Tag: Motley Fool

S&P/ASX 200 Index (ASX: XJO) retail shares are broadly sliding today, despite some upbeat sales figures just released by the Australian Bureau of Statistics (ABS).

In its monthly estimate of turnover and volumes for retail businesses – including in-store and online sales – the ABS said that May’s figures were up 0.9% from April. That’s as year-on-year retail turnover and volumes increased 10.4%.

This marks the fifth consecutive month of growth across the retail industry.

Yet, as we look at below, ASX 200 retail shares aren’t enjoying the tailwinds today.

ASX 200 retail shares in the red

To put today’s selling pressure into some context, the ASX 200 is also in the red, down 1.08% in early afternoon trading. That follows some big losses in US markets yesterday (overnight Aussie time), with the S&P 500 closing down 2%.

And that selling is hitting ASX 200 retail shares today, despite the sector’s strong sales numbers.

The Wesfarmers Ltd (ASX: WES) share price, for example, is down 1.76% at the time of writing. Wesfarmers owns Bunnings Warehouse, Kmart Australia, and Officeworks, among others. The company has a market cap of around $48 billion.

Harvey Norman Holdings Ltd (ASX: HVN) isn’t being spared today either. The electronics, appliances, furniture, and homeware retailer is down 3%, with a current market cap of $4.65 billion.

The electronics segment is also feeling the pressure today, as witnessed by the 1.46% decline in ASX 200 retail share JB Hi Fi Ltd (ASX: JBH). JB Hi Fi has a market cap of $4.1 billion.

We’ll leave off with specialty fashion retailer Premier Investments Ltd (ASX: PMV), which owns chains including Smiggle, Just Jeans, Jacqui E, and Dotti, with a footprint in Australia, New Zealand, Asia, and Europe. The Premier share price is down 3.19%, giving it a current market cap of just over $3 billion.

The post ASX 200 retail shares in the doldrums today despite improving sales data appeared first on The Motley Fool Australia.

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More reading

• Are these blue chip ASX 200 shares in the buy zone?
• Why Appen, BWX, Imugene, and Wesfarmers shares are dropping
• Wesfarmers share price tumbles on broker downgrade
• ASX 200 midday update: Tech shares tumble, Collins Foods jumps
• What impacted ASX 200 retail shares this week?

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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers Limited. The Motley Fool Australia has recommended Premier Investments 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 Zip Co Ltd (ASX: ZIP) share price is almost 6% in the red today amid weakness in the Buy Now Pay Later (BNPL) sector.

Zip shares are currently swapping hands at 44.7 cents apiece, a 5.89% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.04% at the time of writing.

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

Zip share price falls

Zip shares are falling despite a report on ABC’s 7.30 revealing Australians have doubled spending on BNPL companies.

However, news also emerged federal Finance Minister Stephen Jones has plans to introduce legislation to regulate the industry within a year. He told the ABC:

Whatever you do in the financial services space, there’s big voices with deep pockets.

I don’t want to have an argument about whether this is credit or not, it clearly is.

The publication released figures showing Australians spent $11.9 billion on BNPL services in the 2020-2021 financial year. Out of 1,746 people surveyed, 38% have used a BNPL company.

The Zip share price may be falling today, but it is not alone. Sezzle Inc (ASX: SZL) shares are down 3.7%, while Block Inc (ASX: SQ2) shares are descending nearly 7%. Meantime, the S&P ASX All Technology Index (ASX: XTX) is 3.79% in the red today.

US BNPL shares also had a tough time in markets overnight, with Affirm Holdings Inc (NASDAQ: AFRM) plummeting 9.52% and Block Inc (NYSE: SQ) shares tumbling 5.5%.

The Nasdaq-100 Index fell 3.09%, while the S&P 500 Index slid 2.01% and the Dow Jones Industrial Average dropped 1.56%. Investors in the United States reacted to poor consumer confidence data and recession fears, Reuters reported.

Zip share price snapshot

The Zip share price has plunged more than 94% in the past year, diving almost 90% year to date.

For perspective, the benchmark ASX 200 Index has shed nearly 9% in a year.

Zip has a market capitalisation of about $311 million based on the current share price.

The post Zip shares sink 6% despite BNPL spend doubling this financial year appeared first on The Motley Fool Australia.

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More reading

• Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive
• Zip share price bucks the trend with 5% fall. What’s happening?
• Why Evolution, Newcrest, OZ Minerals, and Zip shares are dropping today
• The Zip share price is rocketing 14% today. What’s going on?
• Why ASX 200 tech shares are outperforming the market on Friday

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 positions in and has recommended Affirm Holdings, Inc., Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Accent Group Ltd (ASX: AX1)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating but slashed their price target on this footwear retailer’s shares to $1.65. Morgan Stanley has been looking at a number of companies and the impact that rising interest rates and inflation will have on them. While the broker believes Accent will be vulnerable to softening consumer spending, it remains positive enough to keep its overweight rating. This is due to Accent’s store rollout plans and exposure to structural growth markets. The Accent share price is trading at $1.21 this afternoon.

Collins Foods Ltd (ASX: CKF)

A note out of Morgans reveals that its analysts have upgraded this quick service restaurant operator’s shares to an add rating with a reduced price target of $11.50. This follows a full year result the broker described as a “zinger.” While the broker expects inflationary pressures to weigh on its near term margins, it remains positive on Collins Foods’ outlook. This is due to its belief that consumer demand for its KFC restaurants will remain resilient. It also notes that the company has a degree of pricing power that could help mitigate inflation. The Collins Foods share price is fetching $9.98 on Wednesday.

Evolution Mining Ltd (ASX: EVN)

Another note out of Morgans reveals that its analysts have upgraded this gold miner’s shares to an add rating with a $3.23 price target. Although the broker was disappointed with Evolution’s FY 2022 guidance downgrade, it feels the market has overreacted. In light of this, it believes a buying opportunity has opened up for investors that are looking for exposure to the gold industry. The Evolution share price is trading at $2.41 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Top broker backs a tasty 20% upside for the Collins Foods share price
• 5 things to watch on the ASX 200 on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Evolution shares take out most traded after experiencing worst fall in more than a decade
• What’s behind the weakness in ASX 200 mining shares during June?

Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Accent Group and Collins Foods 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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It’s a rough day on the market, and these All Ordinaries Index (ASX: XAO) shares are suffering more than most.

They’ve each slumped to new 52-week lows on Wednesday. Let’s take a look at what’s dragging them downwards.

The All Ordinaries Index is down 1.23% at the time of writing.

3 ASX All Ords shares slipping to 12-month lows

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price tumbled 20% on Wednesday from its previous close, sliding to an all-time low of 62 cents.

The downturn came after the financial technology company announced its CEO and managing director Robbie Cooke is stepping down. Cooke has provided the company with six months’ notice.  

Meanwhile, Star Entertainment Group Ltd (ASX: SGR) announced Cooke will be stepping up to the top job at the casino operator in the near future, subject to regulatory approvals.

Piedmont Lithium Inc (ASX: PLL)

Another ASX All Ords share sliding to a new 52-week low today is Piedmont Lithium.  

The lithium developer’s share price fell 7.9% to trade at 58 cents late morning on Wednesday. That’s despite news that production at the North American Lithium project is set to restart in the first half of 2023.

Piedmont has a 25% stake in the project. The other 75% is owned by Sayona Mining Ltd (ASX: SYA).

Sayona announced the news yesterday afternoon, while Piedmont released its announcement on the restart this morning.

BWX Ltd (ASX: BWX)

Finally, ASX All Ords share BWX tumbled another 5% at its intraday low to trade at 66 cents. That marks a new all-time low for the company behind skincare and haircare brands like Sukin.   

The BWX share price plummeted 40.6% yesterday on news of a capital raise offering new shares at a 48.7% discount to the stock’s previous closing price. Today’s fall appears to be a continuation of yesterday’s sell-off.

The post These 3 ASX All Ordinaries shares are hitting new 52-week lows today appeared first on The Motley Fool Australia.

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More reading

• Tyro share price sinks 20% to new record low, what’s going on?
• Why Appen, BWX, Imugene, and Wesfarmers shares are dropping
• BWX share price sinks 38% following capital raising at dizzying discount
• Why is the BWX share price halted on Friday?
• Amid today’s sell-off, guess which ASX All Ordinaries share just hit an all-time high

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 Tyro Payments. The Motley Fool Australia has recommended BWX Limited and 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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A number of real estate investment trusts (REIT) shares are falling on Wednesday despite no news coming from any of the companies.

As we draw closer to the end of the current financial year, these ASX shares are trading ex-dividend today.

The ex-dividend date is when investors must have purchased a company’s shares beforehand to be eligible for the upcoming dividend.

If an investor buys the shares on or after this date, the dividend will go to the seller.

National Storage REIT (ASX: NSR) shares are down 5.82% to $2.185 after trading ex-dividend today.

The board previously declared an unranked interim dividend of 5.4 cents per share.

This represents a gain of 28.5% over the prior corresponding period (4.2 cents).

The leading self-storage operator will pay out its latest dividend to eligible shareholders on 2 September.

Charter Hall Long WALE REIT (ASX: CLW) shares are also going ex-dividend on Wednesday, backtracking 7.11% to $4.31.

The board elected to reward investors with an unfranked interim dividend of 7.63 cents per share.

When comparing this against H1 FY21’s dividend, it reflects a slight increase of less than 1% (7.62 cents).

The REIT is set to distribute its profits in dividends on 12 August.

Centuria Office REIT (ASX: COF) shares are also trading without the rights to the company’s unfranked final dividend.

The board opted to deliver 4.15 cents per unit to shareholders, which is the same amount as the prior comparable dividend.

The Australia-based pure play office REIT’s distribution payment date is on 5 August.

The post 3 ASX financial shares going ex-dividend today appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 ASX dividend shares to buy today
• Here are 2 ASX dividend shares with 4%+ yields
• Analysts name 2 ASX dividend shares with attractive yields to buy next week
• Why I think these 2 ASX dividend shares are ideal for income investors
• Analysts name 2 ASX dividend shares to buy to combat inflation

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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It’s been a day of red ink on the ASX boards so far this Wednesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has slid by a painful 1.3% and is now back under 6,700 points. But it’s also been a disappointing day for the Transurban Group (ASX: TCL) share price. Or so it would seem.

Transurban shares are presently going for $14.33 each. That’s 1.3% down from the $14.52 the toll road operator closed at yesterday. But shareholders shouldn’t be too put out by that. That’s because today is the day that Transurban shares have traded ex-dividend for the company’s upcoming final dividend.

As we covered earlier this week, investors who wanted to receive the company’s latest dividend had to own Transurban shares before market close yesterday. With the company trading ex-dividend today, it means that any new shareholders from this Wednesday onwards are ineligible to receive this dividend.

Why is the Transurban share price falling today?

Because of this, the value of the dividend has now left the Transurban share price. That is why we are seeing a share price fall for Transurban shares today. Interestingly, if today wasn’t Transurban’s ex-dividend date, it’s possible the shares would be in the green. The company had fallen by quite a bit less than the market earlier this Wednesday, even with the weight of the ex-dividend date.

So Transurban’s final dividend will be welcomed by shareholders on 23 August. This will be a payment of 26 cents per share. That’s a healthy increase over the interim dividend of 15 cents per share that investors received a few months ago on 22 February. It’s also a meaningful rise over 2021’s final dividend of 21.5 cents per share.

The Transurban dividend has been steadily increasing since the COVID-induced lockdowns forced a meaningful cut in 2020. Even so, this next dividend of 26 cents per share is still a long way from the company’s last pre-COVID dividend of 31 cents per share.

Even so, this latest payment gives Transurban a dividend yield of 2.85% on current pricing.

The post Why is the Transurban share price languishing today? appeared first on The Motley Fool Australia.

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More reading

• Hoping to bag the next Transurban dividend? Read this
• Brokers name 2 ASX dividend shares to buy next week
• Here’s 3 popular ASX shares that are trading ex-dividend next week
• 2 ASX 200 infrastructure shares ‘ripe for takeout’: expert
• Transurban share price jumps as dividends hit pre-pandemic highs

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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BHP Group Ltd (ASX: BHP) shares are down 0.58% in early afternoon trade.

This comes amid a wider bout of selling that sees the S&P/ASX 200 Index (ASX: XJO) down 1.12% at this same time.

Despite the dip, the BHP share price remains up 7.6% over the past five days.

But let’s take a closer look at how the ASX 200 mining giant plans to meet its emissions reduction and other social value targets.

BHP shares looking greener

It’s been three years since BHP unveiled its preliminary social value plans.

Yesterday the miner’s chief legal, governance, and external affairs officer, Caroline Cox, provided BHP shareholders with an update on those plans.

BHP is hardwiring social value into every level of decision-making across our global business, from company strategy and capital allocation to everyday activities at our operations…

Our new social value framework and 2030 scorecard outline the goals, metrics and milestones against which our investors and stakeholders can measure our progress and performance.

The scorecard in question has six ESG objectives: decarbonisation, environment, Indigenous partnerships, workforce, communities, and supply chains.

On the environmental front and adding a tinge of green to BHP shares, the scorecard sets a new environmental goal. By 2030, the miner aims to have at least 30% of the land and water that it holds under “conservation, restoration or regenerative practices”.

According to Cox:

By embedding social value into the way we do business, we believe we will further strengthen our relationships and access to the best resources, partners, markets and talent to discover and produce the minerals required for global economic development and decarbonisation, which will in turn create competitive advantage.

Essential commodities

Cox also reminded BHP shareholders of the essential nature of the company’s business.

“The commodities we produce are essential to everyday life,” she said. “From infrastructure that connects us globally to providing the fundamental ingredients for renewable energy and decarbonisation, and food security.”

Atop that, she pointed to the “significant economic contribution” BHP makes to the nations and communities where it operates.

“In FY21, we contributed more than 40 billion US dollars in wages, taxes, royalties, dividends, and payments to suppliers,” she said.

How have BHP shares been performing?

Taking a longer-term view, BHP shares are up 85% over the past five years. That compares to a 17% gain posted by the ASX 200 over that same period.

BHP also pays an 11.6% trailing dividend yield, fully franked.

The post Own BHP shares? Here’s how the ASX 200 miner plans to slash emissions appeared first on The Motley Fool Australia.

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More reading

• Why the BHP share price looks poised for a short-term boost: expert
• Guess which sector is delivering the biggest gain across the ASX 200 today
• BHP share price bounces as materials outpace the ASX 200
• Broker sees 23% upside and a huge yield for BHP shares
• Why are ASX 200 mining shares having such a dire week?

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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A 2020 report from the World Economic Forum (WEF) found that around 1 million new people log onto the internet every day. Other reports predict 7.5 billion people will connect to the internet by 2032.

Accompanying this growth is a rapid uptrend in the number of cyber threats. These range from attacks on devices to shutting down entire power grids.

The cost of cybercrime is expected to grow by 15% each year until 2025, hitting US$10.5 trillion annually. That’s an increase from US$6 trillion in 2021.

Investing phenom Warren Buffett went as far to say that, whilst he didn’t know that much about cybercrime, he did “think that [it’s] the number one problem with mankind”.

These projected growth numbers in cybersecurity are astronomical. And investors are now surely wondering how to gain exposure to the space.

With the Betashares Global Cybersecurity ETF (ASX: HACK), that is now possible.

HACK ETF for cybersecurity exposure

Managers of the HACK ETF aim to track a benchmark that follows companies in the global cybersecurity sector.

That benchmark is the Nasdaq Consumer Technology Association Cybersecurity Index (NQCYBR).

With HACK, investors can obtain “diversified, cost-effective exposure to global cybersecurity companies,” according to BetaShares (the licensed distributor of the funds in Australia).

This is “a sector that is heavily under-represented on the ASX,” it says.

With that, let’s break down the fund’s asset allocation into its individual components.

The concentration of holdings is in the United States, with 85% of assets located there. Israel follows with 3.8%, then India with 3%.

The majority of shares are also within the systems software sector, at roughly 62%.

Following this, around 12.5% of funds are allocated to communication equipment, then 10% to research and consulting services.

The ETF has performed to its expectations. It has tracked its benchmark closely over the last 12 months with minimal tracking error.

HACK is down around 5%, whereas its index is down 13% at the time of writing, and the S&P/ASX 200 Index (ASX: XJO) is down 7%.

The post Can the ASX-listed HACK ETF provide exposure to shares fighting what Warren Buffett calls the ‘number one problem with mankind’? appeared first on The Motley Fool Australia.

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More reading

• 3 highly rated ETFs for ASX investors to buy now
• Down 23% since mid-April, is the HACK ETF a golden opportunity?
• 2 popular ETFs for ASX investors to buy next week
• 3 popular ETFs for ASX investors to buy now
• How has the HACK ETF averaged annual returns of 19%?

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 BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. 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 Coles Group Ltd (ASX: COL) share price is in the green today, up 0.06% to $17.88 at the time of writing.

Over a very tumultuous month of trading for the S&P/ASX 200 Index (ASX: XJO), Coles is one of few ASX shares to remain in positive territory.

The Coles share price is up 2.05% since the closing bell on 31 May. This compares to a 7.3% dip in the ASX 200.

What’s protecting the Coles share price?

Coles is part of the consumer staples group of ASX shares. Consumer staples are the goods and services we can’t live without — groceries, electricity, petrol — these sorts of things.

We’re going to buy these items no matter what is going on in the economy. That’s the protection that ASX shares in this space enjoy during volatile economic times.

As such, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is also up 1.4% over the month. This compares to the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) which is down 6.7%.

Consumer discretionaries are the goods and services we want and like but don’t need to survive.

Generally, when costs of living rise like they are now, due to rising inflation and interest rates, people tighten their belts. The first things to go out of their budgets are the little luxuries in life.

Brokers rate Coles a buy

As my Fool colleague James reported yesterday, top broker Citi is very positive on Coles and has a buy rating and $19.30 price target on the share.

Based on today’s Coles share price, that’s a potential upside of 7.9%.

While that’s not particularly exciting, it certainly puts Coles in safe haven territory while so many other ASX shares are tanking during the current market correction.

As James reported, Coles has a “strong market position, solid long-term growth prospects, and positive exposure to rising inflation”.

To clarify, the reason that Coles and other ASX consumer staples shares can manage inflationary pressures better than others is because they can raise their retail prices to offset the impact of higher business costs. After all, customers are unlikely not to buy household essentials because they cost a bit more.

Coles is also trying to cut costs through automation and enhanced efficiencies, which could boost earnings and margins and enable dividend growth over the next decade. That bodes well for the Coles share price, too.

U Ethical chief investment officer Jon Fernie told fellow Fool writer Tony Yoo that he likes Coles as a defensive play in today’s market.

Fernie said:

… Australian supermarkets are pretty well-placed in the current inflationary environment, so they are going to be impacted to an extent by rising costs. But they’re also able to pass on the higher food inflation to consumers. And I think again, if we have a weaker economic environment, that the company’s got a resilient earnings base. From a valuation perspective, [Coles] looks more attractive than their closest peer Woolworths Group Ltd (ASX: WOW).

Coles likely to deliver reliable dividends

Another reason to focus on ASX consumer staples when the market is rough is their usually reliable dividends.

These companies don’t face the same challenges in terms of sales and revenue as consumer discretionary businesses, so ASX investors can count on reasonable payouts.

Citi is forecasting that Coles will pay a dividend of 63 cents per share in FY22 and 72 cents in FY23.

As Coles dividends are fully franked, that means a grossed-up dividend yield of 5% and 5.75% respectively based on today’s share price.

The post How did the Coles share price stay positive in June while the ASX 200 slumped? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen 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 positions in and has recommended COLESGROUP DEF SET. 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 Block Inc (ASX: SQ2) share price is plummeting today after the company’s US listing tumbled overnight.

The Buy Now, Pay Later (BNPL) share has dropped 6.65% and is currently trading at $94.01. For perspective, the S&P/ASX 200 Index (ASX: XJO) is descending 1.33% today.

Let’s take a look at what is going on with the Block share price.

What’s going on with Block?

Block is not the only BNPL share tumbling today. Zip Co Ltd (ASX: ZIP) shares are sliding 5.26%, while the Sezzle Inc (ASX: SZL) share price is descending 5.56%.

Block shares are falling after the company’s New York Stock Exchange listing fell in the United States on Tuesday. Block Inc (NYSE: SQ) shares dropped 5.5% on the New York Stock Exchange.

Investors in the US sold off shares following concerning consumer confidence data and recession fears, Reuters reported. Chase Investment Counsel president Peter Tuz was quoted as saying:

Markets were fine today until the consumer confidence number came out. It was weak and markets immediately began selling off.

BNPL share Affirm Holdings Inc (NASDAQ: AFRM) plummeted 9.52%, while the NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) descended 3.46%.

ASX technology shares often follow the lead of their US counterparts. The S&P/ASX All Technology Index (ASX: XTX) is dropping 3.54% today.

Meanwhile, a news report from the ABC published last night shows Australia has doubled its spending using BNPL companies to $11.9 billion in the previous financial year.

However, the publication reported that new Financial Services Minister Stephen Jones has plans to regulate the industry within a year following talks with the industry. He told ABC 7.30:

I don’t want to have an argument about whether this is credit or not, it clearly is. And I don’t want to have an argument about whether there should be a minimum standard of consumer protection … background credit-worthiness checks.

Whatever you do in the financial services space, there’s big voices with deep pockets.

Block completed a takeover of Afterpay early this year and listed on the ASX as SQ2 on 1 February.

Block share price snapshot

The Block share price has sunk nearly 47% in the year to date, while it has descended nearly 20% in the past month alone.

For perspective, the benchmark ASX 200 Index has fallen more than 10% in 2022.

Block has a market capitalisation of about $3.8 billion based on the current share price.

The post Down 6%, what is dragging the Block share price lower on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX tech shares struggling today?
• Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive
• Here are the top 10 ASX shares today
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX shares today

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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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