Tag: Motley Fool

Shares in Global Lithium Resources Ltd (ASX: GL1) are surging north today and now trade more than 22% in the green at $2.46 each.

That marks a 64% gain since January for the company which has seen its equity explode this year, after a period of flat activity for over 12 months.

Why are Global Lithium shares charging north?

The Global Lithium share price has been catching bids lately as the company drip-fed the market two important updates.

Last week the company advised it had received firm commitments for a $29.9 million capital raising with respect to its Marble Bar Lithium project in the Pilbara, and its Manna Lithium Project.

It also noted that ASX resources player Mineral Resources Limited (ASX: MIN) had joined its register as a shareholder after committing to invest $13.6 million for a 5% stake in the company after the equity raise.

As a result of the placement, Global Lithium’s share count will now increase by 22.18 million new ordinary shares, after the placement was issued at a discount of $1.35 per share.

Prior to the update last week, the company advised it had entered into a 10-year spodumene concentrate offtake agreement with its largest shareholder, Suzhou TA&A Ultra Clean Technology Co.

Under the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available inventory from Global Lithium, with an option to increase by an additional 15% each year.

The move is set to advance Global Lithium’s operations in Western Australia, the company’s non-executive chair, Warrick Hazeldine said.

“As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets,” he said.

Global Lithium shares extend their rally today as volume surges to more than 2,227,000 shares – 152% higher than the 4-week average.

Global Lithium share price snapshot

In the last 12 months, the Global Lithium share price has soared 1,130% higher and is up almost 159% this year to date.

Over the past month, alone shares have soared 64% after climbing another 54% this previous week.

The post Why are Global Lithium (ASX: GL1) shares striding 22% higher today? appeared first on The Motley Fool Australia.

More reading

• Why is the Global Lithium (ASX:GL1) share price powering ahead by 7% today?
• Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today

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.

from The Motley Fool Australia https://ift.tt/nuzmLyr

The Lake Resources N.L. (ASX: LKE) share price is cruising more than 3% higher today with the company’s shares now trading at $1.60 apiece.

The clean lithium developer’s shares nudged past their all-time high and peaked at $1.66 each in early trade before settling at their current level.

The high follows a sustained period of upward movement, as illustrated by the chart below.

Another all-time high

The Lake Resources share price has taken off in the past month, up more than 70% during that time.

Its equity curve has shot higher with the company now trading well ahead of many of its sector peers in the S&P/ASX 300 Metals & Mining Index (XMM). [For reference, an equity curve is a graphical representation of how a stock, asset class, portfolio, or investment strategy performs over time.]

This year to date, the sector has climbed around 6% while Lake Resources shareholders have enjoyed a 58% return over the same time frame.

Investors have been piling into the company these past few weeks amid a successful capital raise and updates on its Argentinian lithium operations.

Lithium carbonate prices continue to rise and have stretched to US$78,150/tonne at the time of writing — an all-time high. Meantime, the Bloomberg Lithium Price Index has surged more than 441% year on year.

In a note from January, mining analyst at Red Cloud Securities David A. Talbot also noted Lake offers long-term upside potential.

At that time, he upgraded the broker’s outlook and said it forecast feasibility studies to “demonstrate even stronger economics and [was] therefore increasing [the] target price for Lake to A$2.20/share (from A$1.25/share)”.

Investors are piling in

Lake’s trading volumes have also shot up markedly. Total March volume is already more than 397 million shares – far ahead of the 129 million shares swapping hands in February, according to Bloomberg data.

Most of that has been on the buying side. So far today, 52% of investors are seeking to buy Lake Resources shares, Bloomberg data shows.

Analysts at Bell Potter are also constructive on Lake Resources. The broker is attracted to the company’s key lithium asset, the Kachi Lithium Brine project in Argentina.

Bell Potter said there are enormous ESG benefits to the project’s lithium extraction technology over alternative incumbent brine and hard rock lithium production methods.

It values the company at $1.82 with a speculative buy, baking in an upside potential of almost 17% at the time of writing.

Meanwhile, analysts at Lodge Partners are equally as bullish on the stock, valuing Lake at $1.77 per share.

The broker had previously valued Lake using a lithium price of US$15,000/tonne. However, it recently said it felt more suitable to increase lithium price input “considering recent activity in the spot price”.

In Lodge’s model, each US$1,000/tonne movement, up or down, gives a 20% variation to its valuation in the same direction. Thus, a price range of US$16,000/tonne to US$20,000/tonne sees the valuation range from $1.25 to $2.28.

In fact, at the time, Lodge was valuing Lake at a lithium carbonate input price of US$20,000/tonne. That’s far below the current price of more than US$78,000/tonne.

The consensus of analyst estimates values Lake at $1.79 per share over the next 12 months, according to Bloomberg data.

Lake Resources share price snapshot

In the last 12 months, the Lake Resources share price has climbed more than 376% and is up a mammoth 58% this year to date.

Just this past month alone, shares have jumped another 70% to set a series of new all-time highs.

The post Lake Resources (ASX:LKE) share price throttles to record high, up 70% this month appeared first on The Motley Fool Australia.

More reading

• Up 68% in March so far, why this top broker sees more upside for the Lake Resources (ASX:LKE) share price
• Brokers name 3 ASX mining shares to buy today
• Why has the Lake Resources (ASX:LKE) share price soared 30% in a week?
• 3 ASX lithium stocks that brokers rate as buys
• Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher

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.

from The Motley Fool Australia https://ift.tt/t4SiI8F

The Bitcoin (CRYPTO: BTC) price is down 2.7% over the past 24 hours, currently trading for US$40,810 (AU$56,915).

That leaves Bitcoin up 7.3% since this time last week and down 14.4% year-to-date.

Ethereum (CRYPTO: ETH), the world’s number 2 crypto by market cap, is losing ground today too. The Ethereum price is down 3.1% to US$2,838. Ethereum is still up 12.5% over 7 days, while the price is down 24.6% since 1 January.

The Bitcoin price and that of most major cryptos (outside the stablecoins) have followed a similar trajectory to risk-assets like ASX tech shares, this year.

And with the spectre of multiple interest rate rises now looming over the coming year, the S&P/ASX All Technology Index (ASX: XTX) has lost 17.9% year-to-date.

Which brings us back to…

Will inflation take a bite out of the Bitcoin price in 2022?

It’s not inflation, so much, that might throw up headwinds for any potential gains in the Bitcoin price in 2022. But rather the higher interest rates on the cards to keep inflation in check.

Addressing the difficult macro conditions facing crypto investors, Marcus Sotirou, analyst at digital asset broker GlobalBlock, said (quoted by Bloomberg), “Bitcoin is consolidating under $41,000 as the percentage of long-term holders in the market continues to increase. But for 2022, I can’t expect an aggressive uptick in prices, because of the macro conditions.”

Wilfred Daye, head of Securitize Capital, added, “For Bitcoin to breakout, a tech rally and macro risk-on sentiment are the key ingredients.”

Asked about the impact of higher rates on the Bitcoin price and other cryptos, Josh Gilbert, crypto analyst at multi-asset investment platform eToro told The Motley Fool:

While rate hikes generally equate to a lower investor appetite for higher risk assets like crypto, it’s unlikely to change the long-term picture for the asset.  It’s expected that we will continue to see a period of consolidation with crypto, as long as geopolitical tensions ensue. In the situation that they do ease, a crypto relief rally is anticipated to occur.

Gilbert noted that the Ethereum and Bitcoin price are likely to perform better under an environment of increasing interest rates than some of the lesser-known altcoins.

Altcoins will be more susceptible to investors rotating out of crypto, as they tend to carry more risk than the larger capped crypto assets such as Bitcoin and Ethereum. This is because larger capped crypto assets are more established and their use cases to the everyday investor are much clearer as shown by their rise in recent months.

The post Will higher interest rates take a bite out of the Bitcoin price in 2022? appeared first on The Motley Fool Australia.

More reading

• What’s ahead for the Bitcoin price in 2022 amid rising interest rates?
• Why this expert says Bitcoin isn’t ‘a safe haven asset’, at least not yet
• Bitcoin price edges higher as potential European crypto mining ban flops
• 2 top cryptocurrencies to buy and hold forever
• Why Bitcoin, Ethereum, and Dogecoin dropped today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/ew0yn9d

Shares in Incannex Healthcare Ltd (ASX: IHL) are pushing higher today and now trade almost 5% in the green at 69 cents apiece.

The Incannex share price has now climbed more than 50% this past week of trade and has locked an 11% gain for the year to date.

Why is the Incannex share price charging higher?

Last week the company announced it will be issuing a set of ‘loyalty options‘ in order to “reward loyal shareholders who have supported Incannex” over the year.

Obviously, that’s not the only reason – the company will raise cash off the issue as well, confirmed by CEO Joel Latham in yesterday’s release.

“The loyalty option is intended to reward our loyal shareholders whilst simultaneously assisting Incannex with the funding requirement for the next phase of development,” he said.

The options will be distributed for nil consideration and the exchange ratio is 1 option for every 15 shares held.

These options will have an exercise price at 35 cents each – almost half in value of the company’s share price at the time of writing.

Not only that, but the company will issue a set of ‘piggy-back options’ that are designed to be set at a ratio of 1 option for every two loyalty options exercised before expiry.

Unlike the loyalty issue, the piggy-back issue has a strike price of $1 per share and is due to expire on 28 April 2023.

Incannex looks set to utilise the funds to advance its clinical research programmes to get its pipeline converted onto the market.

Incannex share price snapshot

In the last 12 months, the Incannex share price has soared over 239% and is now up more than 11% for the year to date.

During the past month of trading, shares have spiked a further 18% and are now up more than 52% this past previous week.

The post The Incannex (ASX:IHX) share price is up a whopping 50% in a week. What’s the deal? appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Incannex (ASX:IHL) share price 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. 

from The Motley Fool Australia https://ift.tt/tQq0TZk

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline after giving back its morning gains. At the time of writing, the benchmark index is down slightly to 7,291.5 points.

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

Adairs Ltd (ASX: ADH)

The Adairs share price is down 1% to $2.92. This decline has been driven by the furniture and homewares retailer’s shares trading ex-dividend this morning. In fact, if you take the company’s 8 cents per share fully franked interim dividend out of the equation, the Adairs share price would be trading higher today.

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price has continued its slide and is down a further 2% to 66 cents. As I mentioned earlier today, this betting technology company’s shares are one of the most shorted shares on the ASX. In fact, it has been speculated that major shareholder, Tom Waterhouse, could be lending his shares to short sellers.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 2.5% to $15.32. Investors have been selling this embattled fund manager’s shares after its founder, Hamish Douglass, resigned as a director with immediate effect. Douglass took indefinite leave from the role as Chairman last month following a period of intense pressure and focus on both his professional and personal life.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2.5% to $10.37. This follows weakness in the gold price at the end of last week as demand for safe haven assets softened. It isn’t just Northern Star’s shares that are falling on Monday. At the time of writing, the S&P/ASX All Ordinaries Gold index is down by a sizeable 1.9%.

The post Why Adairs, Betmakers, Magellan, and Northern Star shares are dropping appeared first on The Motley Fool Australia.

More reading

• Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• 2 high yield ASX dividend shares brokers rate as buys
• 5 ASX shares trading ex-dividend next week

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 ADAIRS FPO and Betmakers Technology Group Ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/cTUDpFr

The DroneShield Ltd (ASX: DRO) share price is lifting off in mid-afternoon trade. This comes after the defence contractor announced another contract award.

At the time of writing, DroneShield shares are swapping hands for 18 cents apiece, up 5.88%.

DroneShield secures defence contract

Investors are buying up DroneShield shares after the company updated the market with a positive release.

In a statement to the ASX, DroneShield advised it has received an order for several of its systems from an ‘international government agency’.

The deal, valued at around $2 million, represents ongoing commitments from government agencies, which have sought DroneShield products in the past.

The funds will be received across the March 2022 and June 2022 quarters.

The order consists of an upfront purchase of $2 million with an additional recurring subscription element. Although, DroneShield stated that the latter cannot be estimated at this time, but is expected to be material.

DroneShield CEO, Oleg Vornik commented:

As drones continue to be increasingly used in modern warfare, we are seeing rapidly increasing demand for the DroneShield equipment. With the substantial investment in inventory over the last 12 months, ability to rapidly fulfil orders remains critical in current environment, and we are well placed.

What does DroneShield do?

DroneShield specialises in drone security technology. The company designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure.

Its multi-layered products are centred around detection and disruption from unmanned aerial systems (UAS).

Its key product is the DroneGun, which is a hand-held, lightweight portable weapon that is highly effective against drones.

DroneShield share price summary

Over the past 9 months, DroneShield shares have been moving in a sideways channel from 16.5 cents to 19 cents.

In 2022, the company’s share price is up almost 3% and up 9% in the last month alone.

With a market capitalisation of $75.28 million, DroneShield has room to grow and cement itself as a leading defence contractor.

The company holds more than 418.22 million shares on its registry.

The post ‘Rapidly increasing demand’: DroneShield (ASX:DRO) shares jump 5% appeared first on The Motley Fool Australia.

More reading

• DroneShield (ASX:DRO) share price surges as revenues soar 91%

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

from The Motley Fool Australia https://ift.tt/LZgVpPK

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. At the time of writing, the benchmark index is down slightly to 7,291.5 points.

Four ASX shares that aren’t letting that hold them back are listed below. Here’s why they are rising:

Block Inc (ASX: SQ2)

The Block share price is up 9% to $184.25. At one stage today, the payments giant’s shares jumped 11% to reach their highest level since listing on the Australian share market. It also meant that Block’s shares were up a whopping 60% in less than a month. This follows a strong night of trade for its NYSE shares on Friday night.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 8% to $1.22. A number of lithium shares are hurtling higher today amid bullish sentiment in the sector. Core Lithium, which recently signed a supply agreement with Tesla, saw its shares hit a record high this morning.

Liontown Resources Limited (ASX: LTR)

The Liontown share price is up 6% to $1.76. This morning the lithium developer advised that it has received all assays from the recently completed drilling campaign at the Buldania Lithium Project in Western Australia. Liontown revealed that results included shallow extensions to the Anna deposit as well as regional geochemical/geological targets within the Northwest prospect.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up almost 1.5% to $3.05. Investors have been buying this logistics facilities company’s shares after it announced a $400 million off market share buyback. Qube decided to undertake a share buyback following a strong performance during the first half and the completion of the Moorebank Logistics Park transaction.

The post Why Block, Core Lithium, Liontown, and Qube shares are rising appeared first on The Motley Fool Australia.

More reading

• Rollercoaster! Zip share price pops then drops
• ‘Exciting’ results: Here’s why the Liontown (ASX:LTR) share price is climbing 6% today
• ASX 200 (ASX:XJO) midday update: Hamish Douglass resigns from Magellan, Block jumps
• Block (ASX:SQ2) share price jumps 11% to new ASX high
• Qube (ASX:QUB) share price rises amid $400m off-market buyback

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. 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.

from The Motley Fool Australia https://ift.tt/rKqZ8b9

The S&P/ASX 200 Index (ASX: XJO) has had a bit of a wild day so far in this week’s start to trading. At the time of writing, the ASX 200 is down, but only just, having lost 0.02% at just under 7,300 points. But we have already seen some significant volatility, with the index swinging from some healthy gains back to a loss, then a gian, and now a loss. But the National Australia Bank Ltd. (ASX: NAB) share price has arguably been even wilder. 

NAB shares opened at $31.20 this morning, slightly below where they closed at last week. But then we saw a decisive pop in the NAB share price, which took it as high as $31.46 a share. That happens to be a new 52-week high for this ASX 200 big four banking share. 

But not only have we seen a new 52-week high, but that price is also the highest NAB shares have been in several years. In fact, the last time we saw NAB approaching $31.50 a share, it was way back in November 2017, meaning NAB has just had a 4-year high. 

NAB share price hits new 4 year-high, only to fade away

Unfortunately, this new high seemed to burn out bright. Upon reaching this high, NAB shares promptly fell back to earth. The company is now going for just $30.95 a share, down 0.83% for the day and 1.6% from its new 52-week benchmark.

The other major ASX bank shares have seen similar pricing patterns (without new 52-week highs in between though). Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are the only banks to still be in the green today. Westpac Banking Corp (ASX: WBC) has joined NAB in the red after initially popping this morning as well.

It’s unclear what has sparked this volatility with ASX bank shares today, but it doesn’t seem confined to this sector, given what has happened with the ASX 200 as well.

At the current NAB share price, this ASX 200 banking giant has a market capitalisation of $99.85 billion, with a dividend yield of 4.1%. 

The post Cha-ching! The NAB share price just hit a multi-year high appeared first on The Motley Fool Australia.

More reading

• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?
• Expert: NAB shares ‘top pick’ in the banking sector
• ‘Cut-throat’: Why did NAB make headlines today?
• Why ASX 200 bank shares are storming higher today
• 2 buy-rated ASX 200 dividend shares with top yields

Motley Fool contributor Sebastian Bowen owns National Australia Bank 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/8ABJpms

The Rio Tinto Limited (ASX: RIO) share price is in focus again as the miner faces some pushback from one of the larger shareholders of the Mongolian Oyu Tolgoi mine.

Right now, Rio shares are trading for $110.10 each, down 0.22% on the day.

The ASX mining share is trying to increase its exposure to copper by taking complete control of Turquoise Hill Resources. It has owned just over half of Turquoise Hill Resources for the last decade.

What is Oyu Tolgoi?

According to Turquoise Hill Resources, Oyu Tolgoi is one of the world’s largest new copper-gold mines, located in the South Gobi region of Mongolia. It reportedly has the potential to operate for approximately 100 years from five known mineralised deposits.

A second deposit, Hugo North (lift 1), is under development as an underground operation and is scheduled to begin sustainable production in 2022. The other three deposits — Hugo North (lift 2), Hugo South, and Heruga — are not yet scheduled for development.

Acquisition hits a hurdle

According to the Australian Financial Review, the American investment fund Pentwater Capital owns 9.36% of Turquoise Hill Resources. It’s reported the fund’s boss Matt Halbower was not impressed by Rio Tinto’s offer for the business, saying it was “a fraction” of what the business was worth.

Halbower said:

In Pentwater’s opinion it is highly improbable that Rio will be successful at its current bid price and equally improbable that Turquoise Hill shares will ever fall back to the levels they traded at prior to Rio’s offer now that Rio’s true intentions are known.

Pentwater would be pleased to purchase part of Rio Tinto’s stake in Turquoise Hill for that price.

Another shareholder of Turquoise Hill Resources has also indicated that the offer was not enough.

Pentwater believes the cost overruns of the expansion of the Oyu Tolgoi mine, and Rio’s push for a capital raising to fund the extra costs, has led to the Turquoise Hill Resources share price trading for less than it’s actually worth.

It was only a couple of months ago that Rio Tinto Turquoise Hill agreed to forgive debts relating to the Mongolian government. The government owns around a third of the mine but couldn’t afford its share of the construction costs, according to the AFR.

Is the Rio Tinto share price a buy?

The broker Morgan Stanley thinks Rio is a buy with a price target of $126.50. That implies a potential upside of more than 10% over the next 12 months.

It likes the potential deal for Rio Tinto to buy 100% of Turquoise Hill. The broker thinks that the Mongolian government’s approval makes the deal worthwhile, even though copper is priced very highly right now.

The Rio Tinto share price is up 1.27% for the year, gaining more than 10% year to date.

The post ‘Highly improbable’: Why Rio Tinto (ASX:RIO) shares are in focus again appeared first on The Motley Fool Australia.

More reading

• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?
• 2 ASX 200 dividend shares analysts are urging income investors to buy
• 5 things to watch on the ASX 200 on Monday
• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?
• ‘Highly opportunistic’: Rio Tinto (ASX:RIO) share price higher despite Turquoise takeover setback

Motley Fool contributor Tristan Harrison 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.

from The Motley Fool Australia https://ift.tt/pE7tBaV

It’s been a pretty tame day for the S&P/ASX 200 Index (ASX: XJO) thus far this Monday. At the time of writing, the ASX 200 is down by an anaemic 0.04% at just under 7,300 points.

But we can’t call what has happened to the Zip Co Ltd (ASX: Z1P) share price today anything close to tame.

Zip shares opened at $1.70 this morning after closing at $1.60 last week. That’s a pop of 6.25%, not bad! But it hasn’t been smooth sailing for Zip shares during today’s intra-day trading.

The buy now, pay later (BNPL) share is currently going for $1.62 a share, still up a healthy 1.2%. But then again, that’s less than a third of the gain we saw at market open.

So what’s going on with Zip today?

Zip share price: snap, crackle and pop

Well, we can’t be sure. The company itself hasn’t made any news or announcements to speak of so far today. Nor has it been directly affected by the latest round of ASX 200 (and other ASX index) rebalancing that went into effect today.

But if we look to some of Zip’s peers, it makes for an interesting contrast. So alongside Zip’s big moves today, we’ve also seen some major movements in both the Block Inc (ASX: SQ2) and the Sezzle Inc (ASX: SZL) share prices.

Sezzle shares are currently up a more enthusiastic 2.39% at $1.50 each. But it’s Block shares that have really taken off today. The Block share price is presently sitting at $184.9, up a very pleasing 9.5% so far today.

Block shares have consistently traded higher so far, while Sezzle has had a milder version of that ‘pop then drop’ that Zip has seen.

There’s not really a solid explanation for all of these sharp moves, other than to blame it on the inherent volatility that seems to permeate BNPL and tech shares like Zip, Block and Sezzle these days.

At the current Zip share price, the ASX 200 BNPL share has a market capitalisation of $1.07 billion.

The post Rollercoaster! Zip share price pops then drops appeared first on The Motley Fool Australia.

More reading

• The ASX quarterly rebalance takes effect today. Here’s what you need to know
• ASX 200 (ASX:XJO) midday update: Hamish Douglass resigns from Magellan, Block jumps
• Block (ASX:SQ2) share price jumps 11% to new ASX high
• 2 leading ASX 200 shares to watch as fundies rebalance portfolios
• 5 things to watch on the ASX 200 on Monday

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. 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.

from The Motley Fool Australia https://ift.tt/8cPo0nZ