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There are several lasting impacts from COVID for shares vs. property, with the days of ultra-low inflation and interest rates and expanding globalisation likely behind us.

So, what does this mean for investors with money in shares and property?

In this article, AMP chief economist and head of investment strategy Dr Shane Oliver outlines some of COVID’s ongoing economic impacts, and we provide our take on how they affect shares and real estate.

The COVID effect on shares vs. property

1. Bigger government and more public debt

Dr Oliver says more people want the government to solve all problems through greater regulation, taxes, spending or education campaigns. Many people favour the return of some manufacturing to home soil, and the energy sector wants subsidies to help fund green projects.

Impact on shares vs. property: Dr Oliver thinks this could lead to less productive economies and lower living standards, neither of which supports equity values and property prices.

2. Tighter labour markets and faster wage growth

High levels of underemployment in Australia contributed to many years of low or no wage growth, says Dr Oliver. After the pandemic, the labour market tightened and wages are growing. The risk is that wage growth gets too strong to keep inflation within the Reserve Bank’s target band of 2% to 3%.

Impact on shares vs. property: Wage rises are a big cost to business, however, strong employment keeps property prices stable and is a factor in low home loan arrears today.

3. Higher prices, inflation and interest rates

Dr Oliver notes that inflation is coming down, but COVID has created a “more inflation-prone world” through things like a push for less globalisation, which would increase product manufacturing costs.

Impact on shares vs. property: Higher inflation means higher interest rates over the medium term. Generally, speaking, neither is good for shares or real estate.

4. Worse housing affordability

Australian home prices surged to record levels during COVID, but higher interest rates have put pressure on mortgagees. At the same time, we have a housing shortage with projects delayed due to higher costs and labour shortages. Meantime, surging immigration has added new demand for housing.

Impact on shares vs. property: The housing shortage is pushing property prices higher, benefitting current owners. But it also means some businesses operating in regional areas, like renewable energy providers, can’t attract workers because there isn’t enough local housing available.

5. Working from home likely here to stay

Dr Oliver says working from home is more prevalent among white-collar workers with computer-based jobs. He reckons the ideal arrangement is a hybrid model. This ensures some productivity control for businesses while meeting workers’ demands for flexibility.

Impact on shares vs. property: Less demand for office space is resulting in lower commercial property valuations, higher vacancies and lower rents. This is problematic for some ASX REITs. Some businesses have been able to downsize their corporate offices, meaning lower costs. Workers’ return to CBDs has led to more demand for inner-city apartments among residential renters and buyers.

6. Faster embrace of technology

COVID turbocharged the digital economy. It forced retailers to go online and enabled tech companies to sell new products enabling better workforce management.

Dr Oliver said:

It may be argued that this fuller embrace of technology will enable the full productivity-enhancing potential of technology to be unleashed. The rapid adoption of AI will likely help.

Impact on shares vs. property: Artificial intelligence may be a productivity game changer for businesses, leading to greater efficiencies and potentially greater earnings. Meantime, property conveyancing is now electronic with the advent of digital exchange platforms like PEXA Group Ltd (ASX: PXA).

The latest news in shares vs. property 

The S&P/ASX 200 Index (ASX: XJO) rose by 2.57% in the month of March, while Australian home values rose by 0.6%, according to CoreLogic data.

Perth is the strongest metro property market in the country right now, with home values up 1.9% in March. Regional Western Australia is the strongest regional market with 2.1% growth in March.

Meantime, the ASX 200 share with the highest price rise was Life360 Inc (ASX: 360), up 63.42%.

West African Resources Ltd (ASX: WAF) shares rose 39.53% and Ramelius Resources Ltd shares (ASX: RMS) lifted 32.86%.

The post COVID’s lasting impacts for shares vs. property: AMP economist appeared first on The Motley Fool Australia.

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More reading

• 3 Australian shares quietly crushing the ASX this year
• Here are the top 10 ASX 200 shares today
• 3 ASX growth shares to supercharge your investment portfolio returns
• Why 29Metals, Boss Energy, Cooper Energy, and Ramelius shares are pushing higher
• Guess which ASX 200 gold stock is rocketing 12% on record production

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and PEXA Group. 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 Scott Phillips.

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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why is the South32 share price having such a cracker run today?
• This ASX 200 stock is down 11% in under a month. Should you buy before it trades ex-dividend?
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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 positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rio Tinto Ltd (ASX: RIO) stock price is hardly making waves today. Yet, plenty of talk about the mining giant is being had regardless.

Shares in the metals and minerals titan are down a smidgen, slipping 0.8% to $122.09 as waltz into the closing moments of trade. The move contrasts the 0.4% rise in the S&P/ASX 200 Index (ASX: XJO), which is being hoisted higher with the help of tech and real estate shares.

Why are investors fussing over Rio Tinto shares amid the modest move?

On the chopping block

Rio Tinto is at risk of losing one of its largest shareholders.

The fifth biggest chunk of Rio Tinto ownership is held by the world’s largest sovereign wealth fund, the Government Pension Fund of Norway, held by the Norges Bank Investment Management. The position is valued at A$3.2 billion and accounts for 1.9% of all Rio Tinto shares on issue.

The Norwegian fund operates under strict ethical guardrails, excluding any company that violates its ethical criteria. This examination is conducted by Norway’s Council of Ethics, which then provides its recommendation to the investment fund.

According to The Wall Street Journal, the ethics council questions whether Rio Tinto is investable. Reportedly there has been communication between the mining company and the Council of Ethics where environmental damage in the Brazilian Amazon is being raised as a concern.

Moreover, it is believed that the Rio Tinto stock may be tarnished by its partial ownership of Mineração Rio do Norte (MRN). The northern Brazilian bauxite miner is also reportedly bringing forward the same headache for South32 Ltd (ASX: S32), with a 33% stake in MRN on its books.

A recommendation by the Council of Ethics has yet to be made. However, it wouldn’t be the first time if Rio Tinto gets booted from the Norway fund.

Rio Tinto was ousted from the fund in 2008 due to the risk of severe environmental damage related to its Grasberg mine in Indonesia. The company was then readmitted to the Government Pension Fund of Norway in 2019 after Rio Tinto agreed to sell its interest in the mine.

Is Rio Tinto stock a top performer?

Would the Norwegian fund be passing up a top-performing ASX 20 stock if it were to jump ship?

The S&P/ASX 20 Index (ASX: XTL) has climbed 7.4% over the last year. Meanwhile, the Rio Tinto share price has increased by a lesser 3.5%. Only six companies inside the top 20 have delivered a weaker return:

• BHP Group Ltd (ASX: BHP) — down 1.1%
• CSL Ltd (ASX: CSL) — down 3.7%
• Transurban Group (ASX: TCL) — down 8.9%
• Telstra Group Ltd (ASX: TLS) — down 10.2%
• Woodside Energy Group Ltd (ASX: WDS) — down 10.9%
• Woolworths Group Ltd (ASX: WOW) — down 15.4%

Indeed, Rio Tinto’s stock is far from being the top performer in the last year. That title instead goes to James Hardie Industries Plc (ASX: JHX) with its 87.7% gain.

The post Why is everyone talking about Rio Tinto stock on Thursday? appeared first on The Motley Fool Australia.

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More reading

• How this unexpected development in China could boost ASX 200 mining stocks
• Should I buy BHP or Rio Tinto shares in April?
• 5 excellent ASX dividend stocks to buy in April
• Are your big ASX 200 mining dividends in for a chop?
• Why are Rio Tinto shares outperforming the market on Wednesday?

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 positions in and has recommended CSL and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for some new additions to your portfolio but aren’t a fan of stock picking? If that’s you, then could be worth looking at ASX ETFs.

There are plenty of ETFs for investors to choose from on the Australian share market. But which of the many options out there could be great picks for a portfolio this month?

Let’s take a closer look at three ETFs and see why they could be worth considering for your portfolio right now:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ASX ETF for investors to look at is the Betashares Global Cash Flow Kings ETF. It aims to track the performance of an index comprising 200 global companies that demonstrate strong free cash flow.

Betashares highlights that companies that generate high levels of free cash flow historically have tended to outperform broad global equity benchmarks over the medium to long term.

The fund manager recently tipped the ETF as a buy for investors looking for growth options when interest rates fall. It believes the “fund can serve as a core exposure to global equities or alongside existing low-cost passive global ETFs to enhance a portfolio’s emphasis on cash-generating companies.”

Among its holdings are companies such as Ozempic owner Novo Nordisk, retail giant Costco, technology company Adobe, and cybersecurity leader Accenture.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ASX ETF that could be a great option for investors is the huge popular BetaShares NASDAQ 100 ETF.

This fund gives investors easy access to 100 of the largest non-financial shares on the famous NASDAQ index.

This includes many of the world’s largest tech companies and household names such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). And given how bright the collective outlooks of its holdings are, it would not be surprising to see this ETF continue to deliver market-beating returns long into the future.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF that could be a high quality option for investors is the VanEck Vectors Morningstar Wide Moat ETF.

This fund invests in a group of companies that have wide moats (sustainable competitive advantages) and fair valuations. When legendary investor Warren Buffett searches for investments for Berkshire Hathaway (NYSE: BRK.B), these are the qualities that he looks for.

And with Buffett and Berkshire Hathaway smashing the market since all the way back in 1965, it certainly could pay to follow Buffett’s lead.

Its holdings currently include Alphabet, Estee Lauder, Campbell Soup, Nike, and Etsy.

The post 3 of the best ASX ETFs to buy now appeared first on The Motley Fool Australia.

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• If you start investing today, when could you retire?
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• 3 excellent ASX ETFs for smart investors in April
• How to become a millionaire on a $70,000 salary
• Which ASX ETFs give Aussie investors access to US stocks?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Accenture Plc, Adobe, Alphabet, Apple, Berkshire Hathaway, BetaShares Nasdaq 100 ETF, Costco Wholesale, Etsy, Microsoft, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and has recommended the following options: long January 2025 $290 calls on Accenture Plc, long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, short January 2025 $310 calls on Accenture Plc, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Alphabet, Apple, Berkshire Hathaway, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a fairly pleasant Thursday for the S&P/ASX 200 Index (ASX: XJO) so far. At the time of writing, the ASX 200 has gained a rosy 0.44%, lifting the index back over 7,800 points. But that’s nothing compared to what the South32 Ltd (ASX: S32) share price is doing.

South32 shares are on fire today. This ASX miner closed at $3.03 a share yesterday afternoon. But this morning, those same shares opened at $3.09 and are currently up a huge 3.63% at $3.14 each.

This will no doubt come as a much-needed confidence booster for South32 investors. This lot has had a rough trot of late, with the South32 share price still down around 6.8% over 2024 so far, as well as down a painful 28.1% over the past 12 months.

But why is this diversified miner – with operations in aluminium, gold, manganese, copper, lead, zinc and silver – enjoying such a boost from investors today?

Why is the South32 share price popping today?

Well, it’s not entirely clear. There hasn’t been any fresh news or announcements out of South32 for a couple of weeks now. Today happens to be South32’s dividend payday. So shareholders are no doubt enjoying watching the 0.605 cents per share fully-franked dividend payment roll in today.

But this is unlikely to be why South32 shares are vaulting so enthusiastically. One possible explanation is high commodity prices. South32 may be a highly diversified miner. But today, we’ve seen many resources jump in price, including oil, gold, coal and copper. Gold and copper are also both near their most recent 52-week highs (all-time highs in gold’s case).

This could conceivably be influencing investor behaviour today.

Another factor to consider is the recent love coming from ASX brokers.

Earlier this week, my Fool colleague Bronwyn examined some recent strong buy recommendations from ASX brokers over March. One was for South32, which Morgans upgraded to a strong buy. The broker also gave the miner a 12-month share price target of $4.10. This would see investors enjoy an upside of more than 30% if realised.

Morgans justified this bullish outlook by stating the following:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile.

So it might be a combination of these two factors that are resulting in the big gains for the South32 share price that are currently on display.

They come despite some more damaging news in the ASX mining space as well.

Rio (and South32) facing possible sovereign wealth fund exclusion

As reported by The Wall Street Journal, South32’s mining compatriot Rio Tinto Ltd (ASX: RIO) is currently negotiating with the Norwegian Sovereign Wealth Fund regarding the Fund’s ongoing investment in the company. Norway’s Sovereign Wealth Fund is notoriously strict on ethical standards and which companies it invests in. It has pulled out of Rio shares in the past.

And according to the report, it might do so again. The Fund is reportedly “examining whether to… sell its multibillion-dollar stake in miner Rio Tinto because of environmental concerns”. As of 31 December, the Fund had a 2.24% stake in Rio Tinto.

This is relevant for South32 because the Fund is also reportedly examining its 2.16% stake in the company. If the Fund did decide to sell out of either Rio or South32, it would probably create significant downward pressure on share prices, given the size of these stakes.

But that doesn’t seem to be bothering South32 investors today. Let’s see where the company heads next.

The post Why is the South32 share price having such a cracker run today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 7 ASX All Ords shares elevated to ‘strong buy’ status in March
• These ASX 200 shares could rise 20% to 40%
• These ASX 200 shares could rise 20% to 50%
• Why Amcor, Arafura, Brainchip, and South32 shares are tumbling 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 Scott Phillips.

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Investors in S&P/ASX 200 Index (ASX: XJO) mining stocks are keeping one eye on China.

And for good reason.

As the biggest consumer of iron ore and Australia’s top export market, when China sneezes, the big three mining shares tend to catch a cold.

Iron ore kicked off 2024 trading for just over US$143 per tonne.

But amid ongoing sluggishness in China’s steel-hungry property markets, the iron ore price has trended lower through most of the year. Overnight iron ore dropped 3% to US$98.55 per tonne.

As you’d expect, that’s thrown up some headwinds for ASX 200 mining stocks.

Here’s how they’ve performed so far in 2024:

• Fortescue Metals Group Ltd (ASX: FMG) shares are down 15.6%
• BHP Group Ltd (ASX: BHP) shares are down 11.6%
• Rio Tinto Ltd (ASX: RIO) shares are down 10.6%

For some context, the ASX 200 is up 2.4% year to date.

But despite ongoing issues with China’s real estate sector, some unexpectedly strong data out over the weekend could offer some countering tailwinds for the big miners.

ASX 200 mining stocks eyeing a rebound

China’s factory activity exceeded consensus expectations for March.

The government released its manufacturing purchasing managers’ index, which climbed to 51.1 on Monday, Bloomberg reports. Any reading over 50 signals growth, with March marking the fifth consecutive month of expansion.

With the nation’s industrial sector recovering, that’s increasing investor bets that China can still achieve its 2024 economic growth target of 5%.

And China’s government is intent on helping its industrial base, with pledges to support businesses with equipment and other material upgrades.

“Looking forward, the roll-out of policies such as the large-scale equipment upgrade will continue to support demand for the manufacturing sector,” Xiao Jinchuan, an analyst with Guangfa Securities said (quoted by Bloomberg).

Not that ASX 200 mining stocks like BHP, Rio Tinto and Fortescue are fully out of the woods just yet.

According to Wang Zhe, senior economist at Caixin Insight Group:

Downward economic pressures persist, employment remains subdued, prices remain low, and insufficient effective demand has not been fundamentally resolved, underscoring the need to further boost domestic and external demand.

The biggest news investors are holding their breath for is a significant boost in stimulus measures to get the Chinese property sector back on its feet.

According to Bloomberg Economics, real estate made up nearly 25% of China’s economy in 2018. That’s shrunk to under 20% today.

And despite the unexpected growth in factor activity, China’s property markets still drive the majority of iron ore demand.

So far, the government hasn’t come out with the so-called bazooka stimulus measures, like multi-billion-dollar infrastructure spending, needed to counter the decline in steel demand from the property markets.

But, in a potential boost for ASX 200 mining stocks, I expect we’ll see more such measures announced over the coming months.

After all, if the government falls too far short of its 5% GDP growth goals, it could be bad news for President Xi Jinping. And at the end of the day, Xi has a lot of stimulus levers left to pull.

The post How this unexpected development in China could boost ASX 200 mining stocks appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why hot ASX copper shares could have further to run
• Should I buy BHP or Rio Tinto shares in April?
• 5 excellent ASX dividend stocks to buy in April
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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BlinkLab Limited (ASX: BB1) shares have had a strong start to life on the ASX boards following an initial public offering (IPO).

In afternoon trade, the medtech company’s shares are trading at 26 cents.

This is 30% higher than its ASX IPO listing price of 20 cents.

Though, things were even better in earlier trade. At one stage, Blinklab shares were up as much as 52% to 30.5 cents.

What is this latest ASX IPO?

BlinkLab is a company focused on developing new smartphone-based artificial intelligence-powered mental healthcare solutions.

It was started by neuroscientists at Princeton University in the United States and over the past several years has fully developed a smartphone-based test for early diagnosis of autism, ADHD, and other neurodevelopmental conditions.

The company notes that previous clinical trials have shown an impressive success rate in the diagnosis of autism, achieving sensitivity of 85% and specificity of 84%.

Importantly, these trials are very similar to regulatory studies required by US Food and Drug Administration (FDA) and have shown a much higher accuracy compared to currently approved products that do not use computer vision nor a smartphone.

Funds raised

BlinkLab advised that its oversubscribed ASX IPO raised $7 million at $0.20 per new share.

These funds will be used to finalise an FDA Class II medical device registration study in autism in partnership with leading US university hospitals.

In addition, the company plans to initiate further clinical studies in other programs including ADHD, as well as continue to advance in-house artificial intelligence/machine learning algorithms.

‘A milestone for BlinkLab’

BlinkLab’s co-founder and chief executive officer, Henk-Jan Boele, was pleased with the IPO and listing on the ASX. He said:

Today marks a milestone for BlinkLab as we list on the ASX, which will be a new chapter in our journey to bridge the translational gap between groundbreaking science and everyday lives of people. Since the beginning as a Princeton University startup several years ago, our mission has always been to harness the power of fundamental neuroscience using mobile technology in order to improve the early diagnosis of neurodevelopmental conditions in children.

This listing not only validates our team’s dedication, excellence, and hard work but also opens exciting opportunities for us to expand our reach and impact. We are deeply committed to obtaining regulatory clearances for BlinkLab to make neuroscience accessible and beneficial for all. Our ASX listing is a significant step towards realizing this vision. We look forward to the support of our new shareholders and the broader community as we continue to innovate and bring our vision to life.

The post The newest ASX IPO stock is just rocketed 50% appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 stock is down 11% in under a month. Should you buy before it trades ex-dividend?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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Transurban Group (ASX: TCL) shares are steady at $13.20 on Thursday.

Transurban owns a portfolio of 22 toll roads in Australia and North America. Some names you may be familiar with are the CityLink, Cross City Tunnel, and the Eastern Distributor.

The toll road operator has been an interesting stock to watch over the past few years. Some big economic and demographic changes have occurred that have directly advantaged and disadvantaged the stock.

For example, COVID ushered in a new workplace era with plenty of people now working from home, and therefore no longer on the roads in peak hours.

But we’ve also seen good population growth, primarily due to migration rather than natural increase, and that means more road users.

And the company has navigated rising inflation better than most because a large percentage of its revenue is linked to the going CPI rate, and a further chunk benefits from fixed rates of toll increases.

Here’s a chart showing how the Transurban share price has moved around over the past five years.

As you can see, the stock has moved in a pretty tight price band, demonstrating relative stability and resilience after recovering from the COVID market crash.

And what about dividends?

In short, pretty good growth and reliability here, as the chart below shows.

Transurban raised its dividend consistently for 10 years until COVID punched a hole in revenues in 2020.

Despite this, the company kept paying dividends throughout the pandemic.

In 2019, Transurban declared a 61-cent dividend for the full year.

It only got back to paying this sort of amount last year, declaring 61.5 cents would be paid per share.

What will the Transurban dividend be in 2024?

The consensus analyst forecast published on CommSec is for Transurban shares to pay 62.1 cents per share this year.

The analysts expect an increase to 65.4 cents in 2025 and 68.7 cents in 2026.

Let’s see how that shakes out in dividend yield terms.

A $10,000 budget (minus a brokerage fee of $5) will buy you 757 Transurban shares at the current price.

Total spend = $9,992.40.

If we multiply 757 shares by 62.1 cents, we get a total annual dividend amount of $470.10. That’s a dividend yield of 4.7%.

In 2025, the dividend payment is anticipated to be $495.10. That’s a dividend yield of 4.95%.

In 2026, the dividend payment is tipped to be $520.05. That’s a dividend yield of 5.2%.

What’s next for Transurban shares?

Both Citi and Bell Potter think Transurban shares can rise in price from here.

And both brokers have exactly the same 12-month target price on the ASX share.

That price is $15.60, which implies a potential 18.2% upside for investors who buy Transurban shares today.

The post If I invest $10,000 in Transurban shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. 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 Scott Phillips.

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Sayona Mining Ltd (ASX: SYA) shares are racing higher on Thursday afternoon.

At the time of writing, the lithium miner’s shares are up 12% to 4.25 cents.

This compares very favourably to the performance of the ASX 200 index, which is up 0.5% at the time of writing.

Why are Sayona Mining shares jumping?

Investors have been buying the company’s shares this afternoon following the release of an announcement after lunch.

That announcement was in relation to its operational review of the North American Lithium (NAL) operation.

According to the release, following a detailed review of the NAL operation and a range of operating scenarios, the joint venture partners have agreed to continue its ramp-up towards steady state production with regular reviews of operating costs and market conditions.

NAL is jointly owned by Sayona Mining, which has a 75% interest, and Piedmont Lithium Inc (ASX: PLL), which holds the remaining 25% interest.

Judging by the way Sayona Mining shares are surging today, investors appear to have been fearing the worst. Especially after Core Lithium Ltd (ASX: CXO) suspended its mining operations.

And while the joint venture partners did evaluate various care and maintenance scenarios covering options to either slow down or cease mining, process existing stocks only, and suspend operations for up to 12 months, it ultimately decided that the ramp-up towards steady state production was the right path to take.

‘Positioning Sayona for long-term success’

Sayona Mining’s interim CEO, James Brown, was pleased with the review. He commented:

The NAL operational review was a critical exercise to ensure we are optimising our resources and positioning Sayona for long-term success. Importantly, there is clear line of sight towards achieving steady state production in 2024, while NAL will further benefit from capital improvements such as the Crushed Ore Dome. Process plant recoveries have exceeded expectations, a significant milestone in any ramp-up, with multiple new daily production records achieved in March.

Throughout this process, a key consideration was the direct impact on our dedicated workforce and host communities. This review has also validated our approach to continue to assess capital improvement initiatives that will increase production or lower unit operating costs.

Brown advised that he believes this approach will maximise value for shareholders when the lithium market recovered. He adds:

Looking forward, we will regularly evaluate NAL operations in the ordinary course of business based on prevailing market conditions and the ability to achieve our operating cost targets. We are confident that this approach to considering alternatives and maintaining optionality will enable Sayona to maximise value for shareholders ahead of an anticipated recovery in the lithium market.

The post Why are Sayona Mining shares jumping 12% today? appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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ASX travel shares were absolutely smashed during the pandemic. The price charts below tell the story.

The scariest part for ASX travel stock investors was that this one black swan event that had never been seen before in modern times didn’t just impact the industry, it shut it down.

We didn’t know at the time the extent to which the pandemic would impact our lives, how long it would take to get through, and whether these travel businesses would even survive in the meantime.

It was a serious reminder to investors of the virtues of portfolio diversification.

Anyway, it’s all over now, so let’s look at what has happened to four ASX travel shares since COVID-19 “ended”.

Officially, the World Health Organisation declared that COVID-19 was no longer a public health emergency of international concern (PHEIC) on 5 May 2023.

But it was over well before that.

For the purposes of analysing what’s happened to the share prices of these four ASX travel shares since the pandemic ended, let’s use 21 February 2022 as our starting point.

That’s when Australia reopened its international border to fully vaccinated visa holders.

ASX travel shares: The long road to recovery

Webjet Ltd (ASX: WEB)

The Webjet share price is currently $8.65, up 2.67% on Thursday and up 18% over the past 12 months.

The ASX travel share has not yet managed to go anywhere near its pre-pandemic trading prices.

At the time of the pandemic market crash, Webjet shares dropped about 75% in value.

Then began a gradual recovery to close at $5.57 on 21 February 2022.

Since then, the ASX travel share has risen by 55%.

Webjet ceased paying dividends in the second half of 2020 and has not yet reinstated them.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price is currently $16.36, up 0.55% on Thursday and down 14.5% over the past 12 months.

This ASX travel share managed to exceed its pre-pandemic trading levels in late 2021.

At the time of the market crash, Corporate Travel Management shares also dropped by about 75% in value.

The share price recovery had its ups and downs before closing at $22.83 on 21 February 2022.

Since then, the ASX travel share has fallen by 39%.

Corporate Travel Management ceased paying dividends in the second half of 2020 and resumed the payouts in the second half of 2022.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is currently $5.43, up 0.37% today and down 20% over the past 12 months.

The ASX airline share has not yet managed to rise above its pre-pandemic price levels.

At the time of the crash, Qantas shares dropped about 63% in value.

The share price recovery was a rollercoaster, with the stock closing at $5.15 on 21 February 2022.

Since then, the ASX travel share has risen by 5.6%.

Qantas ceased paying dividends in the first half of 2020 and has not yet reinstated them.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is currently $21.30, up 0.85% and up almost 13% over the past 12 months.

The ASX travel share has not yet managed to rise above its pre-pandemic trading levels.

At the time of the crash, Flight Centre shares dropped about 75% in value.

Then began a slow recovery to close at $19.50 on 21 February 2022.

Since then, the ASX travel share has risen by 9.6%.

Flight Centre ceased paying dividends in the first half of 2020 and resumed payments in late 2023.

The post What’s happened to ASX travel shares since COVID ended? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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