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The Australian Taxation Office (ATO) has warned rookie ASX share investors often “misunderstand” their obligations, resulting in errors on their tax returns.

According to ATO assistant commissioner Tom Loh, the rising popularity of micro-investing apps has resulted in “a record number” of new investors last financial year.

“Unfortunately, first-time investors often don’t understand their taxation obligations, don’t keep appropriate records and are more likely to make mistakes when lodging their tax returns.”

Here are 4 ways stock virgins can stay on top of their tax returns, according to the ATO:

‘Paper losses’ are not losses yet

Yes, seeing the ASX share you own 60% down on your purchase price is painful.

But you can’t count that as a loss on your tax return.

“It is important to note that capital losses only happen on the sale of the share,” stated the ATO. 

“Investors cannot claim ‘paper losses’ on investments if the share price drops but they continue to own the share.”

Another common capital loss trap is offsetting it to other income. 

Tax rules dictate that capital losses can only be offset against capital gains. If any losses are left over, they can be carried forward to next year for further offsetting.

Loh has seen some cheeky tax returns in his time.

“Each year, we see some enterprising entrepreneurs trying to offset their capital losses against income tax applied to other income, such as salary and wages. Others attempt to offset a ‘paper loss’ against actual income,” he said.

“Our sophisticated data analytics are able to spot this and we may apply penalties for investors that have intentionally done the wrong thing.”

Tax on ETFs and micro-investing platforms

According to the ATO, exchange-traded funds are popular with young investors because they attract a lot of money from micro-investing apps.

Once the financial year is done and dusted, ETF providers issue investors with a document called Standard Distribution Statement (SDS).

This statement contains, in black and white, all the numbers investors need to declare in their tax returns.

“When an investor disposes of units, the SDS will show the capital gains or losses made from the sale of the units which also need to be included in tax returns.”

Dividend reinvestment plans are taxable

Many first-time investors could be using dividend reinvestment plans for their ASX shares.

These schemes automatically purchase more shares rather than giving out the dividend payout as cash.

This can result in a common tax error because the investor is not receiving any money.

“Most people recognise that they must pay tax on any money earned from selling shares,” said Loh. 

“But many don’t realise that tax also applies to dividends and distributions, even if they are automatically reinvested into a reinvestment plan.”

Dividends can get complicated — so the ATO recommends investors seek professional advice to ensure they’re reporting correctly.

For goodness sake, keep a record of everything

Above all, Loh recommended rookie investors develop a habit of maintaining immaculate records.

“Taxes on share and ETF investments can be complex and poor record-keeping doesn’t make it any easier,” he said.

“Keeping good records, including dates, prices, commissions, and details of taxable events such as share splits, share consolidations, mergers, and demergers is essential to avoiding trouble at tax time.”

The ATO reminded taxpayers it automatically receives data from many different sources, such as ASIC, online brokers, ASX and share registries.

“While this data makes tax time much simpler, it is still important for investors to check that all their relevant data has been included.”

Even the world’s best tax agent or accountant can only work with information provided to them by the investor.

“Errors related to CGT or income from dividends and distributions, whether deliberate or accidental, will lead to amendments,” said Loh.

“You may need to repay some or all of a tax refund and penalties may apply.”

The post 4 tax-time tips for first-time ASX share investors appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated ASX dividend shares with big yields
• 2 ASX dividend shares that could be buys with yields above 5%
• How does the BHP (ASX:BHP) dividend compare to its sector?
• 2 excellent ETFs for ASX investors this week
• 2 COVID-hit ASX shares that could be buys now

Motley Fool contributor Tony Yoo 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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There are a handful of ASX dividend shares that could make exciting options for income over the longer-term.

These are companies that have attractively high dividend payout ratios and are expecting to generate higher operating profit as times goes on.

The two names below could be effective options to boost the income yield of a portfolio:

Charter Hall Long WALE REIT (ASX: CLW)

This diversified real estate investment trust (REIT) is currently rated as a buy by the broker Citi with a price target of $5.68.

The broker thinks that Charter Hall Long WALE REIT could beat its own FY22 guidance when considering the acquisitions it made during FY21 which will contribute a full 12 months of earnings as well as any new acquisitions it makes during FY22. Citi is attracted to the ASX dividend share’s defensive income and reliable tenants.

In FY21, Charter Hall Long WALE REIT saw operating earnings of $159 million, this was 29.2 cents per unit – an increase of 3.2% on the prior corresponding period. This is what funded a 3.2% increase of the distribution to 29.2 cents per unit.

Strong property transactions helped elevate the value of the REIT’s own portfolio by 12.1%, or $523 million. This lifted the net tangible asset (NTA) value per unit by 16.8% to $5.22.

It has a very long-term tenant base. At 30 June 2021, its portfolio’s weighted average lease expiry (WALE) was 13.2 years, which the REIT says provides long-term income security.

For FY22, the ASX dividend share has provided guidance of FY22 operating earnings per security (EPS) growth of no less than 4.5%. That means the current Charter Hall Long WALE REIT share price offers a yield of at least 5.7%.

Accent Group Ltd (ASX: AX1)

Accent is a large shoe retailer in Australia and New Zealand. It operates retailers like The Athlete’s Foot and also has exclusive distribution partnerships for a number of global brands into the local market including Vans, Skechers, Dr Martens and CAT.

FY21 saw a lot of growth for Accent as well as rising profit margins. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19.3% to $242 million, earnings before interest and tax (EBIT) grew by 32.1% to $124.9 million and net profit after tax (NPAT) grew 38.6% to $76.9 million.  

Online sales growth has been a feature for Accent since the start of the COVID-19 pandemic. FY21 saw total online sales rise by 48.5% to $209.9 million.

The ASX dividend share also said that it opened 90 new stores in FY21, whilst closing seven where required rent outcomes could not be achieved. Management say that new stores continue to “perform strongly” on more favourable rents than the existing portfolio.

Accent’s total dividends for FY21 amounted to 11.25 cents per share, up 21.6%, reflecting the trading result.

Lockdowns have hurt sales in the first few weeks of FY22, though digital sales growth is offsetting some of the pain.

According to Commsec, Accent is going to pay a grossed-up dividend yield of around 6% in FY22.

The post 2 ASX dividend shares that could be buys with yields above 5% appeared first on The Motley Fool Australia.

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• The Accent (ASX:AX1) dividend has lifted by 22%

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

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The BHP Group Ltd (ASX: BHP) dividend has been a talking point over the years, rewarding shareholders with consistent payouts. This comes as the world’s second-largest miner has enjoyed bumper profits, particularly from the surging iron ore spot price.

Nonetheless, we take a look to see how the BHP dividend stacks up against its peers.

How does the BHP dividend compare to its sector?

BHP is scheduled to pay a final dividend of US$2.00 (A$2.74) per share to eligible investors on 21 September. Coupled with its interim dividend of US$1.01 (A$1.31), this brings the total FY21 dividend to US$3.01, a 151% increase on FY20.

Based on the closing BHP share price of $42.19 yesterday, this implies a juicy dividend yield of 9.6%.

In comparison, Rio Tinto Limited (ASX: RIO) is set to give its shareholders $7.60 per share on 23 September. The FY21 interim dividend along with the previous 2H FY20’s $5.17 payment, translates to a total dividend payment of $12.77.

The Rio Tinto share price finished yesterday at $110.69, which equates to a trailing dividend yield of 11.5%.

And, lastly, Fortescue Metals Group Limited (ASX: FMG) is on track to distribute a final dividend of $2.11 per share, payable on 30 September. The company’s interim dividend for the FY21 period came to $1.47 apiece. In total, the full-year dividend amounts to $3.58.

Calculating using the last price of $18.57 for Fortescue shares, this is a mammoth dividend yield of 19.2%. It’s also worth noting that the company’s shares dropped a sizeable 10.94% yesterday after going ex-dividend.

Looking at all 3 miners’ dividend yields, the BHP dividend is ranked the lowest. Yet while investors may opt for Rio Tinto or Fortescue, it’s also imperative to consider share price movements.

BHP shares have jumped 16% higher over the last 12 months, while Rio Tinto and Fortescue shares have moved up 15% and 6%, respectively.

Are BHP shares a buy?

A recent broker note from Macquarie cut its rating on BHP shares by 3.3% to $58.00. On the other hand, Morgans had a different tone, adding to its outlook by 0.9% for a bearish price of $45.90.

However, Goldman Sachs released a report noting that BHP delivered an in-line but still strong FY21 result. The global investment house said its key focus points surrounded the oil merger with Woodside Petroleum Ltd (ASX: WPL), the approval of the Jansen potash project and the listing unification.

BHP commands a market capitalisation of roughly $124.4 billion, making it the third-largest company on the ASX.

The post How does the BHP (ASX:BHP) dividend compare to its sector? appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise
• This last week hasn’t been great for the BHP (ASX:BHP) share price
• Which ASX 300 shares are the biggest winners and losers on Thursday?
• Why BHP, NIB, Northern Star, & Redbubble shares are tumbling lower
• ASX 200 midday update: BHP sinks, Flight Centre expansion

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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If you’re wishing to add some diversification to your portfolio this week, then you might want to look at exchange traded funds (ETFs).

These funds help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.

With that in mind, listed below are two ETFs which could be worth considering. Here’s what you need to know about them:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. It gives investors access to a diversified portfolio of 48 attractively priced US companies that are deemed to have sustainable competitive advantages or moats.

Warren Buffett is a fan of investing in companies with moats. And given his long term investment success, it certainly could be worth following his lead.

Among the 48 shares included in the fund are some of the most well-known companies in the world. This includes Alphabet (Google), Amazon, Coca-Cola, Constellation Brands, Intel, Kelloggs, McDonalds, Microsoft, Pfizer, Philip Morris.

Over the last 10 years, the index the ETF tracks has generated an average return of 22.6% per annum.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF by VanEck that could be worth considering is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports.

Among the companies included in the fund are gaming giants Activision Blizzard, Electronic Arts, Roblox, and Take-Two.

In addition, graphics processing unit developer Nvidia is another key member of the fund. Nvidia sparked the growth of the PC gaming market in 1999, redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing.

VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The index the VanEck Video Gaming and Esports ETF tracks has generated a return of 32.2% per annum over the last five years.

The post 2 excellent ETFs for ASX investors this week appeared first on The Motley Fool Australia.

More reading

• 3 high quality ETFs for ASX investors in September
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and 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.

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COVID-19 has caused a lot of damage to some ASX shares and a few industries as a whole.

Some businesses may be worth thinking about for the long-term as they are still feeling the impacts of those effects.

Travel and education could be two areas to look at for the longer-term.

At the current prices, these two ASX shares may be opportunities:

IDP Education Ltd (ASX: IEL)

IDP Education is a business involved in a number of areas of education: English language testing, student placement in Australia and other countries, English language teaching and digital marketing and events.

FY21 was a difficult year as it was completely impacted by COVID-19, whereas half of FY20 was unaffected by COVID-19. IDP Education’s FY21 net profit was down 42% to $39.5 million.

IDP Education noted that total student placement volumes were down 25% for the year, driven by travel and border restrictions. Placements to Australia were hardest hit, falling 40% compared to last year. But the UK reported a 4% increase in volumes as students travelled to the UK to commence studies.

FY21 English language testing revenue demonstrated its “through the cycle appeal” as volumes rebounded despite ongoing restrictions across its global network. The English language testing revenue grew $0.1 million to $325.6 million.

The ASX share pointed to its recent acquisition of the British Council’s English language testing operations in India, along with investments in digital marketing and the technology platform, which strategically position the business to grow its English language testing market share going forward.

Morgans is one of the brokers that likes IDP Education, with a price target of $31.25. The broker thinks English language testing volumes are now growing in FY22 with pent-up demand and the addition of the British Council India acquisition.

The broker reckons the IDP Education share price is valued at 53x FY23’s estimated earnings.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the largest business travel companies in the world. It’s even bigger after its acquisition of Travel & Transport in the US.

It’s already seeing a recovery. When delivering its FY21 result, the company said that it had experienced a rapid return to positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA). That recovery was led by the company’s increasing exposure to a recovery momentum in North America and Europe.

Whilst it made a full year EBITDA loss of $7.2 million, it made $13.6 million of positive EBITDA in that last quarter, representing a $19.1 million turnaround on the previous quarter. The ANZ region was profitable through FY21 despite the border closures.

The company’s balance sheet has no debt and it had cash of $99 million. The COVID-hit ASX share is targeting a return to dividend payments in the 2022 calendar year.

Corporate Travel believes it will be a much larger business after COVID-19 travel restrictions end. Management say the company is gaining market share in key markets, with North America and Europe currently generating around 80% of group revenue.

July 2021 delivered a record post-COVID revenue result, defying seasonal activity reduction in North American and Europe during the seasonal holiday period.

It’s currently rated as a buy by the broker Citi, with a price target of $26.06.

The post 2 COVID-hit ASX shares that could be buys now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Monday
• 3 top ASX growth shares for investors in September
• 3 ASX 200 shares hitting fresh all-time highs on Monday
• 2 excellent ASX 200 shares named as buys for September
• Top brokers name 3 ASX shares to buy next week

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. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Monday the S&P/ASX 200 Index (ASX: XJO) bounced back from a terrible start to end the day a few points higher. The benchmark index rose slightly to 7,528.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market is expected to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning. This is despite US markets starting the week in a subdued fashion. On Wall Street the Dow Jones fell 0.2%, the S&P 500 edged lower, and the Nasdaq rose 0.2%.

Treasury Wine given neutral rating

The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker has retained its neutral rating with an improved price target of $11.60. However, this still implies potential downside of 6.1% for the wine company’s shares. Goldman notes uncertainty in the commercial end of the market, especially in the ANZ region. It fears oversupply could constrain market profitability.

Oil prices slide

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$68.89 a barrel and the Brent crude oil price has fallen 0.7% to US$72.10 a barrel. Saudi price cuts have weighed on prices.

Gold price falls

It could be a subdued day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price edged lower. According to CNBC, the spot gold price is down 0.45% to US$1,825.5 an ounce. Traders may have been taking profit after a strong gain in the previous session.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend on Tuesday and could trade lower. This includes steel producer BlueScope Steel Limited (ASX: BSL), financial services company, clean energy miner IGO Ltd (ASX: IGO), IOOF Holdings Limited (ASX: IFL), energy company Origin Energy Ltd (ASX: ORG), and healthcare company Sonic Healthcare Limited (ASX: SHL).

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines
• Here are the 3 most traded ASX 200 shares this Monday
• ASX 200 energy shares fell today – here’s why
• Here are the top 10 ASX 200 shares on Monday
• Why the Evolution Mining (ASX:EVN) share price is leaping higher 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 owns shares of and has recommended Treasury Wine Estates Limited. 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.

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If you want to boost your portfolio with some blue chips, then you might want to take a look at the ASX 200 shares named below.

Here’s why these two blue chip ASX 200 shares are highly rated:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Goodman has a world class portfolio of in-demand warehouses, large scale logistics facilities, and business and office parks. In fact, demand is so strong that it currently boasts an occupancy rate of 98%. This helped underpin a 15% increase in operating earnings to $1.22 billion in FY 2021.

Looking ahead, the company appears well-placed to benefit from like for like rental growth and its significant development pipeline.

Citi is a big fan of Goodman. It currently has a buy rating and $26.00 price target on the company’s shares.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share to look at is SEEK. It is the leading job listings company in the ANZ region and has a number of growing businesses around the globe.

It was on form in FY 2021 thanks to its domination of the ANZ market. For example, the SEEK ANZ business reported record ad volumes in the second half of the year amid easing COVID-19 restrictions. This led to SEEK reporting an average of 40 million monthly site visits, which represents 10% growth on pre-COVID-19 levels.

This ultimately led to SEEK reporting a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax excluding significant items to $141 million for the year.

The good news is that the future looks bright for SEEK thanks to its strong market position and Australia’s recovery from the pandemic. With unemployment levels tipped to fall materially, job ad volumes look set to increase significantly once the economy opens up again.

A recent note out of Macquarie reveals that its analysts have an outperform rating and $37.00 price target on the company’s shares.

The post 2 top blue chip ASX 200 shares rated as buys appeared first on The Motley Fool Australia.

More reading

• 3 top ASX 200 shares that could be buys
• Can the Goodman (ASX:GMG) share price keep smashing the market?
• Top brokers name 3 ASX shares to buy today
• 2 excellent blue chip ASX 200 shares named as buys
• SEEK (ASX:SEK) share price drops despite tripling its dividend in FY 2021

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

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The S&P/ASX 200 Index (ASX: XJO) went up 0.1% to 7,529 points.

Here are some of the highlights from the ASX:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

ASX 200 investment conglomerate Soul Patts gave a profit update to the market today.

It reminded investors that key drivers of success for the business are growth of the capital value of the portfolio and a growing yield.

Soul Patts said it doesn’t consider its earnings to be a key indicator of the company’s performance. But there were a few factors today that will influence the FY21 regular profit after tax.

Soul Patts pointed out that New Hope Corporation Limited (ASX: NHC) disclosed in its quarterly report ending 31 July 2021 that it projects earnings before interest, tax, depreciation and amortisation (EBITDA) will be $372 million 8n FY21. This is primarily due to thermal coal prices being at a 10-year high, according to Soul Patts.

Next, the investment conglomerate pointed out that Brickworks Limited (ASX: BKW) gave a trading update that revealed it expects record earnings from its property division, driven by the continued increase in the value of the property trust.

The last point that Soul Patts referred to was Round Oak, a mining company that the ASX 200 share wholly owns. Round Oak expects to generate a regular FY21 net profit after tax in the range of $64 million to $68 million. Management said this was a “significant improvement” compared to the FY20 loss of $43 million as commodity prices, predominately zinc and copper, improved and the company moved from development to production at a number of its mines.

However, these higher profit contributions will be offset by a lower contribution from TPG Telecom Ltd (ASX: TPG). Following the merger of TPG and Vodafone in July 2020, Soul Patts is no longer equity accounting it share of TPG’s net profit after tax. Soul Patts only received one dividend from TPG amounting to $18 million in FY21, compared to the equity accounted profit of $72 million in FY20.

Soul Patts also said that the statutory profit in FY21 will be materially lower because FY20 included a one-off accounting gain of $1.05 billion after the derecognition of TPG as an equity accounted associate. This one-off gain will not be repeated in FY21.

Brickworks also said that Soul Patts’ profit announcement would contribute to its statutory after tax by a range of $64 million to $72 million for FY21.

Hansen Technologies Limited (ASX: HSN)

The Hansen Technologies share price fell 9.2% after the business announced that BGH Capital was not going to proceed with its takeover. Discussions have ceased.

BGH Capital’s offer was $6.50 per share.

Hansen attempted to reassure investors by saying that after having conducted extensive due diligence inquiries in relation to the company, BGH Capital has not notified Hansen of any issue which Hansen considers material in the context of Hansen’s current operations and strategy. BGH Capital has advised the company that it continues to see Hansen as a highly effective organisation with an outstanding management team and strong prospects.

David Trude, the Chair of Hansen, said:

Hansen reported a record result for the group across all key metrics in FY21.

The Hansen business continues to go from strength to strength. We were particularly pleased with the strategic customer wins during the year including Telefonica, DISH, Western Power and Nautilus Solar. Significant new business wins, coupled with a continued focus on our aggregation strategy, reinforce our commitment to, and confidence in, our long-term revenue target of $500 million in FY25.

The post ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares this Monday
• Here are the top 10 ASX 200 shares on Monday
• Here’s why the Brickworks (ASX:BKW) share price is lifting on Monday
• Why the Evolution Mining (ASX:EVN) share price is leaping higher today
• Why BlueBet, Fortescue, Hansen, & Pro Medicus shares are sinking

Motley Fool contributor Tristan Harrison 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 Hansen Technologies. 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.

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The S&P/ASX 200 Index (ASX: XJO) ended this Monday’s trading session with a modest gain. The ASX 200 finished up 0.07% at 7,528 points. But rather than dwelling on that somewhat vanilla figure, let’s instead check out the ASX 200 shares that topped the trading volume charts today

The 3 most traded ASX 200 shares this Monday

South32 Ltd (ASX: S32)

Diversified ASX 200 miner South32 is our first share up today. This ASX resources share has seen a hefty 20.8 million of its shares find new owners on the markets today.

There are no major news or announcements out of the company so far. However, the South32 share price defied the ASX 200 today and posted a healthy gain of 2.13% to $3.35 a share. This company is now up an impressive 13% over the past month. It’s likely that this latest move upwards is what’s behind so many South32 shares trading this Monday.

Alumina Limited (ASX: AWC)

ASX 200 aluminium producer Alumina is next up here, with a sizeable 47.27 million of its shares bought and sold so far today. Like with South32, there are no major announcements out that could be affecting this company’s share price. However, as my Fool colleague Kerry covered earlier today, the Alumina share price enjoyed a starting day of gains this Monday.

Alumina shares rocketed almost 9% after market open this morning, before cooling off somewhat over the day. Even so, Alumina finished up a very robust 3.26% at $2.06 a share at the time of writing. It’s this stellar share price performance that is likely behind so many Alumina shares on the markets today.

Pilbara Minerals Ltd (ASX: PLS)

And last, but certainly not least, we have ASX 200 lithium producer Pilbara Minerals. Pilbara shares are going the opposite way to the above two companies today. This company lost a nasty 5.31% today, and closed the day at $2.14 a share.

This steep loss has resulted in a truly massive 205,456 million Pilbara shares swap hands this Monday. Perhaps this unusually large volume indicates a major institutional investor has been moving some money around. Whatever the cause, this has left Pilbara topping the volume charts this Monday afternoon.

The post Here are the 3 most traded ASX 200 shares this Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Monday
• Why the Evolution Mining (ASX:EVN) share price is leaping higher today
• The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today
• Which ASX shares are leading the way on the ASX 300?
• ASX 200 midday update: Fortescue & Pro Medicus sink, gold miners rise

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. 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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ASX 200 energy shares finished broadly in the red today.

This comes as the S&P/ASX 200 Index (ASX: XJO) snuck into the green, finishing up 0.07% after spending most of the day in the red.

The Index wasn’t helped by ASX 200 energy shares. Santos Ltd (ASX: STO), for example, finished down 1.76% to $6.14 per share.

Woodside Petroleum Ltd (ASX: WPL), meanwhile, ended the day 1.66% lower and the Oil Search Ltd (ASX: OSH) share price closed down 2.35%.

So what put the big energy stocks under pressure today?

The answer sits with the world’s biggest oil producer, Saudi Arabia.

How is Saudi Arabia moving the oil price?

ASX 200 energy shares held up reasonably well last week when OPEC+ moved forward with its stated plans to increase the group’s oil output. OPEC+ lifted its production target by 400,000 barrels per day (bpd).

In the latest move to impact crude prices, Saudi Arabia has reduced the official selling price (OSP) of Arab Light crude for its Asian customers far more than traders had been expecting.

The result has seen Brent crude fall by more than 1% overnight, currently trading for US$71.84 (AU$97.08) per barrel. And it appears investors in ASX 200 energy shares were taking note.

Warren Patterson, the head of commodities strategy at ING Groep in Singapore said (quoted by Bloomberg), “The level of cuts in Saudi OSPs for Asia was a surprise, and it does not send a great signal to the market regarding current demand dynamics.”

The move may be driven by the resurgent Delta strain which has seen an increasing number of nations reinstate travel restrictions, cutting demand for oil. This saw some of state-owned producer Saudi Aramco’s Asian customers scale back their crude orders in August.

As Bloomberg notes, Saudi Arabia “sells all of its oil on long-term contracts to refiners”. So setting the monthly price too high could see these customers shop for their energy needs elsewhere.

According to Giovanni Staunovo, a commodities analyst at UBS Group:

Because of the high Saudi OSPs in previous months, traders have diverted to the spot market instead of using long term contracts. With domestic demand likely leveling off in autumn, they have more barrels to be exported, so that’s another reason to offer more attractive OSPs.

Aramco cut the price for Arab Light crude by US$1.30 a barrel, while the consensus forecast had been for a cut of 60 US cents.

How have these ASX 200 energy shares been performing?

The 3 ASX 200 energy shares listed above were all down today, yet they have had significantly different results this year.

The Oil Search share price is down 1.3% in 2021. Meantime, the Santos share price is down 5.3% year-to-date.

But it is the Woodside Petroleum share price that has struggled the most, down 15.4% so far this calendar year.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 12% over that same time.

The post ASX 200 energy shares fell today – here’s why appeared first on The Motley Fool Australia.

More reading

• Why the Santos (ASX:STO) share price is edging lower today
• 5 things to watch on the ASX 200 on Monday
• How does the Santos (ASX:STO) dividend compare to the energy sector?
• It hasn’t been a great week so far for the Woodside Petroleum (ASX:WPL) share price
• 5 things to watch on the ASX 200 on Friday

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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