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Today has not been a good day for the S&P/ASX 200 Index (ASX: XJO). At the time of writing, the ASX 200 has lost 0.79% and is back under 7,500 points. But the trading day has been a lot worse for a few ASX exchange-traded funds (ETFs) out there.

At least three ASX ETFs have reached new 52-week lows just today. So let’s check them out and see what they might have in common.

3 ASX exchange-traded funds hitting 52-week lows today

The first ASX exchange-traded fund hitting a new 52-week low today is the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). This fund from popular provider Vanguard touched a low of $45.62 a unit today, which is getting quite far from its 52-week high of $51.44. VAF is a bond fund. It primarily holds investment-grade Australian government bonds, issued by both the federal and state governments, but also has some other fixed interest investments from corporations and local governments thrown in.

Another ETF to check out is the iShares Core Composite Cond ETF (ASX: IAF). This exchange-traded fund is very similar to VAF in nature. It also holds mostly Australian government bonds, with a similar mix of state, local and corporate bonds thrown in. IAF units have also hit a new 52-week low today. This ETF’s units hit $103.15 each this morning, again a ways away from this fund’s 52-week high of $115.31.

Finally, we have the BetaShares Australian Investment Grade Corporate Bond ETF (ASX: CRED). This fund is a little different to the above two, in that it only invests in corporate bonds rather than government bonds. This is designed to increase the yield available to investors, albeit without that ‘risk-free’ tag that comes with a Treasury. But unfortunately for investors CRED is our third ASX exchange-traded fund to hit a 52-week low today. This ETF touched $23.18 a unit earlier today, putting even more distance between its 52-week high of $27.61.

Why are bond ETFs being sold off?

So you might have noticed that these three exchange-traded funds are all fixed-interest or bond ETFs. This is not a coincidence then, it seems. Bonds typically rise in value when interest rates go down. That’s because their already-set yield becomes more attractive than newer bonds. But the opposite is also true when interest rates rise, and looks to be occurring today.

Fresh from the all-time low interest rates we have seen around the world, the US Federal Reserve raised its rate for the first time in years last month. Just yesterday, our own Reserve Bank of Australia (RBA) signalled that rates might be rising here sooner than it initially flagged.

Thus, it might come as no surprise that bond and fixed-interest ASX exchange-traded funds are currently being sold off.

The post 3 ASX exchange-traded funds slumping to 52-week lows today appeared first on The Motley Fool Australia.

More reading

• Is Newcrest Mining considered a defensive ASX share?
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Hoping to pocket the ARB Corporation dividend? Read this
• The EML share price jumped 25% in March 2022. What happened?
• 5 things to watch on the ASX 200 on Wednesday

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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and dropped into the red. At the time of writing, the benchmark index is down 0.7% to 7,474.9 points.

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

Andromeda Metals Ltd (ASX: ADN)

The Andromeda Metals share price is down 36% to 11.2 cents. This follows the release of the definitive feasibility study (DFS) for the Great White Kaolin Project in South Australia. Management estimates that the project has a pre-tax net present value (NPV) of $613 million. Some investors appear to have been expecting a much larger kaolin project.

Block Inc (ASX: SQ2)

The Block share price is down 7% to $178.48. This follows an equally sharp decline for the payments giant’s shares on Wall Street last night. Investors were selling tech stocks amid fears that rate rises could slow economic growth. It isn’t just Block that is falling on Wednesday. The S&P/ASX All Technology index is down by 2.4% this afternoon.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 4% to 77 cents. This follows news that the uranium producer has completed a $200 million institutional placement. These funds were raised at an 8.9% discount of 72 cents per new share. Paladin Energy launched its capital raising to support the restart of the globally significant Langer Heinrich Mine.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 5% to $1.47. Investors have been selling this buy now pay later provider’s shares following weakness in the tech sector and a subdued response to its share purchase plan. In respect to the latter, Zip has raised an additional $24 million at $1.48 per new share. This was less than half the $50 million it was seeking from retail shareholders.

The post Why Andromeda Metals, Block, Paladin Energy, and Zip shares are dropping appeared first on The Motley Fool Australia.

More reading

• Zip share price sinks following share purchase plan results
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Here’s why the Paladin Energy share price is sliding today
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• Why are ASX tech shares having such a stellar day?

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Ltd (ASX: WPL) share price is edging lower today following a company announcement on its Scarborough Project.

At the time of writing, the energy company’s shares are fetching $33.57 each, down 1.06%.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 0.68% so far today to 7,476 points

Scarborough receives key primary approvals

Despite the company releasing a positive media statement, investors are sending the Woodside share price lower.

In its release, Woodside advised it had received approvals to progress its joint venture US$12 billion Scarborough and Pluto Train 2 developments

The key primary approvals were granted from the Commonwealth-Western Australian Joint Authority to support the execution of the Scarborough Project.

This relates to an offer received for the licence to construct and operate the Scarborough pipeline in Commonwealth waters.

In addition, approval was also given for the Scarborough Field Development Plan (FDP), enabling Woodside to commence petroleum recovery operations.

The company noted that these milestones follow final investment decisions made in November 2021 to approve Woodside’s US$6.9 billion stake.

First gas production for the Scarborough project is targeted for 2026 and is expected to produce eight million tonnes annually. The gas field will be connected through a 430-kilometre pipeline to the onshore Pluto gas plant for processing.

This will be one of the lowest carbon intensity sources of LNG delivered to customers in north Asia, the company says.

The Scarborough Joint Venture sees Woodside with 73.5% ownership and BHP Group Ltd (ASX: BHP) with the remaining 26.5% interest.

Woodside CEO Meg O’Neill commented:

Developing Scarborough delivers value for Woodside shareholders and significant long-term benefits locally and nationally, including thousands of jobs, taxation revenue and energy security here and abroad.

The Scarborough reservoir contains only 0.1% carbon dioxide, and Scarborough gas processed through the efficient and expanded Pluto LNG facility supports the decarbonisation goals of our customers in Asia.

Woodside share price summary

The Woodside share price is up almost 40% over the last 12 months and is more than 53% higher in 2022 so far.

The company’s shares have accelerated on the back of rising oil prices, fuelled by the war in Ukraine. This has led the Woodside share price to hit a fresh 52-week high of $34.60 last month.

Woodside has a price-to-earnings (P/E) ratio of 16.5 and commands a market capitalisation of roughly $33 billion.

The post Woodside share price dips despite project green light appeared first on The Motley Fool Australia.

More reading

• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
• These were the 5 best performing ASX hydrogen shares of the March quarter
• What sent ASX mining shares flaming higher in March?
• Gas is in hot demand. This is the ASX share I’d buy: expert
• What’s on the cards for the Woodside share price in April?

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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.7% to 7,475.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher today:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is up 1% to $105.30. Investors have been buying CBA and other big four banks today in response to comments out of the Reserve Bank of Australia on Tuesday. The central bank has indicated that it could raise the cash rate soon, which would be a boost to CBA’s interest income.

Kelsian Group Ltd (ASX: KLS)

The Kelsian share price is up 3% to $7.30. The catalyst for this appears to be a broker note out of Macquarie this morning. According to the note, the broker has upgraded the travel company’s shares to an outperform rating with an improved price target of $8.00. Kelsian recently changed its name from Sealink.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price is up over 6% to $1.14. Investors have been buying this medical device company’s shares following the release of its third quarter update. According to the release, PolyNovo delivered unaudited revenue of A$12.26 million during the three months. This represents a 59.3% increase on the revenue of A$7.69 million reported during the prior corresponding period. This was underpinned by strong growth in the US and ANZ regions.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 5.5% to $3.08. This morning the memory technology developer revealed that demo chips integrating its embedded Resistive Random-Access Memory (ReRAM) module have successfully completed their functional testing phase. Management notes that this is a key step towards delivering a commercial product.

The post Why CBA, Kelsian, PolyNovo, and Weebit Nano shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Weebit Nano share price jumps 8% on ReRAM update
• Why is the PolyNovo share price surging 13% higher today?
• Could the CBA share price be heading back under $100 this month?
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts

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. owns and has recommended POLYNOVO 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 Bruce Jackson.

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The Latin Resources Ltd (ASX: LRS) share price exploded today following a lithium project update.

At one stage, this ASX lithium share surged 18% to 19.5 cents. The company’s shares have since retreated and are trading at 18.75 cents, a 13.64% gain, at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.76% so far today.

Let’s take a look at why this ASX lithium share is surging.

Why is this ASX lithium share rising?

Latin Resources has secured a new 50-hectare lithium tenement at the company’s Salinas Lithium Project in Brazil.

Under the exclusive agreement, Latin has acquired a 100% interest in the tenement to the east of the company’s existing Bananal Valley project.

The company’s geology team has already identified outcropping pegmatites containing high-grade lithium at the site.

Latin now has access to more than 5,350 hectares of land in the newly-defined Salinas lithium corridor.

Latin Resources executive director Chris Gale said the company is very confident the tenement contains additional drill-ready, high-grade lithium pegmatites. He added:

Our reconnaissance mapping and outcrop sampling of this area has shown that the grades of surface samples from these pegmatites are as high as those from our early sampling to the west where we are currently drilling.

Latin will be mobilising drilling rigs to the new Monte Alto tenement area to commence drilling. Gale added:

This new area now puts us well and truly in the driver’s seat to produce more compelling drilling results to achieve our objective of a JORC resource. We are also looking forward to receiving the assay results on holes three and four over the next week.

Share price snapshot

The Latin Resources share price has soared 253% in the past year while rocketing 520% year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 8% in the past year.

Latin Resources has a market capitalisation of about $290 million based on its current share price.

The post Why did this ASX lithium share soar 18% today? appeared first on The Motley Fool Australia.

More reading

• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today
• Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’

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 Bruce Jackson.

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As skilful market participants are keenly aware, management teams can be the be-all and end-all of a company. And that simple fact is no less important when it comes to S&P/ASX 200 Index (ASX: XJO) shares.  

Great management teams keep their eye on the ball to make the most of every opportunity, whether obvious or not.

They also navigate rough seas – or tricky market movements – with seeming ease, doing all they can to protect shareholder wealth.

So, which ASX 200 shares can boast remarkable management teams?

That question was recently posed to Perpetual portfolio manager James Rutledge and WaveStone Capital principal and portfolio manager Raaz Bhuyan.

Here are three ASX 200 shares the fundies told Livewire are among the best run on the market.

3 remarkably well managed ASX 200 shares

Carsales.com Ltd (ASX: CAR)

Carsales’ management team succeeded in a notoriously tricky exercise and has continued to lead the flourishing business since, said Rutledge.

The company’s founder and former CEO, Greg Roebuck – who led the company through its major growth phase – stepped back from Carsales in 2017.

That could have been devastating for the tech company. But, fortunately, it has continued to grow under its strong management team, led by managing director and CEO Cameron McIntyre.

“[Carsales has] invested offshore very well, especially in Korea, and they have a business model that isn’t one size fits all in terms of those markets,” Rutledge told Livewire.

“They have a good cost discipline, so that’s a team that really stands out in the space.”

Xero Limited (ASX: XRO)

Bhuyan agreed that Carsales’ management team is a good one. However, he said, “the only true technology business we think is good in Australia is Xero.”

That tremendous claim is built on the ASX-listed Kiwi company’s successful expansion into Australia and New Zealand, the United Kingdom and, most recently, North America.

Xero is led by CEO Steve Vamos. Vamos has been in the technology and digital media industry for more than 30 years, working with Apple, IBM, and Microsoft.

Macquarie Group Ltd (ASX: MQG)

Finally, another well-managed ASX 200 – or make that, S&P/ASX 20 Index (ASX: XTL) – share that’s exceptionally well run is Macquarie.

The banking, financial advisory, and investment management services provider is led by Australia’s highest-paid CEO, Shemara Wikramanayake.

Bhuyan believes the company’s focus on infrastructure and the energy transition will bode well for it. He told Livewire:

We think Macquarie’s going to have a cracker result because of what’s happened to gas prices in Europe and the US at their March year-end.

Bhuyan is also impressed by the “broader depth of the business, the tenure of the key executives there.” He also said Macquarie has positioned itself brilliantly for the coming decade.

“[T]hey’ve become the biggest fund manager in alternative assets in the world,” concluded Bhuyan.

The post 3 ASX 200 shares with impressive management teams appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Be as overweight ‘as you can possibly stomach’ in ASX shares right now: fundie
• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
• Macquarie share price lifts despite ASIC legal action
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps

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. owns and has recommended Apple, Microsoft, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Apple, Macquarie Group Limited, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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S&P/ASX 200 Index (ASX: XJO) tech shares have broadly struggled this year.

While the ASX 200 is down 1.7% since the opening bell on 4 January, the S&P/ASX All Technology Index (ASX: XTX) – which also contains companies outside the ASX 200 – has lost 17.4%.

Of course, some ASX 200 tech shares have done better while others have fared worse.

Strong half year results helped bolster this ASX 200 tech share

Australian data centre operator Nextdc Ltd (ASX: NXT) falls on the better end of the spectrum, with shares down 7.7% year-to-date.

Nextdc has facilities in Melbourne, Sydney, Brisbane, Perth, and Canberra, with expansion plans ahead over the next two years. It also operates a partner ecosystem with some 730 partners, including leading global cloud platforms.

The ASX 200 tech share has slumped this year despite reporting record half year results on 24 February.

Highlights included a 158% increase in net profit after tax (NPAT) from the prior corresponding half year, with NPAT hitting $10.3 million. The company’s balance sheet was also strong, reporting liquidity of $2.1 billion, which includes $1.4 billion of undrawn debt facilities.

Why Nextdc is a ‘buy’

In a note published in the Advertiser over the weekend, Catapult Wealth’s Timothy Haselum said, “Australia is behind in cloud adoption so there is still a strong growth story of demand here, despite competition ramping up.”

Investors looking into ASX 200 tech shares may be put off by the company’s high price to earnings (P/E) ratio, currently at 769 times.

However, Haselum noted, “This is a very capital intensive industry with high barriers to entry so don’t let the high P/E ratio turn you off, that’s just what data centres trade on.”

Haselum continued:

NXT plays in the more expensive end of town where pricing is more stable, with premium clients like Amazon.com (NASDAQ: AMZN) and Google [Alphabet (NASDAQ: GOOGL)]. We like NXT here as despite strong reporting it’s come off its highs so we are happy to buy on this weakness.

Catapult Wealth has a 12-month price target on Nextdc shares of $14.14.

That represents about 19% potential upside for the ASX 200 tech share, currently trading at $11.90.

The post A growing ASX 200 tech share to buy now: fund manager appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares expecting a lot of long-term growth
• Analysts name 3 ASX 200 shares that could generate strong returns
• Why this top broker tips 30% upside for the NextDC (ASX:NXT) share price
• Analysts name 2 ASX growth shares to buy
• 2 fantastic ASX tech shares analysts rate as buys

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As global energy markets evaluate the fallout from a slew of macro-catalysts, the price of coal has (not so) quietly started to gain steam again.

After a huge spike to spot prices in March, prices eventually cooled off, testing the US$258-$260 per tonne mark to close out the month.

They have since bounced again, trading at US$281/tonne at the time of writing. That’s a 196% gain for the last 12 months.

Thermal coal prices are forecast to average US$193 per tonne in 2022, more than double last year’s average “as buyers scramble for supplies”, according to Bloomberg.

Meanwhile, metallurgical coal projections have been revised upwards to $65 billion. Metallurgical coal is expected to fetch $348 per tonne on average in 2022. According to projections, prices aren’t expected to cool to $151 until 2027.

ASX 200 coal shares are heating up

With numerous commodity baskets surging to record heights in 2022, it’s important to understand what’s spurring the upside.

“Commodity trade is shifting rapidly due to the [Russian-Ukrainian] war,” Bloomberg reported earlier this week.

“Russian commodities that would normally head to developed nations are now being eschewed by some users and may be diverted to China and India,” it added.

“China and India may then have less need for non-Russian cargoes and these could be diverted to developed nations.”

For Australian coal players, the scene is set for a period of record exports and cash flow to support this volume of product leaving the country.

“[Australian energy e]xports are expected to hit a record $425 billion in the year to June 30 2022 – revised up by 12% from the December estimate – before dropping to $381 billion in the following 12 months on account of falling prices amid waning demand growth and elevated global output,” according to Bloomberg analysis.

Already we’ve seen this kind of impact in Europe, after the EU proposed to ban the import of Russian commodities, coal included.

That’s no small feat. Russia is Europe’s top coal supplier, according to figures from the International Energy Agency. It also supplied around 18% of coal exports in 2020.

Hence, with coal supplies retreating and threats of a global coal shortage looming, the market is turning to Australia’s coal inventories in order to fill the gap.

With that, ASX 200 coal shares have spiked hard in 2022, leading the wider market in gains for the year.

Shares in Whitehaven Coal Ltd (ASX: WHC) have charged 66% higher this year to date and now trade at $4.38 each at the time of writing. That’s up 5.29% on the day so far.

Meanwhile, New Hope Corporation Ltd (ASX: NHC) has also climbed 65% so far in 2022. Its shares are more than 6% higher today.

The pair are joined by Yancoal Australia Ltd (ASX: YAL) which has posted a mammoth 82% gain this year to date. The company’s shares are now trading at $4.77 apiece after shooting up from $2.72 in early February.

With the nation set to realise a record year of revenues from its coal trade, it is sure to be an equally as interesting year for the players tied into the sector.

The post In a sea of red, these ASX 200 coal shares are floating above water. Here’s why appeared first on The Motley Fool Australia.

More reading

• Could these ASX shares be set to benefit from increasing Russian sanctions?
• ASX 200 commodities players were the major winners in March. Take a look
• These were the best performing ASX 200 shares during the first quarter
• What boosted the Whitehaven Coal (ASX:WHC) share price on Friday?
• Here’s a look at some ASX shares with ex-dividend dates coming up in April

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 Bruce Jackson.

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Despite its reputation as a poor performing ASX 200 share, AGL Energy Limited (ASX: AGL) shares have been on a bit of a tear lately. Investors were badly burned last year when the AGL share price fell by close to 50%. 2019 and 2020 weren’t much better for this energy generator and retailer either. AGL’s last all-time high of close to $28 is still painfully far from the company’s current share price of $8.27 at the time of writing today. 

But in saying that, AGL has actually been quite the rewarding investment of late. Its shares are now up more than 30% year to date. They are also up around 62% from the company’s last 52-week low of $5.10 that we saw back in November last year. 

So with these gains under the belt, many investors might be wondering whether AGL shares are still a buy now that we’re in April. Could AGL keep the 2022 momentum going this month and beyond?

Are AGL shares an April buy today?

Well, one ASX broker who reckons the company has a good shot is Morgans. As my Fool colleague James covered yesterday, broker Morgans has just upgraded AGL to an ‘add’ rating. That came with a 12-month share price target of $8.83. If that turned out to be the case, investors would be looking at a return of 6.9% on their AGL shares over the next year. That’s on top of any dividends investors may receive too. Morgans reportedly re-rated AGL to the upside in response to improving electricity prices. 

No doubt investors will be pleased with that assessment. But, as always, we’ll have to wait and see if it proves to be accurate. 

At the current AGL share price, this ASX 200 share has a market capitalisation of $5.54 billion, with a trailing dividend yield of 6.05%. 

The post Could April be a good month for the AGL share price? appeared first on The Motley Fool Australia.

More reading

• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
• These were the 5 best performing ASX hydrogen shares of the March quarter
• How did the AGL share price perform in March?
• Own AGL shares? Here’s why today is a momentous day
• Own AGL shares? Your dividend arrives 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 Bruce Jackson.

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Is Newcrest Mining Ltd (ASX: NCM) a defensive ASX share? Well, you wouldn’t think so looking at today’s share price movements. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down a depressing 0.87% and back under 7,500 points in the ASX’s first major selloff in weeks. But the Newcrest share price is down a nasty 3.12% today to $26.40 a share at the time of writing.

But one day of underperformance isn’t a lot to go on.

Newcrest is an ASX 200 gold miner. On the one hand, a gold share can be considered inherently defensive for some for its connection to gold. Gold is still viewed by many investors as the ultimate ‘safe haven’ asset. It often experiences interest during times of economic or geopolitical hardship. We can even see this playing out in 2022. This year has brought some calamitous geopolitical events, none more so than the war in Ukraine.

Since the start of the year, the price of gold has risen from around US$1,832 an ounce to the US$1,922 we see today.

Since Newcrest mines and produces gold, and also owns vast reserves of gold ore, it arguably benefits from this reputation for defensiveness by extension. That is tempered by the fact that it, like all gold miners, is a leveraged play on the price of gold. Since it costs Newcrest a relatively fixed sum to extract and produce every ounce of gold it mines, Newcrest’s profitability exponentially increases if the price of gold rises. Conversely, it exponentially falls if gold prices decrease.

Can Newcrest shares be a defensive ASX investment?

But let’s see what an expert ASX investor is saying about Newcrest’s defensiveness. James Rutledge of investment manager Perpetual Limited (ASX: PPT) recently sat down for a podcast with Livewire Markets. In this interview, he shared his views on Newcrest shares. Here’s some of what he had to say:

Newcrest is a buy for us. So, typically when you see real rates move from negative to positive, gold would be a pretty challenging space to invest. But given the freezing of FX reserves from Russia, we think that’ll cause central banks to really revisit their gold holdings and that should support the gold price. Newcrest is also very cheap relative to gold majors. It benefits from a higher copper price with its byproduct. And the market’s concerned about production issues, but we think that’s more than reflected in the price.

However, his fellow podcast participant, WaveStone Capital’s Raaz Bhuyan, wasn’t as bullish. Here’s some of what Bhuyan said on Newcrest:

It’s actually a sell for us. I agree with James – the geopolitics has really taken the gold price up, despite the fact that real rates are going up. We think the moment we get some clarity around the Ukraine conflict, given where real rates have moved, the gold price is probably going to be under the pump a little bit.

So two conflicting views on Newcrest there. As with any gold miner, the fate of this company rides or dies with the price of gold itself. So if you’re keeping an eye on Newcrest for a defensive investment, make sure you consider all sides of the equation.

At the current Newcrest Mining share price, this ASX 200 gold miner has a market capitalisation of $23.56 billion.

The post Is Newcrest Mining considered a defensive ASX share? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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