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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was in fine form and charged to new record high. The benchmark index rose 1% to 7,217.8 points.

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

ASX 200 expected to rise

The Australian share market looks set to push higher again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning. This follows a mildly positive night of trade on Wall Street, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.15%, and the Nasdaq push 0.15% higher.

Worley given conviction buy rating

The Worley Ltd (ASX: WOR) share price could be very good value according to analysts at Goldman Sachs. This morning the broker has retained its conviction buy rating and $15.60 price target on the engineering company’s shares. It commented: “We view WOR as well positioned to capitalize on ramping sustainability spend, with our forecasts calling for green spend (ex LNG) rising to 22% of segment EBIT by 2025E.”

Oil prices rise again

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 1.6% to US$68.77 a barrel and the Brent crude oil price has risen 1.5% to US$71.31 a barrel. OPEC’s supply discipline and growing demand is supporting prices.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) could trade higher today after the gold price strengthened overnight. According to CNBC, the spot gold price is up 0.3% to US$1,911 an ounce. The gold price rose after US yields eased.

Qantas refunds under scrutiny

The Qantas Airways Limited (ASX: QAN) share price will be on watch today after rival airline Regional Express Holdings Ltd (ASX: RGS) accused it of sitting on $1 billion of customer refunds. Rex deputy chairman John Sharp is calling on Qantas to offer the same refund guarantee as it does.

More reading

• ASX 200 jumps, Worley rises, Cimic up
• Here’s how the ANZ (ASX:ANZ) share price performed over May
• The ASX 200 just set a new all-time high. Could we hit 8,000 points this year?
• 2 excellent ASX 200 blue chip shares to consider
• What were Bank of Queensland (ASX:BOQ) shares up to last month?

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

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Are you an income investor looking for growing dividends? If you are, then you might want to look at the ASX dividend shares listed below.

Here’s what you need to know about these shares:

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics could be a dividend share to consider. It is a medical imaging service provider that operates from a total of 72 radiology clinics. This includes 26 comprehensive sites. 

The company employs some of Australasia’s leading radiologists and diagnostic imaging specialists in a unique medical leadership model. This model ensures quality patient care, service and access.

Pleasingly, Integral Diagnostics has been a solid performer in FY 2021 and has been experiencing strong demand for its services. This led to the company reporting first half revenue growth of 29.5% to $170.7 million and a massive 61.1% jump in net profit after tax to $23.2 million.

Analysts at Goldman Sachs are confident this growth will continue and expect it to underpin dividend increases in the coming years. It is forecasting dividends per share of 11.4 cents in FY 2021, 13.9 cents in FY 2022, and 15.4 cents in FY 2023.

Based on the latest Integral Diagnostics share price of $5.07, this represents fully franked yields of 2.2%, 2.7%, and 3%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that is expected to grow its dividend in the coming years is Rural Funds.

It is the owner of a $1.4 billion portfolio of diversified agricultural assets, including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets.

With Rural Funds’ properties leased to high quality tenants on long term agreements with built in rental increases, management appears confident it can grow its distribution by 4% per annum.

This looks set to be the case in FY 2021 and FY 2022. Management has provided guidance for 11.28 cents per share this year and then 11.73 cents per share next year. This implies yields of 4.5% and 4.7%,respectively.

More reading

• 2 ASX dividend shares that could be buys in June 2021
• 2 ASX dividend shares with attractive yields
• 2 quality ASX dividend shares for income investors
• 2 top ASX dividend shares with 4%+ yields
• 2 ASX 200 shares that could be great for dividends

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There are a large number of growth shares to choose from on the Australian share market. So many, it can be hard to decide which ones to buy ahead of others.

To help narrow things down, I have picked out two ASX growth shares that have been rated as buys. They are as follows:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX 200 growth share to look at is this pizza chain operator. Domino’s has been growing at a consistently solid rate for over a decade thanks to the popularity of its offering and the expansion of its footprint.

The good news is that consumer tastes aren’t changing and its pizzas remain as popular as ever. The even better news is that management still sees plenty of room to grow its footprint over the next decade.

For example, at the end of the first half, the company had a network of 2,800 stores. It is now aiming to double this over the next decade in its existing markets. Management is also looking for acquisitions and has been tipped to expand into new territories in the future. This would give the company an even larger growth runway.

Bell Potter currently has a buy rating and $122.00 price target on the company’s shares. It notes that with a leverage ratio of 1.1x, it has $446 million in funding headroom, providing it with ample capacity to make acquisitions.

Xero Limited (ASX: XRO)

Another ASX 200 growth share to look at is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.

Xero recently released its full year results and reported an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million. This was underpinned by a 20% increase in subscribers during the 12 months to 2.74 million.

This comprises ANZ subscribers of 1.56 million and International subscribers of 1.18 million. In respect to the latter, there are now 720,000 subscribers in the UK market and 285,000 in North America. While this is a large number, it is still well short of its global market opportunity. Management estimates that the cloud accounting subscriber total addressable market is 45 million.

This gives Xero a huge runway for growth in the future, which should be bolstered by its burgeoning app ecosystem. The latter has been bolstered recently by a number of bolt on acquisitions such as Planday, Tickstar, and Waddle.

Goldman Sachs is very positive on its future. In light of this, it recently reaffirmed its buy rating and $153.00 price target on the company’s shares.

More reading

• The Altium (ASX:ALU) share price makes a comeback in May
• Don’t play the game you can’t win…
• 2 ASX growth shares that could be buys in June 2021
• Why the Xero (ASX:XRO) share price is pushing higher today
• ASX 200 down 0.15%: A2 Milk class action, Nuix crashes again

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The Immutep Ltd (ASX: IMM) share price slipped today, despite the biotechnology company announcing it has secured another European patent.

At market close, the Immutep share price finished the day 0.71%lower at 69.5 cents.

Immutep further patent protection

Investors appear unfazed by the company’s latest update, sending the Immutep share price lower on Wednesday.

According to its release, Immutep has been granted its second European patent for eftilagimod alpha (efti or IMP321).

Efti is Immutep’s lead immunotherapy candidate, and plays a vital role in the treatment of cancer and autoimmune diseases.

Now approved by the European Patent Office, securing this latest patent further builds on the company’s intellectual property portfolio.

Immutep received approval of the European parent patent back in November 2018. Corresponding patents for the United States followed in December 2020 and March 2021.

Immutep CEO Marc Voigt commented on the positive outcome, saying:

Again, this new divisional patent in Europe is very important as it specifically covers the combination of active ingredients being evaluated in many of our clinical trials, including those being reported at the upcoming ASCO 2021 Annual Meeting.

It also highlights the critical investments we are making to protect efti which underpin further clinical development and commercialisation of this asset. Building a robust patent estate is a priority for our business and a key part of the process of bringing innovative medicines to the market to ultimately improve patient outcomes.

The patent announced today will be active until 8 January 2036.

About the Immutep share price

It has been a strong 12 months for Immutep investors, with the company’s share price jumping by more than 280%. Year-to-date performance has also been pleasing, with shareholders recording gains of around 67%.

Based on today’s share price, Immutep has a market capitalisation of roughly $484 million, ranking 438 on the ASX. The company currently has a touch over 648 million shares on its registry.

More reading

• Immutep (ASX:IMM) share price bounces on new supply deal
• Why the Immutep (ASX:IMM) share price rocketed 14% today

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The S&P/ASX 200 Index (ASX: XJO) went up just over 1% today to 7,218 points.

Here are some of the highlights today:

Worley Ltd (ASX: WOR)

The Worley share price was one of the best performers in the ASX 200 today, rising by 6.5% after releasing an investor presentation.

Worley outlined to the market how it is deeply involved in the world’s decarbonisation efforts with projects spread across the world in wind power, solar power, hydrogen, distributed energy, electric vehicles and storage, geothermal, hydro and ocean power, renewable fuels and waste to energy, nuclear, carbon capture, electrification, energy and grid transformation projects.

For example, Worley said it is involved in the largest commercial green hydrogen production facility in the world. It has been awarded an early engineering services contract to support the development of a new 200MW electrolysis-based hydrogen plant. The facility, the first of its project, will be located in Rotterdam in the Netherlands.

Cimic Group Ltd (ASX: CIM)

The Cimic share price went up almost 3% today after announcing another contract win.

It said that its UGL subsidiary has secured a contract for the design, construction and installation of a high voltage transmission line from Kidston to Mt Fox in Queensland and a new 275kV switching station located at Mt Fox.

The UGL contract will generate approximately $150 million of revenue. UGL is currently performing early works and mobilisation for the contract with its client, Powerlink, in support of the Kidston Clean Energy Hub in Queensland.

UGL managing director Doug Moss said:

UGL has an exciting pipeline of work in delivering high voltage power projects around Australia, providing communities with a safe and reliable power supply in some of our most remote regions. We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project.

Codan Limited (ASX: CDA)

The Codan share price fell over 1% after announcing the sale of its Minetec business to Caterpillar for approximately US$14 million and a volume-based earn-out over the next five years.

After completion, Codan will provide manufacturing services to Caterpillar for up to five years, to ensure a successful transition and continuous supply to Caterpillar customers.

Minetec provides high-precision tracking, productivity and safety solutions for underground hard-rock mines. The technology enables real-time monitoring and control of mining operations, allowing miners to visualise the whole mine in order to optimise productivity and enhance safety.

Codan said that under its ownership, Mientec has not scaled to a level that supports the ongoing investment required for a technology-based business. Management said whilst the technology is world class, the business would be better suited to be under the ownership of another company, like Caterpillar.

This will lead to a one-off gain before tax of around AU$3 million. The money will be used to pay down debt after the recently-announced acquisitions.

More reading

• Here’s how the ANZ (ASX:ANZ) share price performed over May
• The ASX 200 just set a new all-time high. Could we hit 8,000 points this year?
• These 3 ASX 200 shares are up 50% in 2021
• 2 excellent ASX 200 blue chip shares to consider
• Why the Cimic (ASX:CIM) share price is moving higher today

The post ASX 200 jumps, Worley rises, Cimic up appeared first on The Motley Fool Australia.

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At the turn of the month, it’s often an interesting thought exercise to take a look at the month-on-month share price performance of the prominent S&P/ASX 200 Index (ASX: XJO) shares. Today, we’re examining the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

The ASX banks have been some of the best ASX 200 performers in recent months, arguably helping the index reach its new all-time highs in May.

We even saw Commonwealth Bank of Australia (ASX: CBA) crack $100 a share for the first time ever, a level it remains above today (at the time of writing, anyway).

So, how did things go in May?

Well, the ANZ share price started the month at $28.74 and finished at $28.71. That’s a very small loss of 0.1%. But that rather vanilla comparison hides some volatility that ANZ shares experienced over May.

Early in the month, ANZ actually got rather close to its own 52-week high of $29.55, hitting $29.10 on 3 May. It then fell by more than 7% by 12 May, only to recover 7% by 28 May. I suppose the journey was the destination there.

So, what happened in May for this ASX bank? Well, not a whole lot of official news came out of ANZ over the month. However, it did get some love from a broker.

As my Fool colleague James Mickleboro reported on 17 May, fellow bank (and in this case) broker Macquarie Group Ltd (ASX: MQG) retained its outperform rating on ANZ shares with a 12-month price target of $30.50.

Later in the month, we also covered how Daniel Moore, co-portfolio manager of the Investors Mutual Australian Share Fund sees a dividend bonanza from ASX banking shares over the next year or so.

Moore cited healthy capital ratios, as well as a potential lift in the banks’ dividend payout ratios going forward. He said these were reasons to be bullish on banking dividends (and possibly even share buybacks) in 2021 and beyond.

About the ANZ share price

Today, ANZ shares are pretty flat, having gained 0.14% to $28.35 a share. That gives the bank a market capitalisation of $80.6 billion, a price-to-earnings (P/E) ratio of 17.1 and a trailing dividend yield of 3.7%.

More reading

• The ASX 200 just set a new all-time high. Could we hit 8,000 points this year?
• 2 excellent ASX 200 blue chip shares to consider
• Leading broker names its best ASX share ideas for June
• What were Bank of Queensland (ASX:BOQ) shares up to last month?
• Why the Nanosonics (ASX:NAN) share price fell 8% in May

The post Here’s how the ANZ (ASX:ANZ) share price performed over May appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) set a new record-high closing price this afternoon. A strong showing from oil producers, miners, and property groups has propelled the index into unexplored heights.

At such a milestone, it’s worth looking at the path taken. How have we arrived at this destination despite the headwinds? Most importantly, where might we be going next?

Banks and miners tow the ASX line

This time a year ago, we had overcome the first wave of coronavirus cases. The ASX 200 was also amidst a recovery – having bounced from 4,816 points to 5,755.

Tech shares were having their moment in the spotlight during an unprecedented ‘working from home’ phenomenon. Over the following months, record government stimulus was administered to avoid a deepened recession.

Infrastructure was an easy target to stimulate the economy. The Australian Government announced a $1.5 billion infrastructure stimulus package for shovel ready projects that could commence within 6 months. Unsurprisingly, ASX-listed miners began to diverge from the broader market.  

Furthermore, the government’s Jobkeeper and Jobseeker payments supported continued consumer spending. From August 2020, consumer discretionary shares started to outpace the ASX 200. A great example of this is Eagers Automotive Ltd (ASX: APE), which benefitted from elevated car sales, increasing 129% in the last year.

However, the banks and miners have been the heavy lifters in more recent months. In early May, the big four all reported a bounce back from the prior quarter.

The results acted as an indicator that the worst might be over. Since then, shares in Commonwealth Bank of Australia (ASX: CBA) have rallied to surpass the monumental $100 mark.

But we can’t forget the mining giants. An insatiable desire for resources such as iron ore, lithium, and copper has been like rocket fuel to some of the ASX 200’s largest companies. Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP), Pilbara Minerals Ltd (ASX: PLS), and OZ Minerals Ltd (ASX: OZL) are just a few that have enjoyed the boom.

ASX 200: To 8,000 and beyond?

Some market commentators are optimistic after the Australian Bureau of Statistics (ABS) released GDP figures for the March quarter. An increase of 1.8% in GDP compared to the prior quarter and strong iron ore prices have VanEck’s Russel Chesler forecasting further highs to come.

Robust growth in company earnings will support equity valuations and the S&P/ASX 200 is likely to rise to 8,000 this year and local shares could outperform the US share market. We are seeing Australian shares trade around record highs, led by gains for the big miners BHP Billiton and Rio Tinto.

If the ASX 200 manages to reach 8,000 points, that would represent a 66% gain from the low set during the COVID crash.

More reading

• These 3 ASX 200 shares are up 50% in 2021
• 2 excellent ASX 200 blue chip shares to consider
• 2 buy-rated ASX lithium shares
• What were Bank of Queensland (ASX:BOQ) shares up to last month?
• ASX copper shares have broadly outperformed the market…now what?

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News broke this afternoon that Woolworths Group Ltd (ASX: WOW) has launched its payment solution, Wpay. While the Woolworths share price hasn’t visibly reacted to the news yet, it’s having a good day on the ASX.

At the time of writing, the Woolworths share price is up 1.25%, with shares in the company swapping hands for $42.28.

Let’s take a closer look at the retail giant’s new payment solution.

Wpay payment solution

Wpay claims it brings together the retail experience of the supermarket giant and its global partnerships to meet the needs of both merchants and customers.

Woolworths is already the largest non-bank receiver of card payments in Australia. It processes more than 1 billion transactions each year – equalling $50 billion worth.

Wpay states it offers both in-store and online payments, including split payments. It also includes fraud management and other security features.

Further, Wpay provides merchants with rich analytic insights and allows them to offer scalable gift card management and custom rewards programs.

According to Wpay’s website, Woolworths’ customers using the Wpay app can select and pay for their groceries as they shop, with no need to go through a check out when they’ve finished.

Currently, Woolworths’ supermarkets and Big W, as well as former Woolworths brand EG Group, are using Wpay.

According to The Australian, Wpay will become the payment provider for Endeavour Group’s brands BWS and Dan Murphy’s, following the demerger of Endeavour Group from Woolworths. The demerger is currently in its final stages.

The Australian also reported former National Australia Bank Ltd. (ASX: NAB) executive and Woolworths’ financial services leader, Paul Monnington, is to be Wpay’s managing director.

Woolworths share price snapshot

The Woolworths share price has been performing well on the ASX lately.

Currently, the Woolworths share price has gained 5.75% since the start of 2021. It’s also 17.24% higher than it was this time last year.

The retail giant has a market capitalisation of around $52 billion, with approximately 1.2 billion shares outstanding.

More reading

• ASX 200 down 0.5%: A2 Milk rises, Woolworths completes Quantium transaction
• Woolworths (ASX:WOW) share price lower despite investment update
• ASX 200 Weekly Wrap: ASX record highs tumble like… Costa shares
• The ASX dividend party’s here: how to get yours
• ASX shares in this sector are pushing towards 52-week highs

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The S&P/ASX 200 Index (ASX: XJO) has had a pretty successful year in 2021 so far. We’ve seen the index gain a hefty 7.7% year to date. That’s as well as three new record highs, as of just today.

But some ASX 200 shares have invariably performed better than others. Here are three such shares that have all gained at least 50% in 2021 so far:

Codan Limited (ASX: CDA)

Codan is an ASX 200 company that designs and makes mining and communications equipment, as well as metal detectors. It has had a phenomenal year so far, with the Codan share price up 61.6% since the start of 2021. It appears a major catalyst behind this sharp increase was the $114 million acquisition of the US-based Domo Tactical Communications, which was announced back in February. Domo Tactical helps supply high-bandwidth wireless technology. That news helped spark a big jump in the Codan share price at the time. Momentum appears to have kept building from there.

Virgin Money UK CDI (ASX: VUK)

Virgin Money, also known by its former name of Clydesdale Bank (CYBG PLC), is a UK-based bank that was spun out of National Australia Bank Ltd (ASX: NAB) a few years ago. It is one of the most volatile ASX bank shares on the ASX 200, having a 52-week range of $1.26–$3.90 a share as of today. Fortunately for shareholders, sentiment has broken to the upside in 2021 so far. Virgin Money shares are up almost 63% year to date. The strength of the global economic recovery, and an accommodating credit market, appear to be the driving forces here.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is another ASX 200 share that is no stranger to volatility. This company has a 52-week range of 23 cents to $1.47 a share. But once again, 2021 has been very kind to Pilbara shareholders. Pilbara shares are up 50% year to date. This includes a healthy 3% bump just today. Pilbara is an ASX lithium miner – a sector that’s received a lot of attention this year amid the rise of electric vehicles and renewable energy. Lithium is a key component of the rechargeable batteries used in electric vehicles as well as used for electrical grid backup.  As my Fool colleague reported today, lithium demand out of China is also expected to remain strong in 2021 as well.

More reading

• 2 buy-rated ASX lithium shares
• Codan (ASX:CDA) share price edges lower following divestment news
• ASX 200 up 0.65%: BHP & Rio higher, energy shares jump
• Expected spike in Aussie dollar to >US80 cents spells trouble for these ASX shares
• ASX 200 Weekly Wrap: ASX record highs tumble like… Costa shares

The post These 3 ASX 200 shares are up 50% in 2021 appeared first on The Motley Fool Australia.

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Some S&P/ASX 200 Index (ASX: XJO) blue chip shares could be good ideas to consider at the moment.

Bigger businesses have a reputation for being more reliable in times of difficulty, like COVID-19. Blue chips have the ability to continue to produce good returns over time.

These two ASX 200 blue chip shares could be particularly useful to think about:

Macquarie Group Ltd (ASX: MQG)

Macquarie is one of the largest financial businesses on the ASX with several different divisions. There’s the investment bank, the asset management segment, the retail banking division and ‘commodities and global markets’ segment.

The business generates a lot of profit. In FY21 it saw net profit of $3 billion, which was an increase of 10% despite all of the impacts of COVID-19.

This profit was delivered thanks to business’ diversified operations. It was the commodities and global markets business that really generated the growth with net profit of $2.6 billion – up 50%.

The ASX 200 blue chip remains strongly positioned with its balance sheet. The bank’s common equity tier 1 (CET1) ratio was 12.6%. Management believe the business is well positioned to operate through all market cycles and invest in growth.

The CEO and managing director of Macquarie, Shemara Wikramanayake, said:

Macquarie remains well-positioned to deliver superior performance in the medium-term. This is due to our deep expertise in major markets. Strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost saving initiatives and efficiency, a strong and conservative balance sheet and a proven risk management framework and culture.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the largest and most diversified ASX 200 blue chips.

It owns a variety of different businesses including industrial businesses, a stake in a lithium joint venture and several quality retail companies including Bunnings, Officeworks and Catch.

Wesfarmers has grown Bunnings into a clear market leader in the home hardware space and it generates very strong returns.

In the FY21 half-year result, Bunnings generated $1.275 billion of earnings before tax. This represented a 76.6% return on capital.

Wesfarmers has been significantly investing in its online shopping capabilities for shoppers since the onset of COVID-19 and this is paying off. Total online sales across the group more than doubled for the half, excluding Catch. Including Catch, online sales of $2 billion were recorded.

Wesfarmers is also investing in its capabilities to ensure it’s as capable and efficient as possible.

The ASX 200 blue chip share said that it’s going to continue to develop and enhance its portfolio, building on its unique capabilities and platforms to take advantage of growth opportunities within existing businesses and to pursue investments and transactions that create value for shareholders over the long-term.

More reading

• What were Bank of Queensland (ASX:BOQ) shares up to last month?
• Why the Nanosonics (ASX:NAN) share price fell 8% in May
• The ALS (ASX:ALQ) share price gained 17% in May. Here’s why
• How did the CSL share price fare in May?
• ASX 200 up 0.65%: BHP & Rio higher, energy shares jump

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