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The IOUpay Ltd (ASX: IOU) share price is coming back down to Earth after rocketing 55% today.

At the time of writing, the Malaysia-based buy now, pay later (BNPL) provider’s shares are up 7.94% to 6.8 cents.

Let’s take a look at what drove the company’s shares higher before quickly retracing throughout the day.

What happened to IOUpay shares?

After surging as high as 11 cents in early morning trade, the IOUpay share price was temporarily paused.

This came as the ASX issued the company a speeding ticket.

IOUpay took the next several hours to respond to a query regarding its ASX price movement and volume.

The company’s management stated it wasn’t aware of why the company’s shares accelerated to astronomical levels.

However, it did note that its board believes shareholders may be “price-factoring” in relation to the company’s non-executive chair appointment.

It also mentioned that other previous announcements could likely be contributing to its shares rising today.

Nonetheless, the sharp uptick comes amid a backdrop of extreme market volatility on the ASX over the past couple of months.

Investors have expressed their concerns regarding the downbeat economic outlook due to rampant inflation and aggressive interest rate hikes.

IOUpay share price summary

It has been a difficult 12 months for IOUpay shares, tumbling more than 70% as investors flee the BNPL sector.

When looking year to date, the company’s shares are down roughly 56%.

Based on valuation grounds, IOUpay commands a market capitalisation of $37 million.

The post IOUpay shares issued a speeding ticket after rocketing 55% today. What happened? appeared first on The Motley Fool Australia.

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More reading

• Why shares in Berkshire Hathaway fell in June
• Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday?
• Could an ‘immense’ opportunity mean the Megaport share price is now a buy?
• How did the Macquarie share price perform in June?
• Is it safer to pull your money out of the stock market or keep investing for now?

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 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 among the top performers on the S&P/ASX 200 Index (ASX: XJO) on Tuesday.

At the time of writing, the Woodside share price is $32.52, 4.03% higher than its previous close.

For context, the ASX 200 is currently recording a 0.36% gain.

Let’s take a look at what might be bolstering the ASX 200 energy giant’s stock today.

Woodside share price outperforms on Tuesday

The Woodside share price is driving the ASX 200 and its home sector higher on Tuesday despite the company’s silence.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently the market’s top-performing segment, lifting 2.48% right now.

Its gains have likely come on the back of rising oil prices. The price of Brent crude oil increased 1.7% to US$113.50 a barrel overnight. Meanwhile, US Nymex crude oil’s value lifted 2.1% in after-hours trade to US$110.66 a barrel.

Their rises came amid supply concerns born from unrest in Libya and Ecuador, as well as sanctions against Russian oil, Reuters reported. The publication also noted a strike could see Norway’s oil production slip 8% this week.

The price of thermal coal also lifted overnight, rising 2.2% to trade at US$396.45 a tonne. On top of that, uranium futures rose 0.79% to US$51.25 a pound.

The share price of uranium producer Paladin Energy Ltd (ASX: PDN) is trading in Woodside’s shadow today, gaining 3.95% at the time of writing.

Worley Ltd (ASX: WOR) is the sector’s third-best performer right now, recording a 1.63% gain.

The post Why is the Woodside Energy share price leading the ASX 200 higher on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• The surprising ASX shares to buy as interest rates rise: expert
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher
• Wipeout: Why did the Magellan share price sink 70% in FY22?
• ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting
• Why ASX 200 value shares are surviving the sell-off better than growth shares

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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Due to the market’s sudden aversion to loss-making tech companies, you won’t be surprised to learn that the Megaport Ltd (ASX: MP1) share price has been hammered in 2022.

Since the start of the year, the leading cloud connectivity and networking solutions provider’s shares have lost a disappointing 72% of their value.

Is the Megaport share price weakness a buying opportunity?

While the decline in the Megaport share price is disappointing for shareholders, it could be a buying opportunity for others. In fact, if the team at Goldman Sachs are on the money, there could be some huge gains ahead for investors.

According to a recent note, its analysts have a buy rating and $13.10 price target on the company’s shares.

Based on the current Megaport share price of $5.41, this implies potential upside of 140% for investors over the next 12 months.

Why is Goldman bullish?

Goldman is bullish on the Megaport share price due to the company’s first-mover advantage in an industry benefiting from long term structural tailwinds. These are the adoption of public cloud (and multi-cloud usage) and the transition towards Networking as a Service (NaaS).

The broker highlights that the latter is being driven by the increased prevalence of hybrid working and cloud-based applications. These are putting strain on legacy network designs and impacting performance. All in all, the broker feels this is providing Megaport with an “immense” growth opportunity.

Goldman explained:

MP1 is benefiting from its first-mover advantage, and two structural tailwinds that accelerated through covid-19, including: (1) The adoption of public cloud & multi-cloud usage; and (2) The growth in Networking as a Service (NaaS).

The opportunity for further growth is immense (GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies).

The post Could an ‘immense’ opportunity mean the Megaport share price is now a buy? appeared first on The Motley Fool Australia.

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More reading

• Analysts name 3 buy-rated ASX growth shares for July
• Megaport share price slumps 5% despite takeover speculation
• 5 things to watch on the ASX 200 on Wednesday
• Analysts say these ASX growth shares have huge upside potential
• Why are ASX tech shares struggling today?

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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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 Macquarie Group Ltd (ASX: MQG) share price dropped in June, although it lost less than many other ASX bank shares during the month.

Macquarie shares slipped 11.54% between market close on 31 May and 30 June. To put this in perspective, the S&P/ASX 200 Index (ASX: XJO) slid nearly 9% during the same time frame.

So what weighed on the Macquarie share price during the month?

Bank shares suffer

Macquarie shares had a tough June, but they outperformed multiple other ASX banks. Last month, the Commonwealth Bank of Australia Ltd (ASX: CBA) descended 13.4% while Westpac Banking Corp (ASX: WBC) lost 18.3%. Meanwhile, National Australia Bank Ltd (ASX: NAB) fell 12.38% and Australia New Zealand Banking Group Ltd (ASX: ANZ) dropped 12.02%. Bendigo and Adelaide Bank Ltd (ASX: BEN) also tumbled 12.96% in June.

Interest rate rises and recession fears appeared to impact ASX bank shares, including Macquarie. Despite hikes increasing net interest margins (NIM) on home loans, they can also lower demand for new mortgage loans, as my Foolish colleague Bernd noted recently. Further, they can boost the number of bad debts held by the bank.

Looking at news from Macquarie, on 28 June, the company announced plans to raise $400 million via the offer of capital notes. These notes were issued at $100 each, with distributions to be paid quarterly in arrears, subject to conditions.

In other news last month, Macquarie offered interest rates of 1.5% per year for transaction accounts from 17 June. As my Foolish colleague Sebastian noted, this was a higher rate than most other ASX banks.

Looking ahead, some analysts are tipping an upside for the Macquarie share price. Analysts at Morgans are optimistic about its exposure to infrastructure and renewables, as my Foolish colleague James reported. Morgans added:

The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.

Morgans placed an add rating on the Macquarie share price with a $215 price target. This is a 27% upside on the current share price of $168.65 at the time of writing.

Meanwhile, Ord Minnett senior investment advisor Tony Paterno also recommended investors buy Macquarie shares in a post on 19 June. He noted the company’s plans to boost interest payments on transaction accounts, adding:

After disrupting the home loan market in recent years, this could have an impact on the deposit market if it gains traction.

Share price snapshot

Macquarie shares have shed 18% in the year to date, but they have leapt more than 7% in the past year

In contrast, the S&P/ASX 200 Index has returned about 9% in the past year.

Macquarie has a market capitalisation of just over $65 billion based on the current share price.

The post How did the Macquarie share price perform in June? appeared first on The Motley Fool Australia.

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More reading

• How did the Vanguard Australian Shares Index ETF perform in June?
• 3 more of Morgans’ best ASX share ideas for July
• June was a terrible month for ASX 200 bank shares. Here’s why
• What’s the outlook for the Macquarie share price in July?
• Broker names 2 ASX 200 financials shares to buy

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 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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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.

Bear markets are pivotal times that can completely change long-term investing performance. Obviously, a market crash can erase years of diligent savings and shrewd investing in the course of a few months. On the other hand, pulling out of the stock market now can prevent you from getting big returns when it recovers. There are a few factors to consider before you can determine which route is safer.

The state of the stock market

By most people’s definitions, we’re in a bear market. The S&P 500 is down 20% year to date while the NASDAQ has fallen 30%. These sorts of declines are typically associated with stocks that have become very cheap, but that’s not exactly the case right now.

Stock valuations were near all-time highs in 2021, so the recent downturn has simply dropped those valuations in line with historically normal levels. The average dividend yield for the S&P 500 still hasn’t recovered to pre-pandemic levels.

SPY Dividend Yield data by YCharts.

Meanwhile, the forward PE ratio for the S&P 500 recently fell below 18. That’s slightly below the pre-pandemic level — which itself came at the end of one of the best decades in stock market history.

The rise of high-growth, low-dividend tech stocks within major stock indexes certainly plays a role in those metrics, but that doesn’t explain everything going on. We can still conclude that stocks aren’t particularly cheap across the board. They just aren’t prohibitively expensive anymore.

Personal circumstances

That context is important. We can’t make blanket statements about the market being cheap or expensive today. We can make educated guesses about the future of the market, but that’s even more difficult to forecast when valuations aren’t abnormally high or low.

This means that the safety of stock investing depends heavily on your own personal circumstances. Risk tolerance, investment time horizon, and financial goals all play important roles in determining the best course of action. Investors with short time horizons and low risk tolerance need to be much more careful about short-term risks. Investors with high risk tolerance and long-time horizons need to think very carefully about long-term opportunity costs if they refrain from investing.

It’s probably a bad time for you to sell stocks

That said, it’s a horrible time to sell for the vast majority of investors. It’s easy to feel the sting from the most recent market crash, but pulling money out of the market at this time is just a reaction that’s coming too late.

Humans are prone to a common mistake that can really complicate investment analysis. We tend to look at recent trends and assume that they’ll continue. In reality, circumstances have changed drastically in capital markets. Some of the forces that were present at the start of the 2022 market crash are far less potent today.

The prospect of interest rate hikes by the Fed rippled through the market. Investors recognized opportunities for higher yields and grew fearful of an economic slowdown. After the Fed’s aggressive hike in June, the market actually rose, indicating that these fairly extreme monetary policy changes were fully reflected by Wall Street. Expectations have come more in line with reality. Falling stock valuations also removed fuel for the sell-off. Huge quantities of growth investors who piled into tech stocks over the past two years have since closed those positions as the party ended. There’s just not as much room to the downside.

That’s a long way of saying that the market isn’t bound to keep falling just because it’s had a rough six months. If you pull money out of the market right now, you’re simply locking in those losses. This isn’t to say that the market won’t fall further — it definitely could. A recession looks imminent, consumers are still feeling the sting from high inflation, and global supply chains are still recovering from the COVID-19 disruption. It’s hard to see a catalyst today that is going to drive valuations higher, and corporate earnings might be weak for the next few quarters.

When you should consider pulling money out of the market

The only people who should seriously consider selling are those who are too exposed to equities. People who are approaching retirement should have a balanced portfolio with both stocks and bonds. That’s similarly true for investors who have relatively short-term cash needs or a personal aversion to risk. If your investment allocation is misaligned with your personal circumstances, then it might be wise to limit your volatility — even if it means locking in some of your recent losses.

It’s still not wise to completely abandon stocks in this extreme case. Stocks have a role in most portfolios well into retirement; they just need to be properly balanced.

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

The post Is it safer to pull your money out of the stock market or keep investing for now? appeared first on The Motley Fool Australia.

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More reading

• How did the Macquarie share price perform in June?
• Whitehaven share price takes off despite climate legal challenge
• The surprising ASX shares to buy as interest rates rise: expert
• CBA share price slips as analyst warns of $2 billion Klarna scratch
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

The Motley Fool has a disclosure policy.

 

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

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The Whitehaven Coal Ltd (ASX: WHC) share price is among the leaders of the S&P/ASX 200 Energy Index (ASX: XEJ) on Tuesday. That’s despite news a planned extension at the company’s Narrabri underground mine is being challenged in court by Bushfire Survivors for Climate Action.

At the time of writing, the Whitehaven share price is $4.88, 1.67% higher than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.25% and the energy sector is up 2.51%.

Let’s take a look at why the company’s planned project – set to cost more than $400 million – is hitting headlines.

Whitehaven share price gains despite legal challenge

The Whitehaven share price is outperforming on Tuesday. Meanwhile, the company has declared it will “vigorously defend” against proceedings brought against its Narrabri Stage 3 Extension Project.

The project was given the tick of approval from the NSW Independent Planning Commission (IPC) earlier this year. But that’s being challenged in the NSW Land and Environment Court.

Bushfire Survivors for Climate Action has initiated judicial review proceedings. It’s seeking to have the project’s approvals revoked on climate change related grounds.

In an ASX release today, Whitehaven noted the mine’s approval process involved the evaluation of 1,775 submissions from stakeholders. Around a third of those addressed the topic of climate change.

The company also said the IPC granted the project approval after finding that emissions resulting from the extension were “permissible in context of the current climate change policy framework”.

Finally, the company commented, “high quality thermal coal has an important role to play in providing energy security during the decarbonisation transition”.

The Woodside share price has gained 77% over the course of 2022 so far. It’s also a whopping 138% higher than it was this time last year.

The post Whitehaven share price takes off despite climate legal challenge appeared first on The Motley Fool Australia.

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More reading

• Why did ASX 200 energy shares soar today?
• ‘Well progressed’ share buyback puts Whitehaven Coal shares on the front foot
• Why are ASX 200 energy shares dragging on the market today?
• I loved this ASX share a year ago, and it’s still my long-term pick: expert
• How did ASX energy shares perform in June?

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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While no one has a crystal ball, the prospect of further interest rate rises now seems to be as certain as the sun rising each day.

The Reserve Bank of Australia board met Tuesday afternoon and, as many experts forecasted, it raised the cash rate by 50 basis points.

That makes it a whopping 125 basis point jump over just a few months. But inflation remains rampant and central banks around the world are determined not to let it get out of hand, as it did in the awful 1970s.

Finder head of consumer research Graham Cooke said it’s a tough time for home-owning Australians.

“There’s no light at the end of the tunnel just yet, with our panel forecasting at least two more rate rises to come.”

The ASX shares to stay away from

In such an environment when consumers will start locking up their wallets, which ASX shares make the best investments?

Montgomery Fund portfolio manager Andreas Lundberg had some ideas on a recent blog post, while reminding investors that the current interest rate is still historically very low.

Firstly, in the short term, he would stay well away from discretionary consumer stocks.

That warning is especially relevant for businesses with customer demographics that are exposed to home loans and “other large necessary expenses”.

“If you want to have any exposure to discretionary spending, look for companies catering to younger people,” he said.

“[They] are less likely to have mortgages and be responsible for electricity bills and who are seeing good wage inflation due to minimum wage increases and current labour shortages.”

The ASX shares to buy

His second tip is surprising: buy up high-growth companies.

This is because Lundberg personally believes the RBA will end up not raising interest rates as much as the market is expecting.

The massive home loans taken on in the past decade will mean Australians will be much more demoralised by the current rate hikes compared to past cycles.

“RBA will get cold feet way before they put through anywhere near the level of increases in the cash rate that the market is predicting, as we will see a real contraction in discretionary consumption from households as they come to terms with the inflationary environment we are in at the moment.”

So once it dawns on the market that the RBA will hold fire, a golden opportunity in heavily-fallen high growth shares will be realised, according to Lundberg.

But he warns investors to be discriminating when they’re shopping for these ASX shares. 

“The key will be to figure out which of them have a robust enough business model to survive a likely severe economic downturn before lower central bank rates increase economic activity again.”

The post The surprising ASX shares to buy as interest rates rise: expert appeared first on The Motley Fool Australia.

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More reading

• Wipeout: Why did the Magellan share price sink 70% in FY22?
• ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting
• Why ASX 200 value shares are surviving the sell-off better than growth shares
• Why did the Qantas share price outperform the ASX 200 in FY22?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tony Yoo 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 Commonwealth Bank of Australia (ASX: CBA) share price is down 0.39% so far today to trade at $91.09.

The share price slippage comes amid one broker’s speculation that CBA may have to write down a $2 billion loss relating to its investment in global payments provider, Klarna.

What’s happening with CBA’s stake in Klarna?

First, a little background on CBA and Klarna.

CBA purchased a US$100 million stake in Klarna in 2019, seeking to capitalise on the buy now, pay later (BNPL) craze at the time.

It then lifted its stake in January 2020 by another US$200 million.

As we reported then, this gave CBA about a 5% stake in Klarna. The bank also became a 50% owner of Klarna’s Australia and New Zealand divisions.

Klarna officially launched in Australia on 30 January 2021 and in New Zealand on 4 May 2021.

Now, on to today’s news.

According to reporting in the Australian Financial Review (AFR) today, Morgan Stanley analyst Richard Wiles says CBA may be forced to take a $2 billion writedown on its Klarna stake in FY22.

What did Morgan Stanley say?

According to the article:

The analyst assumes an 85 per cent haircut in the Klarna stake’s value from $2.48 billion in the first half to just $400 million at the end of FY 2022. The potential writedown would reduce the book value by about $1.20 per share or 2.5 per cent.

Any writedown would be booked through CBA’s reserves not its income statement, Morgan Stanley said.

The broker quoted a Financial Times report from July 2 that said Klarna’s valuation had fallen from $US46 billion to $US6.5 billion.

CBA share price summary

The big four ASX bank share has lost 11% of its value over the past month.

The CBA share price has been dragged down by investors’ concerns over rising inflation and interest rates.

CBA will report its full-year results for FY22 during the upcoming earnings season on 10 August.

The post CBA share price slips as analyst warns of $2 billion Klarna scratch appeared first on The Motley Fool Australia.

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More reading

• How did the Vanguard Australian Shares Index ETF perform in June?
• Why ASX 200 value shares are surviving the sell-off better than growth shares
• June was a terrible month for ASX 200 bank shares. Here’s why
• Could the CBA share price turn over a new leaf in July?
• Why did the CBA share price crash 13% in June?

Motley Fool contributor Bronwyn Allen has positions in Commonwealth Bank of Australia. 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 record another gain. At the time of writing, the benchmark index is up 0.2% to 6,624.3 points.

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

Regis Resources Limited (ASX: RRL)

The Regis Resources share price is up 9% to $1.58. Investors have been buying this gold miner’s shares following the release of a production update. That update revealed that Regis had a record quarter for gold production, recording a 20% increase to 123.9k ounces. This means that Regis’ annual gold production came in at 437k ounces. This is up 17% year on year and in line with its guidance of 420k ounces to 475k ounces.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 3% to 15.5 cents. A number of lithium shares are pushing higher today amid improving sentiment in the industry. Sayona’s gain comes despite news that its managing director, Brett Lynch, has sold over 4 million shares through an on-market trade.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up over 3% to $32.32. Investors have been buying energy shares today after oil prices pushed higher again overnight. Traders were bidding oil prices higher amid concerns over supply disruptions in Libya and Norway.

Xero Limited (ASX: XRO)

The Xero share price is up 2% to $80.41 despite there being no news out of the cloud accounting platform provider. However, a number of tech shares are outperforming the market on Tuesday. This has seen the S&P ASX All Technology index rise 1.4% this afternoon. Investors have been buying tech shares after Nasdaq futures rebounded. They were originally pointing to declines tonight but are now indicating that the Nasdaq will open 0.4% higher.

The post Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 Adairs Ltd (ASX: ADH) share price continued to tread lower throughout June despite the company not making any announcements.

Shares in the homewares and furniture retailer last traded at $2.32 on 31 May and closed at $1.91 on 30 June. This represents a decline of around 18% for last month and a sharp contrast from its lofty $4 highs in January 2022.

At the time of writing, Adairs shares are swapping hands at $2.01, up 2.29%.

Let’s take a look at what’s impacted the company’s shares in recent times.

What dragged down Adairs shares last month?

A gloomy economic outlook caused by soaring inflation levels and interest rate hikes weighed down on investor sentiment.

However, the biggest and most notable declines for the company’s shares came between 6 June and 15 June, down 25.56%.

This was when investors reacted to the Reserve Bank of Australia’s (RBA) decision to tighten its monetary policy.

The RBA ramped up the official cash rate by 0.5% to 0.85% on 7 June.

And the RBA governor, Philip Lowe warned that more rate hikes would likely occur in 2022.

With the cost of living severely impacted, this puts pressure on discretionary spending from consumers.

The monthly household spending report for June is set to be released on 9 August. This will give a clearer picture of the country’s economic growth.

Nonetheless, it’s apparent that investors are bracing for the worst which has sent the Adairs share price in a tailspin. Many economists are predicting the cash rate to hit up to 2.35% by the end of this year.

Adairs share price snapshot

A challenging microenvironment has led the Adairs share price to register a loss of 50% in 2022.

It’s worth noting that its shares reached a 52-week low of $1.65 on 17 June before recovering some lost ground.

For context, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is also in the red this year by 22%.

Based on valuation metrics, Adairs commands a market capitalisation of approximately $331.50 million.

The post Why did the Adairs share price fall 18% in June? appeared first on The Motley Fool Australia.

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More reading

• Best ASX shares to buy in July 2022
• Is the Adairs share price outlook brightening for July?
• Do Adairs shares really boast a 9% dividend yield?
• Why I think these 2 ASX shares are trading at bargain basement prices
• The Adairs share price is down 54% in 2022. What’s happened?

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS 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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