

NextDC and Appen are 2 quality ASX tech shares that I would be confident to buy and hold for the long term. Both companies have strongly established market positions in their respective niches. I believe that this is likely to lead to strong revenue growth over the next few years, which in turn is likely to flow through to above average shareholder returns.

More reading

• If you invested $50k in these ASX shares 3 years ago, you’d be a millionaire today
• Why I would invest $50,000 into these excellent ASX shares
• Why I would buy NEXTDC and these stellar ASX growth shares
• Here’s how to start investing with $5k
• Why I think Megaport shares offer enormous long-term growth potential

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

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The Indiana Resources Ltd (ASX: IDA) share price surged to a more than three-year high this morning on the back of an acquisition.

Shares in the gold explorer jumped by 25% to 5 cents a share when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) gained over 2% each.

But the IDA share price stands in contrast to the wider gold sector, which is losing favour today due to rising risk appetite.

The Ramelius Resources Limited (ASX: RMS) share price lost 2.3% to $2.10 and the St Barbara Ltd (ASX: SBM) share price fell 0.6% to $3.45.

Buying its way to 1m ounces

What’s keeping Indiana Resources in investors’ good books today is the hope that its acquisition of privately-owned Patron Resources Limited will turn the nanocap into a one million ounces of gold producer.

Patron’s subsidiaries own a range of tenements in Central Gawler Craton in South Australia that covers 2,660 square kilometres.

The exploration ground hold advanced to early stage targets that are located between the historic mining centres of Tarcoola and Tunkillia.

Good area to dig

Management is quick to point out that the area includes a number of successful gold projects and it believes this increases the chances of Indiana Resources making significant discoveries.

“Importantly, this transaction allows Indiana to actively explore in this exciting and low-risk region at a time of record gold prices,” said its chairman Bronwyn Barnes.

“With multiple drill ready targets across the tenement package already identified, we are going to move quickly to target those areas that demonstrate strong potential for moderate to high-grade gold opportunities.”

Cost of the acquisition

Indiana Resources will pay a non-refundable deposit of $30,000 plus $15,000 for a rehabilitation bond.

It will issue Patron 18 million shares in IDA and an additional $95,000 on completion of the takeover.

Further, Indiana Resources will pay two trances of performance shares that are linked to specific outcomes.

Milestone payments

The first set of performance shares will convert to 7 million ordinary shares it Patron’s tenements achieves a JORC resource of 500,000 ounces of gold or gold equivalent at a cut-off grade of  0.5 grams a tonne of gold (g/t Au) for an open pitable resources and 2g/t Au for underground resources, with at least 50% of the resource in the “indicated” category.

Patron will get a second trance of 12.5 million shares if the tenements turned out to hold at least one million ounces of gold with the same conditions as highlighted above.

The performance milestones must be achieved within five years and are subject to approvals from the ASX and Indiana Resources shareholders.

More reading

• ASX 200 jumps 2%: Big four banks rebound, Wesfarmers update, Afterpay rockets
• Will the Coles share price rocket higher again in August?
• Why the Reliance Worldwide share price is one to watch today
• 5 things to watch on the ASX 200 on Tuesday
• The ASX stocks hit by Victoria’s stage 4 forced shutdowns

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

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Victoria’s stage 4 lockdown rules come into place tomorrow night, closing thousands of workplaces across the state. Non-essential businesses will be shuttered, with other sectors subject to heavy restrictions. Many retailers will be forced to close physical stores, although online shopping can continue. We take a look at the possible impact of these new lockdowns on ASX shares. 

Retailers close stores 

Under the new restrictions, all but essential retailers will be forced to close their doors. The share prices of retailers Adairs Ltd (ASX: ADH), Lovisa Holdings Ltd (ASX: LOV) and Accent Group Ltd (ASX: AX1) all fell yesterday following the announcement. These retailers previously closed stores during the first lockdown, but have since reopened. Adairs and Accent Group reported record online sales during the first lockdown period, and will no doubt be hoping for the same this time around. 

Investors swooped on online retailers in the wake of the announcement. The Kogan.com Ltd (ASX: KGN) share price jumped 9% yesterday afternoon as investors anticipated a shift to online shopping. Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) also stands to gain with physical furniture stores shuttered for six weeks. JB Hi Fi Limited (ASX: JBH) has announced the metropolitan Melbourne store network will be closed to customers, but will remain operational to fulfil online and commercial orders. 

Industry slows 

Stage 4 restrictions mean much local manufacturing will close, and that which continues will see restrictions on its operation. Inghams Group Ltd (ASX: ING) has announced the restrictions will impact on its two meat processing facilities in Victoria. A 33% reduction in the workforce at these plants is required with financial implications uncertain at this time. Reliance Worldwide Corporation Ltd (ASX: RWC) has advised restrictions may impact its manufacturing and distribution facilities in Victoria, but said any supply disruptions should be mitigated by inventory levels. 

Adbri Ltd (ASX: ABC) has reported its sites can continue to operate, but that it will closely assess requirements for construction materials and will modify production levels in response to demand. Wesfarmers Ltd (ASX: WES) has advised that the lockdowns will result in the closure of Kmart and Target stores. Bunnings stores will remain open for trade customers but will be closed for in-store retail customers. Officeworks can continue to service business customers but will also be closed to in-store retail customers. 

Foolish takeaway

Victoria’s stage 4 restrictions are generally bad news for business, but the financial impacts will take time to become clear. The effects on ASX shares will be mixed as was the case with the first lockdowns.

More reading

• Why Crown, Fortescue, Kogan, & Nearmap shares are storming higher
• ASX 200 jumps 2%: Big four banks rebound, Wesfarmers update, Afterpay rockets
• Why the JB Hi-Fi share price is dropping lower today
• Wesfarmers share price higher on Victorian COVID-19 update
• Why the Reliance Worldwide share price is one to watch today

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Reliance Worldwide Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group, Kogan.com ltd, Reliance Worldwide Limited, and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up 1.9% to 6,036.8 points.

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

The Crown Resorts Ltd (ASX: CWN) share price is up 5.5% to $9.20. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has retained its buy rating and lifted the price target on this casino and resorts operator’s shares to $9.90. The broker believes its attractive valuation and balance sheet make it a buy, even with the Melbourne lockdowns.

The Fortescue Metals Group Limited (ASX: FMG) share price is up 2% to $18.21. Investors have been buying the iron ore producer’s shares after the price of the steel making ingredient surged higher overnight. According to CommSec, the benchmark iron ore price rose 4.4% to US$116.35 a tonne.

The Kogan.com Ltd (ASX: KGN) share price is storming higher again and up a further 3% to $18.82. The catalyst for this has of course been the announcement of lockdowns in Victoria. With most retailers being forced to close for six weeks in metropolitan Melbourne, more spending looks likely to go online. This bodes well for Kogan and its popular website.

The Nearmap Ltd (ASX: NEA) share price has jumped 5% to $2.40. The aerial imagery technology and location data company’s shares are storming notably higher after a very positive night of trade on the technology-focused Nasdaq index. It isn’t just Nearmap that is on the rise. The S&P/ASX 200 Information Technology index is up a sizeable 4% at the time of writing. One broker that thinks Nearmap is a buy is Citi. It currently has a buy rating and $2.60 price target on its shares.

More reading

• How will Victoria’s stage 4 lockdowns impact ASX shares?
• ASX 200 jumps 2%: Big four banks rebound, Wesfarmers update, Afterpay rockets
• The Kogan share price rocketed 11% higher today: Is it too late to invest?
• The ASX stocks hit by Victoria’s stage 4 forced shutdowns
• The Fortescue Metals share price just hit a new record high

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

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