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The S&P/ASX 200 Index (ASX: XJO) is finishing off the week on a rather flat note so far this Friday. At the time of writing, the ASX 200 is up a paltry 0.04% to 7,418 points. But let’s dig beyond that rather uninforming metric, and instead check out the ASX 200 shares topping the trading volume charts so far this Friday, according to investing.com.

3 most active ASX 200 shares by volume on Friday

Whitehaven Coal Ltd (ASX: WHC)

ASX 200 coal miner Whitehaven is our first share up today. We have seen a sizeable 14.65 million Whitehaven shares trade on the markets so far. There’s not much in the way of news or announcements out of this resources share today.

In saying that, the Whitehaven share price has taken a pretty steep tumble on Friday, and is currently down a nasty 3.2% to $2.88 a share. It’s probably this big share price drop that is responsible for so many Whitehaven shares trading on the markets today.

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our next share up today. This Friday has seen a hefty 14.86 million Telstra shares swap hands thus far. Like with Whitehaven, there are no major pieces of news out of Telstra today. Though, the telco has had a rather bouncy day on the ASX boards.

Telstra shares are currently up 0.67% to $3.76, but have been trading between $3.71 and $3.78 so far today. It’s probably this volatility that’s behind these relatively high share volumes we are seeing.

Aurizon Holdings Ltd (ASX: AZJ)

Our third and final ASX 200 share to check out today is the rail freight company Aurizon. So far this Friday, 16.7 million Aurizon shares have been bought and sold. This appears to be linked to the major acquisition Aurizon announced this morning.

As we covered earlier today, Aurizon has inked an agreement with Macquarie Asset Management to purchase One Rail Australia for the sum of $2.35 billion. The Aurizon share price has reacted savagely though, with the company down a nasty 5% so far today to $3.70 a share. It’s this big news, together with Aurizon’s meaningful share price drop, that is probably behind such elevated trading volume.

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

More reading

• Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling
• What’s been happening with the Telstra (ASX:TLS) share price this week?
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Aurizon (ASX:AZJ) share price rises amid transformative $2.35bn acquisition
• 5 things to watch on the ASX 200 on Friday

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 Australia has recommended Aurizon Holdings 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has run out of steam and is edging ever so slightly lower. At the time of writing, the benchmark index is down to 7,414.6 points.

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

Aurizon Holdings Ltd (ASX: AZJ)

The Aurizon share price is down 6% to $3.66. This is despite the rail freight operator announcing a major acquisition. Aurizon has signed an agreement with Macquarie Group Ltd (ASX: MQG) subsidiary Macquarie Asset Management to acquire One Rail Australia for $2.35 billion. Management believes the acquisition is highly strategic and transformative for Aurizon. Though, it appears as though the market isn’t overly convinced. This may be due to the company needing to offload some of the acquired assets to ease competition concerns.

De Grey Mining Limited (ASX: DEG)

The De Grey Mining share price has tumbled 9% to $1.10. This morning the gold explorer announced the successful completion of its fully underwritten $125 million institutional placement at a price of $1.10 per new share. This represents a 9% discount to its last close price. These funds will be used partly to fund the commencement and completion of the prefeasibility study of the Mallina Gold Project.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price has dropped 9% to $6.76 following the release of its first quarter update. For the three months ended 30 September, the rare earths producer reported sales revenue of $121.6 million. This was down 34.5% quarter on quarter. Things were even worse for its sales receipts, which fell by over 50% quarter on quarter to $92 million.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price has sunk 9.5% to $3.03. This may have been driven by reports in China that coal producers in the country have agreed to observe a price ceiling for thermal coal ahead of the winter heating season.

The post Why Aurizon, De Grey Mining, Lynas, and Yancoal shares are falling appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Lynas (ASX:LYC) share price falls 7% on news of COVID-induced shutdown
• De Grey Mining (ASX:DEG) share price sinks 9% after raising $125m
• Aurizon (ASX:AZJ) share price rises amid transformative $2.35bn acquisition
• Whitehaven Coal (ASX:WHC) share price falls as China intervenes in coal market

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 Aurizon Holdings 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 Rio Tinto Limited (ASX: RIO) share price dived 3.73% right after the morning bell on Friday, marking a fresh year-to-date low of $93.18.

Shares in the iron ore major have since bounced back, trading 1.82% lower at $95.03.

Nevertheless, it’s an ugly sign of continued weakness for the Rio Tinto share price, which is already down 17.62% year-to-date.

What’s driving weakness in the Rio Tinto share price?

Iron ore prices drop amid weak steel demand

Iron ore prices have been lingering around US$100-120 a tonne in the past few weeks, since its free fall from record highs of US$230 a tonne.

This is against the backdrop of weak Chinese economic data, with the world’s second largest economy reporting September quarter GDP growth of 4.9% year-on-year on Monday. This figure missed expectations of a 5.2% increase, according to analysts polled by Reuters.

Iron ore prices fell overnight on Thursday, sliding US$7.14 or 5.8% to US$116.93 a tonne.

Chinese iron ore futures on the Dalian Commodity Exchange for January 2022 delivery opened lower on Friday, currently down 2.5% to around 680 yuan (~US$106.25).

Aluminium prices slip from 13-year highs

Another factor weighing on the Rio Tinto share price could be the recent pullback in aluminium prices.

Aluminium prices briefly rallied to 13-year highs of US$3,198 a tonne on 18 October, fueled by production cuts across China and Europe.

Aluminium and related materials such as bauxite and alumina have retreated in recent days as Chinese authorities take action to ease its energy crisis.

China’s energy crisis and coal shortage have been major drivers behind surging aluminium prices, which forced industrial plants to curtail production.

Copper prices retreat from record highs

The overnight fall in copper prices might also be taking some heat out of the Rio Tinto share price.

This marks a quick turnaround of events for copper, which quickly surged around 16% from US$4.15/lb to record highs of US$4.82/lb between 6 and 18 October.

Copper prices jumped amid concerns that demand was far outpacing supply.

Prices pulled back sharply overnight, down 3.7% to US$4.56/lb as China’s National Development and Reform Commission (NDRC) began evaluating measures to intervene in surging commodity prices.

The post Rio Tinto (ASX:RIO) share price threatens fresh year-to-date low appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• 5 things to watch on the ASX 200 on Friday
• Rio Tinto (ASX:RIO) share price dips amid pledge to halve direct emissions by 2030
• These are the 5 highest yielding dividend stocks in the ASX 200
• Leading brokers name 3 ASX shares to sell today

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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The Bitcoin (CRYPTO: BTC) price has retreated from Wednesday’s new all-time highs of US$66,930 (AU$89,240).

The digital token’s lost 6% since then, currently trading for US$62,845.

Interest in the world’s biggest crypto remains elevated, with more than US$45 billion worth changing virtual hands over the past 24 hours, according to data from CoinMarketCap.

With that level of interest in mind, the Motley Fool reached out to 3 crypto experts for their take on BITO, the new US listed, futures-based Bitcoin exchange traded fund (ETF), and their forecasts for where the Bitcoin price could be heading next.

(For details on the launch of the ProShares Bitcoin Strategy ETF (NYSE: BITO), go here.)

Now, on to our expert panel:

• Jonathon Miller, managing director Australia of cryptocurrency exchange Kraken
• Peter Kazacos, owner of Kaz, technology partner for Quantum Digital Assets Limited
• Simon Peters, market analyst at global online trading platform eToro

The launch of BITO

The Motley Fool: The launch of BITO garnered a lot of investor excitement and looks to have helped drive the Bitcoin price to new highs. What are your thoughts on a futures-based Bitcoin ETF, and will we ever see something similar on the ASX?

Jonathon Miller: The launch of a Bitcoin ETF is an exciting moment for the maturation of the digital assets industry and a good measure of where Bitcoin is in its adoption journey.

The timing of the BITO launch is also significant in that it went live when the Bitcoin price was reaching all-time highs. We saw US$1 billion in trading volume on the first day which is a great achievement, and another of the many positive news stories we have seen lately for crypto adoption.

We can expect that Australian regulators are watching what happens in the US and will use this as a framework for decisions on local products. It’s hard to predict when this will happen, but the success of BITO so far is a very positive thing.

Peter Kazacos: Anything that makes it easier for investors to get exposure to an asset is a good thing for that asset. In the case of BITO, it’s a good thing for Bitcoin. The ETF means large institutional investors and investment houses can easily participate in a very traditional sense in the fortunes of BTC. A futures-based ETF like BITO paves the way to a spot ETF in the near term, which would be a significant milestone and have a positive impact on the Bitcoin price.

It is likely that we will one day see an Australian Bitcoin ETF as demand for the asset continues globally.

Simon Peters: While ProShares (BITO) is not an ETF holding the underlying asset that many in the crypto community want to see, it’s still a step forward in the right direction.

A Bitcoin futures ETF now provides a convenient way for investors to get exposure to the Bitcoin price movement. However, investors who plan to hold for the longer term would need to take into account ‘hidden fees’ within the futures ETF. Contracts will have to roll every month, and this could erode potential gains.

BITO saw a strong first day of trading. However, with more Bitcoin futures ETFs in the approval pipeline, whether this particular ProShares Bitcoin futures ETF can carry this momentum forward, we’ll see.

Where to now for the Bitcoin price?

Motley Fool: After posting a new all-time high this week, what is your outlook for the Bitcoin price movement?

Jonathon Miller: This rally has been driven by an incredible year of crypto adoption news for Bitcoin as well as Ethereum. The two coins have both shared leading roles in the news cycle, dragging each other down and bringing each other up in the market.

The all-time Bitcoin price high earlier this year was largely due to institutional interest where we saw adoption from big names such as Fidelity, Tesla and PayPal.

There is no way to predict the market, but it’s important to highlight that Bitcoin has scarcity with only 21 million in total in supply. And there are a lot more people in the world than that. The space is moving very quickly, and we know from Kraken Intelligence reports that the final quarter of the year has historically been the most bullish.

However, after price hikes, there is always the risk that we will see price drops as people look to take a profit.

Peter Kazacos: Mass adoption is the buzz word for any Bitcoin maximalist. If we see more mass adoption, which we define as BTC entering the traditional financial system, we will see more demand for the asset, which will fuel Bitcoin price increases.

If Bitcoin finds more champions – like Jack Dorsey from Twitter and President Bukele from El Salvador – we could very well see a US$100,000 Bitcoin price in the near future.

Advances in technology are the biggest risk for Bitcoin. Specifically the advent of quantum computing, which could break current cryptography. Kaz has a solution which uses quantum technology to upgrade the cryptography of existing protocols like BTC.

Quantum Assets on the Binance Smart Chain are the first crypto to adopt our quantum technology and are using it to launch Quantum Bitcoin in a bid to ensure the cryptography of Bitcoin remains safe and secure.

Simon Peters: Now that we’ve seen a new all-time Bitcoin price high, the question is turning to whether we’ll see a pull back or will the price carry on. Given the price run in the last few weeks, the Bitcoin price is somewhat overextended and we could (very soon) see a pullback in the short term as some investors and traders take some profit off the table.

Long term, on-chain metrics continue to be bullish. More of the circulating Bitcoin supply is continuing to migrate from short-term holders to long-term holders, which is squeezing supply. Simultaneously, inflation concerns could increase demand, with institutional and retail investors exploring alternative assets like Bitcoin rather than traditional inflation hedges or holding cash.

Also taking into account seasonality, the fourth quarter tends to be a strong time of the year for crypto bull markets. Refer back to 2017 for example. So, I wouldn’t rule out higher prices than where we are currently by the end of 2021, possibly into the six-figure zone.

Invest with care

The Motley Fool will end with a recap of Jonathon Millers’ words, “There is no way to predict the market.”

While the Bitcoin price could head into the six-figure range from here, it could also go the other way.

Invest with care.

The post Here’s what’s next for the Bitcoin price: expert panel appeared first on The Motley Fool Australia.

More reading

• Why cryptocurrencies are moving wildly today
• Could the Ethereum price track Bitcoin to new record highs?
• Why the Bitcoin (CRYPTO:BTC) price is rocketing to new, all-time highs
• Newcrest (ASX:NCM) CEO reveals the company’s gold, copper and Bitcoin mining plans
• BITO, the first US Bitcoin ETF just started trading. Here’s what happened

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, PayPal Holdings, Tesla, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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 has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Healius Ltd (ASX: HLS)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and $5.50 price target on this healthcare company’s shares. Credit Suisse was impressed with the company’s performance during the first quarter. It notes that its earnings almost reached the consensus first half estimate in just the three months. And while its analysts acknowledge that COVID testing won’t be in demand forever, it feels the market may be underestimating medium term demand. The Healius share price is trading at $4.98 today.

Megaport Ltd (ASX: MP1)

A note out of Citi reveals that its analysts have retained their buy rating and $20.00 price target on this network as a service company’s shares. This follows the release of Megaport’s quarterly update this week. Citi notes that Megaport’s monthly recurring revenue (MRR) growth was strong but that its port adds were 30% softer than expected. Nevertheless, it remains buy-rated as it expects strong growth going forward driven by structural tailwinds. The Megaport share price is fetching $17.47 on Friday.

Macquarie Group Ltd (ASX: MQG)

Analysts at Morgan Stanley have retained their overweight rating and $240.00 price target on this investment bank’s shares. According to the note, Morgan Stanley believes the Macquarie share price deserves to trade on higher multiples due to its green credentials. The broker notes that its green revenues are growing rapidly at a time when demand for green investments is increasing. In addition, the broker believes there are a lot of unrealised gains to be found across existing investments. The Macquarie share price is trading at $197.80 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Aurizon (ASX:AZJ) share price rises amid transformative $2.35bn acquisition
• Here are the top 10 ASX shares today
• Megaport (ASX:MP1) share price slides on record growth
• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher

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 MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended MEGAPORT FPO. 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 is pushing higher today after the company provided a project update.

At the time of writing, Magnis shares are up 5.33% to 40 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.049% to 7,732.30 points.

What did Magnis announce?

In its release, Magnis advised that Imperium3 New York (iM3NY) has received the approval for the Aquifer Permit. This is the last approval required for near term production at the iM3NY Battery Plant based in Endicott, New York.

Magnis is a major shareholder with roughly a 60% stake in iM3NY, a New York based Lithium-ion Battery plant.

iM3NY plant is fully funded to begin commercial production and scale up to 1.8 GWh, starting in the first-half of 2022. This will make it one of the largest players in the United States lithium-ion battery cell manufacturing market.

Currently, China is the global leader on lithium-ion batteries, however, the United States is quickly closing the gap.

The Aquifer Permit was officially approved by the Village of Endicott. The approval combined with the recently granted Air Permit and The Environmental Justice Plan is all the permits required by iM3NY for near term production.

The company holds cell design, process and supply chain licensing, along with C4V’s cathode and anode technology for the United States market. This means that the anode and cathode produced with the C4V license cannot be sold to any other cell manufacturer in the country.

A special report by Abt Associates suggests such batteries contain at least 87% less dirty energy per kWh versus comparable batteries making them one of the greenest batteries in the world.

iM3NY CEO, Chaitanya Sharma commented

The is very important day for iM3NY, it is a huge milestone after many months of hard work. We now have all permits in place for near term production. Semi-Automated production is on track for this quarter and we are putting in long hours to achieve this major milestone.

About the Magnis share price

In the past 12 months, Magnis shares have boasted a gain of around 110% from continued positive investor sentiment. The company’s share price charged higher in late January after announcing a deal with the United States government.

Based on today’s price, Magnis presides a market capitalisation of roughly $367.13 million, with approximately 929.4 million shares on hand.

The post Magnis Energy (ASX:MNS) share price leaps 6% on lithium battery update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Magnis Energy (ASX:MNS) share price is leaping 7% today
• Magnis Energy (ASX:MNS) share price lifts after FY21 annual report release

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 Cettire Ltd (ASX: CTT) share price is gaining ground today despite there being no market-sensitive news out of the company.

At last check, Cettire shares are trading 7.26% higher at $3.40 apiece.

Let’s take a closer look at what’s been fuelling the Cettire share price recently.

What’s been happening with Cettire of late?

Cettire is a global online retailer that offers personal luxury goods through its website. Its shares began lifting as we started the walk into September. This coincided with the company’s FY21 earnings release. In its report, the company recognised active customer growth of 285%, while it also saw sales of $92.4 million – a 304% year-on-year increase.

These results carried through Cettire’s income statement, where it recorded $2.1 million at the earnings before interest, taxes, depreciation, and amortisation (EBITDA) line and $12.7 million in operating cash flow.

In the week after its earnings release, Cettire shares gained 44% to reach a high of $3.64.

Yet, the Cettire share price has since come off that level, and basically traded sideways from 1 October until the open today.

In fact, over the past month, the company has slipped into the red by 7%.

So in light of today’s 7% gain, it appears unclear as to what is causing investors to bid up the Cettire share price.

However, as the Motley Fool has previously reported, Cettire has a number of levers delivering a direct line of fuel to its growth engine.

The company’s position in e-commerce, its recent earnings surprise, and innovation around products are all key investment highlights for the Cettire share price, according to the Motley Fool’s Tristan Harrison.

It is worth noting that the S&P/ASX 300 Retailing index (AXRTKD) is also charging higher lately, and is up 1.3% today as well.

The index made a sharp recovery from 6 October after a large selloff in the ASX retail basket that started in August.

Since then, it has climbed around 5% until today, indicating strengths across the broader ASX retail and e-commerce sectors.

Aside from these contributing factors, it is difficult to pinpoint a direct catalyst for Cettire’s returns today.

Cettire share price snapshot

The Cettire share price has been a significant outperformer on the ASX this year, posting a return of 621% since January 1.

This is after it rallied 578% over the last 12 months, an entire universe it seems above the S&P/ASX 200 index (ASX: XJO)’s return of about 20% in that time.

The post The Cettire (ASX:CTT) share price is rocketing 7% on Friday appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares delivering rapid growth
• 3 strong reasons why the Cettire (ASX:CTT) share price could be a buy

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in a subdued fashion. At the time of writing, the benchmark index is up very slightly to 7,417.2 points.

Four ASX shares climbing more than most today are listed below. Here’s why they are storming higher:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is up 5.5% to $4.94. This morning the broadband provider confirmed that it is in talks to acquire Over the Wire Holdings Ltd (ASX: OTW). However, it also warned that takeover talks are preliminary and incomplete, and no agreement has been reached. Over the Wire offers data networks, voice services, internet connectivity, and technological support.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 7% to 61.5 cents. This appears to have been driven by an announcement that reveals that its offtake agreement with Ganfeng Lithium is now unconditional following receipt of Chinese regulatory approvals. The agreement will see the Chinese lithium giant take 75ktpa of spodumene concentrate for a period of four years.

Cardno Limited (ASX: CDD)

The Cardno share price has jumped 17% to $1.52. Last night the infrastructure and services company announced an agreement with US-based Stantec. That agreement will see Cardno sell its Americas consulting division and its Asia Pacific consulting division to Stantec for a total of US$500 million (~A$667 million). Cardno intends to distribute between A$567 million to A$600 million of the proceeds to shareholders.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 3% to $3.06. This morning the investigative analytics and intelligence software provider announced the appointment of Jonathan Rubinsztein as its new CEO and Executive Director. This follows Mr Rubinsztein’s recently announced resignation from auto parts software company Infomedia Limited (ASX: IFM).

The post Why Aussie Broadband, Core Lithium, Cardno, and Nuix are storming higher appeared first on The Motley Fool Australia.

More reading

• Aussie Broadband (ASX:ABB) share price surges 5% as acquisition talks confirmed
• Over the Wire (ASX:OTW) share price halted amid possible takeover
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Cardno (ASX:CDD) share price rockets 20% on $500 million deal
• Nuix (ASX:NXL) share price charges higher on CEO appointment

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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Aussie Broadband 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 Lykos Metals Limited (ASX: LYK) share price has had a remarkable debut to the ASX. Since listing, the battery and precious metals exploration company has skyrocketed in value.

In addition, the company’s oversubscribed initial public offering (IPO) was successfully fast-tracked by 3 weeks. In the process, Lykos raised $12 million to contribute to its endeavours.

Heading into afternoon trade, the company’s shares are being traded for 36 cents apiece, up 12.5%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.01% higher at 7,416.2 points.

What is happening with the Lykos share price?

The listing comes at an opportune time for Lykos. There is still plenty of excitement surrounding the battery technology and materials sector as forecasts indicate growing demand. In turn, the Lykos share price has been running red hot since listing.

Lykos owns 100% of the Sockovac project, Sinjakovo project, and the Cajnice project; located in the Republika Srpska, Bosnia, and Herzegovina respectively.

Additionally, these areas have a rich history of high-grade minerals discovery and extraction. Exciting investors, the projects are prospective for nickel, copper, cobalt, precious metals, lithium, and rare earth elements — all of which are common constituents of batteries and electric vehicles.

Capitalising on the growing trend, Lykos raised its maximum target of $12 million in its IPO. This involved the issuing of 60 million new shares at an IPO price of 20 cents a pop.

Simultaneously, the company issued 1 free option for every 2 shares through the listing. Each option has an exercise price of 30 cents per share and a two-year expiry. This places these options well in the money, with the Lykos Metals share price now trading around 36 cents.

Furthermore, the company listed with a total of 113.4 million shares on issue. At the current share price, this gives Lykos a market capitalisation of $40.8 million. In fact, the Lykos share price has skyrocketed 80% from its IPO price.

Management commentary

Following the successful ASX listing, Lykos Metals managing director Mladen Stevanovic said:

Listing on the ASX marks a significant milestone for Lykos Metals. I would like to thank all of our investors who recognise the significant potential for value creation at our three battery and precious metals projects in Bosnia-Herzegovina.

We are now funded to commence our initial two-year exploration campaign, starting with the Sockovac Project which is highly prospective for nickel.

Bosnia-Herzegovina is an outstanding mining and investment destination and I look forward to getting boots on the ground.

Moreover, the company is now carrying out an aggressive exploration program across the projects. The initial focus is on the high-grade nickel-focused Sockovac project.

Finally, a positive for the Lykos share price is its proximity to modern transport infrastructure. All three projects are near infrastructure that connects to Europe’s battery supply chain.

The post Lykos Metals (ASX:LYK) share price rockets 80% in first 2 days of trade appeared first on The Motley Fool Australia.

More reading

• Why is the Bank of Queensland (ASX:BOQ) share price underperforming the big four lately?
• QX Resources (ASX:QXR) share price rockets 43% on lithium project update
• Here’s why the Cashrewards (ASX:CRW) share price is surging 15% on Friday
• What’s happening with the CBA (ASX:CBA) share price this week?
• Why is the BHP (ASX:BHP) share price slumping 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 Bank of Queensland Ltd (ASX: BOQ) share price has had a rollercoaster journey in the past 3 months of trading.

At the time of writing, the Bank of Queensland share price is edging higher, up 0.44% to $9.17.

However, shares in the bank have been lagging the broader ASX financials sector lately.

Whereas the S&P/ASX 200 Financials index (ASX: XFJ) has climbed around 5% in the last month, the Queensland banking giant’s shares have gained less than 1%.

What’s with the Bank of Queensland share price lately?

Even though it has lagged its ASX financials peers of late, Bank of Queensland shares still nudged their 52-week closing high on 7 October.

However, the regional bank’s shares have been sold off with authority in the past 2 weeks. Its share price has decreased by 6% in that time.

This came after the release of Bank of Queensland’s FY21 results around 3 weeks ago.

In its report, the company recorded just over 80% year-on-year increase in cash net profit, enabling it to increase the full-year dividend to 39 cents per share – a gain of more than 200% from the year prior.

Although these figures came in ahead of the consensus of analyst estimates on the bank’s earnings, it wasn’t enough to overshadow the company’s meagre earnings outlook for FY22.

As interest rates continue to remain bottom-heavy into the near future, Bank of Queensland’s management anticipates contraction of its net interest margin in the range of 5–7 basis points.

The impact ultimately flows through to affect the level of earnings entitled to equity holders, via the earnings per share (EPS) metric.

Why is this important?

According to investing hall-of-famers Peter Lynch and Warren Buffett, this could all boil down to how the market prices securities.

Lynch, in his book One Up on Wall Street, and Buffett submit that market participants will generally price shares based on a combination of past earnings history, and especially, future earnings expectations.

As a rule of thumb, the higher the expected future earnings, the more likely a company’s share price will positively reflect this in the form of outsized returns.

Apparently, this point has some influence over the unseen hands of supply and demand, and on a share’s valuation.

Both legendary investors suggest that companies with higher expected cash flows into the future may be of a higher value to the investor today.

One study even showed that shares can actually provide excess returns for 13 to 26 weeks on average after a positive earnings surprise.

Hence, given the market is also quite efficient in its pricing mechanisms, it appears the market is continuing to price in the effects of the bank’s earnings revision.

In the absence of any other price-sensitive information during that time, it appears investors may be partially spooked on this new outlook of earnings for Bank of Queensland shares.

The Bank of Queensland share price is up 21.5% this year to date, after climbing 42% in the last 12 months.

The post Why is the Bank of Queensland (ASX:BOQ) share price underperforming the big four lately? appeared first on The Motley Fool Australia.

More reading

• Why have investors been selling off Bank of Queensland (ASX:BOQ) shares lately?
• Top brokers name 3 ASX shares to buy today
• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?
• Which ASX 300 shares are leading the way mid-week?
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping

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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