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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. At the time of writing, the benchmark index is up 0.8% to 7,524 points.

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

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is up over 2% to $14.40. This morning the automotive retailer announced an agreement with WFM Motors to acquire a portfolio of dealerships and associated properties located in Canberra for approximately $205 million. The portfolio covers a range of brands including Toyota, Ford, Volkswagen, Jeep, Lexus, Subaru, Mitsubishi, Volvo, and GMSV.

Firefinch Ltd (ASX: FFX)

The Firefinch share price is up almost 13% to $1.06. Investors have been buying the mineral exploration company’s shares after it announced that it has been granted a mining licence covering the Finkola exploration licence. The Finkola licence is located 23 kilometres north-west of Firefinch’s Morila Gold Mine and contains the Beledjo-Koting gold deposit and other prospects.

Latin Resources Ltd (ASX: LRS)

The Latin Resources share price has jumped 24% to 9.4 cents. This follows the release of the first assay results from drilling at the Salinas Lithium Project in Brazil. These results have confirmed spodumene rich pegmatites that contain high-grade lithium, with a peak grade of 3.22% Li2O returned from one sample. Management believes the results point to a potential major new lithium discovery.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up 2% to 97 cents. This morning the lithium developer announced that its partner, Atlantic Lithium, has completed a mineral resource estimate update for the Ewoyaa Project in Ghana. Atlantic Lithium’s new mineral resource estimate is a total of 30.1 million metric tonnes at 1.26% Li2O. This represents a sizeable 42% increase on its previous estimate. Piedmont has the option to earn-in a 50% interest in this project.

The post Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today appeared first on The Motley Fool Australia.

More reading

• Why is the Firefinch (ASX: FFX) share price soaring 12% to a 14-year high?
• Here’s why the Eagers Automotive (ASX:APE) share price is climbing today
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’
• Why is the Piedmont Lithium (ASX:PLL) share price storming higher 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 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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Shares in Kogan.com Ltd (ASX: KGN) have climbed around 6% today and now trade at $5.93, a shade off the intraday high of $5.96.

Despite no sensitive news out of the company’s camp today, ASX retail shares have fared well following the outcomes of last night’s federal budget.

Treasurer Josh Frydenberg outlined Australia’s economic roadmap for the coming 12 months with a clear focus on cost of living, infrastructure, innovation and national security.

Why are Kogan shares climbing again today?

Kogan had already begun its ascent from 52-week lows in the past month or so, printing a 12% gain in that time.

Much of the upside has been driven by a small but sure rotation back into tech- and growth-oriented shares, with the S&P/ASX All Technology Index (ASX: XTX) spiking 10% this past month.

However, last night’s budgetary release appears to have inflected positively on ASX retail shares today.

The wider basket has inched forwards whilst competing retailers such as JB Hi-Fi Limited (ASX: JBH) have posted small gains (shown below).

Market sentiment appears to have turned bullish in the near term once again, with gains across all major indexes except metals and mining.

Whether that is a direct impact from the federal budget remains to be seen, but it surely is a reversal of a trend in situ over the last few months.

Mining and resources have led the way so far in 2022, with the S&P/ASX 300 Metals & Mining Index (ASX: XMM) surging 13% in that time, whilst healthcare indexes have fallen around 10%.

Meanwhile, tech and consumer cyclical-based indexes have fallen hard since January. Though they have staged a comeback, as reported previously.

Momentum has continued into today’s session, with the volume of shares traded more than 50% of the four-week average.

Even still, Kogan still has a ways to go, with shares down 33% this year to date and 51% in the past 12 months.

The post Kogan (ASX:KGN) shares spike another 6% post federal budget appeared first on The Motley Fool Australia.

More reading

• Up 8% in a month, are Kogan (ASX:KGN) shares staging a comeback rally?
• Sell rating: JB Hi-Fi (ASX:JHB) share price tipped to sink 28%
• These are the 10 most shorted ASX shares
• 3 ASX growth shares down more than 50% in a year
• On fire! Why is the Kogan (ASX:KGN) share price up 8% right now?

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. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. 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) energy shares have trounced the benchmark in the first quarter of 2022.

Crude oil prices were already in an uptrend heading into the new year. That came as a rebound in global energy demand ran up against limited growth in supply.

Crude prices really took off later in January after oil-rich Russia invaded Ukraine.

This saw Brent crude hit US$128 per barrel on 8 March, up from US$78 per barrel on 1 January. Brent crude remains at multi-year highs, currently trading at US$111 per barrel.

Soaring oil and gas costs have offered little joy to consumers. But ASX 200 energy shares have been amongst the biggest beneficiaries.

Witness the 22% year-to-date increase in the S&P/ASX 200 Energy Index (ASX: XEJ), even as the ASX 200 slipped 1% lower.

While many ASX 200 shares have struggled this year, the Santos Ltd (ASX: STO) share price has gained 19.3%. Woodside Petroleum Ltd (ASX: WPL) shares, meanwhile, have gained a very impressive 44.2% over that same time.

Which has investors carefully eyeing the supply and demand dynamics in energy markets for the year ahead.

Global oil supply disruption a tailwind for ASX 200 energy shares

The world is looking at oil supply disruptions falling in the range of 5-6 million barrels per day (bpd). That’s according to Reuters’ calculations.

The shortfall in supply is due to the combination of sanctions on Russian oil exports, conflicts in Middle Eastern oil-producing nations, and a lack of new investment in exploration and drilling since the onset of the global pandemic.

The International Energy Agency flagged that sanctions on Russian oil exports, alongside private buyers refusing to take delivery of Russian sourced oil, is likely to see a 700,000 bpd crude oil supply deficit in the second quarter of 2022.

And these disruptions come as global energy demand is rebounding strongly.

That’s likely to mean continued high oil and gas prices, which will help support ASX 200 energy shares in the coming quarter.

In fact, Saudi Arabia is likely to increase the price of its predominant crude variety to a record high.

According to the median estimate in a Bloomberg survey of five refiners and traders, ” Saudi Aramco may raise the official selling price of its key Arab Light crude by US$5 a barrel to Asia for May-loading cargoes.”

Keep an eye on the demand side too

Investors in ASX 200 energy shares will be keeping an eye on the demand side of the equation as well.

While global energy demand has rebounded strongly, it was only two years ago that COVID-19 driven lockdowns and border closures saw energy demand all but evaporate overnight. That saw crude oil prices crater and ASX 200 energy shares like Santos and Woodside plummet in value.

One of the biggest potential risks to global oil demand analysts are closely watching is the spread of COVID-19 in China.

China is among the few nations still embracing a zero-virus policy. With a recent surge in cases, Chinese authorities have instituted a staged lockdown for Shanghai.

The city, with some 26 million people, has a larger population than all of Australia.

Depending on how the virus and Chinese containment efforts progress, this could have a significant negative impact on crude oil demand in the coming quarter. And that would throw up some headwinds for ASX 200 energy shares.

The post Own ASX 200 energy shares? Here’s the latest on the 2022 crude oil disruptions appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Global poster child? Why this fundie is bullish on the Santos share price
• 5 things to watch on the ASX 200 on Tuesday
• Here’s why Macquarie just upgraded the Santos (ASX:STO) share price
• Is the Woodside Petroleum (ASX:WPL) share price a buy today?

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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The Firefinch Ltd (ASX: FFX) share price is on the move today following a positive update from the company.

At the time of writing, the lithium developer’s shares are up 12.23% to $1.055 apiece.

What did Firefinch announce to the ASX?

According to the company’s release, Firefinch advised that its subsidiary Birimian Gold Mali SARL has been granted a Finkola exploration licence.

Located 23 kilometres north-west of Firefinch’s Morila Gold Mine in the West African nation of Mali, the licence covers the Beledjo-Koting gold deposit (Beledjo) as well as the K2, K3, and other prospects.

Firefinch will transfer the mining licence to a single purpose Malian company as required by the country’s legislation.

As such, the Malian entity will initially be a wholly-owned subsidiary of Firefinch and will be a separate standalone company from Morila. However, the state of Mali has a right to receive a 10% free carried interest in the company, with an option to purchase an additional 10% at fair market value.

Once the single purpose Malian company has been formed, commercial agreements with Morila are expected to take place. This will involve operating and managing mining and haulage activities at Beledjo and processing the mined ore.

Beledjo contains probable ore reserves of 20,000 ounces of gold within an indicated and inferred mineral resource of 30,000 ounces of gold.

The grant of the mining licence allows Firefinch to add Beledjo into the mining schedule and commence preliminary site works.

Firefinch managing director Michael Anderson commented:

The grant of the Permis d’Exploitation for Finkola is another important step in ramping up production at Morila. Beledjo gives us another ore source and importantly provides oxide ore for blending with fresh ore from the Morila Super Pit.

About the Firefinch share price

Adding to today’s gain, the Firefinch share price has accelerated by 402% in the past 12 months.

When looking year to date, the company’s shares are up almost 22%.

Its current share price represents a 14-year high for the company.

Based on valuation grounds, Firefinch presides a market capitalisation of around $1.24 billion.

The post Why is the Firefinch (ASX: FFX) share price soaring 12% to a 14-year high? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ords shares smashing 52-week highs today
• Why APM, Firefinch, Rio Tinto, and Soul Patts shares are charging higher today
• Up 350% in a year, here’s why the Firefinch (ASX:FFX) share price is flying higher on Monday
• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher
• Here’s why the Firefinch (ASX:FFX) share price is blazing 8% higher today

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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The Magellan Financial Group Ltd (ASX: MFG) share price is currently up by 7%. It hasn’t been this high since the start of March 2022.

The S&P/ASX 200 Index (ASX: XJO) is also up today, rising by around 0.7%.

Over the last 24 hours, there has been positivity in the global share market amid the news that Russia said it would “drastically reduce” its attacks on the cities of Kyiv and Chernihiv. The S&P 500 Index (SP: .INX) went up by 1.2% overnight.

What’s happening with the Magellan share price?

Magellan shares have surged this week.

However, the fund manager’s shares remain 54% lower than where it was six months ago. Since the start of 2022, the Magellan share price has dropped around 25%.

The company has seen an enormous amount of funds under management (FUM) leave the business.

Its latest update, given on 14 March 2022, revealed that Magellan’s FUM had dropped to $69.1 billion. That was a decline from $77.2 billion, which was reported to the ASX on 25 February 2022. It has experienced net outflows of approximately $5 billion since the February update, including net institutional outflows of $4.7 billion and net retail outflows of $0.3 billion.

Magellan had also received notifications of intention to redeem $1 billion, which was reflected in the above FUM figures.

The fund manager has also seen its talisman and co-founder Hamish Douglass take a leave of absence after a period of intense pressure. He has also stepped down from the board.

Buyback 

Magellan recently announced the launch of a share buyback. It will buy up to 10 million shares, representing up to 5.4% of shares on issue.

Broker thoughts on the Magellan share price

Morgans thinks Magellan is a ‘hold’ with a price target of $15.78, though it thinks its FUM needs to stabilise.

Ord Minnett thinks it a sell, with a price target of just $13. The broker noted Magellan’s investment fund performance continues to disappoint.

The post Magellan (ASX:MFG) share price up another 7% to 1-month high appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday?
• These were the worst performing ASX 200 shares last week
• 3 high-yield ASX dividend shares trading near 52-week lows
• Why Adairs, Betmakers, Magellan, and Northern Star shares are dropping

Motley Fool contributor Tristan Harrison owns Magellan Financial Group. 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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The Eagers Automotive Ltd (ASX: APE) share price is on the move after the company announced a $205 million acquisition.

The company could also benefit from the fuel excise cut included in last night’s federal budget, according to UBS.

At the time of writing, the Eagers Automotive share price is $14.54, 3.19% higher than its previous close.

Let’s take a closer look at today’s news from the car, truck, and bus dealership.

Eagers Automotive share price up on acquisition news

The Eagers Automotive share price is launching higher on news the company is paying approximately $205 million to buy a portfolio of dealerships and properties in the ACT.

The portfolio, currently owned by WFM Motors, brings in a turnover of around $450 million annually.

The dealerships represent brands including Toyota, Ford, Volkswagen, Jeep, Lexus, Subaru, Mitsubishi, Volvo, and GMSV.

They span across 10 owned properties and three leased properties.

The portfolio also employs around 400 people, all of whom will be retained after the acquisition.

Eagers Automotive CEO Keith Thornton noted the ACT is a “key strategic region” for the company.

Thornton said the territory presents an “opportunity to grow our national footprint … [offering] immediate scale and scope for future growth”.

“The portfolio is high performing, representing leading manufacturers, and is situated in prime operating locations around Canberra,” Thornton continued.

The acquisition is subject to a number of conditions, including shareholder approval. Eager Automotive expects investors will get their say in July.

Additionally, UBS equity strategist Richard Schellbach identified the company as one that could get a boost from the federal budget’s fuel excise cut, as reported in the Australian Financial Review.

If motorists return to roads in droves as some predict, so too will their cars to service centres. That’s good news for Eager Automotive.

The equity strategist also noted the potential for the change to spur an increase in new car sales. Of course, that would likely be good news for Eagers Automotive’s bottom line and, in turn, its share price.

The post Here’s why the Eagers Automotive (ASX:APE) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal

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 Bruce Jackson.

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The Nitro Software Ltd (ASX: NTO) share price is storming higher for a second day in a row.

In afternoon trade, the document productivity software company’s shares are up 10% to $1.55.

This means the Nitro share price is now up approximately 35% in the space of just two weeks. Though, its shares are still down by the same margin year to date.

Why is the Nitro share price rising?

A number of beaten down ASX tech shares are rising again on Wednesday after another strong night on Wall Street’s tech focused Nasdaq index.

In addition, a recent note out of Goldman Sachs reveals that its analysts believe Nitro’s shares have been severely oversold, creating a buying opportunity for investors. This could be giving its shares an added boost today.

According to the note, the broker has a buy rating and $2.60 price target on its shares. This suggests that there’s still potential upside of 68% for the Nitro share price despite its recent rally.

Commenting in February, Goldman highlighted the favourable risk/reward on offer with its shares after significant weakness in the preceding three months.

It said: “Nitro is down ~50% since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro’s potential, in our view.”

In respect to its growth assumptions, Goldman believes the company can increase its US$34 billion total addressable market penetration from 0.15% to 1.4% by FY 2040. This implies a massive 9x uplift to Nitro’s current revenue base.

The post Why the Nitro (ASX:NTO) share price is jumping 10% appeared first on The Motley Fool Australia.

More reading

• Why is the Nitro Software (ASX:NTO) share price rocketing 9% higher?
• 2 ASX tech shares to buy now for DIRT CHEAP: experts
• Analysts name 2 exciting small cap ASX shares to buy with huge upside
• 3 growth shares analysts are tipping to rocket higher
• Analysts name 2 ASX growth shares to buy with 40%+ upside

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 Goldman Sachs. The Motley Fool Australia has recommended Nitro Software 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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Are you a shareholder of Wesfarmers Ltd (ASX: WES)? Congratulations, it’s payday for you. Wesfarmers, one of the oldest blue-chip shares on the S&P/ASX 200 Index (ASX: XJO), is paying out its interim dividend today. So if you’ve been a shareholder for longer than its last ex-dividend date of 22 February, get ready for a new dividend coming your way.

Last month when Wesfarmers revealed its half-year earnings report for the six months ending 31 December 2021, it seems investors weren’t too impressed. The company reported something of a mixed bag. Revenues, earnings, net profits after tax (NPAT), and basic earnings per share (EPS) all fell compared to the previous year. Even the company’s interim dividend took a hit. Wesfarmers announced an 80 cents per share interim dividend, fully franked. That represented a 9.1% cut compared to the previous year’s dividend.

Wesfarmers pays out a lowered dividend

The company mostly blamed this performance on the pandemic and associated lockdowns during the second half of last year, as well as staffing shortages and supply chain issues. On the day of the earnings announcement, the Wesfarmers share price fell 6% at one point. Even as it stands today, Wesfarmers shares are a good 6% or so below where they were prior to these earnings coming out.

But that’s all done and dusted now, and I’m sure investors are keen to receive their dividends today all the same.

Wesfarmers’ last two dividends equate to $1.70 in fully-franked dividends per share. That gives Wesfarmers a trailing dividend yield of 3.32% on current pricing, or 4.74% grossed-up with the full franking.

At the time of writing, Wesfarmers is trading at $51.19 a share. That puts its year-to-date performance in 2022 so far at a loss of 14.7%. Over the past 12 months, Wesfarmers shares have gone backwards by 2%. The company last hit a 52-week high of $67.20 back in August last year, meaning the shares are down more than 22% from that high as it stands today.

At the current Wesfarmers share price, this ASX 200 blue chip has a market capitalisation of $58 billion.

The post It’s payday for Wesfarmers shareholders today. Here’s the deal appeared first on The Motley Fool Australia.

More reading

• ‘Popping the champagne’ ASX retail shares leap following budget consumer handouts
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• 5 things to watch on the ASX 200 on Wednesday
• Buy or sell? ASX experts rate the CBA share price for April
• These 3 ASX 200 shares are topping the volume charts this Tuesday

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 owns and has recommended Wesfarmers 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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Shares in Bank of Queensland Limited (ASX: BOQ) have re-staked their claim in the green and have climbed more than 8% in the past month.

ASX financials have strengthened tremendously in March and are now almost on par with most names in resources and mining.

In particular, the S&P/ASX 200 Financials Index (ASX: XFJ), up around 100 basis points today, has spiked more than 9% in the past month and is up 5% since January.

That’s well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO) in that same time. BOQ is clearly outpacing the broader market.

What’s up with the BOQ share price?

Strength across the financials sector has strung BOQ shares up for the last month at least, particularly as the bank hasn’t released anything sensitive at all.

The prospects of higher interest rates and potential return of capital to shareholders has market pundits piling into the sector and names like BOQ are riding the momentum.

The result has been a swarm of inflows into ASX financial shares and ETFs and those early movers have seen their holdings climb steadily over the past 2 to 3 months.

BOQ shares are now in a vertical uptrend alongside the wider sector as the market begins re-weighting its preferences amid the current macroeconomic climate.

As such, analysts at Morgans reckon there is exceptional value in BOQ right now, and remain bullish with an $11 price target.

The view is shared by JP Morgan whom reckon the market will eventually begin to realise the pull-through from BOQ’s new digital strategy.

It remains the broker’s preferred pick out of the regional Australian banks, alongside several other brokers, with the sentiment overwhelmingly bullish, according to Bloomberg data.

The BOQ share price has climbed 1% back in the green over these past 12 months and is now trading 7% higher this year to date.

The post BOQ share price punches 8% higher in March to sprout into the green appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland (ASX:BOQ) tipped for both share price and dividend boost
• Why has the Bendigo Bank (ASX:BEN) share price been smashing BOQ in 2022?
• The Bank of Queensland (ASX:BOQ) share price has rallied 11% in 2 weeks
• Brokers: Buy these 2 underrated ASX dividend shares
• Are Bank of Queensland (ASX:BOQ) shares cheap right now? Read what analysts say

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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ASX retail shares are in the green today following consumer spending incentives in the federal budget.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 1.16% so far today to 3,194.60 points. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is ahead 0.72% at the time of writing.

Let’s take a look at how ASX retail shares are performing today.

Consumer spending boost

ASX retail shares are climbing today. The Harvey Norman Holdings Limited (ASX: HVN) share price is up 1.87%, Wesfarmers Ltd (ASX: WES) is 1.28% higher, and JB Hi-Fi Limited (ASX: JBH) is 1.23% in the green.

Meanwhile, the Adairs Ltd (ASX: ADH) share price is up a healthy 4.75%, Kogan.com Ltd (ASX: KGN) is surging 5.54%, and City Chic Collective Ltd (ASX: CCX) is 1.04% ahead.

Supermarket giant Coles Group Ltd (ASX: COL) is also ahead 1.06%, while Woolworths Group Ltd (ASX: WOW) is 1.3% higher.

Shareholders may be reacting to more cash in the hands of consumers. In last night’s budget, the federal government announced a $420 cost of living tax offset for 10 million Australians. Pensioners, welfare recipients, veterans, and eligible concession cardholders will also receive a “cost of living payment” of $250 in April.

Treasurer Josh Frydenberg said the cost of living package was introduced to “take the pressure off” household budgets.

Commenting on the budget implication for investors last night, the team at Switzer said the budget was good for consumer discretionary stocks, especially retailers including JB Hi-Fi, Harvey Norman and Wesfarmers. Peter Switzer added:

I would really be believing that retailers would be popping champagne corks tonight. It’s a very good budget for anyone that is linked intimately to the consumer.

ASX retail share recap

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has climbed 3% in the past year although it has dropped more than 9% year to date amid ongoing COVID-19 uncertainty.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 12% in the past year.

The post ‘Popping the champagne’ ASX retail shares leap following budget consumer handouts appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Could these ASX shares get a boost from tonight’s federal budget?
• Leading brokers name 3 ASX shares to buy today
• Wesfarmers (ASX:WES) share price falls after top broker calls Bunnings owner a sell
• Hoping to bag the Harvey Norman (ASX:HVN) dividend? Here’s what you need to do this week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO and Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO, Harvey Norman Holdings Ltd., and Wesfarmers 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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