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The Bank of Queensland Limited (ASX: BOQ) share price is testing its shareholders’ patience this year. Despite putting the pedal to the metal for the first three-quarters of the year — rising nearly 30% — shares in the 158-year-old bank are now only up 5.7% year-to-date.

For context, the S&P/ASX 200 Index (ASX: XJO) has handed out a gain of 9.1% (before dividends). An even more comparable comparison is the ASX financials sector. The overall sector has pulled a gain of more than 18% since the start of 2021, mostly thanks to the majority of the big four conjuring up 15% or more increases.

Nonetheless, as we get closer to crossing the threshold from one year to the next, it’s time to slide the Bank of Queensland share price under the microscope and get a sense of where it could be heading in 2022.

New year, same old bank

Many of us like to create New Year’s resolutions, though few follow through on the idealised ambitions. In 2022, shareholders will be watching that the bank follows through on its pre-commitments.

This follows a barrage of shareholder complaints regarding the Bank of Queensland’s lack of current technology at the annual general meeting (AGM) on Tuesday.

To which the bank admitted it had underinvested in during the past. However, chair Patrick Allaway gave shareholders the commitment that a digital transformation would be underway as part of a new strategy launched last year.

As part of the grilling for the bank’s outdated tech, Australian Shareholders’ Association’s Kelly Buchanan said:

For years and years, BoQ has been promising to get on top of its antiquated technology system. How can your long-suffering shareholders be confident, that with the acquisition of ME Bank, this time it’s different?

While current technology seems to be a problem for numerous major Australian banks, the Bank of Queensland has the added complexity of recently tieing up a substantial amount of money in the acquisition of ME Bank. That investment came to a total of $1.325 billion.

What are analysts expecting for the Bank of Queensland share price?

It appears brokers are optimistic about a good year for the Bank of Queensland share price. In fact, two brokers currently have price targets that are above the financial institution’s current valuation.

Firstly, the team at Citi has a buy rating on the bank, alongside a $10 price target. This would suggest a potential upside of 25% to the current Bank of Queensland share price.

Secondly, analysts at Goldman Sachs are expecting good things from the Aussie bank in 2022. The broker also has a buy rating and a $9.67 price target.

Finally, based on its latest earnings the Bank of Queensland share price is trading on a price-to-earnings (P/E) ratio of ~12.8 times. While this is above the industry average, investors could be paying a premium for the bank’s impressive growth between FY20 and FY21.

The post What’s on the cards for the Bank of Queensland (ASX:BOQ) share price in 2022? appeared first on The Motley Fool Australia.

More reading

• 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
• Why Bank of Queensland, Imugene, Webjet, and Zip shares are pushing higher
• Why the Bank of Queensland (ASX:BOQ) share price is racing 5% higher today

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 team at Bell Potter has been busy this week looking at its top ASX share picks for 2022.

On this occasion, I’m going to look at what the broker is saying about the fast-moving consumer goods (FMCG) sector. Here are its top picks in the sector for next year:

What did the broker say?

Bell Potter’s analyst, Jonathan Snape, notes that investing in the sector can be high risk and volatile.

He commented: “Investments in the Agricultural & FMCG sector should be considered high risk and come with volatility. For this reason we tend to focus on stocks where we see either: a structural uplift in ROIC through the cycle, cyclical growth stories, or counter-seasonal crop exposures.”

With that in mind, here are the picks:

A2 Milk Company Ltd (ASX: A2M)

Bell Potter is sticking with this embattled infant formula company. The broker currently has a buy rating and $7.70 price target on its shares. This is due to its belief that A2 Milk’s earnings can grow materially in the coming years.

It explained: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

Bega Cheese Ltd (ASX: BGA)

This dairy company is another consumer goods share that Bell Potter is a fan of. Particularly given its recent acquisition of the Lion Dairy & Drinks business. Bell Potter has a buy rating and $6.45 price target on its shares.

The broker commented: “The acquisition of Lion Dairy & Drinks (LDD) and targeted synergy base is expected to drive a material step change in returns for BGA over the next three years. In addition, we see BGA benefiting from recent upward moves in both commodity price drivers (SMP returns up +32% since Jun’21) and price increases on private label milk for only the second time in 20 years.”

Synlait Milk Ltd (ASX: SM1)

A final consumer goods share that Bell Potter has on its list for 2022 is dairy processor Synlait Milk. It has a buy rating and $4.40 price target on the company’s shares. The broker believes the company is well-placed for a recovery in earnings after a difficult period.

Bell Potter explained: “SM1’s FY21 performance is reflective of a business that completed the commissioning of major capital works, while experiencing an unfavourable shift in sales mix and the added complexity of unwinding IMF inventory positions accumulated over 2H20-1H21. Looking into FY22-24e, a stabilisation in A2M demand, commencement of a material new nutritionals contract at Pokeno and execution against the consumer based strategy in liquids and cheese are expected to drive a material recovery in operating earnings and the share price.”

The post Broker names 3 ASX consumer good shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• Experts tip 2 beaten up ASX shares for gains in 2022
• What I’d do with these ASX dogs of 2021: expert
• This broker thinks the A2 Milk (ASX:A2M) share price is heading to $7.70
• How the A2 Milk (ASX:A2M) share price tanked 5% in November
• Down 50% in 2021, is the A2 Milk share price a cheap buy?

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 recommended A2 Milk. 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) took a trip to the downside amid key data from the Reserve Bank of Australia (RBA). Once again, RBA governor Philip Lowe rejected forecasts that the central bank will look to raise rates next year. Additionally, the jobs report beat expectations as 366,000 jobs were added in November. Despite this, the benchmark index finished 0.43% lower at 7,295.7 points.

The Australian share market was pulled in two different directions today, with the laggards winning out. While ASX-listed tech shares largely followed in the footsteps of their US-listed counterparts, other sectors struggled. The worst offending was the health care sector. Shares in CSL Limited (ASX: CSL) brought down the market with its 8.1% fall.

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, Liberty Financial Group (ASX: LFG) was the biggest gainer today. Shares in the financial services company surged 8.41% despite there being no news out from the company. Find out more about Liberty Financial here.

The next biggest gaining ASX share today was WiseTech Global Ltd (ASX: WTC). The logistics software company jumped 6.90% backed by a more positive sentiment towards tech shares. Uncover the latest WiseTech Global details here.

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

ASX-listed company	Share price	Price change
Liberty Financial Group (ASX: LFG)	$5.80	8.41%
WiseTech Global Ltd (ASX: WTC)	$59.38	6.90%
Novonix Ltd (ASX: NVX)	$9.30	5.56%
Lifestyle Communities Ltd (ASX: LIC)	$21.66	5.40%
Healius Ltd (ASX: HLS)	$5.28	4.97%
New Hope Corporation Ltd (ASX: NHC)	$2.09	4.50%
Pro Medicus Ltd (ASX: PME)	$60.45	4.01%
Uniti Group Ltd (ASX: UWL)	$4.61	3.83%
Pointsbet Holdings Ltd (ASX: PBH)	$7.07	3.51%
Imugene Ltd (ASX: IMU)	$0.47	3.30%

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 on Thursday
• Why has the WiseTech (ASX:WTC) share price popped 6% to a new all-time high?
• CBA (ASX:CBA) share price up amid another loan rate hike
• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• Qualitas (ASX:QAL) shares are hitting the ASX boards today following its IPO

Motley Fool contributor Mitchell Lawler owns Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd., Pointsbet Holdings Ltd, Pro Medicus Ltd., and WiseTech Global. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. and WiseTech Global. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Uniti Group 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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Don’t fret about today’s market sell-off as at least one prominent expert is predicting that ASX shares are entering the Santa Rally, which is their strongest trading period for the year!

If this prediction comes to pass and if history is any guide, shares on the S&P/ASX 200 Index (ASX: XJO) could generate gains of around $70 billion for shareholders during this Santa Rally.

The Santa Rally describes the strong trading period in the two weeks before Christmas till early January.

Santa Rally for ASX shares is an 85% probability

No one can quite explain why ASX shares perform well at the end of the year, but the Santa Rally is one of the most reliable seasonal trends on the market.

Over the last 41 years, the Santa Rally has visited ASX shares 35 times, according to Bell Potter’s high-profile trader Richard Coppleson.

“Well, if we do what we have done most times in the last 41 years – then yes – markets are close to entering a sweet spot of no resistance,” said Coppleson. “That could see a decent rally over the next 3 weeks.”

Billions in Christmas gifts for ASX investors

What this suggests is that if you bought the market now and held on for the next 14 to 16 trading days, there is an 85% chance that you will make money.

What’s more, the average gain in the 35 out of the last 41 years is an impressive 2.9%. Applying that to the total market capitalisation of all ASX 200 shares, this average return will equate to $69 billion.

Not a bad gain for a two-week trade! What’s more, Coppleson noted that 25% of the time, the average gain was over 6%.

A magical time for ASX shares

The Santa Rally phenomenon isn’t confined to ASX shares. The US market also experiences the magic of Christmas. The Santa Rally has struck the S&P 500 (INDEXSP: .INX) index in 21 of the last 27 years, although its average gain is a more modest 2%.

No one can quite definitively say why this happens. Efficient market theorists will claim that arbitrage opportunities like this should not exist.

But science can’t beat magic – not during Christmas!

Possible ASX share drivers behind the Santa Rally

However, there may be a few logical reasons behind the Santa Rally, according to Coppleson. One reason is the lack of major capital raises as we head full swing into the holiday period. You can imagine CSL Limited (ASX: CSL) and its bankers scurrying to close off its record-breaking $6.3 billion cap raise before fund managers go off on their holidays.

Capital raises suck money out of the market as fund managers may sell shares in other companies to participate. Coppleson estimates that cap raises take in around $2 billion a month on average.

That equates to the amount of superannuation money going into markets per month, which will be directed to buying shares instead during the Christmas to New Year period.

Doesn’t take much to move ASX shares up

Further, any buying during this time will be met with few sellers as professional investors have closed their books for the year and won’t be doing much, if any, selling.

Also, there’s a wall of ASX bank dividends that will hit the market from the middle of December. A chunk of it will be devoted to a dividend reinvestment plan (DRP), which puts further buying pressure on some ASX shares.

These include the Westpac Banking Corp (ASX: WBC) share price, National Australia Bank Ltd. (ASX: NAB) share price, Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price and Macquarie Group Ltd (ASX: MQG) share price.

Dividends boost adds to Christmas cheer

“I’ve also worked out that $9.48 billion in dividends are paid 15th Dec NAB, 16th Dec ANZ, 21st Dec WBC & MQG 14th Dec,” said Coppleson.

“So, if you assume a 18% DRP on NAB, ANZ & WBC (So about $1b less cash), then actual cash that will come back into the market is about $8.5 billion.”

T’is the season to be receiving fellow Fools!

The post Why ASX 200 shares could add ~$70bn during the Santa Rally appeared first on The Motley Fool Australia.

More reading

• MA Financial (ASX:MAF) shares resume trading and leap higher. Here’s why
• Why are the ASX 200 gold miners losing ground this past month
• 2 fantastic ASX growth shares Goldman Sachs rates as buys
• This top fund manager just called these leading ASX shares a buy
• Woodside (ASX:WPL) share price dips amid corporate watchdog’s mega-merger verdict

Motley Fool contributor Brendon Lau owns Australia & New Zealand Banking Group Limited, CSL Ltd., Macquarie Group Limited, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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 MA Financial Group Ltd (ASX: MAF) share price rose today after the company returned from a trading halt.

The shares finished the session at $8.84 on Thursday afternoon, up 4.62%.

Let’s look at what played into the MA Financial share price today.

What did MA Financial tell investors?

In its release today, MA Financial told ASX investors it had received strong support for its capital raise of $100 million towards the acquisition of BNK Banking Corp Ltd (ASX: BBC) subsidiary Finsure.

The takeover provides MA Financial lenders with access to a network of 2,000 mortgage brokers and 4,800 loan products.

The company will issue 12.9 million new shares as part of an institutional share placement at $7.75 per share. This provides MA Financial investors with an 8.3% discount on the last closing share price of $8.45 before the trading halt.

The company is also offering a share purchase plan for eligible retail shareholders to purchase up to $30,000 worth of shares.

Commenting on the announcement, joint CEOs Chris Wyke and Julian Biggins said:

We are extremely pleased with the level of interest shown in the Institutional Placement and we thank our existing shareholders for their continued support and we also welcome a number of new institutional investors.

What else did they announce?

MA Financial also had some other news today. The company has signed a contract to buy the Hotel Brunswick in Brunswick Heads, New South Wales for $68 million.

The property, located 25 minutes north of Byron Bay, will be acquired by an investment fund overseen by MA Hotel Management.

Settlement on the hotel is expected to take place in March 2022.

MA Financial share price snapshot

The MA Financial share price has surged nearly 78% in the past 12 months. The value of the company’s shares has dropped by 2% in the past month, but have recovered more than 7% in the past week.

The financial services giant has a market capitalisation of about $1.4 billion.

The post MA Financial (ASX:MAF) shares resume trading and leap higher. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here’s why the BNK Banking (ASX:BBC) share price is surging 18% today
• MA Financial (ASX:MAF) share price remains frozen amid $145m acquisition
• MA Financial (ASX: MAF) share price halted amid ‘significant acquisition’

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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S&P/ASX 200 Index (ASX: XJO) gold miners have been struggling over the last month.

While the ASX 200 itself is down 1.8% since this time in November, the big gold miners have retraced far more.

The Newcrest Mining Ltd (ASX: NCM) share price, for example, is down 9.3% over the last month, currently trading at $22.84 per share.

The Evolution Mining Ltd (ASX: EVN) share price is $3.80 at time of writing, down 8.1% over the month.

And the Northern Star Resources Ltd (ASX: NST) share price has fallen 14.7% in that same time, currently trading for $8.94.

Combined, the 3 ASX 200 gold miners have lost 11.0% over the month.

So, what’s going on?

Gold prices are sliding

While there are many specifics impacting each individual ASX 200 gold miner’s share price, the falling gold price has certainly posed an unwelcome headwind for shareholders of all 3 big miners.

One month ago, gold was trading for US$1,863 (AU$2,586) per troy ounce. Today that same ounce is worth US$1,783, down 4.3%. The ASX 200 miners’ shares are all down significantly more than 4.3% as they’re leveraged to the price of gold.

Now you might think that gold, classically considered a haven asset, would be appreciating with renewed uncertainty surrounding the global pandemic. But that uncertainty is being outweighed by increasing confidence among investors that interest rates are going to rise sooner and faster than expected.

Yesterday (overnight Aussie time) in the United States, Federal Reserve chair Jerome Powell labelled inflation “one of the two big threats” to the US economy and jobs market. With that threat in mind, the Fed signalled its intention to raise the US benchmark interest rate 3 times in 2022.

Other central banks are forecast to follow suit.

The Reserve Bank of Australia (RBA) is widely expected to increase its benchmark rate at least twice next year as well.

Rising interest rates tend to drag down the price of precious metals like gold. Gold, after all, doesn’t pay any interest, and as rates rise, the relative cost of holding gold compared to interest-bearing assets also goes up.

It’s not all bad news for the ASX 200 gold miners

That’s the month gone by.

Looking ahead, the outlook for the ASX 200 gold miners could be improving, with many analysts predicting gold will hold up well over the coming months.

According to Bart Melek, global head of commodities strategy at TD Securities (quoted by Bloomberg):

The dots have moved and it seems the gold market believes that inflation will be elevated, but controlled, which should allow the US central bank to maintain accommodation.

Real rates will move higher, but still very negative along the short end of the curve. It’s still a decent environment for gold. Some traders may have been positioned for something more hawkish.

How have these ASX 200 gold shares performed longer-term?

Taking a longer-term view on our ASX 200 gold shares, the Northern Star share price is down around 26.7% over the past 12 months; Evolution shares have lost 22.6%; and shares in Newcrest Mining are down more than 15%.

By comparison, the ASX 200 has gained 9.1% since this time last year.

The post Why are the ASX 200 gold miners losing ground this past month appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is Macquarie bullish on the Newcrest (ASX:NCM) share price?
• Evolution (ASX:EVN) share price falls despite completing Mt Carlton sale
• 5 things to watch on the ASX 200 on Wednesday
• Newcrest (ASX:NCM) share price slides despite US$37 million payday

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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Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.

Two such shares are named below. Here’s why analysts at Goldman Sachs think these ASX growth shares could be buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is this leading pizza chain operator.

Thanks to the popularity of its offering and the expansion of its footprint both at home and overseas, Domino’s has been growing at a consistently solid rate for well over a decade.

The good news is that Goldman Sachs expects this positive form to continue long into the future. Especially given its aim of more than doubling its footprint to 6,650 stores in existing markets by 2033.

It commented: “Overall, we believe that the longer term growth outlook driven by strong store growth remains unchanged. We make no changes to our store forecasts, but backend weight the rollout in FY22 in line with guidance. Overall, our revised forecasts still imply a 3 year CAGR EBITDA outlook of +14.6% driven by overall strength in Europe (+19.7%) and Japan (+15.3%).”

Goldman currently has a buy rating and $147.00 price target on Domino’s shares.

Xero Limited (ASX: XRO)

Another ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.

Xero has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The latter has significant monetisation potential.

The broker recently commented: “We expect XRO revenue to double across FY21-24E, driven by: (1) ARPU growth from the recently announced price rises (benefiting FY22/23E) and the introduction of this app store fee (benefiting FY23/24E); (2) Subscriber growth, given accelerating subscriber growth across all geographies in 2H21, and strong recent traction from its Enterprise strategy; and (3) M&A.”

Goldman Sachs has a buy rating and $158.00 price target on its shares.

The post 2 fantastic ASX growth shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• 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?
• How to snare a multi-bagger ASX share: expert
• Domino’s (ASX:DMP) share price dips despite “important” milestone in Japan
• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls

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 Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Leading fund manager Wilson Asset Management (WAM) has named two ASX shares in its portfolios that it thinks are buys.

Every month, WAM talks about some of the businesses that have performed well and outlines the bullish factors for thinking about the stocks.

Two of the featured ASX shares this month comes from WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA), which targets opportunities from the smaller end of the ASX, like these two:

Vulcan Steel Ltd (ASX: VSL)

Vulcan Steel is the only pure, value-add steel distributor and processor in Australia and New Zealand, operating as a key link in the steel value chain between steel producers and end-users across a broad range of market segments.

WAM initially participated in the initial public offering (IPO) of the company in November 2021 at $7.10 per share.

The fund manager points out that the ASX share is a founder-led organisation, has long-standing leadership which, in WAM’s eyes, are highly capable with significant ‘skin’ in the game.

In December, WAM noted that Life360 provided a trading update, highlighting a stronger-than-anticipated performance across all business units. This resulted in a upgrade to its forecast net profit after tax (NPAT) at the time of the IPO of 26% to 35%.

The Wilson Asset Management investment team expects growth to be underpinned by cyclical tailwinds, expansion into new products and geographies and business improvement initiatives, while opportunistic mergers and acquisitions also provides a catalyst. Vulcan Steel is well positioned to continue to sector consolidation, according to WAM.

Life360 Inc (ASX: 360)

WAM describes Life360 as a family safety platform that allows parents to track the whereabouts of their children, with over 33 million users globally.

The initial catalyst identified for the investment in Life360 was the appointment of Randi Zuckerberg, sister of Meta (previously Facebook) founder, CEO and Chair Mark Zuckerberg and the belief that the company would upgrade revenue expectations.

The fund manager also noted that in November, the ASX share made its second hardware acquisition for the year, buying a Bluetooth tracking device company, called Tile, for US$205 million.

WAM said that the combination of Life360 and Tile creates an integrated market leader in location solutions, making Life360 the only vertically integrated, cross-platform solution of scale in the market and well-placed to take advantage of the growing location solutions market.

According to the fund manager, Life360 remains “catalyst rich”, including potential mergers and acquisitions and a dual listing in the US in the pipeline.

The post This top fund manager just called these leading ASX shares a buy appeared first on The Motley Fool Australia.

More reading

• Top broker names the best ASX tech shares to buy in 2022
• 3 excellent ASX growth shares to buy right now
• 3 hot ASX tech shares to buy in 2022
• Brokers name 3 ASX shares to buy today
• Here’s why the Life360 (ASX:360) share price is leaping 12% today

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. owns and has recommended Life360, Inc. 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 Woodside Petroleum Ltd (ASX: WPL) share price is failing to grab the market’s enthusiasm today after clearing a major regulatory hurdle.

This morning, the Australian Competition and Consumer Commission (ACCC) revealed its decision on Woodside’s proposed acquisition of BHP Group Ltd‘s (ASX: BHP) petroleum arm. The outcome was what Australia’s largest listed energy company had hoped for — a thumbs up.

At the time of writing, shares in the oil and gas giant are exchanging hands at $21.84, down 1%.

What does the ACCC’s decision mean for shareholders?

The ACCC’s announcement today marks an important milestone in Woodside’s efforts to acquire BHP’s petroleum business. Yet, the Woodside share price has failed to move meaningfully on the update.

After reviewing the proposal, the corporate watchdog has come to the conclusion that a merger of the two energy companies would not significantly lessen competition. This is despite Woodside and BHP Petroleum being two of the four largest domestic natural gas suppliers in Western Australia.

On this point, ACCC chair Rod Sims noted the merged entity would likely still face competition post-acquisition. The regulator highlighted that major gas producers such as Chevron and Santos Ltd (ASX: STO) should keep the oil and gas market competitive. Other existing oil and gas players that will be helping keep the market tight include Shell and ExxonMobil.

Furthermore, the corporate watchdog concluded that Woodside was unlikely to be incentivised to reduce the supply of natural gas from BHP’s domestic-only site at Macedon. This gas from this project can only be supplied to the WA domestic market.

Commenting on the regulation Woodside will remain held to, Sims said:

In Western Australia, gas exporters are required to reserve the equivalent of 15% of their export production for the domestic market, ensuring that domestic gas will continue to be available from Woodside and BHP Petroleum’s export assets, and from a range of other competitors.

Previously, Woodside has indicated the second quarter of the 2022 calendar year is its target for completing the merger.

What’s going on with the Woodside share price?

While the news would normally be considered a positive, the Woodside Petroleum share price is shedding some of its value today.

On such days as today, we might turn to the oil price as a potential anchor on the company’s share price. However, the energy-giving commodity rose in value last night, suggesting something else might be at play.

One contributing factor could be that Woodside has found itself in the headlines today for scrutiny over emissions. The prospect of the company’s Scarborough project adding an additional 2.5 million tonnes of carbon emissions a year from 2026 has found itself in The Sydney Morning Herald.

The Woodside Petroleum share price is down 5.5% since the beginning of the year. Based on the current share price, the company offers a dividend yield of 2.53%.

The post Woodside (ASX:WPL) share price dips amid corporate watchdog’s mega-merger verdict appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
• BHP (ASX:BHP) share price slips as ACCC gives all-clear for Woodside deal
• 5 things to watch on the ASX 200 on Thursday
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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 Magnis Energy Technologies Ltd (ASX: MNS) share price isn’t going anywhere on Thursday afternoon. This comes after the battery technology company requested a trading halt just after midday.

As such, the Magnis share price is frozen at 43.5 cents apiece, up 2.35% for the day. It’s worth noting that the company’s shares have lost more than 35% in value in the past month.

Why are Magnis shares in a trading halt?

Magnis requested the trading halt this afternoon pending the release of a binding off-take agreement.

While details remain sketchy, the announcement is in regards to the future sale of graphite from the Nachu project.

Tanzanian subsidiary, Uranex Tanzania, owns a 100% interest in the Nachu graphite project located near Ruangwa, Tanzania.

The project is approximately 220 kilometres away from the Tanzanian port of Mtwara. The project has significant potential due to its large size, an orebody with very low variation in lithology and mineralisation, and its low-cost operational model.

Magnis has a proprietary process to produce high-quality, high-purity graphite concentrate ore from the Nachu graphite feedstock.

The African graphite project is estimated to contain combined, measured, indicated, and inferred resources totalling 174Mt grading 5.4% graphitic carbon (Cg) at 3% Cg cut-off grade.

While the likely purchaser is unknown, investors will have to wait until possibly 20 December to find out. It is expected that once the announcement is provided to the ASX, the trading halt will be lifted then.

About the Magnis share price

Since this time last year, Magnis shares have risen sharply by more than 135%. In 2021 alone, the company’s share price is up almost 120%, reflecting positive investor sentiment.

Magnis presides a market capitalisation of roughly $425.67 million with approximately 978.56 million shares on its registry.

The post Why have Magnis (ASX:MNS) shares just entered a trading halt? appeared first on The Motley Fool Australia.

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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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