Tag: Motley Fool

The International Monetary Fund (IMF) is predicting lithium prices will be in for a good run over the coming decades, and ASX shares might bask in the benefits.

As The Motley Fool Australia reported yesterday, the price of lithium is already near all-time highs. But, according to the international financial institution, it’s likely about to go higher.

The IMF has released its predictions for the future of 4 metals critical to renewable technology; copper, nickel, cobalt, and lithium. It notes demand for lithium and cobalt will likely lead the pack.

That’s good news for Australia and Australian lithium shares. Australia produces most of the globe’s lithium and houses many of its reserves.

On the back of the report, some market watchers might want to keep an eye on the big players in the ASX lithium sector. Such giants include Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS).

Additionally, smaller lithium producers such as Piedmont Lithium Inc (ASX: PLL) and Core Lithium Ltd (ASX: CXO) might be in for a productive few decades.

Is the future green for ASX lithium shares?

The future looks bright for ASX lithium shares, according to the IMF’s World Economic Outlook.

The report predicts that, if the world follows the IEA’s Net Zero by 2050 emissions scenario, demand for lithium and cobalt will soar. The IMF’s report states:

In the IEA’s Net Zero by 2050 emissions scenario, total consumption of lithium and cobalt rises by a factor of more than six, driven by clean energy demand…

Prices [of critical metals] would reach historical peaks for an unprecedented, sustained period under the Net Zero by 2050 emissions scenario. The prices of cobalt, lithium, and nickel would rise several hundred percent from 2020 levels.

In fact, the IMF estimates that, under the 2050 scenario, the cumulated real revenue from the global production of lithium would rise from US$18 billion in 2021 to US$1,170 billion in 2040. If the body’s predictions come true, it will be brilliant news for ASX lithium shares.

Currently, most of the world’s lithium is produced in Australia, while only Chile’s reserves outstrip those of Australia.

Further, it takes less time to get a lithium project up and running than those of other metals. That means lithium can react faster to the market’s shifting demands.

However, the IMF predicts critical metal prices will peak in the 2030s as renewable technology is implemented. Demand for critical metals is expected to wane after such infrastructure is built.

Additionally, the IMF warned surging prices of critical metals could hamper the global shift to net zero. It stated in its report:

A credible, globally coordinated climate policy; high environmental, social, labour, and governance standards; and reduced trade barriers and export restrictions would allow markets to operate efficiently, directing investment to sufficiently expand metal supply— thus avoiding unnecessarily increasing the cost of low-carbon technologies and supporting the clean energy transition.

The post Own ASX lithium shares? Here’s what the IMF is predicting for the sector appeared first on The Motley Fool Australia.

More reading

• Pilbara Minerals (ASX:PLS) share price struggles despite plant restart milestone
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• Why Alumina, Aurelia Metals, Netwealth, & Piedmont Lithium are storming higher
• ASX lithium shares lift as spot prices hit all-time highs
• Could the Pilbara Minerals (ASX:PLS) share price hit $2.80 by the end of 2021?

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.

from The Motley Fool Australia https://ift.tt/30ntscc

The Cannon Resources Ltd (ASX: CNR) share price is racing to incredible highs following the company’s first drill results.

During morning trade, Cannon shares rose to an all-time high of 45 cents before being driven lower by profit takers. At the time of writing, its shares are now up 39.29% to 39 cents.

What were the results?

In today’s update, Cannon advised it has received assay results from its drilling campaign at the Fisher East Nickel Project in Western Australia.

The first 3 diamond drill holes have highlighted significant zones of high-grade nickel sulphides at the Musket prospect. They included the following:

• 14.94 metres at 1.90% nickel from a depth of 366.15 metres in hole MFED083
• 4.94 metres at 1.79% nickel from a depth of 559.77 metres in hole MFED084
• 5.81 metres at 2.29% nickel from a depth of 584.35 metres in hole MFED088

Cannon stated that the drilling intercepted substantial thicknesses of mineralisation on the northern margin of the main channel (MFED083). This extended the mineralisation to roughly 100 metres below the existing Musket resource.

The drilling program successfully identified mineralisation trends and is expected to lead to future follow-up drilling.

Cannon CEO Steve Lynn commented:

The diamond drilling results and DHEM modelling are an excellent and significant development at Musket and highlight our ability to predict mineralisation trends and grow the orebody.

The assay results show that the mineralisation continues down-plunge at better than the average grade of the existing resource. The system is totally unconstrained at depth and laterally within the northern mineralisation trend. This current round of drilling confirms that significant resource growth can be expected with well targeted future drilling.

Cannon commenced a diamond drilling campaign at the Camelwood, Musket and Sabre prospects in August 2021. While drill results have been collected for Musket, assays are still pending for Camelwood and Sabre.

Down-hole electromagnetics surveys are currently underway on existing holes. It is anticipated that these will be completed over the next 10 to 15 days.

About the Cannon share price

Since listing on the ASX in August, Cannon shares have gained almost 90% for the period, reflecting positive investor sentiment.

Cannon presides a market capitalisation of about $25 million and has approximately 66.4 million shares on its books.

The post Cannon (ASX:CNR) share price rockets 39% on first drill results appeared first on The Motley Fool Australia.

More reading

• Star Entertainment (ASX:SGR) share price surges despite police probe
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Zip (ASX:Z1P) share price on watch after broker downgrade
• 2 ASX shares that doubled our money in a month: expert
• 2 ASX shares delivering rapid growth

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.

from The Motley Fool Australia https://ift.tt/3BGhb0b

S&P/ASX 200 Index (ASX: XJO) gold shares haven’t been having the best of years so far.

A number of factors have been at play impacting the share prices of each individual gold producer. But the slumping gold price, as you’d expect, has been a major tailwind across all ASX 200 gold shares.

What’s been going on with gold?

The yellow metal hit an all time high of US$2,035 per troy ounce back on 7 August 2020. While some analysts were calling for gold to keep marching higher, it went the other way.

Gold began 2021 trading at US$1,899 per ounce. By 29 September it had slid down to US$1,726 per ounce, a loss of 9.2% for the year and down 15.2% from the record high.

Since then, gold’s been trending slightly higher, currently worth US$1,761 per ounce. But that hasn’t been enough to lift the top ASX 200 gold shares back into the green in 2021.

How have these ASX 200 gold shares been performing?

To give you some idea of the impact of the sluggish gold price, we’ll look at the price moves of 3 leading ASX 200 gold shares.

Newcrest Mining Ltd (ASX: NCM) kicked off 2021 trading for $27.01 per share. Today the Newcrest share price is $24.28, down 10.1% year-to-date. In line with the rising gold price in recent days, Newcrest’s shares are up 4.3% over the past 5 days.

Evolution Mining Ltd (ASX: EVN) opened the calendar year trading for $5.30 per share. The Evolution share price has since fallen 28.9%, currently trading for $3.75. As we saw with Newcrest, Evolution’s shares have gained 1.4% over the last 5 days.

Rounding out our list of ASX 200 gold shares is Northern Star Resources Ltd (ASX: NST). The Northern Star share price opened on 4 January at $13.29 per share. At time of writing Northern Star shares are worth $9.40, down 29.3% year-to-date. Northern Star is also in the green over the past 5 days, up 2.2%.

Which brings us to…

Could renewed inflation fears rekindle these ASX 200 gold shares?

Gold is often viewed as a hedge against inflation. Meaning that investors tend to see it as a stable asset to own when fiat currencies are losing value each year.

Although the correlation isn’t perfect, bullion prices tend to rise when inflation spikes. And a growing number of economists are speculating that the inflation the world is witnessing, particularly for energy and many essential metals (not to mention housing), could be longer lasting than first hoped.

That’s seen central banks from Europe to the United States and even Japan, mulling potential rate hikes sooner than planned.

As the Australian Financial Review reports, “the Bank of England [is] setting the stage to be the first major central bank to hike rates since the pandemic hit”. The article notes that:

Futures markets are betting the Bank of England will lift interest rates from 0.1 per cent on November 4 to 0.25 per cent, following South Korea, Norway and New Zealand. They are pricing in a 90 per cent chance of a 15 basis points rate hike by the BoE before the end of the year, and two more increases next year.

Inflation concerns and potential rate rises haven’t yet had a major impact on the gold price or ASX 200 gold shares. But they have seen US 10-year Treasuries reach a 4-month high of 1.62%. The Aussie government 10-year bond yields have ramped up to 1.77%.

Inflation is even impacting Japan, a nation which has long battled deflationary forces.

Bloomberg notes that, “Japan’s consumer prices stopped falling in August for the first time in 13 months, ending the country’s longest deflationary stretch since 2011.”

According to Katsutoshi Inadome, a strategist at Mitsubishi UFJ Morgan Stanley Securities:

Japan’s breakeven is unlikely to fall immediately as it typically tracks the US breakeven inflation rate which is also on the rise. US inflation worries are lingering with the rise in commodities prices and supply constraints.

As for gold?

Ole Hansen, head of commodity strategy at Saxo Bank said:

Gold remains stuck in neutral as attempts to catch a bid on the back of surging energy prices have so far failed. A bigger-than-expected CPI print could be the trigger needed to send it through resistance.

The consumer price index (CPI) print Hansen refers to relates to US inflation. That data will be out today (overnight Aussie time).

If inflation appears to be running hotter than forecast, gold prices could benefit. And that should come as good news for ASX 200 gold shares.

The post Could renewed inflation fears rekindle these ASX 200 gold shares? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares rated as strong buys by brokers
• 5 things to watch on the ASX 200 on Wednesday
• Newcrest (ASX:NCM) share price lifts as upcoming projects valued at $3.2b
• 3 reasons this broker thinks the Newcrest (ASX:NCM) share price is a buy
• 5 things to watch on the ASX 200 on Tuesday

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.

from The Motley Fool Australia https://ift.tt/3v8eDFD

Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Ansell Limited (ASX: ANN)

According to a note out of Macquarie, its analysts have downgraded this health and safety solutions company’s shares to an underperform rating with a $32.00 price target. The broker made the move on the belief that demand for PPE is softening. Unlike in FY 2021 when demand was very strong, Macquarie feels this will make it hard to lift prices to offset increasing costs. As a result, its analysts suspect that Ansell could fall short of the market’s earnings estimates in FY 2022. The Ansell share price is trading at $32.26 today.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $90.00 price target on this banking giant’s shares. The broker notes that CBA’s total loan book has significant exposure to the housing market. In light of this, it has concerns that recent changes by APRA could lead to lower housing loan approvals and hit the bank’s revenue and earnings. The CBA share price is fetching $103.34 today.

Platinum Asset Management Ltd (ASX: PTM)

Analysts at Credit Suisse have retained their underperform rating and cut the price target on this fund manager’s shares to $3.20. This follows the release of Platinum’s latest funds under management update which revealed another sizeable outflow. Unfortunately, Credit Suisse believes this trend could continue for some time. It fears this could weigh on its earnings in the near term. The Platinum share price is trading at $3.27 on Wednesday afternoon.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Own CBA (ASX:CBA) shares? Here are the highlights from the bank’s AGM
• Own CBA (ASX: CBA) shares? Here’s the latest on the bank’s AI technology
• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• CBA share price (ASX:CBA) gains amid remedial action plan update
• Why the Ansell (ASX: ANN) share price is crashing today

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 Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lDbtXv

The Westpac Banking Corp (ASX: WBC) share price is edging lower in afternoon trade. Westpac shares are now changing hands at $25.26.

This continues its struggles over the past month. Over that period Westpac shares are 1.46% in the red.

What’s up with the Westpac share price lately?

Westpac shareholders have been sailing choppy seas over the last few weeks. They have been watching their shares trade in a range of $24.91 to $26 since 16 September.

The company took a hit at the time, on the back of a third rates cut it made to its savings account products.

The banking giant trimmed the interest rates on its LifeSavings products by 0.5% for some account holders, and 0.1% for all others.

Investors punished the company on the back of the news, sending its share price 4% lower the following week.

After making a swift recovery to its former highs, the Westpac share price took another hit on 11 October. The company announced a series of items that are set to impact its performance in the second half.

These “notable items” will set the banking giant back $1.3 billion on its net profit and cash earnings guidance for H2 2022, according to the company.

Specifically, the impairments comprise a blend of asset writedowns in its institutional banking unit ($965 million); provisions for liabilities such as refunds and litigation ($172 million); and transaction costs associated with recent divestments ($291 million combined).

Westpac understands this will have a net 15 basis point effect on its CET 1 capital ratio requirements.

Will these headwinds continue to plague the company? These leading brokers have weighed in on the debate to offer their opinion on the Westpac share price.

Can Westpac rebound from these pressures?

Analysts at investment bank Macquarie Group think it might not be such smooth sailing for Westpac to get out of the current situation.

The broker was curious about Westpac’s decision to write down the value of its institutional banking unit’s goodwill as part of its earnings management.

Macquarie does note, however, that Westpac’s earnings have been on the slide over several periods. It reckons “earnings are likely to remain under pressure” for the company.

Morgan Stanley’s investment crew has also weighed in. They say Westpac’s earnings down step was substantially larger than its internal forecasts of $261 million.

The broker looks at Westpac’s FY22 earnings guidance and off-market buyback as key inflection points for Westpac’s share price. Morgan Stanley has wound back its price target by 1% to $28.90.

Despite this, it maintains an overweight rating on the company’s shares.

Finally, leading broker Citi has chimed in and believes Westpac’s announcement could be a roadblock for the company’s management outfit.

This is especially true given Westpac management’s efforts to re-establish credibility and lay out its growth vision for the future, Citi says. Citi downgrades its modelling by $1.3 billion, or 20%, as a result.

Westpac shares are up 31% this year to date, after sliding 2% into the red this past week of trading.

The post What these top brokers are saying about the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks
• Westpac (ASX:WBC) share price edges lower following $1.3bn hit to earnings
• Why this top broker is bullish on the Westpac (ASX:WBC) share price
• How did ASX bank shares perform in the last quarter?
• Is the Westpac (ASX:WBC) share price a buy for its 7% dividend yield?

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.

from The Motley Fool Australia https://ift.tt/3av0p8v

Exchange traded funds (ETFs) can be a great way to balance out your portfolio.

This is because ETFs provide investors with easy access to a large and diverse group of shares that you wouldn’t usually have access to.

With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

If you’re wanting to add some tech shares to your portfolio then you could do this with the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the growing global cybersecurity sector.

Among the companies you’ll be investing in with this ETF are Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

With cybercrime on the rise, demand for cyber security services has been growing fast and is expected to continue doing so in the years that follow. This means many leading companies in the industry could be in a position to grow at an above-average rate over the next decade.

Over the last five years, the fund has generated a return of 21.6% per annum. This would have turned a $10,000 investment into $26,500.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund aims to invest in a group of companies with sustainable competitive advantages and attractive valuations.

Among the 50 companies included in the fund are the likes of Alphabet, Amazon, American Express, Boeing, Coca-Cola, McDonalds, Microsoft, Philip Morris, Pfizer, and Salesforce.

Companies with competitive advantages have historically generated strong returns for investors. It is for this reason that Warren Buffett looks for these advantages when choosing his investments.

Over the last five years, the index the fund tracks has generated a return of 19.8% per annum. This would have turned a $10,000 investment into almost $25,000.

The post 2 high quality ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 fantastic tech ETFs for ASX investors
• Own BetaShares Global Cybersecurity ETF (ASX:HACK)? Here’s what you’re invested in
• Potential buys: 2 compelling ASX shares
• These ASX shares could be top options for growth investors
• 2 top ETFs that might be buys in October 2021

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 BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2YHCzEf

The Electro Optic Systems Holdings Limited (ASX: EOS) share price is accelerating during afternoon trade. Its shares spent most of the day frozen pending a price-sensitive announcement by the defence contractor.

At the time of writing, Electro Optic Systems shares are up 10.82% to $3.79

What did Electro Optic Systems announce?

In today’s statement, Electro Optic Systems and its wholly-owned Unites States subsidiary SpaceLink, advised it has reached a significant milestone. This relates to the manufacture and launch of the initial constellation of four high-capacity optical relay satellites.

Following a comprehensive tender process, leading satellite manufacturer, OHB Systems AG (OHB) has been selected as the preferred tenderer.

Currently, the parties involved are engaged in advanced negotiations with a formal contract expected to be signed next week.

The total value of the agreement is expected to exceed US$300 million, subject to relevant terms and conditions.

Should the contract go ahead, OHB will be required to deliver four high-capacity relay satellites in Q1 2024. Payments for the work completed is to be based on achieving specific milestones over the 30-month term.

Electro Optic Systems noted that the satellites to be manufactured by OHB will include multiple subsystems and components. This includes digital payload processing, electric propulsion, and state of the art optical inter-satellite links.

Furthermore, the four medium-earth orbit (MEO) spacecraft must meet United States cybersecurity requirements. SpaceLink is aiming to provide a secure transport layer for critical communications between the satellites and ground stations.

OHB intends to invest US$25 million into SpaceLink in the first tranche of financing for the project. It is anticipated that this will be in the form of a SpaceLink Pre- IPO Convertible Note.

Electro Optic Systems share price snapshot

The past 12 months have been a turbulent ride for investors, with the company’s shares sinking 40%. However, when looking at a 5-year timeframe, its shares are up roughly 200%.

Electro Optic Systems commands a market capitalisation of more than $516 million and has approximately 151 million shares on issue.

The post Electro Optic Systems (ASX:EOS) share price rallies 10% on “significant milestone” appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher
• These are the 10 most shorted ASX shares
• Electro Optic Systems (ASX:EOS) share price dips as CEO spruiks AUKUS
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

Motley Fool contributor Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BIRkVC

The S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is trading lower. At the time of writing, the benchmark index is down 0.3% to 7,258.3 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price. The struggling infant formula company’s shares are surging higher following the release of an update from one of its smaller rivals, Bubs Australia Ltd (ASX: BUB). This morning Bubs reported a 96% year-on-year increase in Q1 gross revenue to $18.5 million. This appears to have sparked hopes that the tough times are now behind the infant formula market.

Electro Optic Systems Hldg Ltd (ASX: EOS)

The Electro Optic Systems share price has jumped 11% to $3.79. Investors have been buying the company’s shares after its wholly-owned US subsidiary, SpaceLink, reached a significant milestone in the manufacture and launch of the initial constellation of four high-capacity optical relay satellites. According to the release, leading satellite manufacturer, OHB Systems, has been selected as the preferred tenderer for the initial constellation. The terms of the contract are expected to require that OHB deliver the four high-capacity relay satellites in Q1 of 2024.

GUD Holdings Limited (ASX: GUD)

The GUD share price is up 7% to $11.33. This follows the release of a trading update at the Citi Australia & NZ Investment Conference and the positive response to it from brokers. GUD revealed that demand for its products has remained resilient despite widespread and protracted lockdowns. As a result, GUD’s revenue and EBIT are currently tracking in line with management’s expectations. In response, Citi retained its buy rating and $12.30 price target on the company’s shares.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up over 4% to $10.08. This morning the sports betting company announced a deal with Curling Canada. The agreement sees PointsBet become the official and exclusive sports betting partner for the sports body. This could give the company’s fledgling Canadian operations a big boost. This is because more than 13 million viewers tune in to Curling Canada’s events every season. This ranks among the highest-rated sports programming in the country.

The post Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Electro Optic Systems (ASX:EOS) share price rallies 10% on “significant milestone”
• Why the GUD (ASX:GUD) share price is storming 7% higher today
• Star Entertainment (ASX:SGR) share price surges despite police probe
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• PointsBet (ASX:PBH) share price lifts following Canada update

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 Electro Optic Systems Holdings Limited and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended A2 Milk and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mQrNmW

Woolworths Group Ltd (ASX: WOW) shares are inching higher on Wednesday. This is despite the supermarket giant’s involvement in contentions regarding pay standards for its delivery drivers.

At the time of writing, the Woolworths share price is trading hands at $40.33, up 0.24%. This puts the company’s share price 4.11% away from its recent all-time high of $41.99. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.3% from its previous close heading into afternoon trade.

Woolies stuck in a payment problem

Australia’s ninth-largest company is the spectacle of a parliamentary inquiry regarding the pay and work conditions of delivery drivers. Importantly, the drivers in question are not Woolworths’ employees. Rather, they are the drivers sourced through its partnership with UberEats.

On Monday, Australian Labor Senator Tony Sheldon accused Woolworths of turning a blind eye to the conditions to which UberEats delivery employees are subject. Correspondingly, Senator Sheldon purported that the multibillion-dollar ASX-listed company is neglecting its responsible sourcing standards in the process. Despite this, Woolworths shares are humming along on Wednesday.

Furthermore, Tony Sheldon provided his argument against the supermarket giant, stating:

Numerous academic reports of UberEats work has been paid significantly below the minimum wage on average about, $10.42 an hour in some cases, as low as $6.67 an hour and others.

They don’t show their workers receive a living wage. Aren’t you perpetuating a starvation wages strategy if you don’t have a proper oversight and require these companies to be paying workers comp and paying minimum wages?

In its defence, Woolworths is arguing that it can’t be held responsible for the payment of another company’s workers. Additionally, the grocery retailer highlighted that the work comes under independent contracting under the Fair Work Commission.

Uncanny timing for Woolworths shares

These allegations from the senator come mere days after Woolworths announced the settlement of class action proceedings. Ironically, these proceedings were in relation to its salaried team members, for which the company is certainly responsible.

In that announcement, the company revealed it had reached a settlement to remediate current and former team members. Approximately 20,000 staff will receive payment of $2,500 plus superannuation. As a result, the total remediation costs are around $50 million.

Woolworths shares rose higher on the settlement news, much like the company’s move today.

The post Own Woolworths (ASX:WOW) shares? Here’s why the company is making news this week appeared first on The Motley Fool Australia.

More reading

• Can the Woolworths (ASX:WOW) share price hit $45 by the end of 2021?
• Why this expert reckons the Woolworths (ASX:WOW) share price is on special
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• Woolworths (ASX:WOW) share price gains amid class action settlement
• The final Woolworths (ASX:WOW) dividend will be paid today. Here’s what you need to know

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.

from The Motley Fool Australia https://ift.tt/3iX2KNY

The S&P/ASX 200 Index (ASX: XJO) is having an… interesting day so far this Wednesday. At the time of writing, the ASX 200 is down by 0.10% to 7,268 points. After initially plunging this morning just after open, before rebounding into positive territory (if only just), the ASX 200 is back in the red. But even though the ASX 200 only has a toe under the breakeven line right now, one ASX 200 sector is doing far better. That would be ASX tech shares.

While the ASX 200 is down 0.19% so far today, the S&P/ASX All Technology Index (ASX: XTX) is doing far better. The XTX index is currently up a far healthier 1% at 3,003 points so far this Wednesday. As such, we can largely thank this sector for carrying the ASX 200 today, seeing as most of the ASX banks are in the red, and BHP Group Ltd (ASX: BHP) is essentially flat.

So which ASX tech shares are leading the charge?

ASX tech shares lead the ASX 200 into the green

Well, Afterpay Ltd (ASX: APT), the largest tech share in the XTX index by a mile, is in the vanguard. Afterpay shares are currently up a very healthy 2.07% to $117.01 a share at the time of writing. My Fool colleague Mitchell looked at some of what’s going on with Afterpay and some other buy now, pay later (BNPL) shares this morning.

Another large ASX tech stock in the XTX index is the cloud-based accounting software provider Xero Limited (ASX: XRO). Xero is also up by a healthy number today, 2.02% so far at $136.39 a share. That’s despite not much in the way of any news or developments coming out for Xero today.

Appen Ltd (ASX: APX) is another ASX tech winner this Wednesday. This provider of human-annotated datasets is also enjoying a gain in the ‘twos’. It’s up 2.37% to $8.65 at the time of writing.

We also see some more muted gains (but gains nonetheless) from other tech shares like Zip Co Ltd (ASX: Z1P), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU).

So why are ASX 200 tech shares enjoying some of the best gains on the market today? Well, it could just be a bounceback from the recent woes we have seen in this sector.

Just yesterday, my Fool colleague Kerry looked at how ASX tech shares were “taking the brunt of this week’s selling”, with most of the above companies taking a beating. As we discussed, this might be linked to the US 10-year Treasury yield. This yield has subsequently pulled back over the past 24 hours or so, which may also be helping to give ASX tech shares some relief.

Whatever the reason behind today’s moves for ASX 200 tech shares, it will be no doubt welcomed by many investors.

The post These ASX tech shares are lighting up the ASX 200 today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Own ASX BNPL shares? World Payments Report delivers insights into future of sector
• Zip (ASX:Z1P) share price on watch after broker downgrade
• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3AyECqR