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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. The benchmark index is currently up 0.7% to 7,466.8 points.

Here’s what is happening on the ASX 200 on Thursday:

Telstra T25 strategy

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher today after investors responded positively to its new T25 strategy. Telstra’s CEO, Andrew Penn, highlighted that its T22 strategy was based on transforming the company, whereas T25 will be about driving growth. Mr Penn is aiming for sustained growth and value. This is by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

Wesfarmers acquisition

The Wesfarmers Ltd (ASX: WES) share price is trading broadly flat on Thursday after increasing its takeover offer for Australian Pharmaceutical Industries Ltd (ASX: API). According to the release, the conglomerate has tabled a $1.55 per share offer. This compares to its previous offer of $1.38 per share, which was rejected by the API board in July. Wesfarmers has been granted due diligence on this occasion.

PointsBet lower despite agreement

The Pointsbet Holdings Ltd (ASX: PBH) share price is trading lower on Thursday. This is despite announcing a new agreement. According to the release, the sports betting company has entered into an exclusive agreement with Major League Soccer team Austin FC. It will be the club’s exclusive sportsbook partner.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Incitec Pivot Ltd (ASX: IPL) share price with a 4.5% gain. This appears to have been driven by improving investor sentiment since its Waggaman update earlier this week. The worst performer on the ASX 200 has been the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price with a 4.5% decline. Earlier today, the company revealed that it would vote in favour of Wesfarmers’ takeover of Australian Pharmaceutical Industries. In addition, its merger partner Milton Corporation Limited (ASX: MLT) declared a special dividend of 37 cents per share ahead of the scheme meeting.

The post ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer appeared first on The Motley Fool Australia.

More reading

• PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement
• Telstra (ASX:TLS) share price rises on T25, dividend growth goal
• Telstra (ASX:TLS) share price on watch after unveiling its T25 strategy
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares 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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is edging higher after the iron ore mining giant released a positive announcement to the market this morning.

At the time of writing, Fortescue shares are 0.59% higher at $17.93 apiece.

The Fortescue share price has been retreating this month due to the falling iron ore spot price, which sank a further 4.47% overnight to US$117.50 per tonne.

What did Fortescue announce?

Fortescue advised that it has established a co-management framework for the Eastern Guruma People. Members of Wintawari Guruma Aboriginal Corporation (Wintawari), the prescribed body corporate, are representing the community.

The collaboration will oversee the development of new mines at Fortescue’s Solomon Hub operations.

In particular, both parties will establish a culturally safe mining joint venture to mine the East and West Queens deposits in Eastern Guruma country.

The 10-year mining services contract is worth an estimated $500 million. This makes it the largest contract ever awarded to an Aboriginal business by Fortescue.

A working group will be formed to work on all stages of the mine development. These include heritage and environmental approvals, resource drilling and definition, and mine planning to operations and rehabilitation.

Fortescue CEO, Elizabeth Gaines commented:

Fortescue is proud of our longstanding relationship with Wintawari Guruma Aboriginal Corporation. We are confident that this new collaborative framework will strengthen our ties with the Eastern Guruma People, through the unique opportunity to have a seat at the table to share cultural knowledge and guide the growth of Fortescue’s operations on their country.

Fortescue said it has awarded more than $3.5 billion in contracts to Aboriginal businesses and joint ventures through its Billion Opportunities program.

The new contract represents another partnership with the Aboriginal business sector.

Fortescue share price summary

It has been a rollercoaster ride for Fortescue investors over the past 12 months.

The company’s shares are up just 3.37% for the period but were trading significantly higher at times during 2021. In July, it was trading above $26.

Year to date, the Fortescue share price is down by 27.6%.

The post Fortescue (ASX:FMG) share price up as miner announces largest contract ever with Aboriginal group appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price at year-to-date lows, analysts slash iron ore forecasts
• The Fortescue (ASX:FMG) share price is down 31% in 7 weeks. What’s next?
• Leading brokers name 3 ASX shares to sell today
• The latest ASX 200 mining shares to get hit by broker downgrade
• How have these ASX 200 iron ore shares performed since reporting results?

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 Paladin Energy Ltd (ASX: PDN) share price is breaking out to 9-year highs as uranium prices continue to skyrocket.

In morning trade, the Paladin Energy share price was up 5.37% to $1.08. However, it has since partially retreated and at the time of writing is $1.03. That’s still a gain of 0.49% on the previous close.

Uranium bull market in full throttle

Uranium spot prices rose sharply overnight to fresh 9-year highs of US$48/lb according to S&P Global Platts.

This is likely the main catalyst behind the sudden re-rate of the Paladin Energy share price.

Skyrocketing uranium prices have been driven by the Sprott Physical Uranium Trust, the world’s largest actively managed uranium fund that invests in physical uranium.

The fund has been aggressively buying physical uranium off the spot market. This is not only tightening supply in what is typically an illiquid market, but is also sparking investor interest in the energy metal.

Sprott continues to shake up the uranium industry. S&P Global reported that the trust received approval for an “expanded equity sales program that will allow the fund to acquire up to $1 billion in additional uranium in the coming months”.

S&P Global quoted Paul Goranson, CEO of uranium development company enCore Energy, who said:

[Sprott] isn’t going to sell uranium. This is what they do with all their commodities, hold them. The only difference is, uranium is a much smaller market. They’re going to take all the cheap material off the market and sequester it for a very long time.

The report also highlighted other sources driving uranium demand and possibly the Paladin Energy share price.

Demand is also coming from sources other than Sprott, with a variety of financial investors and uranium producers seeking to acquire material during what some market participants see as a supply crunch. Uranium Royalty Corp, another Canadian company, announced Sept. 15 that it had added 300,000 lb of uranium to its holdings recently. Last month URC announced its own ATM program for $40 million, although only some of that amount is earmarked for physical uranium purchases.

Paladin Energy share price snapshot

The Paladin Energy share price has gained 129% in the past month and is up 350% year-to-date.

The post The Paladin Energy (ASX:PDN) share price rockets 5% to 9-year high. Here’s why appeared first on The Motley Fool Australia.

More reading

• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Which ASX 300 shares are on the move mid-week?
• Up another 13%, the Paladin Energy (ASX:PDN) share price keeps on rallying. Here’s why.
• ASX uranium shares are booming double digits across the board on Monday. Here’s why.

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 92 Energy Ltd (ASX: 92E) share price boomed in September thanks to the recent hype around uranium spot prices.

92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.

The company said it is the first pure-play uranium company to list on the ASX in more than a decade after uranium prices plunged from 2007 peaks of US$136/lb to around US$30/lb in 2020.

What’s driving the 92 Energy share price?

The 92 Energy share price joins the long list of booming ASX uranium shares, most of which are rallying to multi-year highs.

This is largely thanks to skyrocketing uranium spot prices, which have jumped to 9-year highs of US$48/lb on Wednesday, according to S&P Global Platts.

It was just a month ago that uranium prices were fetching just ~US$30/lb.

The sudden jump in uranium prices has pumped life back into ASX uranium shares across the board.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has rallied 126% in the last month to a fresh 9-year high.

Other emerging producers and explorers including Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and Boss Energy Ltd (ASX: BOE) have all rallied triple digits in the past month.

What’s so special about this uranium company?

The 92 Energy share price has returned faithful IPO investors more than 400% in just 5-months.

The company is exploring for high-grade, unconformity-type uranium in the Athabasca Basin, Canada.

This region is known for having some of the highest grade and lowest cost uranium deposits in the world, according to 92 Energy.

92 Energy owns a number of early stage uranium projects all of which are located in the Athabasca Basin. Here’s an overview of the company’s projects:

• Gemini Project, covering 264.5 km2 on the eastern margin of the Athabasca Basin
• Tower Project, an underexplored and untested prospect also running along the eastern margin
• Clover Project, located within close proximity of major uranium mines including McArthur and Cigar Lake

92 Energy investors can expect a steady stream of updates from the company as it executes its exploration strategy.

According to the company prospectus, it expects to spend approximately 2.2 million over the next year to drive its Gemini, Clover and Tower projects.

The post 92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Is there a uranium ETF listed on the ASX?
• ASX uranium shares are booming double digits across the board on Monday. Here’s why.
• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.
• The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here’s why

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 Toro Energy Limited (ASX: TOE) share price is shooting higher this morning after a couple of key updates impacting the ASX uranium development and exploration company.

The Western Australia-focused group’s shares have surged 23.8% to 5.2 cents on Thursday morning.

We take a closer look at what could be driving today’s moves.

Why the Toro Energy share price is rocketing today

Investors might be wondering why this ASX small-cap share is climbing higher in early trade. There are a couple of factors at play. One is company-specific and the other is more of a macro consideration.

Toro this morning provided an update on its Lake Maitland Uranium Deposit study. The first phase of the re-engineering study at its key deposit has progressed.

Toro said the vanadium resource is currently “being integrated into the uranium resource block model ready for optimisation”.

Toro said the re-engineering “follows on from the success of research into beneficiation of the potential Lake Maitland uranium ore and the subsequent redesign of the processing flowsheet for a stand-alone Lake Maitland mining and processing operation”.

Investors might be thinking this seems like good news, but may not be enough to spark a 23.8% Toro Energy share price surge. That’s because the other factor, affecting ASX uranium shares more broadly, could be at play.

US President Joe Biden joined Australian and UK Prime Ministers Scott Morrison and Boris Johnson this morning. The trio announced a new, trilateral security partnership between their nations called “AUKUS”.

The deal will see Australia acquire a fleet of nuclear-powered submarines in the future. That represents a pivot away from the existing $90 billion deal with Naval Group to build an Australian submarine fleet.

This morning’s update has helped boost ASX uranium shares across the board as investors speculate on the news. There have been no indications of individual companies’ involvement at this stage.

The Toro Energy share price has rocketed 23.8% on the back of the twin updates. It is up 155% this year to date, and 410% over the past 12 months.

The company currently boasts a market capitalisation approaching $200 million.

The post The Toro Energy (ASX: TOE) share price is surging 23%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Deep Yellow (ASX:DYL) share price jumps 6% to 8-year high. Here’s why.
• PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement
• Is there a uranium ETF listed on the ASX?
• Why the Neometals (ASX:NMT) share price is surging 11% to a 52-week high
• This leading fund manager thinks these ASX shares might be buys

Motley Fool contributor Ken Hall 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 Deep Yellow Limited (ASX: DYL) share price is racing to 8-year highs on Thursday as uranium prices continue to run higher.

At the time of writing, the Deep Yellow share price is up 4.4% to $1.30.

What’s driving uranium prices?

Uranium spot prices have skyrocketed from around US$30/lb in mid-August to US$48/lb by Wednesday, according to S&P Global Platts.

This mostly explains why the Deep Yellow share price has doubled from 60 cents on 20 August.

Uranium prices have boomed thanks to a Canadian fund aggressively buying physical uranium off the spot market.

Sprott’s Physical Uranium Trust, which began trading on the Toronto Stock Exchange in July has amassed more than 25 million pounds of uranium since inception.

According to S&P Global, Sprott received approval on Wednesday of an “expanded equity sales program that will allow the fund to acquire up to $1 billion in additional uranium in the coming months.”

Commenting on the Sprott’s uranium situation, S&P Global said:

One reason offers are rising so quickly is a dearth of currently available material. Multiple market sources have said that Sprott has acquired a lot of U3O8 for delivery in the current month, but also for delivery later as prompt material climbed in price.

The price surge has made inventories more valuable and may spur future production, uranium company officials said.

S&P Global also quoted Paul Goranson, CEO of uranium development company enCore Energy who said:

[Sprott] isn’t going to sell uranium. This is what they do with all their commodities, hold them. The only difference is, uranium is a much smaller market. They’re going to take all the cheap material off the market and sequester it for a very long time.

Deep Yellow share price snapshot

The Deep Yellow share price is up 92% in the past month and 153% year-to-date.

Deep Yellow shares have managed to climb to 8-year highs, broadly coinciding with uranium spot prices hitting 9-year highs on Wednesday.

The post Deep Yellow (ASX:DYL) share price jumps 5% to 8-year high. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Here’s why the Deep Yellow (ASX:DYL) share price is up 50% this month
• Deep Yellow (ASX:DYL) share price surges 24% to record highs
• ASX uranium shares are booming double digits across the board on Monday. Here’s why.

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 PointsBet Holdings Ltd (ASX: PBH) share price is in the red this morning. That’s after the betting company announced a new partnership with Major League Soccer (MLS) team Austin FC.

In early trade, shares in the company were up 1.25% to $9.72. However, at the time of writing, they are down to $9.44 — that’s a fall of 1.67% on yesterday’s closing price. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.9% higher.

Let’s take a closer look at today’s news.

PointsBet share price is taking a dive

In a statement to the ASX, PointsBet says it has entered into an “exclusive” agreement with Texas MLS team Austin FC (AFC) to appoint PointsBet as the team’s sportsbook partner.

PointsBet has also made a deal with the AFC stadium (an affiliate of AFC) to become the venue’s exclusive partner for betting across the state of Texas.

It should be noted both of these deals are contingent on the state of Texas amending existing sports betting laws. If legislation is not amended, these contracts will become null and void.

Texas is just one of several markets in the US in which PointsBet is hoping to make inroads. For example, the PointsBet share price shot up on news it would be allowed to operate in the state of West Virginia.

Texas has a population larger than Australia, while Austin, its capital, is one of the fastest-growing cities in the US, according to the statement. However, the deal has done little to boost the PointsBet share price.

Management commentary

PointsBet USA CEO Johnny Aitken said:

In owning and operating our technology from end to end, PointsBet can innovate our product and personalise our offerings according to fan interest and needs – and we hope to be able to unveil our offering to Austin FC supporters in the near future when legislation permits.

In the meantime, we look forward to the opening of the PointsBet SportsBar at the grounds of Austin FC and watching soccer in the amazing new MLS stadium.

PointsBet share price snapshot

Over the past 12 months, the PointsBet share price has plummeted 17%. Year-to-date the company’s shares are down by a similar amount.

PointsBet Holdings has a market capitalisation of about $2.5 billion.

The post PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement appeared first on The Motley Fool Australia.

More reading

• Down 4%, why the PointsBet (ASX:PBH) share price is close to 12-month lows
• The PointsBet (ASX:PBH) share price is down 14% in a month. Is it a buy?
• 3 ASX tech shares to buy
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• Leading broker tips PointsBet (ASX:PBH) share price to rise 39%

Motley Fool contributor Marc Sidarous 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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Uranium stocks are going nuclear as the industry booms from surging spot prices.

According to S&P Global, uranium spot prices rose sharply to a 9-year high of US$48/lb on Wednesday.

But for Australians looking for investment exposure in the energy metal, good luck trying to find an ASX exchange-traded fund (ETF) that focuses on uranium.

Why isn’t there an ASX uranium ETF?

Uranium is a far less popular commodity than the likes of resources such as iron ore, copper or gold.

As a matter of fact, the energy metal doesn’t even trade on an open market. Buyers and sellers typically negotiate contracts privately.

For investors looking to gain uranium exposure on the ASX, the most realistic option is to invest in individual energy companies.

The largest ASX-listed uranium player is Paladin Energy Ltd (ASX: PDN). The $2.7 billion company operates the “globally significant” Langer Heinrich Mine in Namibia. In March, Paladin Energy successfully raised $192.5 million to clear debt and pave the way to restart its uranium operations.

Energy Resources of Australia Limited (ASX: ERA) is another major player in the ASX-listed uranium space, boasting a market capitalisation of around $1.7 billion.

Paladin Energy and Energy Resources of Australia are arguably the most established uranium companies on the ASX. However, there’s a number of emerging players and explorers to also choose from.

Boss Energy Ltd (ASX: BOE) is a $700 million uranium explorer operating the Honeymoon uranium project in South Australia. The company is looking to ramp up exploration activities to drive a final investment decision for Honeymoon in the next 12 months.

Other prospective explorers include Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and 92 Energy Ltd (ASX: 92E).

While there isn’t exactly a diversified ASX uranium ETF, there are certainly a number of companies operating at different stages of the exploration and production lifecycle to investigate.

What about international markets?

The Global X Uranium ETF is listed on the New York Stock Exchange and provides investors access to a broad range of companies involved in both uranium mining and the production of nuclear components.

Another major uranium ETF is Sprott’s Physical Uranium Trust, listed on Canada’s Toronto Stock Exchange. The trust is the world’s largest actively managed uranium fund that provides investment exposure to physical uranium.

The post Is there a uranium ETF listed on the ASX? appeared first on The Motley Fool Australia.

More reading

• Why are ASX uranium shares in focus today?
• Which ASX 300 shares are on the move mid-week?
• Boss Energy (ASX:BOE) share price surges 8%, up 90% in a month. Here’s why
• Here’s why the Deep Yellow (ASX:DYL) share price is up 50% this month
• Why Energy Resources of Australia, Incitec Pivot, Sydney Airport, & Talga are rising

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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It has been another positive day for the Neometals Ltd (ASX: NMT) share price.

In morning trade, the advanced materials company’s shares are up 11.5% to a 52-week high of 96.5 cents.

This means the Neometals share price is now up 230% since the start of the year.

Why is the Neometals share price surging higher today?

Investors have been bidding the Neometals share price higher today following the release of a briefing on its Lithium Battery Recycling project.

Within the briefing the company outlined its plans to address the emerging carbon shock of electric vehicles.

It notes that lithium and nickel are the largest contributors to CO2 emissions during the manufacturing of an electric vehicle. And while lithium brine is seen as the solution to the lithium part of the problem, it notes that nickel doesn’t have one. This comes at a time when new battery regulations are coming into place in the EU to ensure more sustainable batteries.

This is where Neometals comes in. Management believes it has a more environmentally sustainable nickel process. This is achieved through its proprietary recycling process. It also estimates that it could be the lowest cost nickel sulphate producer.

All in all, it hopes this will make it the recycler of choice for cellmakers and carmakers in the future.

Management commentary

Neometals’ Managing Director, Chris Reed, recently commented on its entry into the commercial European battery recycling landscape.

This followed the agreement with SMS to fast-track commercialisation of commercial lithium-ion battery recycling operations via the Primobius joint venture.

He commented: “We are excited to herald the entry of Primobius into the commercial European battery recycling landscape. The funding approval is an agile response by the JV shareholders to strong demand for the safe disposal of growing volumes of lithium-ion batteries arising from warranty returns and at end-of-life.”

“10tpd Shredding Plant 1 represents the maximum commitment we can make to meet demand having regard to regulatory permitting timeline constraints. As well as being a showcase for potential customers and partners, the facility will provide a valuable training ground for the operations team and will support continuous process improvement ahead of the next scale up to a 50tpd operation.”

“The scale and speed of the electrification of transport and renewable energy storage is phenomenal, the volumes and momentum of global investment funds available to support enablers of decarbonisation steel our resolve for Primobius to become the pre-eminent recycler in the western world,” he added.

The post Why the Neometals (ASX:NMT) share price is surging 11% to a 52-week high appeared first on The Motley Fool Australia.

More reading

• Neometals (ASX:NMT) share price jumps 5% as boss spruiks battery recycling ‘tsunami’
• Here’s why the Neometals (ASX:NMT) share price is sinking today
• Neometals (ASX:NMT) share price falls on battery 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. 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 high-performing fund manager Wilson Asset Management (WAM) has recently identified some ASX shares that it owns (or owned) in one of its leading portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 15.5% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 10.8%.

These are the ASX shares that WAM outlined in its most recent monthly update:

Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE)

The fund manager pointed out that the insurance sector performed strongly in August. WAM saw that reporting season revealed that premium rates are strong, volumes are stable and margins are improving.

The QBE result gave “clear evidence” that it has significant leverage to the strongest commercial premium rate cycle in the last decade. The top line growth is beating the inflation claims and it’s driving an almost doubling of underlying underwriting profits compared to the previous year.

Turning to Suncorp, the team at WAM Leaders liked that the insurance and banking business announced an increased final dividend as well as a $250 million share buy-back with its FY21 result. This highlighted for the fund manager that management are confident in the improving underlying trends across both the insurance and banking divisions.

WAM is still positive on the outlook for general insurance. There are possible catalysts for the ASX shares, with potential COVID-19 provision releases, continuing improvements in profitability and bond yield exposure.

Star Entertainment Group Ltd (ASX: SGR)

Another ASX share that WAM Leaders referred to was the casino operator Star Entertainment. It benefited from a number of value creation opportunities in August, according to the fund manager.

Star was affected by the recent lockdowns across Australia, although WAM said it demonstrated that consumer demand returns to pre-COVID levels in periods of lower restriction, on a reduced cost base.

The fund manager also pointed to the potential sale and leaseback of the ASX share’s Sydney casino, which could realise approximately $2 billion in value for shareholders.

Another element of interest was that it’s in formal negotiations with the NSW government to increase the number of gaming machines at The Star Sydney from 1,500 to 2,500.

WAM is still positive about Star Entertainment’s outlook due to the potential for an earnings recovery as Australia exits lockdowns, the company’s strategic optionality and “attractive valuation”.

The post This leading fund manager thinks these ASX shares might be buys appeared first on The Motley Fool Australia.

More reading

• The QBE (ASX:QBE) share price has slumped 6% in 4 weeks. What’s happening?
• The Star (ASX:SGR) share price is up 26% in a month
• 2 quality ASX shares for a retirement portfolio
• Why the Suncorp (ASX:SUN) share price is edging higher today
• Afterpay (ASX:APT) share price edges higher amid increasingly crowded BNPL space

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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