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Now that the 2022 financial year has drawn to a close, it’s a great time to look back and assess the state of the ASX share market as we embark on FY2023. So today, let’s check out the ASX dividend shares that had the highest yields on offer over FY2022.

Remember, a trailing dividend yield represents what the company has paid over the past 12 months, not what investors can expect going forward. So do not get too carried away seeing some of these dividend yields over 12% – many will not be delivering such a yield in FY2023.

The 5 ASX dividend shares with the highest FY22 yields

Our first ASX dividend share to check out is BHP Group Ltd (ASX: BHP). BHP has always been known as a strong dividend payer. But FY2022 saw the Big Australian pay out the highest level of raw dividend payments in its history.

The mining giant forked out a whopping $4.80 in fully franked dividends per share. That gives BHP shares a trailing yield of 12.58% today.

Our next share to take a look at is asset manager Platinum Asset Management Ltd (ASX: PTM). Over FY2022, Platinum funded a total of 22 cents per share in fully franked dividends. That wasn’t the biggest payout investors have gotten from Platinum.

The fund manager forked out 47 cents per share in 2015, for example. However, Platinum shares have plunged by 62.85% over the past 12 months. This has resulted in the company’s trailing yield shooting up to 12.68% on current pricing, making it one of FY2022’s highest-yielding shares.

On paper, Tabcorp Holdings Limited (ASX: TAH) also looks like a dividend winner. Its FY2022 total of 13.5 cents per share, fully franked, was a reduction on the previous year’s 14.5 cents per share.

But on the current Tabcorp share price, that still gives us a trailing yield of 12.83%. However, this doesn’t reflect the spinoff of Lottery Corporation Ltd (ASX: TLC) that was completed back in May.

Now that this substantial chunk of Tabcorp’s business is on its own, it’s very unlikely that the company can continue to fund its dividends to the same watermark.

From a 12% to an 18% yield?

Another miner in Fortescue Metals Group Limited (ASX: FMG) is FY2022’s penultimate ASX dividend share winner. Like BHP, the last financial year saw Fortescue shower shareholders with unprecedented amounts of cash. Its FY2022 total came to $2.97 per share, fully franked.

That was again a big increase on FY2021’s total of $2.47. That’s enough to give Fortescue shares a trailing dividend yield of 17.66%. Like BHP, Fortescue’s ability to keep paying those kinds of dividends will be determined by what the price of iron ore does over FY2023.

Our final and highest-yielding ASX dividend share of FY2022 is none other than Magellan Financial Group Ltd (ASX: MFG). Unfortunately for shareholders, this is another case where a falling-like-a-stone share price has largely pushed up the company’s trailing dividend yield.

Magellan shares are now down almost 75% over the past 12 months. This has meant that Magellan’s last two dividend payments, which came to a total of $2.24 per share (franked at 75%), give Magellan a monstrous trailing yield of 18.57% on current pricing.

Yes, Magellan has also just paid out the biggest dividend in its history for FY2022. However, the company has been suffering through an extremely difficult period of late. We won’t get into that too much here.

But the precipitous fall in Magellan’s funds under management from $116.4 billion in November 2021 to $65 billion by 31 May 2022 is likely to be a handbrake on the company’s ability to maintain those kinds of payments into FY2023.

So those are our five highest-yielding shares of FY2022 as it currently stands. Remember, many of these shares could well be dividend traps going forward. So don’t get too carried away with what looks like an unbeatable dividend yield.

The post 5 ASX dividend shares with the highest yields in FY22 appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 mining shares are bouncing back on Thursday
• Should investors dig the BHP share price in July?
• Why Beach, BHP, Bubs, and Galileo Mining shares are sinking
• ASX hydrogen shares announced some big news last month, so why did so many end June in the red?
• Top 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 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 Woodside Energy Group Ltd (ASX: WDS) share price is jumping today despite oil prices hitting a three month low.

Woodside shares are currently swapping hands at $30.37, a 0.56% jump.

So what is going on with the Woodside share price today?

Oil and gas price impact

Woodside shares are rising amid a mixed day for oil and gas producers. The Santos Ltd (ASX: STO) share price is down 1.64% today. However, Beach Energy Ltd (ASX: BPT) shares are rising 0.62%.
The S&P/ASX 200 Energy Index (ASX: XEJ) is slightly in the red, down 0.19%.

Oil prices fell 2% to the lowest level in 12 weeks, Reuters reported. Brent oil fell 2% to US$100.69 a barrel, while WTI crude oil dropped 1% to US$98.53 a barrel overnight. This was reportedly sparked by the impact of a global recession on energy demand.

Mizuho energy futures executive director Robert Yawger, in a quote cited by Reuters, said:

There are undeniably concerns about recessionary demand destruction, plus, WTI open interest at multi-year lows has created a bit of a liquidity crunch

Gas prices on the other hand, told a different story. ANZ economist Madeline Dunk highlighted that European gas prices rose due to fears of supply shortages. Dutch futures jumped 3.6% to EUR170.99 per MWh. In a research report, Dunk said:

The continent is facing its biggest energy crisis as Russian gas flows continue to fall.

The rising gas prices are pushing electricity prices to record highs..

Rising gas demand could be an opportunity for Woodside. The company merged with BHP Group Ltd (ASX: BHP)’s oil and gas portfolio in early June this year to create a top 10 global oil and gas producing company.

Woodside share price snapshot

The Woodside share price has soared 38% year to date, while it has jumped 28% in the past year.

For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) has jumped 21% year to date, and 15% in the past year.

Woodside has a market capitalisation of about $57.5 billion based on the current share price.

The post Woodside share price defies 3-month low in oil prices appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Woodside Energy share price slumping 6% today?
• How is the oil price plunge impacting ASX 200 oil shares today?
• What’s in store for the Woodside Energy share price in July?
• Santos and Woodside on watch after oil prices crash 10%

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

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

Many crypto analysts have spurned Solana (CRYPTO: SOL) as an Ethereum knockoff, but it may finally be coming into its own. If crypto intrigues you, but the high prices and environmental impact of Bitcoin and Ethereum are turn-offs, maybe you’ve heard of Solana as an alternative. Is “Solana Summer” an investment opportunity? Solana differs from Bitcoin and Ethereum in some fundamental ways, and its current price is an attractive entry point. While other cryptos have plummeted, Solana is enjoying a comparatively stable price and increasing adoption, along with a growing non-fungible token (NFT) market. Yet not everything is sunny for Solana: Would-be investors should consider its drawbacks. Either way, you’re likely to hear more about Solana in the coming months. 

What is Solana?

Solana is an open-source blockchain platform that launched in March 2020. Its lightning-fast processing speed and low transaction fees quickly propelled it into the top 10 cryptocurrencies by market cap, but Solana also boasts technical innovations that differentiate it from competitors. The Solana Foundation designed it as an infrastructure inviting adoption through dApps (Decentralized applications, or software that can run entirely on the blockchain), rather than acting as a store of value like Bitcoin. Solana’s proof-of-history (PoH) consensus method differs from rivals by validating transactions through nodes that can identify precisely when a transaction posts instead of having miners solve cryptographic challenges, like Ethereum and Bitcoin. Far more energy efficient than Bitcoin or Ethereum, the Solana protocol doesn’t gobble electricity with mining. The PoH protocol permits simultaneous transaction processing, which also improves its energy efficiency. Last year, the successful releases of several NFT collections on Solana increased its visibility – particularly among those unable to stomach Ethereum’s astronomical transaction fees. 

Even in the depths of crypto winter, Solana shows signs of summer.

Although Solana’s price is down dramatically compared to last fall’s all-time high of $259.03, the context of today’s crypto market makes this decline seem moderate. SOL is currently trading at $35.43 USD. This time last year, it traded for $35.60. Compare that to the recent declines in Ethereum’s or Bitcoin’s prices, and Solana seems comparatively low-drama.

Solana’s NFT scene is also beginning to rival Ethereum’s. The Solana NFT market is growing, with Solana NFT daily volume occasionally outpacing Ethereum’s daily NFT volume. Solana NFT’s, like their ETH-based counterparts, slumped in June, but there are also signs of growth: The number of daily active Solana accounts has more than doubled since early March, and the number of daily Solana transactions increased by more than a third over the past 90 days. These metrics suggest that Solana is gaining new users even in a bear market – and that these users aren’t just speculating: They’re actually using the platform. 

What is “Solana summer,” and is it happening now? 

During 2021’s bull run, Solana maximalists deployed the hashtag #SolanaSummer as a rallying cry to increase awareness of the platform. Nevertheless, Solana remained in the shadows of Bitcoin’s and Ethereum’s astounding gains. But this summer, Solana’s price has remained relatively steady while other cryptocurrencies have plummeted. Recent hits like Step’n, a Solana-based “move to earn” app that paid users for walking, provide mainstream use cases for Solana’s infrastructure — something that other cryptos still struggle with. 

With Solana’s star rising and the rest of the crypto market in shambles, could this summer finally be Solana’s moment to shine instead of languishing on the sidelines? Between the relative price stability and Solana’s apparent growth, perhaps we can forecast a relatively rosy summer for Solana. 

But not everything is sunny for Solana.

Solana does have drawbacks, and these drawbacks are significant in the crypto world. Consider the “blockchain trilemma,” or the thesis that when it comes to security, scalability, and decentralization (i.e., the degree of control and power that any individual actor or institution has over the platform), blockchains can choose only two out of three. Solana chose to emphasize scalability and security by sacrificing some decentralization. Many crypto purists consider Solana’s relative centralization unacceptable, preferring Bitcoin’s and Ethereum’s more decentralized and secure, but less scalable, solutions. Relatedly, Solana is prone to serious outages because of this relative centralization. It experienced multiple large-scale outages this year, most of which brought the entire ecosystem to a standstill for hours. 

The same features that helped Solana gain traction also make it vulnerable to spammers. Solana’s low transaction costs are low because unlike Ethereum, users cannot pay miners to ensure that their transactions process faster. This made it cost-effective for spammers and bad actors to cause network congestion and other chaos. Critics claim Solana’s attempts to dissuade spammers are only Band-Aids, and argue that despite the emphasis on scalability, these problems will worsen as Solana grows.

Solana maximalists view these drawbacks as growing pains, and argue that the current price is a great opportunity to be early. But others consider the outages and centralization to be deal breakers. 

Exploring Solana’s platform is a great way to make Solana Summer happen.

If you’re considering an investment in Solana, check out some of its apps to get a better feel for the ecosystem and decide whether it fits with your investment strategy. If you’re technically inclined, try building an app yourself! There’s still plenty of summer left, and this might just be the summer of Solana after all. 

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

The post Is “Solana Summer” (Finally) upon us? appeared first on The Motley Fool Australia.

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More reading

• Is Solana the next Bitcoin?
• The key driver behind the recovery in Bitcoin, Ethereum, and Solana today
• 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year
• What crypto winter? It’s always sunny with Solana

Miranda Tedholm has positions in Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and Solana. 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.

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After a poor showing yesterday, S&P/ASX 200 Index (ASX: XJO) mining shares are staging a comeback today.

At the time of writing the ASX 200 is up 0.2% while the S&P/ASX 200 Materials Index (ASX: XMJ) is up 1%.

Atop from some likely bargain hunting among the big miners, which offer some juicy trailing dividend yields at current share prices, the ASX 200 miners look to be getting a lift from a 1.8% boost in iron ore prices overnight. The industrial metal, pressured lately by fears of a slowing Chinese economy hamstrung by COVID mitigation efforts, is trading for US$112 per tonne.

Which ASX 200 mining shares are lifting?

Some of the biggest names in the sector are helping propel the index higher.

Leading the charge is Mineral Resources Limited (ASX: MIN), up 4.2% to $1.78 per share.

BHP Group Ltd (ASX: BHP), among the world’s biggest miners, is also marching higher. Shares in the mining giant are up 1.4% to $38.28.

Meanwhile, the Fortescue Metals Group Limited (ASX: FMG) is up 2.3% while rival iron ore miner Rio Tinto Limited (ASX: RIO) has gained 3.2%.

Despite today’s welcome reprieve, all four of the ASX 200 mining shares are down more than 20% over the past 12 months as commodity prices have slipped from historic highs.

The post These ASX 200 mining shares are bouncing back on Thursday appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• 5 things to watch on the ASX 200 on Thursday
• The Woolworths share price outperformed the ASX 200 in FY22. Here’s why
• Here are the top 10 ASX shares today
• Should investors dig the BHP share price in July?

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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The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is in the green today following a market update from the company.

At the time of writing, the investment company’s shares are up 6.05% to $8.06 apiece.

Let’s take a look at what Pinnacle released to the ASX this morning.

What was in Pinnacle’s announcement?

Investors are sending the Pinnacle share price north during midday trade after digesting the company’s latest news.

In the release, Pinnacle advised that 10 of its affiliates have crystallised performance fees for the 12 months ending 30 June.

This totalled approximately $57.1 million, of which $38.3 million came from the second half of FY22.

The net share of these performance fees, after tax payable by the affiliates on this revenue, is around $16.4 million. Again, about $10 million of this was earned in the second half of the 2022 financial year.

As a result, Pinnacle is forecasting a net return on its principal investments to be roughly $0.1 million.

This amount comprises $3.9 million in ‘dividends and distributions’ but with a net negative $3.8 million of investment returns (fair value gains/losses on financial assets at fair value through profit and loss).

Pinnacle noted that the figures are preliminary estimates and still need to be audited.

Audited statements are scheduled to be released on 3 August, along with further information regarding the company’s funds under management and net inflows.

About the Pinnacle share price

Despite soaring higher today, the Pinnacle share price has lost 50% since the beginning of the year. It is also down more than 28% since this time last year.

The company’s shares have been on a gradual decline, hitting a 52-week low of $6.49 in late June. However, they are up 13% over the past week.

On valuation grounds, Pinnacle presides a market capitalisation of around $1.49 billion.

The post Here’s why the Pinnacle Investments share price is climbing 6% today appeared first on The Motley Fool Australia.

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More reading

• 9 ASX 200 shares now trading at ‘significant discounts’: broker
• 2 cheap ASX 200 shares to buy that no one talks about: Glenmore
• Are these 2 compelling ASX shares buys in June 2022?

Motley Fool contributor Aaron Teboneras 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 PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. 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 Aristocrat Leisure Limited (ASX: ALL) share price is rangebound today and is currently trading around 1% higher at $36.20.

This brings gains to almost 7% over the past month for Aristocrat.

In broad market moves, the S&P/ASX 200 Index (ASX: XJO) is rangebound today and is flat at 6,609.

More upside in the Aristocrat share price?

Analysts at Morgans are constructive on the share and reckon Aristocrat makes a good investment case.

It values the company at $43 per share and notes a strong history of sales growth over the past 5-years to date.

This suggests another 19% return potential at the current Aristocrat share price.

“[Aristrocrat] has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring,” Morgans said.

“We expect Aristocrat to continue to take market share in all its product segments,” it added.

Another factor Morgans notes is that gaming machines are typically more resilient during economic downturn.

For the $24 billion company by market value this could spell further revenue growth, the broker said, backed by its $3.3 billion in available liquidity.

“Aristocrat has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions,” it mentioned.

In the past 12 months, the Aristocrat share price has collapsed more than 14% into the red and trades down 17% this year to date.

The post Could there be another 19% upside to the Aristocrat Leisure share price? appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 ASX growth shares to buy this week
• Broker names 3 of the best ASX shares to buy in July
• Here are the top 10 ASX shares today
• Analysts tip big returns from these ASX growth shares
• 9 ASX 200 shares now trading at ‘significant discounts’: 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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The EML Payments Ltd (ASX: EML) share price is tumbling on Thursday amid reports of a broker downgrade.

At the time of writing, the EML Payments share price is $1.29, 9.15% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is in the green right now, having gained 0.18%. Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is slipping 1.27%.

Let’s take a closer look at what might be weighing on the ASX 200 financial services company.

What’s dragging on EML Payments today?

The EML Payments share price is handing back most of its Wednesday gains amid reports that RBC Capital has cut its outlook on the stock.

The broker has downgraded EML Payments to ‘sector perform’, The Australian reports.

Though, it still has a $1.80 price target on the company’s shares, representing a 27% upside on the company’s previous close.

The reported downgrade follows yesterday’s news that the company is working with the operator of Spain’s post office network to roll out a national stimulus program.

It will be loading approximately half a million prepaid virtual cards with 400 euros each. The cards will be issued to eligible 18-year-olds who will be able to spend the funds on cultural products and activities.

The company’s stock launched 10.5% higher on the back of Wednesday’s announcement. Thus, some of today’s fall could be attributed to profit-taking.

EML Payments share price snapshot

Today’s tumble is just the latest for EML Payments this year.

The company’s share price has fallen more than 60% since the start of 2022.

It’s also 65% lower than it was this time last year.

The post Why is the EML Payments share price sinking 9% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• Why Domino’s, EML, Talga, and Woolworths shares are pushing higher
• These 3 ASX 200 tech shares are on fire today
• EML share price leaps 16% on Spanish government stimulus contract
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump

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 positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML 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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The Zip Co Ltd (ASX: ZIP) share price is cratering in morning trade on Thursday and now sits 7% lower at 53.5 cents.

Investors have pushed Zip lower today on no news. However, noteworthy is a bearish research note out of UBS today, highlighting growing concerns for the company.

In broad market moves, the S&P/ASX 200 Index (ASX: XJO) is rangebound today and is flat on the day at 6,597.

Sell now, sell later for the Zip share price

In contrast to its buy now, pay later (BNPL) business model, investors have adopted a sell at all costs mentality with Zip these past 12 months.

The share has been on a downward glide in that time and has shown no signs of reversing out of the downtrend.

It reached 52-week lows on 30 June and has been wiggling sideways up until today’s trading.

Analysts at UBS have taken note of this and other risks in Zip’s profile. The team have rated the share a sell and reduced its price target to 45 cents.

UBS has chosen to look at gross receivables to rate Zip’s credit performance and estimate that the BNPL player’s bad and doubtful debt (BDD) provisions are set to increase.

It reckons Zip has an annualised BDD expense of around 12.4% for this first half, up from 7.4% a year ago.

With Zip’s arrears making up more of its receivables, the broker said it expects “credit quality to remain soft this half”.

“In order for Zip to achieve profitability…[t]his will involve growing its receivables – which in our view means taking on more risk,” it said.

“[Zip] needs to achieve revenue and cost synergies with Sezzle, an improvement in credit performance, and organic growth,” it added.

The post Zip share price cops 6% slashing as analyst fears grow appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Zip share price reignites with a 19% rally amid tech bounce
• Up and back down: Why is the Zip share price volatile today?
• The Zip share price lost 94% of its value in FY22

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 positions in and has recommended ZIPCOLTD FPO. 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is currently up 0.3% to 6,615.7 points.

Here’s what is happening on the ASX 200 today:

Bendigo and Adelaide Bank’s acquisition

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is trading lower at lunch despite the announcement of an earnings accretive acquisition. The company has agreed to acquire the investment lending portfolio of Australia and New Zealand Banking Group Ltd (ASX: ANZ). Bendigo and Adelaide Bank will pay an “immaterial premium over book value” for the $715 million investment lending portfolio.

Chalice Mining jumps

The Chalice Mining Ltd (ASX: CHN) share price is surging higher today after the release of a drilling update. According to the release, a new nickel-copper-PGE sulphide zone has been intersected in initial drilling at the Dampier target, ~10km north of the Gonneville Deposit. Management notes that this is the first significant indication of orthomagmatic sulphide mineralisation outside of the Gonneville Deposit and is considered an exciting result.

Zip shares sink on bearish broker note

The Zip Co Ltd (ASX: ZIP) share price is sinking on Thursday. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has retained its sell rating on the buy now pay later provider’s shares and cut its price target by 50% to 45 cents. UBS is concerned that Zip could inadvertently worsen its credit performance if it raises fees in an effort to improve profitability.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Chalice Mining share price with a 10% gain following the company’s drilling update. Going the other way, the EML Payments Ltd (ASX: EML) share price is the worst performer with a 9% decline. This may have been driven by a combination of weakness in the payments industry and potential profit taking after a strong gain yesterday.

The post ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note appeared first on The Motley Fool Australia.

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More reading

• Why is the EML Payments share price sinking 9% today?
• Zip share price cops 6% slashing as analyst fears grow
• Bendigo Bank shares rise after going long on leverage with ANZ lending acquisition
• Chalice Mining share price leaps 13% on new exploration results
• 5 things to watch on the ASX 200 on Thursday

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 EML Payments and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited and EML 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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The Santos Ltd (ASX: STO) share price had a tough June, but some analysts are tipping better times ahead.

Santos shares plunged 9.51% in the month of June. In today’s trade, the company’s share price is falling again, by 1.57% to $6.91. For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is currently dropping by 0.38% today.

Let’s take a look at the outlook for this oil and gas share in July.

Can the Santos share price go higher?

Santos shares dropped in June amid falling oil and gas prices. The crude oil price fell 5.5% from US $111.91 a barrel to US$105.76 a barrel in June, Trading Economics data shows. Natural gas prices also dropped dramatically by 33% from US$8.1380 per million British thermal units (MMBtu) to US$5.4240 MMBtu.

However, looking ahead to July, Luke Smith from Ausbil Investment Management is positive on the Santos share price and said the company is a buy. He added:

We’re bullish on both oil and gas. Santos, for us, is the preferred way to play that in the Australian space. [It] has lagged the commodity for some time.

Also sharing his view was Tom Richardson from Paradice Investment Management. He predicts the Santos share price will reflect cash coming back to shareholders in the future. He said:

I think that’s inevitable with Santos. As much as development optionality they’ve got, there’s going to be a lot of cash coming back to shareholders and the share price will reflect it.

Oil and gas outlook

Santos is a major oil and gas producer. Looking at gas, UBS analysts have recently predicted east coast gas prices will jump 10% a year up to 2025.

The closure of coal-fired power stations could lead to more reliance on gas-fired power, according to UBS. It said: “While it may take some time for electricity prices to normalise, we expect the role of gas-fired power generation to lift as coal continues to exit the market.”

Oil prices fell more than 10% in US markets on Tuesday. Overnight, oil prices dropped a further 2% on global recession fears, Reuters reported.

Yesterday, the team at Citi put out a note warning this decline could continue in a recession scenario. Citi said:

In a recession scenario with rising unemployment, household and corporate bankruptcies, commodities would chase a falling cost curve as costs deflate and margins turn negative to drive supply curtailments.

Share price snapshot

Santos shares have lost nearly 4% over the past 12 months, but they have risen more than 9% this year to date.

For perspective, the S&P/ASX 200 Energy Index has rocketed nearly 21% year to date and close to 15% in a year.

Santos has a market capitalisation of about $23.3 billion based on the current share price.

The post Down nearly 10% in June, can the Santos share price recover in July? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• How did the Santos share price perform in FY22?
• How is the oil price plunge impacting ASX 200 oil shares today?
• Leaking oil price sends Santos shares into the red
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump

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