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The S&P/ASX 200 Index (ASX: XJO) is having a somewhat lacklustre day of trading so far this Thursday. At the time of writing, the ASX 200 has lost 0.34% and is sitting at 7,424 points. But rather than dwelling on that figure, let’s instead check out the ASX 200 shares topping the volume charts so far today, according to investing.com

3 most active ASX 200 shares by volume on Thursday

South32 Ltd (ASX: S32)

South32 is our first ASX 200 share experiencing elevated trading volume today. So far, a hefty 14.98 million S32 shares have changed owners this Thursday. There are no major pieces of news or announcements out of the company today that might explain such volume.

However, the South32 share price has taken a nasty beating today, currently down 4.02% to $3.58 a share. This steep drop is probably behind this diversified miner’s high trading volume today.

Telstra Corporation Ltd (ASX: TLS)

Telstra Corporation is our next ASX 200 share today. This telco has had a sizeable 15.5 million of its shares find new owners so far this Thursday. This might have something to do with the rumours that my Fool colleague Tristan covered earlier today.

Telstra is reportedly now not proceeding with potential plans to purchase the electricity generation assets of Meridian Energy Ltd (ASX: MEZ). Telstra shares have been bouncing around a little today, and are currently at $3.91 each, down 0.26%. It’s probably these rumours, the share price volatility, or a combination of both that is resulting in so many Telstra shares trading today.

Whitehaven Coal Ltd (ASX: WHC)

Our final and most traded ASX 200 share today is the coal miner Whitehaven, with a whopping 26.51 million shares bought and sold so far. This is almost certainly the result of the share price crash Whitehaven is enduring today.

The company is currently down a horrible 7.6% to $2.62 a share. As my Fool colleague Brooke covered earlier today, this seems to be the result of collapsing thermal coal futures in the Chinese market. Whitehaven is now down more than 27% over just the past 3 weeks or so.

The post These 3 ASX 200 shares are topping the volume charts this Thursday appeared first on The Motley Fool Australia.

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• Telstra (ASX:TLS) share price struggles amid energy deal news
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• The Whitehaven (ASX:WHC) share price is down 7% today. What’s going on?
• ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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The Atomo Diagnostics Ltd (ASX: AT1) share price has been struggling to gain traction today. It is currently trading flat at 30.5 cents — the same price it closed at yesterday.

It’s been a similar story for most of the day, with the shares hitting a high of 32 cents earlier before retreating.

There has been no market-sensitive information out of the medical devices company today. However, the company has released a slew of price-sensitive information in the past few days.

Further – while not likely to have a meaningful impact on the Atomo Diagnostics share price – the company has also released its AGM address today.

Let’s investigate further.

What’s been happening with Atomo Diagnostics?

Atomo released its Q1 FY22 activities and earnings report on 25 October. In it, the company recognised a significant increase in revenue to $2.4 million, up 260% from the previous quarter.

Cash receipts totalled $2.2 million for the quarter, also a 206% gain from the last quarter.

Much of the growth in income stemmed from a “significant increase in Covid-19 rapid antigen test sales”. The company sold more than 100,000 units compared to just 5,000 in FY21.

The company also signed an agreement with Access Bio for US$1.72 million to secure “up to 20 million Covid-19 rapid antigen tests”.

The following day, Atomo released a key update regarding its HIV self-test. It said the Therapeutic Goods Administration (TGA) has “broadened the organisations to whom the HIV self-test can be applied”.

This enables the company to supply its HIV self-test to any business, organisation, or institution (including a pharmacy) that has the proper training. Curiously, the varied conditions also allow the company to sell the test on pharmacy websites.

The decision also enables Atomo to advertise its HIV self-test in any form of media to be marketed in Australia.

Before these changes, Atomo said it was unable to advertise or promote its HIV self-test website or the HIV self-test product itself.

Despite these apparently positive changes, investors haven’t piled into Atomo shares. Since its quarterly update on Monday night and HIV self-test announcement on Tuesday morning, the Atomo Diagnostics share price has sunk by around 13%.

News from the AGM

One other point worth mentioning is that Atomo also released the presentations from its AGM today. While not price-sensitive, investors were able to peer into the company’s operations, its progress in FY21, and its future outlook.

In the report, Atomo explained it has “an opportunity to sell up to 20 million antigen tests during FY22–23”.

It also sees itself capitalising on local Covid-19 opportunities, including a self-test product in this category as well.

Atomo Diagnositcs share price snapshot

It’s been a difficult year to date for the Atomo Diagnostics share price, falling by 1.6%. It has also slumped by around 21% since the company listed on the ASX in April 2020.

For comparison, the S&P/ASX 200 index (ASX: XJO) has gained around 11% since the start of the year.

The post Why is the Atomo Diagnostics (ASX:AT1) share price wobbling on Thursday? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Invion Ltd (ASX: IVX) share price is on the move during late afternoon trade. This comes after the clinical-stage drug development company announced the pilot study results from its latest Proof-of-Concept (PoC) studies.

At the time of writing, Invion shares are up an astonishing 123.08% to a multi-year high of 2.9 cents apiece.

What were the results?

In its release, Invion highlighted the effectiveness of INV043 against triple negative breast cancer (TNBC).

INV043 is the next-generation photodynamic therapy (PDT) that is being developed alongside its research partner, Hudson Institute of Medical Research. Employing Photosoft technology, PDT works by using photosensitisers and light to kill cancer cells and promote an anti-cancer immune response.

TNBC is an aggressive and metastatic tumour type resistant to most chemotherapies. According to the American Cancer Society, the overall 5-year survival rate for TNBC is around 77%.

Invion revealed that test results showed complete tumour regression in mice treated with INV043 after being implanted with TNBC. The mice were again re-implanted with the disease at a new site, however, the immune system triggered a response eradicating the tumour.

The company noted that the data suggests that INV043 provides strong anti-cancer activity and can induce an anti-tumour immune response.

Additional POC tests are set to be carried out, looking at extended primary and metastatic disease models. Each study will explore potential synergies with other cancer therapies.

Invion chair and CEO Thian Chew commented:

These results demonstrate the potential of Photosoft technology and its clinical relevance. Hudson Institute will continue to undertake further PoC studies using our novel treatment. The early success we have achieved sets the foundation for Invion to progress INV043 towards clinical trials.

We are pursuing multiple pathways to develop the technology to treat a range of cancers and other insidious diseases.

About the Invion share price

Over the last 12 months, Invion shares have surged by more than 160%, with year-to-date further accelerating by 190%.

Based on today’s price, Invion presides a market capitalisation of roughly $170.08 million and has approximately 5.86 billion shares outstanding.

The post Invion share price (ASX:IVX) rockets 123% on pilot study results appeared first on The Motley Fool Australia.

More reading

• Why is the Atomo Diagnostics (ASX:AT1) share price wobbling on Thursday?
• Why is the WAM Capital (ASX:WAM) share price in focus today?
• Why Aussie Broadband, BlueBet, Hipages, and JB Hi-Fi shares are rising
• Imagion Biosystems (ASX:IBX) share price soars 13% on quarterly update
• Damstra (ASX:DTC) share price plummets 15% as COVID takes a toll

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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Shares in listed investment company WAM Capital Limited (ASX: WAM) are down in afternoon trade by 0.65%, changing hands at $2.30.

This comes after an update earlier regarding an offer it made to acquire a listed investment company (LIC) colleague last month.

Here are the details.

What’s led us to this point?

Recall that in late September WAM announced that it intends to acquire fellow LIC PM Capital Asian Opportunities Fund Ltd (ASX: PAF).

WAM put the offer down as an all scrip deal, proposing an exchange of 1 WAM share for every 1.99 PAF shares held in its off-market takeover bid.

What makes things more interesting, is that the Asian Opportunities Fund was already a takeover-target from one of its own, the PM Capital Global Opportunities Fund Ltd (ASX: PGF).

PGF already holds a roughly 20% stake in its junior Asian Opportunities fund, and it is managed by PAF’s co-parent, PM Capital Ltd.

Under this original scheme, the exchange ratio was set at 0.73471, meaning PGF had an implied valuation of $1.095 for PAF’s shares as it made the offer.

However, WAM submits that its offer is “a superior proposal to the scheme proposed by the PAF board of directors” as it represents a premium to PDF’s deal.

For instance, PGF’s offer implied a valuation of $1.095 for PAF’s shares at the time, based on the stipulations above.

WAM Capital chimes in with its bid

Meanwhile, the offer from WAM saw PAF shareholders enjoy a valuation of $1.147 (excluding WAM’s October dividend) back in September.

As such, WAM’s offer represents a roughly 10% premium to the offer out of PGF’s camp, and can also be sweetened further if PGF removes a so-called “break fee” caveat from its offer.

WAM defines this fee as a “mutual break fee of $500,000 payable by each of PAF and PGF to the other in certain circumstances under which the scheme does not proceed”.

It is this, among other things, that has WAM fired up on the deal. It believes that PAF “has not undertaken a public, transparent process designed to elicit proposals to achieve the best possible outcome for its shareholders”.

The release notes the break fee “does not reimburse actual expenses” in the scheme, and that PGF’s 20% stake in the company means the benefit of any break fee is similarly inappropriate”.

WAM seems to think that PGF could benefit from the break fee and still be able to participate in the superior deal at the same time – basically having its cake and eating it, WAM reckons.

As such, WAM is encouraging both parties to end the break fee by mutual agreement, as it “should not have been agreed to by the PAF and PGF board of directors” in the first place.

As an incentive to do so, it has a sweetened deal on the table, that would see a scrip exchange of 1 WAM share for every 1.975 PAF shares held based on the contingency.

That adds another 0.9 cents of value for PAF shareholders to enjoy, per the release.

What’s happened since?

PAF has come out today and advocated that its shareholders take no action in relation to WAM’s proposal, instead encouraging them to make an informed decision from all reports and memorandums.

This comes on news that the Australian Government Takeovers Panel became involved as well.

It received an application from PGF, stating there are a number of “disclosure deficiencies in the bidder’s (WAM’s) statement”.

Consequently, PGF requested an interim order to restrain WAM from dispatching its bidder’s statement and calls on WAM to revise the statement to address the alleged deficiencies.

Nonetheless, PAF maintains its shareholders should wait until they receive a copy of the explanatory memorandum with PGF’s offer and the target statement relating to WAM’s offer.

No doubt there is plenty more to unfold in this saga as we advance towards the end of CY21.

WAM Capital’s share price has had a difficult year to date, gaining just 3% since January 1 this year, whilst down 0.22% from the past 12 months.

The post Why is the WAM Capital (ASX:WAM) share price in focus today? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is tumbling lower. At the time of writing, the benchmark index is down 0.4% to 7,417.6 points.

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

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is up 5% to $4.80. This follows the release of the telco’s annual general meeting update. Although the update was scant on new information, investors appear to be responding positively to some of management’s comments. One of those was that its fibre build project is going well and is expected to boost margins in FY 2023 onwards.

BlueBet Holdings Ltd (ASX: BBT)

The BlueBet share price has jumped 15% to $1.99 following its first quarter update. For the three months ended 30 September, the sports betting company reported a 63.8% increase in active customers to 39,195. This underpinned a 67.4% jump in turnover to $125.9 million.

Hipages Group Holdings Ltd (ASX: HPG)

The Hipages share price is up 3.5% to $3.78. The catalyst for this was the online tradie marketplace provider’s first quarter update. Despite lockdowns in New South Wales and Victoria, Hipages continued to grow its recurring revenue. It reported a 14% increase in revenue over the prior corresponding period to $14.9 million. Approximately 96% of this revenue is now recurring in nature.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 3% to $48.21. This is despite the release of a first quarter sales update which revealed a decline year on year. For the three months ended 30 September, JB Hi Fi Australia saw a 7.5% decline in sales over the prior corresponding period. It was a similar story for the Good Guys business, which reported a 5.6% decline in sales. The market appears to have been expecting softer sales.

The post Why Aussie Broadband, BlueBet, Hipages, and JB Hi-Fi shares are rising 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. owns shares of and has recommended Aussie Broadband Limited and Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Aussie Broadband Limited, BlueBet Holdings Ltd, and Hipages Group Holdings 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 Imagion Biosystems Ltd (ASX: IBX) share price is taking off following the release of the company’s quarterly report.

Over the third quarter of the calendar year 2022, the company moved forward with its MagSense Study and entered a new joint development agreement.

The market has reacted favourably to all the company has achieved. At the time of writing, the Imagion share price is 7.6 cents, which is 13.43% higher than its previous close.

Let’s take a closer look at what the cancer imaging technology company has been up to over the 3 months ending 30 September.

The quarter just been for Imagion

The Imagion share price is surging on news the company has enrolled multiple patients in its MagSense HER2 Breast Cancer Phase I Study.

The study is looking to find if the company’s novel imaging agent, developed specifically for breast cancer patients who test positive for the Human Epidermal Growth Factor Receptor 2 (HER2), is safe for use.

The company signed one hospital on as a clinical site during the quarter, and another since its end. Four hospitals have now agreed to be involved in the study.

The company’s chair and CEO, Bob Proulx commented:  

As we see how the end of lock downs affects cancer screening, we will have a better indication over [quarter 4] as to the likely cadence of recruitment going forward.

Further, the company has partnered with Global Cancer Technology to develop its partner’s novel nanoscintillator technology. The technology aims to treat breast cancer and will utilise Imagion’s nanoparticle expertise.

Under the terms of their agreement, Global Cancer Technology will pay Imagion for research and development services. Meanwhile, Imagion will gain a holding in the product.

Finally, Imagion has used its grant from the CSIRO to fund the first round of animal studies for its MagSense prostate cancer imaging agent. Results of the animal studies are currently being analysed.

The company spent $2.2 million over the course of the quarter.

It stated its costs will probably increase in the near future as its MagSense clinical study gets up and running. Its costs will also likely grow as its development pipeline advances.

The company ended the quarter with $12 million of cash in the bank. That’s enough to fund another 5.5 quarters if its expenses remain the same.

Imagion share price snapshot

Today’s gains included, the Imagion share price has fallen 45% since the start of 2021. However, it is 8.5% higher than it was this time last year.

The post Imagion Biosystems (ASX:IBX) share price soars 13% on quarterly update appeared first on The Motley Fool Australia.

More reading

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• Why ASX 200 energy shares are tanking on Thursday
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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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It’s been a rocky day so far for the Damstra Holdings Ltd (ASX: DTC) share price. Shares in the workplace management solutions company are falling after it posted its quarterly report for the first quarter of FY 2022.

At the time of writing, the Damstra share price is down 15% to 78.2 cents. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.46% to 7,414.7 points this afternoon.

Shareholders are applying selling pressure after the quarterly numbers came in below what had been hoped for. Let’s take a look.

Temporary challenges take a toll

Although Damstra reported growth for its operations in the first quarter, the numbers were below management’s expectations. Equally disappointed are shareholders, as reflected by the steep fall in the Damstra share price today.

According to the release, revenue increased by 20% year-on-year to $6.2 million in Q1. At face value, this seems like a respectable level of growth. However, management had previously guided for 32.5% to 40% revenue growth for the full year. This discrepancy between expectations and reality appears to have caught the market off guard.

Management stated the reason for the underperformance in revenue growth was due to “… the impact of COVID but also some client-specific activity in Q1”.

Firstly, COVID-19 resulted in lockdowns across New South Wales and Victoria. This led to client projects being delayed and a reduction in users in these areas. In turn, shareholders are selling down the Damstra share price today.

Secondly, the client-specific aspect involved the descoping of arrangements between Damstra and its client, Newmont. The gold mining company has decided to internalise hardware, access, and site control. This move had an estimated overall impact of $0.8 million to Damstra.

However, it’s not all bad news. Despite the hiccup in its trajectory, Damstra is confident accelerated growth will return as economies reopen. As such, construction verticals and its United States pipeline of opportunities look strong at this point.

Another positive line item is Damstra’s annual recurring revenue grew by 55% year-on-year to $29.3 million. Similarly, 9 new clients were added during the quarter, taking the total tally up to 733.

Damstra share price snapshot

Today’s fall in value adds to a downward trend that has been playing out over the past year. Unfortunately for shareholders, the Damstra share price is now down around 61% compared to this time last year.

Although the share price has been in decline, the company has maintained top-line growth during this time. At the end of June 2021, trailing 12-month (TTM) revenue was $27.05 million. This represents an increase of 38% compared to the TTM revenue reported at the end of June 2020.

The post Damstra (ASX:DTC) share price plummets 15% as COVID takes a toll appeared first on The Motley Fool Australia.

More reading

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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. owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings 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 BHP Group Ltd (ASX: BHP) share price rose strongly up until mid-August before plummeting in the following months. The miner’s shares have continued to shed value as investors remain concerned about the iron ore market.

At the time of writing, the BHP share price is down 1.39% to $37.14 this afternoon. This means that over the course of the year, its shares have now dropped by 13.76%.

What’s happened to BHP?

The plunging spot price of iron ore has heavily impacted the miner’s shares.

In May, the steel-making ingredient reached an all-time high of US$229.50 per tonne. BHP shares accelerated on the back of bumper revenues over the period.

However, a slowdown in Chinese demand amid political pressure has led iron ore prices to tumble in recent months.

Currently, iron ore is fetching US$122.36, a drop of 25% since the beginning of 2021. Since the start of the new financial year on 1 July, iron ore prices have sunk 40%.

Chinese lawmakers have introduced new rules for its steel producers in an apparent effort to curb reliance on Australian iron ore and boost domestic supply and demand. Steel mills have been instructed to limit 2021 output to no more than 2020 levels, or face penalties.

China wants its steel industry to halt iron ore production at roughly 1 billion tonnes in 2021. Consequently, Chinese crude steel production has dropped 8% in July, 13% in August, and 12% in September.

To meet its goal, however, steel output will have to contract another 10% over the last 3 months of the year.

China has also increased its efforts to close down some domestic factories to achieve carbon reduction targets. In addition, the country is seeking alternative resources to maintain production.

Macquarie has cut its price target for the BHP share price by 3.6% to $54. Analysts at Morgans have slightly raised their rating by 1.9% to a bearish $46.05.

Based on the current BHP share price, this implies an upside of 45% and 24%, respectively.

BHP share price summary

Over the past 12 months, the BHP share price has moved in circles to post a sub-7% gain.

BHP commands a market capitalisation of roughly $111.10 billion, making it the third most valuable company on the ASX.

The post Here’s why the BHP (ASX:BHP) share price is down 13% so far in 2021 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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The Telstra Corporation Ltd (ASX: TLS) share price is in focus today after it was reported that the telco may have walked away from a potential deal.

What is Telstra not going to try to buy?

It is being reported by The Australian that Telstra was in the running to possibly buy the Australian assets of Meridian Energy Ltd (ASX: MEZ). The telco was supposedly really interested in the retail energy division on the business, called Powershop Australia.

Telstra has been talking about expanding in the energy space for some time because of the synergies that it would create to allow it to be a large utilities player, not just a telco.

Why did the telco decide not to proceed?

Businesses don’t typically make announcements for why they didn’t do something. But The Australian referenced the deal that Telstra just made for Digicel.

Companies don’t have endless amounts of capital to make acquisitions, and Telstra has signalled it is trying to ensure its balance sheet is strong.

Digicel acquisition

Earlier this week, Telstra announced that it has partnered with the Australian government to acquire the Digicel business in the South Pacific region for US$1.6 billion, plus up to an additional US$250 million subject to business performance over the next three years. The Telstra share price has risen around 5% since this was announced.

This business will be owned and operated by Telstra. The telco is only contributing US$270 million of the equity of the overall US$1.6 billion purchase price. The Australian Government is providing the rest of the money needed through a combination of non-recourse debt facilities and equity-like securities. Telstra will own 100% of the ordinary equity.

Telstra believes that Digicel is a commercially attractive asset and critical to telecommunications in the region. The Australian Government is supposedly “strongly committed” to supporting quality private sector investment infrastructure in the Pacific region.

The telco explained that it has a “strong” market position in the South Pacific region, holding a number one position in all markets other than Fiji where it is number two.

Digicel generated earnings before interest, tax, depreciation and amortisation (EBITDA) of US$233 million in the year to 31 March 2021, with a “strong” margin. Around 76% of its revenue is generated from its mobiles business, which is largely prepaid, and the balance is from business solutions, TV and broadband services.

It was noted that Digicel has already invested significant capital into PNG, which is its largest market, to achieve extensive market coverage. Including 4G to 55% of the population.

Management believe that Digicel will deliver an attractive internal rate of return and exceeds all of Telstra’s acquisition criteria including adding to earnings per share (EPS) and being better than a share buyback.

The transaction implies a multiple of FY21 EBITDA of between 5.8x to 6.9x.

Telstra said that whilst the transaction will not distract from Telstra’s T22 or T25 strategies, it is a unique commercial opportunity and will improve its outlook.

The telco concluded its announcement by saying the financial arrangements make it very attractive for Telstra, and it strengthens its relationships with the Australian Government and the Pacific region.

The post Telstra (ASX:TLS) share price struggles amid energy deal news appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Wednesday
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation 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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ASX 200 energy shares are on the back foot following a sharp two-day selloff for oil.

West Texas Intermediate has slumped around 4% since Wednesday, down to US$80.90 a barrel. The global benchmark, Brent crude, is posting similar declines, down to US$82.56 a barrel.

Following suit, Woodside Petroleum Limited (ASX: WPL) is down 2.2% on Thursday to $23.73.

Santos Ltd (ASX: STO) is edging slightly lower, down 1.1% to $7.15.

The Oil Search Ltd (ASX: OSH) share price is also posting a small loss, down 1.2% to $4.40.

While Beach Energy Ltd (ASX: BPT) is down 1.39% to $1.42.

What’s driving ASX 200 energy shares lower?

Oil has eased from multi-year highs amid profit-taking as prices are now reaching overbought territory, according to S&P Global Platts.

“… crude oil prices have posted gains for the past nine weeks, with the Relative Strength Index on a daily chart for the NYMEX contract showing oil prices sitting squarely in overbought territory. Analysts have said that at current levels, oil prices were due for some profit-taking.”

In addition, it flagged that data from the American Petroleum Institute reported a 2.32 million-barrel build in US commercial crude oil stockpiles last week. While economists were expecting a build of around 1.7 million barrels.

Despite a small pullback, analysts remained bullish about a persistent supply imbalance and ongoing energy crisis across Europe and China.

“The energy crisis could maintain a bullish momentum in crude for the coming days and weeks, interrupted by small pullbacks,” said Vandana Hari of Vanda Insights.

“The bottom line is that the bullish narrative has taken a strong hold and despite a fair amount of speculative froth in crude, there is nothing on the horizon so far to trigger a correction.”

Despite a small pullback for ASX 200 energy shares, most have enjoyed a strong rally in the past two months thanks to surging oil prices.

The post Why ASX 200 energy shares are tanking on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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