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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.3% to 7,387.6 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% higher this morning. This follows a solid night of trade on Wall Street, which late on sees the Dow Jones up 0.8%, the S&P 500 up 0.8% and the Nasdaq up 1%.

ASX opening hours

Today is of course Christmas Eve. As per previous years, trading will finish earlier than normal today. You’ll need to make sure you get your trades in before 14:00 Eastern Standard Time or you’ll miss out. The ASX share market will then be closed until Wednesday 27 December due to the public holidays on Monday and Tuesday.

Oil prices storm higher

It could be a great end to the week for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 1.15% to US$73.61 a barrel and the Brent crude oil price is up 1.7% to US$76.53 a barrel. Oil prices were boosted by reports that the worst effects of the Omicron variant might be more containable than previously feared.

Bega given neutral rating

The team at Goldman Sachs has given its verdict on the Bega Cheese Ltd (ASX: BGA) share price after its disappointing trading update. According to the note, the broker has retained its neutral rating and slashed its price target by 13% to $5.65. Goldman notes that its “earnings have been impacted by a decline in milk supply and pressure on margins, caused by continued strong competition for milk amongst processors.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose. According to CNBC, the spot gold price is up 0.4% to US$1,810.1 an ounce. The gold price held firm despite easing Omicron concerns.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Is the Santos (ASX:STO) share price good value after the Oil Search merger?
• What are experts saying to expect for ASX hydrogen shares in 2022?
• Why Afterpay, Bega, FAR, and WiseTech shares are falling

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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The ASX 50 index is home to many of the highest quality companies that the ANZ region has to offer. And while not all shares in the index are necessarily in the buy zone, two that could be are listed below.

Here’s why analysts rate these ASX 50 shares as buys:

Cochlear Limited (ASX: COH)

The first ASX 50 share to look at is Cochlear. It is one of the world’s leading hearing solutions companies with a portfolio of industry-leading cochlear implant products. These include its Nucleus System and the Baha System.

But management isn’t resting on its laurels with these products. It continues to spend 12%-14% of its revenue each year on research and development. This is a significant spend and demonstrates the implant industry’s high barriers to entry and the competitive moat created by Cochlear through decades of R&D.

All in all, this leaves the company well-positioned to benefit from the ageing population tailwind over the 2020s and beyond.

Macquarie currently has an outperform rating and $256.00 price target on the company’s shares. This compares favourably to the latest Cochlear share price of $216.66.

Xero Limited (ASX: XRO)

Another ASX 50 share that could grow at a solid rate long into the future is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.

Thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem, the team at Goldman Sachs believe Xero has multi-decade runway for growth. Especially if it can monetise its App Store successfully.

In light of this, it will come as no surprise to learn that Goldman Sachs is bullish on Xero. It currently has a buy rating and $158.00 price target on the company’s shares. This compares to the latest Xero share price of $142.06.

The post 2 ASX 50 shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• Xero (ASX:XRO) share price dips amid acquisition news
• Are these 2 strong ASX 200 shares buys?
• Where are Xero (ASX:XRO) shares headed in 2022?
• 2 fantastic ASX growth shares Goldman Sachs rates as buys
• What’s the outlook for ASX healthcare shares in 2022?

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 Cochlear Ltd. and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Cochlear 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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Today, the S&P/ASX 200 Index (ASX: XJO) notched up its third consecutive day of green. At the end of the session, the benchmark index finished 0.31% higher to 7,387.6 points.

It was a broadly green day on the Aussie market on Thursday. The sector lifting the highest out of the bunch was utilities. Although, real estate, industrials, financials, and healthcare were all close behind it. Meanwhile, tech shares caught some pessimism, with big names like WiseTech Global Ltd (ASX: WTC) and Afterpay Ltd (ASX: APT) moving lower.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Pexa Group Ltd (ASX: PXA) was the biggest gainer today. Shares in the property conveyancing platform rallied 6.50% despite there being no announcements from the company. However, another similar transaction facilitating platform, Link Administration Holdings Ltd (ASX: LNK) received a takeover bid for $2.9 billion yesterday. Find out more about Pexa Group here.

The next biggest gaining ASX share today was Magellan Financial Group Ltd (ASX: MFG). The funds manager gained 5.17% following a video update from Hamish Douglass hitting back at recent shareholder pressure. Uncover the latest Magellan Financial details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Pexa Group Ltd (ASX: PXA)	$18.35	6.50%
Magellan Financial Group Ltd (ASX: MFG)	$20.96	5.17%
Nickel Mines Ltd (ASX: NIC)	$1.44	4.73%
Ansell Ltd (ASX: ANN)	$31.92	4.04%
Summerset Group Holdings Ltd (ASX: SNZ)	$12.70	3.67%
Champion Iron Ltd (ASX: CIA)	$5.27	3.13%
Pilbara Minerals Ltd (ASX: PLS)	$2.81	2.93%
Ingenia Communities Group (ASX: INA)	$6.16	2.67%
Pendal Group Ltd (ASX: PDL)	$5.63	2.55%
Codan Ltd (ASX: CDA)	$9.39	2.51%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Thursday
• Index killer? Here’s how AFIC (ASX:AFI) shares stack up to the ASX 200
• ASX 200 (ASX:XJO) midday update: Medibank and NIB rise, Bega sinks
• Douglass speaks out: ‘We’ve never sold a single share in Magellan’
• Are these 2 strong ASX 200 shares buys?

Motley Fool contributor Mitchell Lawler owns AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO, Link Administration Holdings Ltd, and WiseTech Global. The Motley Fool Australia owns and has recommended AFTERPAY T FPO and WiseTech Global. The Motley Fool Australia has recommended Ansell 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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The Centuria Capital Group (ASX: CNI) share price finished in the green today after the company announced it has acquired more assets.

Shares in the company were swapping hands at $3.41 at market close on Thursday, up 1.49%.

Centuria Capital Group is a real estate funds manager boasting more than $18 billion worth of assets.

What did the company announce?

The Centuria Capital share price climbed after the company revealed it has taken over more than $466 million of healthcare properties in the last two months.

This includes 38 aged care assets in New Zealand for $276 million. These assets will be operated by New Zealand company Heritage Lifecare.

Centuria’s Australian-based Centuria Healthcare Property Fund will own 36% of the portfolio, while the remaining 64% will be owned by Centuria New Zealand Healthcare Property Fund.

In further news shared with the market today, Centuria Capital has also bought the $75.7 million Varsity Lakes Day Hospital run by Queensland Health. This includes six digital operating theatres, 24 consulting suites, physiotherapy services, a diagnostic imaging MRI facility, retail tenants and a gym.

The company has also secured a $38 million healthcare development site in Alexandria, Sydney.

Management commentary

Commenting on the news possibly pushing up the Centuria Capital share price, the group’s joint CEO Jason Huljich said:

These acquisitions provide unique opportunities to secure high-quality assets, further expanding Centuria’s healthcare platform across both Australia and New Zealand.

We foresee rising demand for bespoke, modern hospitals within our domestic market, which provide cost effective models of care that also focus on patient wellbeing.

Centuria Healthcare managing director Andrew Hemming added:

Demand for aged care real estate within New Zealand can continue to increase due to the undersupply of existing facilities and an increasing ageing population.

Centuria share price snapshot

The Centuria Capital share price has exploded by around 38% in the past 12 months and 30% year to date. It is also up more than 4% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 11% over the past year.

The company has a market capitalisation of roughly $2.7 billion based on its current share price.

The post What happened to the Centuria Capital Group (ASX:CNI) share price today? appeared first on The Motley Fool Australia.

More reading

• Why Betmakers, Centuria, Neometals, and Syrah shares are storming higher
• ASX 200 (ASX:XJO) midday update: Medibank and NIB rise, Bega sinks
• Investing in ASX office, industrial and healthcare shares? Here’s the outlook for 2022

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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Novonix Ltd (ASX: NVX) shares have delivered the highest returns out of all the S&P/ASX 200 Index (ASX: XJO) companies in the past year. During this time, the battery materials company has experienced an 8-fold increase in its share price.

Now standing at a market capitalisation of over $4 billion, investors on the sidelines are trying to establish whether this high-flyer will deliver the operations to support its lofty valuation. For context, the company recorded $5.23 million in revenue for the year ending 30 June 2021. This equates to a price-to-sales (P/S) ratio of approximately 766.

Strong demand for electric vehicles is widely anticipated. However, Novonix will still need to prove it can carve out its place in the industry.

Plans for the year ahead

In the near term, ASX-listed Novonix will be focusing on advancing discussions with battery cell manufacturers. At the same time, the company plans to increase its annual anode production. Ultimately the first target is to reach 10,000 tonnes per year production by 2023.

Novonix’s purchase of a manufacturing facility in Chattanooga, Tennessee is an important pillar in the company’s first phase target. This facility will be producing high purity and high consistency anode material for long-life batteries.

Additionally, the company will continue to develop its patent-pending cathode technology. The technology is based on a dry particle micro granulation technique. In 2022, Novonix will continue its research and development of this method in its Halifax facility.

An expert’s take ASX-listed Novonix

Despite the team at Firetrail Investments being bullish on electric vehicles (EVs), they are more cautious when it comes to the Novonix share price on the ASX.

In a self-published article on Livewire, Matthew Fist of Firetrail provided a detailed look into the battery materials company. Importantly, Fist separated the currently revenue-generating business segment (battery testing and equipment) from Novonix’s other divisions.

From here, the portfolio manager estimated this moneymaking segment could be worth $100 million. However, with a $4 billion market cap, Fist pondered where the remaining value is to be found.

Soon enough, Fist outlined the anode materials business as the all-important portion of Novonix — writing, “This is the part of the business that the market is excited about.”

After some quick maths, Fist estimated that if the company were successful with its ambitions, it would produce $130 million of earnings before, interest, tax, depreciation, and amortisation (EBITDA) in FY2025. In turn, this 2025 forecast puts ASX-listed Novonix at an EV/EBITDA multiple of 43 times. For comparison, the battery materials average is between 10 to 15 times.

The post Will Novonix (ASX:NVX) grow into its multibillion-dollar valuation in 2022? appeared first on The Motley Fool Australia.

More reading

• 5 investment themes to watch on the ASX share market in 2022
• The Novonix share price has tumbled 25% so far in December. What’s going wrong?
• Here are the top 10 ASX shares today
• Novonix (ASX:NVX) share price shrugs off this morning’s gains to plunge 4% lower
• Is the bubble bursting? Novonix (ASX:NVX) share price plunges 27%

Motley Fool contributor Mitchell Lawler 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 Xero Limited (ASX: XRO) share price ended in the red on Thursday. This came after the company announced an acquisition this afternoon.

At the closing bell, the cloud accounting platform provider’s shares were swapping hands for $142.06 apiece, down 0.79%.

Xero set to acquire TaxCycle

In today’s statement, Xero advised will acquire leading Canadian tax preparation software company, TaxCycle for C$75 million (A$80.98 million).

The latest addition to the Xero portfolio comes as management seeks to drive growth in the Canadian market. This will provide the company with immediate access to an established Canadian income tax solution and customer base.

Based in Calgary, TaxCycle’s software enables Canadian accountants, bookkeepers, and tax preparers to manage and file income tax returns for their clients. The last figures indicate that almost 4,000 tax firms, and 16,000 individual accountants and bookkeepers use this service.

Calgary has a rapidly growing technology and small business community, with the start-up ecosystem valued at C$2.7 billion (A$2.92 billion). Furthermore, the market is on track to grow by 1,000 new tech companies in 2030.

Last month, Xero acquired United States-based Locate Inventory, expanding its profile across North America.

The TaxCycle deal is expected to be completed by 31 December 2021.

Consideration of C$70 million (A$75.59 million) will be settled through 71% in cash and 20% in shares in Xero. In addition, TaxCycle employees will be granted C$5 million (A$5.40 million) in restricted stock units that mature between one and three years.

Xero noted that transaction, integration, and operating costs are likely to have a minimal impact on its earnings before interest, tax, depreciation, and amortisation (EBITDA) for FY22.

What did management say?

Xero CEO Steve Vamos commented:

This announcement marks an important step in Xeroʼs commitment to extend and enhance our product offering for Canadian customers and partners by providing a product that meets Canadaʼs unique tax requirements.

We know tax compliance is a major driver for small businesses and their advisors to use Xero. This acquisition will provide us with immediate and long-term benefits in Canada and aligns with our strategy to drive cloud accounting adoption globally and deliver the best compliance experience in all our markets.

Xero share price snapshot

Since the beginning of the year, the Xero share price has lost around 3% in value. In contrast, the S&P/ASX 200 Index (ASX: XJO) has risen by around 12% over the same time frame.

As the 24th largest company on the ASX, Xero has a market capitalisation of roughly $21.3 billion.

The post Xero (ASX:XRO) share price dips amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Are these 2 strong ASX 200 shares buys?
• Where are Xero (ASX:XRO) shares headed in 2022?
• 2 fantastic ASX growth shares Goldman Sachs rates as buys
• Why did the Xero (ASX:XRO) share price have such a lousy month in November?
• Are these 2 ASX tech shares good buys in December?

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 Xero. The Motley Fool Australia owns and has recommended Xero. 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 Respiri Ltd (ASX: RSH) share price leapt 14% to 6.5 cents in early trading this morning. This came following the announcement of a distribution and marketing deal with a United States healthcare company.

At the closing bell, Respiri shares had wiggled back down to 5.9 cents apiece, a 3.5% increase from yesterday’s closing price.

Respiri’s telehealth deal

At its core, Respiri is focused on bringing simple respiratory solutions to those living with asthma.

Its primary product, wheezo, assists in the tracking and management of asthmatic symptoms. It also has the ability to share relevant information with doctors and caregivers.

The deal driving the Respiri share price today combines the efforts of US-based remote patient monitoring (RPM) provider mTelehealth, LLC with Respiri.

The partnership entails an initial request from mTelehealth for USD$150,000 (A$208,000) worth of wheezo devices and services to be delivered as early as next month.

Up until now, wheezo products had not been sold in the US.

Respiri also predicts the RPM market will grow by more than 30% by 2026, up to US$85 billion, due to the increase in asthma and chronic diseases.

Therefore, mTelehealth has predicted US$1 million in wheezo sales over the next five years and has agreed to obtain a minimum of 1,000 units every quarter.

This marks the first deal of its kind signed for Respiri.

Respiri CEO pleased with the partnership

Commenting on the news fuelling the Respiri share price today, CEO and managing director Marjan Mikel said:

We are particularly excited about our partnership with mTelehealth, a trusted RPM partner to many healthcare delivery organisations and physicians across the United States.

Marc [Poulshock, president and CEO of mTelehealth] and his team very quickly understood what patient benefits wheezo could provide and imparted invaluable local knowhow to help us better tune our US launch strategy and leverage the existing RPM CPT reimbursement codes available to Respiri.

Poulshock said there was “definitely a need for wheezo in the US” and the company was pleased to have entered the partnership.

Respiri share price snapshot

The Respiri share price has seen a year in red, declining by around 55%.

The company has a market capitalisation of $41.2 million based on its current share price and over 720 million shares issued.

The post Here’s why the Respiri (ASX:RSH) share price jumped 14% today appeared first on The Motley Fool Australia.

More reading

• Seven West (ASX:SWM) share price slumps despite good news of Prime acquisition
• Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022
• 5 investment themes to watch on the ASX share market in 2022
• Crown (ASX:CWN) share price slides on news of second $1m fine
• These 3 ASX 200 shares are topping the volume charts this Thursday

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 Seven West Media Ltd (ASX: SWM) share price slipped on Thursday despite the company’s acquisition of Prime Media Group Limited (ASX: PRT) clearing its final hurdle.

The takeover can now go ahead and will be completed on 31 December. However, the news didn’t elicit a positive response from the market.

As of today’s close, the Seven West share price is 61 cents, 0.81% lower than its previous close.

Meanwhile, the Prime Media share price surged 2.27% higher to trade at 45 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) finished the day 0.31% higher.

Let’s take a closer look at the latest update on Seven West’s proposed takeover.

Seven West share price flops despite takeover news

The market bid the Seven West share price lower today despite its latest takeover surpassing the progress of its previous attempt to buy Prime Media.

Back in 2019, Seven West’s merger proposal was blocked by 53.5% of Prime Media’s shareholders. Today, more than 99% of Prime Media shareholders approved of the transaction.

Seven West is now set to take over its media peer for $131.88 million. That will see Prime Media shareholders receiving 36 cents per security they hold.

While that’s currently 20% less than the Prime Media share price, at the time Seven West posed its offer it represented a 56% premium on Prime Media’s previous close.

Prime Media operates the Prime7 television network in Eastern Australia and its sister network GWN7 in parts of Western Australia.

The transaction will be conducted through the acquisition of Prime Television, Seven Affiliate Sales, and all their subsidiaries, by Seven West.

The company believes the takeover will “create the leading wholly-owned commercial premium broadcast, video, and news network”.

Despite today’s dip, the Seven West share price is 32% higher than it was prior to announcing the acquisition. It has also gained 69% year to date.

The post Seven West (ASX:SWM) share price slumps despite good news of Prime acquisition appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares rated as strong buys by brokers
• Why Alcidion, Magellan, Redbubble, and Seven West shares are dropping
• Seven West Media (ASX:SWM) share price dips despite ACCC green light on Prime Media deal
• Raiz (ASX:RZI) share price climbs 8% as Seven West Media makes strategic investment

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 Bank of Queensland Limited (ASX: BOQ) share price has had a decent, if not spectacular, year in 2021 thus far. As it stands at today’s pricing, BoQ shares are up 6.64% so far this year, which might get close to 10% if you include the value of BoQ’s dividends and franking credits. In contrast, the S&P/ASX 200 Index (ASX: XJO) is now up 10.43% year to date. The Commonwealth Bank of Australia (ASX: CBA) share price has managed a near-20% rise.

So now that 2021 is nearly behind us, what does 2022 hold in store?

Well, mostly, we don’t know. But here are the events we can predict with relative certainty.

What dates can BOQ investors look forward to in 2022?

According to Bank of Queensland’s investor calendar, the first date to watch out for is 28 February. That’s when BoQ’s half year ends. Six weeks later on 14 April, BoQ will deliver its half-year results for this period, as well as announce its interim dividend.

This said dividend will then be paid out on 26 May after trading ex-dividend on 4 May (perhaps someone at BoQ is a Star Wars fan). 2021’s interim dividend came in at 17 cents a share, so perhaps shareholders might be hoping for a 2022 pay rise.

After that, BoQ’s financial year ends on 31 August, so the bank will be holding its full-year results announcement on 12 October. As well as its decision on what the Bank’s final dividend will be. Following that, this final dividend will go ex-div on 27 October, and will hit shareholders’ pockets on 17 November. Again, 2021’s final dividend was a 22 cents per share payout, so it will be interesting to see what BoQ comes up with for next year.

Finally, BoQ will hold its annual general meeting on 6 December for the 2022 financial year. Just think, that is almost two Christmases away!

So that’s what BoQ has in store for investors next year. All that remains is for the passage of time to fill in the blanks on this schedule!

BoQ shares closed today at $8.04, up 0.63%. At this share price, BoQ has a dividend yield of 4.88%.

The post Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022 appeared first on The Motley Fool Australia.

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• Are Bank of Queensland (ASX:BOQ) shares a better buy for 2022 than Bendigo Bank?
• What’s on the cards for the Bank of Queensland (ASX:BOQ) share price in 2022?
• Goldman Sachs names 2 ASX 200 shares to buy
• Bank of Queensland (ASX:BOQ) shares: $8 one day, $10 the next?
• Top brokers name 3 ASX shares to buy 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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Investing in ASX shares comes with a constantly shifting and evolving environment, with new opportunities and investment themes cropping up regularly.

Some investors prefer to stick with the tried and true businesses of old. Whereas other ASX investors are inclined to explore the potential within the emerging, though speculative, disruptive trends. While the latter is fraught with risks, at times these disruptions can grow into giants.

So, what are 5 investment themes to watch on the ASX in 2022? According to industry experts, these are some of the key trends that you need to be aware of if you want to gain exposure to the disruptive side of the ASX sharemarket next year.

5 trends to consider when investing in ASX shares

Metaverse

After another year of embracing online interactions thanks to the prolonged impacts of COVID-19, the proliferation of a three-dimensional virtual world isn’t such a stretch of the imagination now.

Progress made by virtual reality headset developers, such as Meta Platforms Inc (NASDAQ: FB), have been significant. Pair this with an increase in digital experiences as people find a way to deal with physical restrictions, and the metaverse begins to look probable.

Interestingly, Magellan Financial Group Ltd (ASX: MFG) portfolio analyst Chris Wheldon said:

A young consumer might buy a pair of digital Nike shoes for their avatar that only they own. The NFT that comes with the shoes proves they are unique. There’s a lot of hype about the metaverse, but we do believe it could create new business models, brands and products over time as people spend more time in digital worlds.

One ASX share that has found itself as a fund manager’s “favourite” metaverse company is Playside Studios Ltd (ASX: PLY). The game developer was recently covered as a buy in the opinion of Red Leaf Securities chief executive John Athanasiou.

Data storage

As technology evolves, the way we consume content is evolving with it. Once upon a time, it was predominantly static text and images. As internet speeds improved, the ability and desire to watch videos grew. Now, the next frontier is 3D content.

Each iteration has come with a significant increase in the amount of data needed to be stored. This trend is expected to continue, with research suggesting the global data storage market to grow at a compound annual growth rate of 26% between 2022 and 2027, according to Expert Market Research.

NEXTDC Ltd (ASX: NXT) is an ASX share in the data storage business, operating 11 data centres across Australia. Recently, analysts at Macquarie issued an outperform rating on the company with a price target of $16.10.

Cryptocurrencies

This year witnessed monumental steps towards cryptocurrency adoption. While people remain divided on the topic, progress was undeniably made in bringing cryptocurrency to a broader audience in 2021.

For instance, November included Australia’s largest bank, Commonwealth Bank of Australia (ASX: CBA), announcing it would offer crypto services to its customers. The very next day the BetaShares Crypto Innovators ETF (ASX: CRYP) broke ASX records with its highly successful debut on the Aussie market.

Heath Behncke, cofounder of Holon Global Investments said:

2022 will be the year when interest in cryptocurrencies grows exponentially, and they start to go mainstream. The incentives to use cryptocurrencies are very powerful and will lead to much faster adoption of digital currencies than people realise.

Decarbonisation

A growing emphasis on the risks of climate change has placed ‘green’ ASX shares front and centre in the past 12 months. Companies such as Calix Ltd (ASX: CXL), a business focused on developing sustainable solutions to environmental problems, has seen its share price rise 485% in 2021.

Looking forward, a strong push towards accelerating the development of renewables provides a potential tailwind for ASX shares positioned accordingly. First Sentier Investors head of global listed infrastructure, Peter Meany recently said:

In particular, the ongoing repair and replacement of old energy transmission and distribution grids, along with the accelerating build-out of renewables, should represent a steady source of utility earnings growth over many years.

Electric vehicles

Finally, the growth story behind electric vehicles is likely to continue to be a theme in 2022. Much like the decarbonisation theme, electric vehicles (EV) are touted as a green initiative. For this reason, market experts such as Holon Investments expect global demand for EVs to soar for years to come.

Unfortunately for investors, we don’t have any ASX-listed EV makers like Tesla Inc (NASDAQ: TSLA). However, the ASX is home to many lithium producers. The electrifying element is anticipated to be in short supply as global EV sales grow.

Some of the best-performing ASX shares in the past year have included lithium companies. For example, Novonix Ltd (ASX: NVX) is up 731%, Liontown Resources Limited (ASX: LTR) is up 420%, and Pilbara Minerals Ltd (ASX: PLS) is up 218%.

The post 5 investment themes to watch on the ASX share market in 2022 appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Lovisa, Liontown, and Pilbara Minerals shares are racing higher
• Macquarie names the best ASX lithium shares to buy in 2022
• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?
• Is the NEXTDC (ASX:NXT) share price a steal after going nowhere in 2021?
• This metaverse ASX share is a buy: expert

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia, Meta Platforms, Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF and Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, 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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