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The National Australia Bank Ltd (ASX: NAB) share price is edging higher today, currently up 0.79% to $29.86.

Bank stocks have been somewhat of a mixed bag this year after first reaching for the stars in January.

For NAB, it nudged a 52-week high of $33.60 on 22 April, before faltering to a 52-week low of $25.92 by 17 June.

It has since made a recovery and retraced a good portion of that downside. However, questions remain on where NAB shares might head next.

Are NAB shares the better buy?

The NAB share price is in fairly good steed with the group of analysts providing coverage. According to Refinitiv Eikon data, five out of 15 brokers rate it a buy right now, compared to nine saying it’s a hold, and one a sell.

This is down from 10 out of 16 brokers voting it a buy a few months ago back in June.

Still, the consensus price target from this list is $31.24, implying a small amount of upside potential should the group be correct.

Analysts at Goldman Sachs are more bullish than this target, and valued NAB at $34.63 per share in a recent note.

It also forecasted $1.50 per share in dividends for the coming 12 months, with a rise to $1.70 per share the year after.

Meanwhile, things aren’t so rosy over in the Commonwealth Bank of Australia (ASX: CBA) camp. For comparison’s sake, the rival bank has no buy ratings, and nine out of 16 brokers say it’s a sell.

Shares are also down 5% this year to date after turning sharply off a relief rally from the June bounce in equities.

CBA also trades on a price-to-earnings ratio (P/E) of 17.76 times at the time of writing, whereas NAB is priced at a slight discount to this at 15.11 times P/E.

Hence NAB has greater momentum on the chart, brokers say there is buying potential, and it trades at a discount to its rival in this instance.

CBA doesn’t get there with a number of external factors to bake into the investment debate as well.

Based on the culmination of this data, it would appear the NAB share price is the better buy right now. However, this also comes down to one’s personal investing style and, more importantly, risk budget.

The post Are NAB shares a better ASX 200 bank to buy than CBA right now? appeared first on The Motley Fool Australia.

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More reading

• Could this help give the CBA share price an even bigger jump on its ASX counterparts?
• Why is the NAB share price diving more than the other big 4 ASX banks today?
• Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie
• Rates go up, and CBA beefs up its business cred. Scott Phillips on Nine’s Late News
• NAB shares offer 15% upside and growing dividends: broker

Motley Fool contributor Zach Bristow 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.5% to 6,884.5 points.

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

De Grey Mining Limited (ASX: DEG)

The De Grey share price is up 13% to $1.09. This morning analysts at Macquarie responded to the company’s update on the Mallina gold project by retaining their outperform rating and lifting their price target to $1.65. This still implies ~50% upside for the gold developer’s shares despite their strong gains this week.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price is up 12% to $70.55. Investors have been buying this mining and mining services company’s shares amid speculation that it is looking at spinning off its lithium operations to unlock value for shareholders. The company responded to the speculation, stating that “any previously undisclosed potential strategic initiatives being considered by MinRes are not sufficiently advanced or certain to warrant disclosure.”

Nuix Ltd (ASX: NXL)

The Nuix share price is up 20% to 82.7 cents. This has been driven by speculation that US software company Reveal is planning to make a takeover approach. Nuix has since responded to the reports and revealed that it has not received an offer at this stage. It stated: “The Company confirms that it has not received a bid or a written proposal from Reveal.”

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is up 3.5% to $6.80. Investors have been buying this coal miner’s shares after it revealed that major shareholder Yankuang Energy has terminated a potential deal to buy the remaining shares it didn’t already own in Yancoal. This is good news for shareholders as Yankuang Energy was trying to force a takeover at a price materially below the current share price.

The post Why De Grey, Mineral Resources, Nuix, and Yancoal shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• Why is the Yancoal share price surging 6% on Friday?
• Why is the De Grey share price rocketing another 13% on Friday?
• Nuix share price rockets 26% on takeover speculation before halt
• Mineral Resources share price rockets 11% as lithium spin-off rumours fly
• Mineral Resources share price on watch amid lithium demerger rumours

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.

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The Newcrest Mining Ltd (ASX: NCM) share price is gaining ground over the ASX 200 on Friday.

At the time of writing, shares in Australia’s largest gold mining company are up 4% to $17.68.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is in the green by 0.57% to 6.888 points following the continued rally on Wall Street overnight.

Let’s take a look at why Newcrest shares are beating the ASX 200 today.

Newcrest outshines ASX 200

Despite the company keeping quiet on the announcements front today, investors are bidding up the Newcrest share price.

The price of gold is rebounding from its morning losses to fetch US$1,719 per ounce at the time of writing.

Earlier today, the yellow metal dropped to around US$1,704 as the market cooled off from the likely upcoming rate hike.

The US central bank is widely predicted to raise interest rates by 75 basis points at its 20-21 September meeting.

Furthermore, Newcrest shares are being boosted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

Currently, the benchmark index for Australian gold companies is the best performer across the ASX, with a 3.6% gain.

The Newcrest share price is now around 6% off its multi-year low of $16.56 recorded on 2 September.

It appears there are bargain hunters also in the mix which is providing another layer of support.

Shares in fellow gold miners Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) are currently up 3.48% and 5.05%, respectively.

Newcrest share price summary

Despite edging 4% in the past week, the Newcrest share price has tumbled by 28% in 2022.

Indeed, it is a long way off from reaching its year-to-date high of $28.96 achieved in April this year.

Based on today’s price, Newcrest commands a market capitalisation of approximately $8.72 billion.

The post Why is the Newcrest share price beating the ASX 200 on Friday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Do ASX 200 gold shares pay regular dividends?
• Why are ASX 200 gold shares having such a hard time of it in 2022?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. 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.

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It’s been close to eight weeks since the Suncorp Group Ltd (ASX: SUN) share price launched 6% on news Australia and New Zealand Banking Group Ltd (ASX: ANZ) plans to buy its banking business for $4.9 billion.

Unfortunately, it hasn’t managed to keep a hold of those gains. In fact, the stock has tumbled 7.9% since. It’s trading at $10.875 right now, 0.14% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 0.46% today. It has also gained 2.9% since ANZ’s planned acquisition of Suncorp Bank was announced.

So, what’s been weighing the Suncorp share price down? Let’s take a look.

What’s dragging on the Suncorp share price?

There’s been plenty going on with the Suncorp share price over the last few months.

Of course, the company announced the planned sale of Suncorp Bank on 18 July. And while the market bid the stock higher on the back of the sale, analysts had a far more reserved reaction.

Citi dubbed the sale “strategically sound” but didn’t expect it to materially add to its estimated value of the company, my Fool colleague James reported early last month.

But the major blow to the Suncorp share price between then and now landed on the release of the company’s full-year earnings.

It reported $16 billion of revenue for financial year 2022 – a 14% year-on-year improvement. However, its after-tax profit tumbled 34% to $681 million due to volatility in markets and higher natural hazard costs.

It surpassed its natural hazard allowance by more than $100 million in financial year 2022 as it pushed through 35 separate weather events and processed around 130,000 natural hazard claims.

The stock fell 4.6% when its results dropped on 8 August.

Despite its recent struggles, the Suncorp share price has outperformed over 2022 so far. It’s slipped around 5.5% since the start of the year, while the ASX 200 has dumped 9%.

However, looking further back, its performance isn’t nearly as strong. The stock has slipped 14% over the last 12 months while the index has fallen just 7%.

The post The Suncorp share price has dived 8% since ANZ’s takeover bid. What’s happening? appeared first on The Motley Fool Australia.

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More reading

• Why has the Suncorp share price been struggling in August?
• Can ANZ’s latest acquisition help it catch up to the other ASX 200 bank shares?
• Why Baby Bunting, PointsBet, ResMed, and Suncorp shares are dropping today
• Why is the Suncorp share price slipping today?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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.

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ASX lithium shares have been getting their fair share of media attention in 2022.

And for good reason.

Lithium is a core ingredient in the lithium-ion batteries that power the world’s ever-growing fleet of EVs. Most grid storage batteries also require large amounts of lithium.

With the world transitioning away from fossil fuels, lithium prices have gone ballistic since July 2021, hitting all-time highs in March this year. Prices dipped briefly in July but the lightweight, highly conductive metal is back to within 0.5% of its record price at the time of writing.

As you’d expect, rocketing prices for the metal have been a boon to ASX lithium shares.

These four ASX lithium shares are up more than 100% in 2022

It has been a tough year for many ASX stocks.

Since the opening bell on 4 January, the All Ordinaries Index (ASX: XAO) is down 10.1%.

Yet here’s how these top ASX lithium shares have performed:

• Sayona Mining Ltd (ASX: SYA) shares are up 128.6%
• Anson Resources Ltd (ASX: ASN) shares are up 182.1%
• Core Lithium Ltd (ASX: CXO) shares are up 150%
• Latin Resources Ltd (ASX: LRS) shares are up 300%

What’s piquing ASX investor interest?

Investors have clearly been drawn to the rising lithium price alongside the regular media coverage ASX lithium shares have enjoyed this year.

In Core Lithium’s most recent quarterly update, the miner reported that its Finniss Lithium Project in the Northern Territory is on track to export its first lithium by the end of 2022.

The stock also likely received a boost from its admission into the S&P/ASX 200 Index (ASX: XJO). That will enable more fund managers, restricted to trading the biggest stocks, to add Core Lithium shares to their portfolios.

There’s been a steady stream of good news coming from Anson Resources as well.

In its latest release yesterday, the ASX lithium share updated the market on its Paradox Lithium project, located in the US state of Utah. Anson’s definitive feasibility study showed “outstanding economics” for the project. The company hopes to become a major supplier for the US EV market.

Anson shares closed up 42.4% yesterday on the news.

Sayona Mining also notched up its fair share of successes recently.

In August, the ASX lithium share reported it had restarted its North American Lithium (NAL) operations, located in the Canadian province of Quebec. Sayona is forecasting its first spodumene production from NAL in the first quarter of 2023.

Then there’s Latin Resources, the biggest year-to-date gainer among the ASX lithium shares.

In its most recent update on Wednesday, the miner reported that drilling had intersected more high-grade lithium at its Colina prospect, located in Brazil. Latin Resources stated it’s on schedule to deliver its maiden JORC resource in December.

The post 4 ASX lithium shares that have rocketed more than 100% in 2022 appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 lithium shares with the lowest levels of debt
• Do Sayona Mining shares pay dividends?
• Why has the Core Lithium share price gained 13% in the past week?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 4 ASX lithium shares hitting all-time highs on Thursday

Motley Fool contributor Bernd Struben 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.

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ASX uranium shares have been shooting the lights out over the past month.

With nations around the world gripped by an unprecedented energy crisis and largely intent on moving away from fossil fuels, nuclear energy is back on the agenda to provide reliable baseload power.

To name a few examples… India is planning a series of new nuclear plants. France is working to restart plants closed for maintenance with plans for 14 new plants.

Japan is reopening nuclear power stations shuttered since the Fukushima disaster in 2011. The Japanese government is also investigating developing next-generation modular reactors.

With news of nations’ expanded nuclear power ambitions hitting the headlines regularly this past month, ASX uranium shares have trounced the index.

How have ASX uranium shares been performing?

Since this time last month, the All Ordinaries Index (ASX: XAO) is down 2.2%. Meanwhile, leading ASX uranium shares have all charged higher.

The Paladin Energy Ltd (ASX: PDN) share price, for example, is up 21.2% over the month.

Over that same time, Boss Energy Ltd (ASX: BOE) shares are up 16.1%, and the Deep Yellow Ltd (ASX: DYL) share price has surged 48.2%.

With those gains already in the bag, is there more growth to come?

Demand expected to ramp up

For some expert insight into the outlook for ASX uranium shares, we defer to the analysts at Macquarie Equities.

According to Macquarie analyst Jon Scholtz (courtesy of The Australian):

A ramp-up in demand is expected with recent news that Japan ordered the development of new nuclear reactors, and 17 existing reactors to be reactivated and that France stated its nuclear will be at full capacity by the winter. Germany also appears to be rethinking reactor decommissioning in light of energy security.

Scholtz said that both Boss Energy and Paladin were “fully licensed in known uranium jurisdictions and have a near-term path to market buoyed by a positive uranium outlook”.

With the resurgent global interest in nuclear power, Macquarie Equities raised its price forecast for uranium by 17% for the 2024 financial year and by 21% for FY25.

With those higher prices in mind, the broker also increased its price targets for the leading ASX uranium shares.

Macquarie has a new target for the Paladin share price of $1.10. That’s 15.8% above the current price of 95 cents.

The new target for the Boss Energy share price is $3.30, 14.2% above the current price of $2.89 per share.

The post ASX uranium shares have had a stellar month. Are they just getting started? appeared first on The Motley Fool Australia.

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More reading

• Why Macquarie is tipping 15% upside for the Paladin Energy share price
• Why has the Paladin Energy share price rocketed 20% in a month?
• What’s the outlook for ASX uranium shares in September?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben 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.

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AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG) will both pay a final dividend this month, but which one is higher?

The AGL share price is down 1.36% today, while Origin Energy shares are falling 0.51%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising by 0.44%.

However, let’s focus on the dividend these energy giants will be paying to shareholders later this month.

How do the AGL and Origin Energy dividends compare?

AGL’s final dividend for FY22 is, in fact, less than Origin Energy’s final dividend per share.

AGL is paying a final unfranked dividend of 10 cents per share in 2022, 70.6% less than the 34 cents paid in the prior corresponding period.

This follows AGL’s underlying profit after tax dropping 58% to $225 million in FY22.

AGL said the final dividend in FY22 was consistent with the company’s policy to target a payout ratio of 75% of underlying profit after tax.

AGL paid an interim dividend of 16 cents per share in FY22, unfranked. AGL’s total dividend of 26 cents per share in FY22 is 65% less than the 75 cents per share paid out in FY21.

Origin Energy is paying a 16.5 cents per share final dividend, 75% franked. This is 120% more than the 7.5 cents per share Origin paid in the prior corresponding period.

Origin paid a 12.5 cents per share interim dividend in FY22, taking its total dividend payout for the financial year to 29 cents.

Origin reported an underlying profit of $407 million in FY22, 30% more than FY21. Total revenue jumped 20% to $14.46 billion.

AGL will pay its final dividend to eligible shareholders on 27 September, while Origin investors will receive the dividend on 30 September.

Share price snapshot

AGL shares have risen 12% in the past year, while Origin Energy shares have gained nearly 34%

For perspective, the ASX 200 has shed nearly 7% in the past year.

AGL has a market capitalisation of $4.6 billion, while Origin Energy’s market cap is $9.9 billion

The post Are AGL shares offering a bigger final dividend than Origin this year? appeared first on The Motley Fool Australia.

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More reading

• Could you be holding onto ‘zombie’ ASX shares hoping for new life?
• Broker tips 22% upside for the AGL share price
• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• 5 ASX 200 shares turning ex-dividend tomorrow
• Down 15% in a month – is the AGL share price good value yet?

Motley Fool contributor Monica O’Shea 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.

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The Tyro Payments Ltd (ASX: TYR) share price is climbing above the takeover offer price today as the market weights up the prospect of a higher bid.

Morgan Stanley is one that reckons yesterday’s takeover proposal from Potentia Capital will be a “catalyst for other strategic bidders to consider”.

The Tyro share price is currently up 9.7% to $1.32. This is on top of the 27.9% surge on Thursday when the $1.27 a share takeover offer was announced.

Why the Tyro share price could attract another bidder

If Morgan Stanley is right, it will validate the decision by Tyro’s board to reject Potentia’s offer as being too low.

The broker lists three reasons why another bidder for the payments services provider may emerge.

Firstly, there is a global trend of consolidation in Tyro’s industry. With interest rates going up and capital getting more expensive, building scale to reach profitability is suddenly a more pressing priority.

Another reason is that large global players are taking advantage of the fall in share prices. This means would-be buyers won’t have to pay as much to buy smaller and faster-growing ASX companies.

This leads to the third point. Tyro’s share price is inexpensive to a potential suitor. Morgan Stanley noted that the ASX fintech is trading at two-to-three times enterprise value to gross profit (based on the broker’s FY23 forecast). That’s lower than other transactions in this space.

High price to play

But any competing bidder will have to cough up at least $1.52 if it wants Tyro’s largest shareholder to switch horses.

Potentia has the backing of Grok, which owns 12.5% of Tyro’s shares. Grok is the head trust owned by Atlassian Corporation’s (NASDAQ: TEAM) co-founder Mike Cannon-Brooks.

It’s hard to see how a competing bid can be successful without Grok’s support.

Details on the initial takeover of Tyro

Potentia’s offer allows shareholders the option of getting their payment in cash, half-cash and half-scrip in a privatised Tyro, or 100% scrip in the private company.

The offer is also subject to a few conditions, such as a six-week due diligence and getting regulatory approvals.

Potentia is leading a consortium that is behind the takeover bid for the Tyro share price. Other members of the group include HarbourVest Partners LLC, MLC Investments Limited and The Construction and Building Unions Superannuation Fund.

Tyro share price snapshot

Even with the excitement from the takeover offer, longer-term shareholders are likely to still be nursing a big loss.

The Tyro share price has crashed 65% over the past year while the All Ordinaries (ASX: XAO) has shed 7%.

Embattled shareholders will be keeping their fingers crossed that a higher bid will soon emerge.

The post Tyro share price climbs another 10%. Could a fresh takeover bid be on the horizon? appeared first on The Motley Fool Australia.

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More reading

• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?
• Tyro share price rallies 31% following rejected takeover bid
• 2 heart-breaking ASX shares finally turning it around: Morgans
• 3 ASX All Ords shares that leapt over 10% today
• Why did the Tyro share price surge 12% today?

Motley Fool contributor Brendon Lau 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 Atlassian and Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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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Are the dividends from Macquarie Group Ltd (ASX: MQG) shares going to beat a savings account here as we stand in September 2022?

That is a very good question. For years now, dividends were almost always going to give an investor a higher yield than what could be achieved through a savings account. That’s what record low interest rates, which got down to a paltry 0.1%, result in.

But in 2022, times have changed, and rapidly at that. This week saw the Reserve Bank of Australia (RBA) increase the cash rate for the fifth consecutive month in a row. The cash rate was 0.1% at the start of the year. Now it stands at 2.35%. That changes the game when it comes to cash investments like savings accounts and term deposits.

So let’s circle to the Macquarie dividend. July saw Macquarie fork out its last dividend, a final payment worth $1.40 a share. Unusually for Macquarie, this came fully franked. This was a substantial drawdown from FY21’s final dividend. This was worth a whopping $3.35 per share, partially franked at 40%.

Together with Macquarie’s December interim dividend of $2.72 per share (also partially franked at 40%), Macquarie shares today have a dividend yield of 3.49%.

So how does this dividend yield compare to what an investor can expect from a savings account or term deposit today?

How do Macquarie’s dividends stack up to cash today?

Well, it’s certainly competitive. As we covered earlier this week, the highest savings accounts in Australia currently offer interest rates of just over 3%. The highest of these is presently 3.6%.

Saying that, accounts offering these kinds of interest rates usually come with conditions. These include minimum transaction thresholds, regular deposits, and requirements that no funds are withdrawn if investors are to receive the top rates.

When it comes to term deposits, higher rates still are available to investors. If savers are willing to lock their money away for more than 12 months, rates up to 4.4% are currently available. Macquarie’s own term deposits currently go up to a maximum interest rate of 3.65%. That’s slightly above its present dividend yield.

Something else to consider as well. Rates have just been hiked by another 0.5% as of this week. As is often the case with the ASX banks, this latest hike has yet to fully flow through to banks’ savings products.

So even if the RBA doesn’t raise rates next month, we could see even higher rates still on Australian savings accounts and term deposits in the next few weeks and months.

For years, dividends had the upper hand on cash investments. But it looks like the tide may finally be turning.

The post Is the Macquarie dividend going to beat a bank savings account? appeared first on The Motley Fool Australia.

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More reading

• Morgans names 3 of the best ASX shares to buy in September
• August’s RBA rate hike saw investors favour Macquarie and BHP shares. Here’s what to expect in September: expert
• Top brokers name 3 ASX shares to buy next week
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Brokers name 3 ASX shares to buy today

Motley Fool contributor Sebastian Bowen 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 recommended Macquarie Group Limited. 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 Yancoal Australia Ltd (ASX: YAL) share price is pushing higher into the green on Friday after a good start to the day.

At the time of writing, the Yancoal share price is up 6% at $6.94 following a company announcement. Shares earlier touched $7.15 — their highest mark in 12 months.

What’s up with the Yancoal share price?

The company posted a price-sensitive update informing investors that Yankuang Energy had terminated a potential deal to buy the remaining shares it didn’t already own in Yancoal.

Yankuang already holds a 62.3% stake in the coal player. The offer it made was made based on historical performance of the Yancoal share price.

“Yankuang Energy wishes to update the respective shareholders and potential investors…that, in light of the recent market conditions, it will terminate the potential transactions,” the Chinese company said in a statement.

Following the decision, it was stated that no person or entity, including Yangkuan, can announce an offer or possible offer for Yancoal within six months of today’s announcement.

Investors don’t appear concerned and have, in fact, rewarded Yancoal on the back of the news.

Shares jumped like a mare from the gates at Randwick in early trade today and have held the line since. Trading volume is within 95% of the four-week trading average at nearly 3 million shares.

Today’s lift extends an impressive run for Yancoal these past 12 months, bringing its gains to 186% during that time.

The company hasn’t looked like slowing down either, as seen in the chart above, and neither has the price of coal.

The price of the black rock just recently shot to 52-week highs itself and has turned sharply to trade at US$440/Tonne, just off its all-time high of US$460/Tonne yesterday.

The post Why is the Yancoal share price surging 6% on Friday? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX All Ordinaries shares that defied today’s sell-off to crack new highs
• Why has this ASX energy share surged 196% since the start of the week
• Why are ASX 200 coal shares having another cracker of a day?
• Yancoal share price lifts on 677% earnings boost
• Why India can’t get enough of Aussie coking coal and which ASX shares have exposure

Motley Fool contributor Zach Bristow 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.

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