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Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

For a third week in a row, this buy now pay later provider’s shares were the most traded on the CommSec platform. Zip’s shares accounted for 3.1% of trades on the platform, with the buying and selling evenly split. The buyers will have been the happier group, with the Zip share price adding 1.1% over the week.

Woolworths Group Ltd (ASX: WOW)

This conglomerate’s shares were popular with investors last week. They were attributable to 2.5% of trades on CommSec, with 90% of the volume coming from the buy side. Last week Woolworths completed the demerger of its Endeavour Group Ltd (ASX: EDV) business. And while this led to a 13.8% decline over the five days, this reflects the value of the demerged business which shareholders received shares in.

Commonwealth Bank of Australia (ASX: CBA)

Investors were buying this banking giant’s shares last week. This led to Commonwealth Bank’s shares being attributable for 2.3% of trades on CommSec. And while 74% of the volume came from buyers, it couldn’t stop the CBA share price falling 4.3% over the five days. The banking giant announced the sale of its general insurance last week.

Afterpay Ltd (ASX: APT)

This buy now pay later provider’s shares were heavily traded last week and attributable to 1.6% of trades on CommSec. This followed news that the company is expanding its pay anywhere offering in the US to cover major retailers such as Amazon. And although the Afterpay share price charged 12.8% higher, only 38% of the volume came from buyers.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF was popular with investors yet again last week. The Betashares Nasdaq 100 ETF was involved in 1.5% of trades on CommSec, with 83% of the volume coming from buyers. The technology-focused ETF rose 0.5% over the five days and has hit a record high on Tuesday.

The post Afterpay and Zip were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX bank shares weigh up $34 billion dosh-dishing decision
• Genworth (ASX:GMA) share price dives 17% after CBA contract update
• Investors push Australia’s largest ASX shares to disclose climate risks
• Why Afterpay (ASX:APT) and this ASX share could be top growth options

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 AFTERPAY T FPO, BETANASDAQ ETF UNITS, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and BETANASDAQ ETF UNITS. 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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Shares in Camplify Holdings Limited (ASX: CHL) burst onto the ASX yesterday following a successful listing.

After being heavily oversubscribed, the caravan and campervan-sharing platform’s initial public offering (IPO) managed to raise $11.5 million.

The Camplify share price opened yesterday at $1.44, hitting a high of $1.50 and closing at $1.40. At the time of writing, Camplify shares are trading relatively flat on the company’s second day of listing, at around $1.40.

Let’s take a closer look at the newly listed company.

Camplify lists and upgrades forecasts

Camplify lodged its prospectus earlier this year, with an offer price of $1.42 per share, giving the company a $42.1 million valuation.

In addition to completing a successful IPO yesterday, Camplify also upgraded its prospectus forecast in an announcement to the ASX.

The company advised that its business was performing strongly and was expected to exceed prospectus forecasts. As a result, Camplify upgraded its gross transactional volume (GTV) and revenue forecasts for FY21.

Camplify expects FY21 GTV in the range of $30.0 to $31.5 million, compared to initial forecasts of $27.8 million. In addition, the company expects FY21 revenue in the range of $7.3 to $7.6 million, compared to its prospectus estimate of $6.7 million.

The company attributed the changes to a lower-than-expected impact of border restriction on operations. In addition, it noted a faster than expected return to travel and tourism in the United Kingdom market with strong customer interest.

In the announcement, Camplify also highlighted that the company plans to start caravan sales to premium members in the second half of FY21. However, the company does not anticipate revenue from sales due to supply chain uncertainty.

More on Camplify

Camplify runs a digital platform similar to Airbnb, that allows owner of campervans and motorhomes to rent out their vehicles to others.

Over the past 7 years, Camplify has become a leading RV rental platform operating in Australia, New Zealand, the UK and Spain. In addition, the company boasts one of the largest RV fleets in Australia with 5400 vehicles on its books.   

Similar to Airbnb, Camplify receives a platform fee for facilitating transactions and generates additional incomes through complementary products. In addition to charging commissions on bookings, Camplify handles the back end for lessors and holiday-makers, performing driver licence and ID checks, as well as providing insurance to vehicle owners.

In its prospectus, Camplify highlighted that the COVID-19 pandemic had fast-tracked its growth. With restrictions on international travel, the company estimates that 14 million caravan and camper trips were completed in Australia in 2020.

The post Camplify (ASX:CHL) share price flattens after IPO burst appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• Cathie Wood’s ARK Invest to launch Bitcoin ETF
• The Noxopharm (ASX:NOX) share price is soaring 7%
• Is the Westpac (ASX:WBC) share price a buy?
• Brainchip (ASX: BRN) share price weakens after co-founder sells shares

Motley Fool contributor Nikhil Gangaram 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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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

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

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. UBS notes that Afterpay will soon allow US consumers to use its pay anywhere offering at non-integrated retailers including Amazon. UBS is positive on the move and has upgraded its underlying sales estimates meaningfully to reflect this. However, it still isn’t enough for a more positive rating, with the broker continuing to believe its shares are vastly overvalued. The Afterpay share price is fetching $121.00 today.

Air New Zealand Limited (ASX: AIZ)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut their price target on this airline operator’s shares to NZ$1.10 (A$1.02). This follows the recent release of a trading update which revealed that Air New Zealand expects significant losses in both FY 2021 and FY 2022. The Air New Zealand share price is trading at $1.44 this afternoon.

Evolution Mining Ltd (ASX: EVN)

Analysts at Morgan Stanley have downgraded this gold miner’s shares to an underweight rating with a $4.30 price target. According to the note, the broker made the move due to both its belief that the gold price will fall to US$1,660/oz in FY 2022 and on valuation grounds. In respect to the latter, Morgan Stanley notes that its expansion opportunities at Red Lake and Cowal are fully priced into forecasts, meaning there is limited upside risk to its earnings. In addition to this, it notes that there are execution risks to consider. Overall, it feels investors would be better off looking at other miners for exposure to gold. The Evolution share price is trading at $4.54 today.

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

More reading

• Why Afterpay (ASX:APT) and this ASX share could be top growth options
• What truly moves an ASX share price? Knowing the unknown
• 5 things to watch on the ASX 200 on Tuesday
• The Zip (ASX:Z1P) share price is down 6%…profit taking, competition or lockdown fears?
• Leading brokers name 3 ASX shares to buy today

James Mickleboro does not own any shares 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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Could there be a new exchange-traded fund (ETF) that invests in just the cryptocurrency Bitcoin (CRYPTO: BTC)? That’s certainly what it’s looking like. Until recently, regulatory authorities around the world have been reluctant to allow listed ETFs to invest in cryptocurrencies like Bitcoin. This can probably be put down to Bitcoin’s decentralisation. As well as its lack of regulatory structure and its famous (or infamous) volatility.

Our own ASX does not currently have any kind of ETF that is approved for cryptocurrency assets. And China has banned Bitcoin entirely. But according to a report in today’s Australian Financial Review (AFR), the waters could be changing.

According to the report, Cathie Wood’s ARK Invest funds management company has filed to list a bitcoin ETF product. This product has the tentative name of ARK 21Shares Bitcoin ETF and will aim to trade under the ticker code ‘ARKB’ on the US share markets. It would reportedly track the pure performance of Bitcoin as measured by the S&P Bitcoin Index and would hold Bitcoin assets itself.

An ARK Bitcoin ETF?

Eric Balchunas, ETF analyst for Bloomberg Intelligence, told the AFR the following on the proposal:

This makes a lot of sense because Cathie is on the board of 21Shares, which is a big progressive crypto issuer in Europe… This gives 21Shares penetration in the US and it’s on-brand for Ark given how vocal and bullish they’ve been on crypto.

For anyone who follows ARK Invest, this move would come as no surprise. ARK and its CIO Cathie Wood have long been vocal about their Bitcoin bullishness. Ms Wood has floated a long-term price target of US$500,000 for the cryptocurrency and has invested a significant proportion of ARK’s funds into Bitcoin linked assets in the past.

But ARK is most famous for its high-growth ETFs that are already available on the US share markets. ARK’s flagship ETF is the ARK Innovation Fund (NYSE: ARKK). This ETF invests in growth companies like Tesla Inc (NASDAQ: TSLA), Square Inc (NYSE: SQ) and Zoom Video Communications Inc (NASDAQ: ZM). The Fool recently looked at some of the other ARK ETFs available, and the types of companies they invest in.

So it will be interesting to see how this latest ARK Invest foray into Bitcoin turns out. Who knows, we might even see a Dogecoin (CRYPTO: DOGE) ETF one day.

The post Cathie Wood’s ARK Invest to launch Bitcoin ETF appeared first on The Motley Fool Australia.

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• Cryptocurrency values plunged this past week. Should you change your investing strategy?
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Motley Fool contributor Sebastian Bowen owns shares of Tesla, Zoom, Square and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Square, Tesla, and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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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Shares in Noxopharm Ltd (ASX: NOX) are gaining today following the company’s announcement of a notice of allowance for an important European patent.

At the time of writing, the Noxopharm share price is 64 cents – 7.56% higher than its previous close.

Let’s take a closer look today’s release from the drug development company.

Possible European patent

Noxopharm announced it’s received a notice of allowance on a key patent for its first pipeline drug candidate Veyonda.

According to Noxopharm, it’s a positive sign the European Patient Office will likely grant the patent.

Currently, Veyonda is in phase 2 of clinical trialling. Noxopharm hopes Veyonda will prove to be a useful cancer treatment.

If granted, the patent will relate to the use of idronoxil, the active ingredient in Veyonda. The patent will cover a formulation designed to provide a steady-state blood level of the drug.

It will also see Noxopharm with enforceable rights to idronoxil for another 16 years.

Veyonda is expected to treat any type of cancer and be given to patients undergoing chemotherapy or radiotherapy.

According to Noxopharm, if granted, the European patent will be a good sign the drug is likely to be patented in other important territories, like the United States.

Commentary from management

Noxopharm’s CEO Graham Kelly commented on the notice of allowance, saying:

This allowance is very pleasing validation of our strategy of building a strong IP position around Veyonda based on a series of inter-connected patents. The interconnection is between method of administration and clinical use and removes the reliance on the strength of any single patent.

A granted patent also will help underpin our commercial aim of Veyonda becoming a standard of care drug in combination with other major forms of cancer therapy.

Noxopharm share price snapshot

The Noxopharm share price has been performing well lately.

It’s currently 30% higher than it was at the start of 2021. It’s also gained 265% since this time last year.

The company has a market capitalisation of around $184 million, with approximately 288 million shares outstanding.

The post The Noxopharm (ASX:NOX) share price is soaring 7% appeared first on The Motley Fool Australia.

More reading

• Noxopharm (ASX:NOX) share price edges lower after clinical trial update
• Why the Noxopharm (ASX:NOX) share price is charging higher again
• Why the Noxopharm share price rocketed 22% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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

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The Westpac Banking Corp (ASX: WBC) share price has risen by 30% in 2021 so far. Is the major ASX bank a buy today?

What has been happening recently?

Westpac shares peaked at almost $27 earlier in June, but it has been drifting lower over the last couple of weeks.

Business divestment announcements have been the main news out of the company in the last week.

It announced that it’s retaining all of its Westpac New Zealand business and it won’t demerge it. Westpac called it a strong business and it’s committed to continue delivering for customers. The bank believed that a demerger would not be in the interests of shareholders.

The bank also said that it’s selling its motor vehicle dealer finance and novated leasing businesses to Angle Finance.

Westpac will transfer its auto dealer and introducer agreements together with wholesale dealer loans of approximately $1 billion, it will transfer the strategic alliance agreements with vehicle manufacturers and novated lease origination capability and related agreements.

The major bank will retain its existing retail auto loans of around $10 billion originated by the businesses being transferred.

Those loans will run down in the normal course of business over the life of those loans. Westpac will also progressively cease new retail auto loan originations from these three channels with customers still able to see the group’s consumer and business lending products to help buy motor vehicles. 

Management said that the sale is subject to the final value of the portfolio transferred and will generate an accounting gain on sale. It is expected to add around 6 basis points to Westpac’s common equity tier 1 capital ratio.

The broker Ord Minnett said that the sale was decent, but it doesn’t make much of a difference compared to a large entity like Westpac.

Is the Westpac share price a buy?

Ord Minnett currently rates the bank as a hold with a price target of $27.50.

The latest insight into Westpac’s financial returns was the FY21 half-year result where it saw statutory net profit grow 189% to $3.4 billion and cash earnings go up 256% to $3.5 billion. Excluding notable items, cash earnings increased 60% to $3.8 billion.

Westpac said it’s making good progress on strategic priorities of fixing, simplifying and performing.

The bank’s plan to address financial and non-financial risk governance has been approved. The first assurance report has been released. It has also increased its resources in risk and financial crime teams.

It also has a three-year plan to reduce its cost base to $8 billion by FY24.

The bank said that it has a strong balance sheet, higher capital ratio, good margin management and improved credit quality metrics.

One broker that does rate Westpac as a buy is Morgan Stanley. This broker has a price target on Westpac of $29.20. According to Morgan Stanley, the current Westpac share price is valued at 16x FY21’s estimated earnings with a forecast FY21 grossed-up dividend yield of 6.5%.

The post Is the Westpac (ASX:WBC) share price a buy? appeared first on The Motley Fool Australia.

More reading

• ASX bank shares weigh up $34 billion dosh-dishing decision
• Investors push Australia’s largest ASX shares to disclose climate risks
• Bank of Queensland shares outperforming all ASX 200 banks this month
• Why analysts rate Westpac (ASX:WBC) and this dividend share as buys
• Westpac’s (ASX:WBC) double life insurance divestment looms

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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The Brainchip Holdings Ltd (ASX: BRN) share price is trading lower today.

In afternoon trade, the artificial intelligence technology company’s shares are down by 5.33% to 50 cents.

Putting a few chips in the back pocket

It appears investors are today taking a leaf out of co-founder Peter Van Der Made’s book as he sold down his Brainchip shares last week.

The interim chief and co-founder reduced his holdings by selling a total of 2.57 million shares at an average price of 54 cents. The sale netted Van Der Made a total of $1.39 million dollars.

According to the disclosure, Van Der Made continues to hold a significant holding of some 173.7 million shares in the company, worth about $86.85 million at the current Brainchip share price.

Despite the sale, the co-founder remains Brainchip’s largest shareholder with a 10.6% stake in the company.

Investors might be concerned about the sale, considering the company is yet to appoint a new chief executive officer. Previous CEO Louis DiNardo suddenly exited Brainchip back in March by mutual agreement.

The silence is deafening

Shareholders rarely look fondly on insiders selling. Especially when there has been a lack of announcements from the company regarding its Akida chip more recently.

In the past year, ASX-listed Brainchip reported US$26.8 million in losses. This is due to the company still awaiting production completion and sales.

Meanwhile, Van Der Made has not been the only insider taking some money off the table. Co-founder and chief development officer Anil Mankar sold $9.55 million worth of Brainchip shares back in April.

Despite the sell downs, the company insists it is on track to produce its ultra-low power edge-computing processor.

Brainchip share price recap

Brainchip shares have weakened since March, falling 34% from a high of 75 cents. But it’s not all doom and gloom — the company’s shares are still up a staggering 534% over the last year.

However, it has been a subdued 2021 for the chip developer. Much of the market is now patiently awaiting production and revenue. Until then, the Brainchip share price offers little more information for investors to speculate over.

The post Brainchip (ASX: BRN) share price weakens after co-founder sells shares appeared first on The Motley Fool Australia.

More reading

• The Noxopharm (ASX:NOX) share price is soaring 7%
• Is the Westpac (ASX:WBC) share price a buy?
• Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking
• Why this expert thinks commodities are about to rally again
• ASX construction shares like Brickworks (ASX:BKW) are falling today

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

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a reasonably disappointing decline on Tuesday. In afternoon trade, the benchmark index is down 0.4% to 7,276.4 points.

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

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is down 5% to $12.06 following the release of its full year results. The KFC-focused quick service restaurant operator’s shares hit a record high in early trade before sinking. In FY 2021, Collins Foods reported a 12.4% increase in revenue to $1.07 billion and an 18.2% increase in underlying net profit after tax from continuing operations to $56.9 million. The latter was ahead of the expectations of Wilsons but still not enough to stop its shares from falling.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

The Genworth Mortgage Insurance share price has crashed 15% lower to $2.16. This morning the mortgage insurance company was dealt a blow when Commonwealth Bank of Australia (ASX: CBA) advised that it intends to issue a request for proposal relating to its Lenders Mortgage Insurance requirements. Genworth has provided this to CBA for over 50 years, with its current deal contributing more than half of its gross written premiums.

Kathmandu Holdings Ltd (ASX: KMD)

The Kathmandu share price has fallen 3.5% to $1.43. Investors have been selling the adventure retailer’s shares after it warned that COVID-19 lockdowns would lead to it falling short of expectations in FY 2021. Kathmandu estimates that the current lockdowns will hit its earnings by NZ$13 million.

ResMed Inc (ASX: RMD)

The ResMed share price is down 2% to $32.00. The catalyst for this decline appears to be a broker note out of Citi this morning. According to the note, the broker has downgraded the medical device company’s shares to a neutral rating with an improved price target of $32.50. Citi made the move on valuation grounds after a strong gain in June following a competitor product recall.

The post Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking appeared first on The Motley Fool Australia.

More reading

• ResMed (ASX:RMD) share price tumbles on broker downgrade
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
• Genworth (ASX:GMA) share price dives 17% after CBA contract update
• Collins Foods (ASX:CKF) share price hits record high after reporting strong FY 2021 growth
• Kathmandu (ASX:KMD) share price on watch after COVID lockdowns hit sales

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Collins Foods Limited and ResMed Inc. 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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Apprehension is creeping back into the market but this could be the time to be buying ASX resources shares as commodity prices are set to rally.

The bullish near-term outlook for hard commodities and energy was forecasted by Citigroup.

The prediction comes at a time when the BHP Group Ltd (ASX: BHP) share price, South32 Ltd (ASX: S32) share price and Woodside Petroleum Limited (ASX: WPL) share price have pulled back from their recent highs.

Commodity price and ASX mining shares disconnected

You can tell investors are getting jittery. Shares of ASX miners are being sold-off even on days when commodity prices jump.

Today’s one example as the Fortescue Metals Group Limited (ASX: FMG) share price and Rio Tinto Limited (ASX: RIO) share price are on the back foot. This is despite the iron ore price gaining 0.5% to around US$215 a tonne.

Investors don’t believe the good times will last and are reluctant to bid up ASX mining shares. Rising interest rates and the risk of runaway inflation are keeping buyers at bay.

Commodities could rebound in 2HCY21

But history is on the side of commodity bulls, according to Citigroup.

“Commodities naturally sell-off in recessions but rebound rapidly as economies recover,” said the broker. “The deeper the recession the stronger the recovery tends to be.”

Citi looked at recessions from the early 1990s and believes that commodities should continue to perform, if not outperform, in the second half of this calendar year. This is in part due to COVID-19 stimulus being unleashed to aid the economic recovery.

“We examine the performance of key US$ asset classes during the 6 [month] periods following global recessions,” said Citi.

“Notably, commodities outperformed equities, rates and credit indices on average, while the macro-sensitive industrial metals and energy complexes were the best-performing sectors within commodities during recoveries.”

ASX energy shares set to power up

Oil also outperforms and Citi noted a positive correlation between oil demand growth and GDP growth. The relationship is accentuated during “V-shaped” economic recoveries.

“Given the outsized weight of crude oil in commodity benchmarks and the energy intensity of mining and ag production, higher oil prices can accentuate a broader commodities rebound via cost inflation,” added Citi.

“Investor flows also improve substantially exiting steep recessions. In 2H’09, net inflows totalled ~$82Bn, including ~$42Bn to energy.

“This is consistent with the pattern we have seen YTD, where energy leads in sector performance and accounts for over half of the net inflows.”

Oil and copper look most bullish

The Brent oil price looks particularly well placed to rally, in the broker’s opinion. It also expects buyers to step in to buy the dip for copper.

If Citi is on the money, ASX energy and mining shares could outperform through to the end of this calendar year, if not beyond.

The post Why this expert thinks commodities are about to rally again appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) announces first deal in thermal coal selloff
• 5 things to watch on the ASX 200 on Tuesday
• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, Rio Tinto Ltd and South32 Ltd. Connect with me on Twitter @brenlau.

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 S&P/ASX 200 Index (ASX: XJO) is not having a great trading day so far. At the time of writing, the ASX 200 is down 0.56% to 7,266 points.

One sector joining the malaise is ASX construction and building materials shares. They’re down across the board.

Take Brickworks Ltd (ASX: BKW). This company has retreated from its all-time high of $24.99 a share that we saw yesterday and is down 0.24% today to $24.70 a share.

It’s not alone either. CSR Limited (ASX: CSR) is down a hefty 2.2% today. James Hardie Industries plc (ASX: JHX) has lost 1.4% to $45.16 a share. And Boral Limited (ASX: BLD) is down 0.2% to $7.32 a share.

So what’s going on here? Well, an article in The Australian points to a possible catalyst. According to the report, the Australian building industry is in the midst of a “severe shortage of timber”. A fall in domestic timber production thanks to the Black Summer bushfires, coupled with a global supply squeeze, is to blame.

Reportedly, timber prices have risen “three to fourfold” in the US. This is resulting in the US market “sucking timber from around the world”.

Got wood? That’s what ASX construction shares are wondering

A report from the ABC corroborates this story. According to the national broadcaster, the South Australian construction industry is feeling a particularly acute shortfall in timber supplies, leading to calls for more supply to be unlocked.

The report tells us Masters Builders South Australia has called for both immediate and long-term solutions. Here’s some of what association chief executive Will Frogley told the ABC:

We’ve got a situation here where we’ve got record [timber] demand, record high building approvals because of the massive popularity of the federal government’s HomeBuilder Grant… The price of timber has gone up 400 per cent in the last year in America … and that’s really hurting supply.

If timber prices remain so elevated, it could obviously have the potential to damage the construction industry. As such, it could be a reason why ASX construction shares have come off the boil today.

The post ASX construction shares like Brickworks (ASX:BKW) are falling today appeared first on The Motley Fool Australia.

More reading

• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. 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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