Tag: Motley Fool

Are you looking for some dividend shares to boost your income portfolio?

If you are, then you might want to look at the ones listed below. Here’s why these ASX 200 dividend shares could be in the buy zone:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

If you don’t already have exposure to the banking sector, then it may be worth considering ANZ. It could be an ASX 200 dividend share to buy according to the team at Morgans. The broker currently has an add rating and $34.50 price target on its shares.

Morgans likes ANZ due to its attractive valuation, cost reduction plans, and its strong balance sheet.

The broker is also expecting the bank’s dividend to grow nicely in the coming years. It has pencilled in fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022.

Based on the current ANZ share price of $27.96, this will mean yields of 5.2% and 5.9%, respectively.

South32 Ltd (ASX: S32)

Investors that are happy to invest in the mining sector might want to take a look at this mining giant. South32 could be an ASX 200 dividend share to buy thanks to expectations for bumper free cash flows and returns for investors in the coming years.

The miner has exposure to a range of commodities such as alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc. Some of these, such as aluminium and coal, are commanding sky high prices at present.

Goldman Sachs is very positive on South32 and is forecasting huge dividends in the coming years. It expects dividends per share of 29 US cents (39.8 Australian cents) in FY 2022 and 31.9 US cents (43.9 Australian cents) in FY 2023.

Based on the latest South32 share price of $3.58, this will mean fully franked yields of approximately 11.1% and 12.2%, respectively.

Goldman has a conviction buy rating and $4.00 price target on its shares.

The post 2 ASX 200 dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies
• ASX 200 (ASX:XJO) midday update: EML crashes, mining shares rise
• ANZ (ASX:ANZ) share price flat despite BNPL plans
• What to expect from the ANZ (ASX:ANZ) FY 2021 result this month
• What happened for the ANZ share price in the FY22 first quarter?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Today, the S&P/ASX 200 Index (ASX: XJO) ended the week on a positive note. The benchmark index gained 0.87% higher to 7,320.1 points.

Investors were treated to a strong showing on Friday. The broad market was flushed with green across all sectors, with materials and tech shares leading the pack. On the other hand, real estate shares lagged behind, although still posting a gain for the sector as a whole.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Chalice Mining Ltd (ASX: CHN) was the biggest gainer today. Shares in the gold mining company rallied 7.36% despite no announcements from the company. Find out more about Chalice Mining here.

The next biggest gaining ASX share today was Magellan Financial Group Ltd (ASX: MFG). The fund manager gained 5.58%, once again, without any announcements today. Uncover the latest Magellan Financial details here.

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

ASX-listed company	Share price	Price change
Chalice Mining Ltd (ASX: CHN)	$6.27	7.36%
Magellan Financial Group Ltd (ASX: MFG)	$33.90	5.58%
Coronado Global Resources Ltd (ASX: CRN)	$1.52	4.47%
Rio Tinto Ltd (ASX: RIO)	$100.40	4.00%
Nickel Mines Ltd (ASX: NIC)	$0.94	3.87%
ALS Ltd (ASX: ALQ)	$13.13	3.79%
Domain Holdings Australia Ltd (ASX: DHG)	$5.64	3.49%
Iress Ltd (ASX: IRE)	$11.60	3.48%
Super Retail Group Ltd (ASX: SUL)	$12.77	3.15%
BHP Group Ltd (ASX: BHP)	$37.74	3.00%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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

More reading

• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Which shares are set to finish the week as the top movers on the ASX 300?
• These 3 ASX 200 shares are the most popular by trading volume today
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• Top brokers name 3 ASX shares to sell 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. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group 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/3iKeZ0d

What better way to end the week than to set an all-time high. That is exactly what the Beacon Lighting Group Ltd (ASX: BLX) share price ended up doing today.

At the end of Friday’s session, shares in the lighting retailer were 6.82% higher to $2.35. However, the surging share price reached an intraday high of $2.41 around lunchtime — cementing a new record high price for the company. Prior to this, we would have to go all the way back to 2015 to see a share price close to this.

While the achievement is notable, the catalyst for the rise is somewhat a mystery. Though, there are a couple of points that could be worth looking at.

Stability brought to management

This afternoon, an announcement was released relating to performance rights and options in the company. According to the release, a total of 215,352 performance rights with a zero exercise price have been issued to Beacon Lighting executives.

Furthermore, these options have an expiration date of 24 June 2031. Though, the important detail is that two-thirds of these options will be subject to terms of employment. Namely, the executives will need to still be employed on 19 August 2022 and 19 August 2023 to exercise these issued options.

Perhaps investors were optimistic about this news, as it incentivises the current management team to stay right where they are, rather than suddenly upending themselves. Hence, the options incentive can help reduce volatility inside the company, which would be good for the Beacon Lighting share price.

Additionally, the results of the company’s annual general meeting were decided on Tuesday. The outcomes included the re-election of deputy chair Eric Barr; adoption of the remuneration report; and the issuing of performance rights to CEO Glen Robinson.

Beacon Lighting share price snapshot

Shareholders of the lighting retailer have far exceeded benchmark returns over the 12 months. Specifically, the Beacon Lighting share price has returned 80.8% in the past year. For context, the S&P/ASX 200 Index (ASX: XJO) gained 20% during the same timeframe.

In addition, the company not only kept paying shareholders dividends but also increased the payments in 2021. Total dividends paid this year are 8.8 cents per share — representing a 76% increase on 2020.

The post Why is the Beacon Lighting (ASX:BLX) share price jumping 7% to record highs? appeared first on The Motley Fool Australia.

More reading

• 3 more small-cap ASX shares with a competitive edge
• 2 small cap ASX shares with exciting growth potential: experts

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/3uS6Lbe

Shares in investment banking giant Macquarie Group Ltd (ASX: MGQ) edged higher in the afternoon today and finished trading at $182 apiece.

That’s a shade off its all-time high of $183.71 which it hit in early trade this morning.

These are impressive results for the bank, which has rallied 6.5% in the last month and recovered from a previous low of $171.93 on 21 September.

Why don’t we dive in and see what’s been fuelling this growth in the Australian banking group’s share price lately.

What tailwinds are behind the Macquarie share price?

Taking a step back and looking at a wider time frame, it was a good month in September for Macquarie’s share price.

Early last month the bank gave an investor presentation detailing its outlook for the coming periods.

From its presentation, the company expects a significant increase in operating profit for the first quarter of FY22, due to the sale of some of its business segments, and strengths in others.

It did, however, say it expects a slight down-step in earnings from the second half of FY21, but that it still expects significant year on year growth in its FY22 first half results.

Aside from this, Macquarie believes it is well positioned to capitalise on tailwinds that have emerged from its investments into renewable energy.

Macquarie is a large green and renewables investor, with over $2 billion in current funding commitments on its books, and another $45 million ready to support green energy.

With this, it believes it will continue to deliver outsized returns over the coming years, as energy production and consumption trends begin to shift away from fossil fuels.

Investors have been buying the company’s growth narrative this past month, and appear to be pricing in the company’s future growth potential with this flurry of buying activity.

Can Macquarie keep it up to justify its all-time high share price?

One leading broker seems to think so. Analysts at investment firm Jeffries believe the company has the legs to outperform the consensus view at its upcoming half-year results.

Jeffries forms its view partly due to the recent turbulence in global gas markets, but also see’s strengths from Macquarie recently gaining market share in the home and business loans markets.

It also believes that with the upcoming 2021 COP26 UN Climate Change Conference just around the corner, Macquarie could be on the receiving end of favourable government initiatives that may follow the conference.

Not only that, in terms of market size, Macquarie’s total addressable market in this segment is “far bigger than (its) present $66 billion market capitalisation”, which is a bullish signal, according to Jeffries.

As such, it has a $211 price target on the Macquarie share price, implying a 16% upside potential from the last market price.

Macquarie shares are also up 41% in the last year, ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 25% in this time.

The post Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday appeared first on The Motley Fool Australia.

More reading

• How did the Macquarie (ASX:MQG) share price perform in September?
• The most important catalyst for outperforming ASX shares: fund manager
• 2 compelling ASX shares that could be buys in October 2021
• How does the Westpac (ASX:WBC) dividend compare to the banking sector?
• These were the best performing ASX bank shares in September

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 owns shares of and has recommended Macquarie Group 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/3FrRoLG

The Bank of Queensland Limited (ASX: BOQ) share price has finished Friday in the red. However, the $6.2 billion bank’s shares hit a new 52-week high in the early hours of trade.

At the end of the session, shares in Bank of Queensland finished 0.31% lower to $9.71. Although, they had reached a high of $9.84 within 30 minutes of opening trade.

Despite the accomplishment, there’s not much news out from the company — aside from informing shareholders of the date for its annual general meeting, which is expected to be held on 7 December 2021.

With that in mind, let’s recap what has been going on recently at the Bank of Queensland, and what may lie ahead.

Upcoming full-year results

Investors have been displaying eagerness towards the BOQ share price in recent weeks. Shares have climbed as much as 7.4% in the past 16 days. This rally comes in the lead-up to the company announcing its full-year results for FY21 on 13 October 2021.

If the FY21 result from Commonwealth Bank of Australia (ASX: CBA) was anything to go by, Bank of Queensland shareholders could be in store for a solid result. For reference, the smaller bank reported its half-year results back in April — which involved impressive numbers of its own.

In its first half, the Bank of Queensland reported a 9% increase in cash earnings after tax to $165 million. Consequently, the bank declared a 17 cent per share interim dividend, which was up from 6 cents per share in 1H FY20.

Furthermore, the upcoming full-year result will be the first to include contributions from ME Bank. On 1 July 2021, the Bank of Queensland completed its acquisition of Members Equity Bank for a total cash consideration of $1.325 billion.

No doubt shareholders will be watching the FY21 result closely to get a glimpse of how the integration of ME Bank is travelling.

Bank of Queensland share price snapshot

The BOQ share price has performed exceptionally well over the past year. In fact, the smaller Aussie bank contender has outpaced the gains experienced by the big four banks.

Across the 12-month period, the smaller bank has delivered a return of 59%. Meanwhile, the next closest competitor is CBA with a gain of 54% over the same period.

The post Bank of Queensland (ASX:BOQ) share price hits 52-week high on Friday appeared first on The Motley Fool Australia.

More reading

• Top broker tips Bank of Queensland (ASX:BOQ) share price as a buy
• 5 things to watch on the ASX 200 on Wednesday
• If you invested $1,000 in Bank of Queensland (ASX:BOQ) shares a decade ago, here’s what it would be worth now
• Why Bank of Queensland (ASX:BOQ) shares are up 66% in the past 12 months
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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/3mwlOnj

The Recce Pharmaceuticals Ltd (ASX: RCE) share price was halted today after the company made a key announcement.

Recce shares were trading 1.61% lower at 91.5 cents before being placed into a trading halt.

Let’s get into the thick of it to understand what went down today.

What’s happening with Recce Pharmaceuticals?

To understand what’s led us to this point, we have to take a step back to the start of last month when Recce issued 10,000 ordinary shares upon the exercise of unlisted options.

Normally, if securities aren’t listed, they can’t be sold until 12 months after issue – but of course, there are exceptions to the rule. Companies can just submit a few forms to disclose the issue and sale of the shares, and everyone is on their way. It’s routine practice on the ASX.

However, “due to an administrative oversight”, the company forgot to lodge the cleansing notice forms that are required under section 708A(5)(e) of the Corporations Act 2001, when issuing and then on-selling its shares last month.

Under the legislature, companies are obliged to submit a cleansing notice within 5 business days of issuing shares in certain circumstances, such as when stock options are exercised.

The aim is to in effect ‘cleanse’ the market of any information that would have otherwise been undisclosed, that also may have a material impact on a share’s price. It can also be used to lay false information to rest.

The company advised that it shortly intends to apply to the NSW Supreme Court for an extension on the time to lodge the cleansing notice. It intends to make the application on 11 October, according to the release.

Recce Pharmaceuticals share price snapshot

The Recce Pharmaceuticals share price has been swimming in a sea of red this year. It’s fallen 15% in the last 12 months, 13% since January 1, and 11.5% in the past month.

These returns have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 20% this past year.

The post Here’s why the Recce Pharmaceuticals (ASX:RCE) share price was on ice today appeared first on The Motley Fool Australia.

More reading

• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Brokers name 3 ASX shares to buy today
• Which shares are set to finish the week as the top movers on the ASX 300?
• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
• Why Clinuvel, EML, Regal, & Whitehaven Coal shares are sinking

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/3FmtiSt

Brickworks Limited (ASX: BKW) is one of those S&P/ASX 200 Index (ASX: XJO) shares that you might think you can get a pretty good grip on what it does, just by the name.

Yes, Brickworks is indeed in the business of manufacturing bricks and other construction materials. It has been doing so since 1934.

But most Aussies wouldn’t be familiar with the fact that this company is doing more than just making bricks. Brickworks also has a formidable investment portfolio. This has come in handy for the company before, enabling Brickworks to smooth out the volatility and seasonality of the construction industry.

So, if you’re a Brickworks shareholder, what kind of investments do you actually own by extension?

Well, Brickworks’ main breadwinner is still its twin construction businesses in Australia and the United States. However, the company has two other pillars that it uses to supplement these primary businesses.

Brickworks shares: fingers in many pies

The first is a property business. Brickworks has made a habit of developing old property sites that it has used in the past for making bricks and other construction materials. It works in conjunction with other companies, such as Goodman Group (ASX: GMG) to monetise these assets. Its primary property interest is the Joint Venture Industrial Property Trust that it operates with Goodman, which is now worth about $633 million for Brickworks.

That brings us to Brickworks’ other ‘pillar’. That would be its ownership of ASX shares. Yes, Brickworks is an investor on the share market just as you or I may be. So, what shares does Brickworks own?

Well, its primary investment is a 39.4% stake in Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts, as it’s also known, also has a stake in Brickworks shares itself, as well as a large portfolio of other shares.

Through Soul Patts, Brickworks in turn can claim indirect ownership of those same shares, which include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC) and BKI Investment Co Ltd (ASX: BKI). The latter is itself an old spin-off of Brickworks.

How important is this 39.4% stake in Soul Patts? Well, in its 2021 annual report, Brickworks called this investment a “core asset of Brickworks that has brought diversity and reliable earnings to the Company for more than 50 years”. 

It went on to say that “our investment in WHSP provides a cash flow stream via dividends that allows long term strategic decision making by sheltering the business during cyclical downturns”.

So, there you go. It turns out that if you own Brickworks shares, you don’t just have ownership of any old brick factory.

The post Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are the most popular by trading volume today
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• How did ASX lithium shares perform in the FY22 first quarter?
• 2 ASX 200 shares surging this week despite inflation worries
• US warns Evergrande crisis could affect ‘entire world’

Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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/3AnDE0v

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 have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and $56.00 price target on this mining giant’s shares. While investors have been focusing a lot on the falling iron ore price, Macquarie highlights that strong coal prices are supporting its earnings and cash flow. In respect to the latter, the broker estimates that its shares are trading on a free cash flow yield of ~20%. This should be supportive of generous dividends. The BHP share price is trading at $37.83 today.

Pilbara Minerals Ltd (ASX: PLS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $2.80 price target on this lithium miner’s shares. This follows news that Pilbara Minerals has begun the commissioning of the Ngungaju Plant acquired from Altura Mining. It has been in care and maintenance mode since its acquisition. Macquarie notes that this comes at a time when spot lithium prices in China remain strong and could support better than forecast earnings. The Pilbara Minerals share price is fetching $1.96 today.

Sonic Healthcare Limited (ASX: SHL)

Analysts at Morgan Stanley have retained their overweight rating and $45.50 price target on this healthcare company’s shares. According to the note, the broker has been looking at an update from its European peer, Synlab. It notes that Synlab has upgraded its guidance to reflect stronger than expected COVID-19 testing demand. Morgan Stanley feels this bodes well for Sonic and creates upside risk to its earnings estimates for FY 2022. The Sonic share price is trading at $39.85 today.

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

More reading

• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
• These 3 ASX 200 shares are the most popular by trading volume today
• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• How did ASX lithium shares perform in the FY22 first quarter?
• US warns Evergrande crisis could affect ‘entire world’

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 Sonic Healthcare 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/3locfHO

The S&P/ASX 300 Index (ASX: XKO) is pushing upwards today, further adding to yesterday’s gains.

At the time of writing, the ASX 300 is up 0.83% to 7,318.5 points. This means that over the past two days, the index has risen 1.58%.

We take a look at some of the top movers on the ASX 300 today.

oOh!Media Ltd (ASX: OML)

The oOh!Media share price is on the move, up 5.6% to $1.92 despite no company announcements today.

The out of home media company has seen its shares rebound lately as Australia ramps up its COVID-19 vaccine efforts. Investors are anticipating a quick recovery for its advertising operations.

Magellan Financial Group Ltd (ASX: MFG)

Following suit is the Magellan share price, up 5.92% to $34.01.

The financial company also hasn’t provided any news to the market today. However, yesterday afternoon, Swiss investment firm provided an update on its assessment of Magellan shares.

Analysts cut their rating by 5.4% to $35.00 per share. While this is a reduction, it still implies an upside of around 3% based on the current share price.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is travelling 4.55% higher to $5.28.

The metals company released its 180-page annual and sustainability report this afternoon, highlighting its activities throughout the year. Sandfire Resources also covered its environmental, social, and governance (ESG) obligations.

And the ASX 300 shares heading the other way?

EML Payments Ltd (ASX: EML)

Heading south is the EML Payments share price, down a sizeable 14.46% to $3.17.

The payments solutions company nosedived following a regulatory update relating to the Central Bank of Ireland (CBI).

EML Payments advised its Irish-based subsidiary, PFS Card Services business could be impacted materially. CBI has proposed certain limits be applied across the company’s almost 27,000 programs in the next week.

Australian Strategic Materials Ltd (ASX: ASM)

Also in decline is the Australian Strategic Materials share price, down 5.74% to $10.19.

The rare earth metals company hasn’t released any market-sensitive news to the ASX today. However, its shares are taking a breather from registering about a 10% gain over the past two days.

Since this time last year, Australian Strategic Materials shares have gained 270%, with year-to-date up 54%.

The post Which shares are set to finish the week as the top movers on the ASX 300? appeared first on The Motley Fool Australia.

More reading

• Why Clinuvel, EML, Regal, & Whitehaven Coal shares are sinking
• These 3 ASX 200 shares are the most popular by trading volume today
• Top brokers name 3 ASX shares to sell today
• Why Fletcher Building, Magellan, Sezzle, & Starpharma are racing higher
• Here’s why these top brokers reckon the Magellan (ASX:MFG) share price is cheap

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. owns shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool Australia has recommended oOh!Media 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/3DqzYgD

Buying activity is picking up for depressed ASX iron ore miners like the Fortescue Metals Limited (ASX: FMG) share price on Friday.

The S&P/ASX Materials (INDEXASX: XMJ) index is up 2.05% headlined by gains from iron ore majors.

The BHP Group Ltd (ASX: BHP) share price is up 3.55% to $37.94. The Rio Tinto Limited (ASX: RIO) share price is rallying 4.12% to $100.5. And the Fortescue share price is tailing behind, up 2.88% to $14.31.

On the smaller end of town, Champ Iron Ltd (ASX: CIA) and Mount Gibson Iron Ltd (ASX: MGX) are also catching bids, up 2% and 5.75% respectively.

What’s driving iron ore miners higher?

The S&P/ASX 200 Index (ASX: XJO) might be taking off after Wall Street, as all three of its major indices posted gains of around 1%.

Consumer discretionary and materials were among the best performing sectors overnight, rallying 1.5% and 1.35% respectively.

Likewise, what’s been a choppy week for the S&P/ASX 200 Index (ASX: XJO) is coming to a bright conclusion, rallying 0.74% to 7,310 at the time of writing.

In addition, Friday marks the end of China’s week-long National Day holiday.

Iron ore prices have remained relatively flat in light of China’s public holiday. Fastmarkets reported that iron ore prices edged 0.02% higher on Thursday to US$117.02 a tonne on the back of limited trading liquidity.

But China’s most-traded iron ore futures contracts for January 2022 delivery came back surging on Friday, up 4.8% to ~760 yuan (US$117) a tonne.

China also announced some encouraging economic data with its services sector growing in September according to CNBC.

The Caixin/Markit services purchasing managers’ index (PMI) rose to 53.4 from 46.7 in August, bouncing from the lowest level seen since the height of the pandemic last year. Any figure below the 50-point mark represents a contraction on a monthly basis.

An encouraging move for Chinese iron ore pricing and positive domestic economic data after a week long break is likely fueling buying activity from iron ore juniors through to majors like the BHP and Fortescue share price.

The post Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today appeared first on The Motley Fool Australia.

More reading

• Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
• Is the Fortescue (ASX:FMG) dividend yield really 25%?
• US warns Evergrande crisis could affect ‘entire world’
• ASX 200 (ASX:XJO) midday update: EML crashes, mining shares rise
• BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’

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.

from The Motley Fool Australia https://ift.tt/2YA8Mx1