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If you’re aiming to set yourself up for a comfortable retirement, a good way to do this is by having a reliable and growing passive income stream.

Pleasingly, there are a number of quality ASX shares that could help you achieve this. Two to consider are listed below:

Coles Group Ltd (ASX: COL)

This supermarket operator could be a great core holding in a retirement portfolio. This is due to its defensive qualities, solid long term growth prospects, and its favourable dividend policy. The latter sees the company aim to distribute 80% to 90% of underlying profit to shareholders each year.

One broker that believes Coles is a quality long term option is Goldman Sachs. It currently has a buy rating and $20.50 price target on its shares.

Goldman is forecasting fully franked dividends of 62 cents per share in FY 2021 and then 66 cents per share and 73 cents per share in FY 2022 and FY 2023.

Based on the latest Coles share price of $16.70, this will mean yields of 3.7%, 4%, and 4.4%, respectively, over the next three years.

Telstra Corporation Ltd (ASX: TLS)

Another option to consider for a retirement portfolio could be Telstra. This is due to its strong market position, generous dividend yield, and improving outlook.

In respect to the latter, Telstra is targeting a return to growth in the near future and management appears confident that it can get there.

Another positive is the company’s plan to split into three separate businesses. This is expected to simplify its operations and allow Telstra to take advantage of potential monetisation opportunities for non-core assets.

Goldman also sees Telstra as a good option for investors. It currently has a buy rating and $4.00 price target on the company’s shares.

The broker also continues to forecast the company paying a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a very attractive 4.65% dividend yield over the next 12 months.

More reading

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• Could the Telstra (ASX:TLS) share price be worth looking at for its FY21 dividend yield?
• How to tell if an ASX 200 share is risky
• ASX shares in this sector are pushing towards 52-week highs
• TPG (ASX:TPG) shares whacked by cyberattack

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Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then I would suggest you check out the two listed below.

These quality companies could have the potential to grow at a solid rate over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

Cochlear Limited (ASX: COH)

Cochlear is one of the world’s leading developers, manufacturers, and distributors of cochlear implantable devices for the hearing impaired.

It has achieved this position thanks to its portfolio of world-class products which has been developed following its high level of investment in research and development (R&D) over the last decade. But management isn’t resting on its laurels. Each year it spends around 12% of its annual revenue on R&D activities to ensure that it remains ahead of the pack. This also creates a significant barrier to entry for any would-be competitors.

Looking ahead, Cochlear appears well-placed for growth in the future thanks to its aforementioned portfolio and the ageing populations tailwind. With populations around the world ageing, demand for cochlear implantable devices is expected to grow strongly over the next couple of decades.

Macquarie is a fan of the company. Its analysts currently have an outperform rating and $245.00 price target on Cochlear’s shares.

Lendlease Group (ASX: LLC)

Another blue chip ASX 200 share to look at is this global property and infrastructure company.

Lendlease could be worth considering due to its major transformation. This transformation has seen the company divest its struggling engineering business and undertake a significant new strategy. This strategy is changing its earnings mix and business model to be more like Goodman Group (ASX: GMG). And given Goodman’s success over the last decade, this could be a smart move by management.

One broker that is a fan of the strategy shift is Goldman Sachs. It currently has a buy rating and $16.54 price target on the company’s shares. Goldman feels that Lendlease’s shares could re-rate to higher multiples once it starts to demonstrate that it is executing its new strategy successfully.

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• How shares with massive PE ratios can be cheap

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The Fortescue Metals Group Limited (ASX: FMG) share price staged an inspiring rally at the beginning of May as iron ore prices soared past US$200/tonne for the first time on record. Fortescue shares started the month at $22.48, before pushing to a 3-month high of $24.79 by 10 May. This was not too far off the company’s record all-time high of $26.40 seen in January this year.

But the Fortescue share price quickly ran out of steam, giving back all its May gains to trade at $21.22 at Wednesday’s close.

Why the pullback?

There has been a steady stream of negative news from Australia’s largest iron ore customer, China, which could be one of the catalysts behind the recent weakness in the Fortescue share price.

Negative news broke out last week when China announced plans to increase domestic iron ore production in response to “unreasonable restrictions” on trade with Australia.

China also made moves to strengthen its domestic management of commodities to curb current “unreasonable” prices. This included investigations into malicious trading and suspicious pricing behaviours, adjustments on trade and stockpiling.

Chinese iron ore futures plunge

Last Monday, Yuan Talks reported that Chinese Government departments including the National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology (MIIT), State Administration for Market Regulation (SAMR) and Chinese Securities Regulatory Commission (CSRC) “summoned major companies in iron ore, steel, copper, aluminium sectors, urging them to safeguard price stability in the commodities market”.

This caused China’s most-traded iron ore futures contracts in the Dalian Commodity Exchange to slump by more than 9% on the day to hit 1,016 yuan (A$203) per tonne. Iron by-products such as steel rebar and hot-rolled coil futures also slid by more than 6.5%.

Fortescue share price snapshot

Fortescue shares are not having the best time of it on the ASX in 2021 and are currently down by more than 9% year to date. Over the past year, however, the company’s shares have surged by almost 54%.

Based on the current Fortescue share price, the company has a market capitalisation of around $67 billion.

More reading

• ASX miners on edge as investors ask how low can the iron ore price go?
• Broker forecasts massive dividends from Fortescue (ASX:FMG) shares
• ASX 200 up 0.6%: TechnologyOne results, BHP & Rio Tinto rise
• 4 ASX shares every investor should consider adding to their portfolio: fundie
• 5 things to watch on the ASX 200 on Tuesday

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ASX tech shares had a very solid day today. The S&P/ASX All Technology Index (ASX: XTX) ended up rising 1.26% to 2,668.1 points. That looks pretty decent against the broader S&P/ASX 200 Index (ASX: XJO), which actually fell 0.32% to 7,092.5 points.

But some ASX tech shares were more equal than others.

WiseTech Global Ltd (ASX: WTC) managed a healthy 3.06% bump to $27.94 per share. Afterpay Ltd (ASX: APT) put on a solid 0.87% to $93.54, leaving the $84.50 level it hit a fortnight ago in the dust. Some of the top performers were NextDC Ltd (ASX: NXT), which managed a 5.17% rise to $11.18, and Domain Holdings Australia Ltd (ASX: DHG), which put on a 5.26% increase to $4.80 per share.

So why were ASX tech shares feeling the love today? Well, as has been the norm over recent months, there might be a couple of factors at play. The first is US tech shares. ASX tech investors seem to be taking their cues more and more from the US markets these days.

We can see this at play with the dance that Afterpay and its US-listed buy now, pay later (BNPL) counterpart Affirm Holdings Inc (NASDAQ: AFRM) have been dancing for the past few months. If Affirm falls hard on any given day, you can probably bet that the Afterpay share price will be following close behind when our market opens. 

ASX tech shares on the rise

Arguably, this situation can be extended somewhat for most ASX tech shares. In that vein, it’s interesting to note that US tech shares have had a pretty decent week so far. The tech-heavy NASDAQ-100 (NASDAQ: NDX) was up 0.12% last night and has risen more than 5% in the past week. This could be supporting the ASX tech sector as a whole. 

The other factor that could be at play is interest rates on government bonds. Now, this doesn’t seem like an obvious connection. But the kinds of shares that dominate the tech sector – namely high-growth companies that don’t yet make solid profits – are extremely sensitive to interest rates. That’s because the market assumes these businesses will be in the most trouble if borrowing costs were to rise. But the opposite is also true.

According to CNBC, the running yield on 10-year US Government bonds was at roughly 1.7% back on 12 May. Today, it is sitting at just 1.57%. That could be giving at least some investors out there more incentive to look in the tech sector for their next buy. 

Since there is no real news out of most of the top-performing ASX tech shares named above, it could well be a combination of these factors that is leading to the outperformance we see today. 

More reading

• ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses
• Where next for Afterpay (ASX:APT) and Zip (ASX:Z1P) shares?
• 2 ASX tech shares rated as buys by brokers
• Where to for the A2 Milk and Afterpay share price, and US economic growth? Motley Fool CIO Scott Phillips on Nine’s Late News
• A2 Milk and EML were among the most traded ASX shares last week

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The Immutep Ltd (ASX: IMM) share price finished strongly today. This came after the company announced it has been granted a new Chinese patent.

At close of trading today, the biotechnology company’s shares were trading at 67 cents, up 13.56%.

Progress with Chinese plans

Investors pushed Immutep shares higher today after digesting the company’s positive update.

According to its announcement, Immutep has been granted another patent to add to its portfolio. Approved by the Chinese Patent Office, the latest addition will seek to further protect Immutep’s intellectual property.

The new patent is titled ‘Combined Preparations for the Treatment of Cancer’ (patent number ZL201480073584.3).

Immutep said the patent follows its previous securing of corresponding European, Australian, Japanese and United States patents.

The patent relates to the company’s lead immunotherapy candidate, eftilagimod alpha (efti or IMP321), which is a LAG-3 fusion protein with a chemotherapy agent.

LAG-3 is an inhibitory co-receptor that plays a vital role in the treatment of cancer and autoimmune diseases. The antigen-presenting cell activator works by controlling signalling pathways and activating T cell function. In layman’s terms, it removes the brakes to allow the immune system to kill cancer cells.

The new patent is solely owned by Immutep and is exclusively licenced to Chinese biopharmaceutical company EOC Pharma. The patent is set to expire on 19 December 2034. Based in Shanghai, EOC Pharma is focused on manufacturing and commercialising oncology products in China.

Judging by the performance of the Immutep share price, investors seem pretty excited by today’s developments.

Immutep chief scientific and chief medical officer Dr Frederic Triebel commented on the new patent, saying:

…this new patent provides protection in the important Chinese territory for a range of novel and highly relevant chemo-immunotherapies featuring efti that could be developed in the future by our partner, EOC Pharma.

EOC Pharma CEO Xiaoming Zou added:

We are very pleased that our partner, Immutep, continues to make important progress in building a robust patent estate around efti. This underpins our continued investment in this unique and promising candidate, and provides a range of future development options for our business.

About the Immutep share price

Over the past 12 months, the Immutep share price has gained almost 319%, with year-to-date performance delivering gains of around 61%.

Based on today’s price, Immutep has a market capitalisation of roughly $466 million, with approximately 696 million shares outstanding.

More reading

• ASX miners on edge as investors ask how low can the iron ore price go?
• Why the Antisense (ASX:ANP) share price finished 5% higher today
• Ramsay Health Care (ASX:RHC) share price on watch after announcing major UK acquisition
• Why the Core Lithium (ASX:CXO) share price jumped 7% today
• NAB (ASX:NAB) signals no rate hikes until 2025. What’s going on?

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The major ASX mining shares are on edge as investors fret over how much lower the iron ore price could sink.

The price of the steel making commodity continues to slump from its record high of over US$230 a tonne to around US$190 a tonne.

Some experts believe the iron ore price won’t be trading over US$200 again – not in this cycle, reported the Australian Financial Review.

ASX mining shares underperform again

This explains why the big ASX mining shares have lagged yet again. The BHP Group Ltd (ASX: BHP) share price tumbled 2.4% to $46.35 and Rio Tinto Limited (ASX: RIO) share price lost 2.2% to $118.74.

The Fortescue Metals Group Limited (ASX: FMG) share price fell by a similar magnitude to $21.22 too.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) shed a more modest 0.3% at the close of trade today.

Why iron ore prices have fallen from record high

The iron-fisted clampdown by Chinese authorities on commodity speculators and hoarders is driving the downtrend.

The AFR reported that the National Development and Reform Commission said China would show no tolerance for monopoly behaviour.

And we all know China follows through on its threat. Just ask Ant Group Co.’s Jack Ma whose IPO dream was shattered earlier this year.

Iron ore price set to weaken further

It isn’t only China’s crackdown that’s weighing. There is also speculation that steel prices have shot up too high and will correct. The high steel price is dragging the iron ore price higher as the latter is needed for steel.

The question for ASX investors now is where will the iron-ore sell-off end? Credit Suisse doesn’t think we have seen the worst of the falls, although investors shouldn’t be alarmed. I’ll explain why later.

The broker warned that the iron ore price will continue to soften into the second half of this calendar year.

Softening prices still signal a profit upgrade

“Construction accounts for about 60% of China steel use and potentially over 80% if machinery is added,” said Credit Suisse.

“Our iron ore price forecasts of Jan, were based on a premise of firm demand for property and infrastructure in 1H-21, potentially fading into 2H.

“But we missed the strength of manufacturing FAI [First Article Inspection] (factories), recovering from the Trump trade war.”

So, while the broker believes the iron ore price has further to fall this year, it reckons it will still hold around US$160 a tonne on average.

Why this isn’t bad news for ASX mining shares

That’s around US$20 to US$30 above its previous forecast and an upgrade is in order for the sector.

The same would be true for most other brokers as their price forecasts are closer to US$100 a tonne than US$200 a tonne.

The iron ore price may be well off its record high and may not be revisiting its peak anytime soon. But ASX miners will still be making a lot of profit.

Remember that Credit Suisse’s price estimate is close to iron ore’s previous peak of circa US$180 a tonne back in the 2011 supercycle.

Now isn’t the time to turn bearish on ASX iron ore shares.

More reading

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• ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses
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• Broker forecasts massive dividends from Fortescue (ASX:FMG) shares
• 5 things to watch on the ASX 200 on Wednesday

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The Antisense Therapeutics Limited (ASX: ANP) share price finished the day higher today following a progress update.

At market close, shares in the biotechnology company ended the day at 21 cents, up 5%.

What did Antisense announce?

In its announcement, Antisense advised that the manufacture of its ATL1102 active pharmaceutical ingredient (API) was undertaken by oligonucleotide therapeutic manufacturing company, Nitto Denko Avecia.

This completes the batch for its planned Phase 2b clinical trial of ATL1102 in non-ambulant Duchenne Muscular Dystrophy (DMD) patients.

Antisense stated that Nitto Denko Avecia fulfilled the batch last month, and shipped the material to Pyramid Laboratories in Southern California. The latter specialises in injectable drug product manufacturing. Since then, Pyramid Laboratories has formulated the ATL1102 API into an injectable product for use in the Phase 2b trial.

The finished product is undergoing product release testing for clinical use, and is expected to release the results next month.

Antisense CEO, Mark Diamond commented:

We are very pleased with how the manufacture of clinical supplies for our planned Phase IIb trial of ATL1102 has proceeded particularly given the challenges that have presented to all CMO’s during the global covid pandemic.

We are indeed fortunate to be partnered with such high quality CMOs that have a deep experience with antisense drugs and both of which we have been working with for over 15 years and that can support manufacture all the way through to commercial sale of product.

About the Antisense share price

Founded in 2000, Antisense is focused on developing and commercialising antisense pharmaceuticals for patients suffering from rare diseases.

The Company is developing ATL1102, an antisense inhibitor of the CD49d receptor, for DMD patients. Recently Antisense reported promising phase II trial results, indicating a significantly reduced number of brain lesions in patients with relapsing-remitting multiple sclerosis.

Over the past 12 months, the Antisense shares have jumped more than 170%, with 55% gains on year-to-date performance.

More reading

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• Why the Core Lithium (ASX:CXO) share price jumped 7% today
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• REA Group (ASX:REA) share price hits record high on FIRB approval
• Future Fund warns of inflation

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The Ramsay Health Care Limited (ASX: RHC) share price will be one to watch on Thursday.

This follows the announcement of a potential new acquisition after the market close today.

What did Ramsay announce?

This afternoon Ramsay announced that it has made an all-cash offer of 240 pence per share to acquire 100% of Spire Healthcare Group plc shares via a scheme of arrangement. This represents a premium of approximately 24.4% to the closing price of Spire shares on 25 May.

According to the release, Spire is a London Stock Exchange-listed independent hospital group in the United Kingdom with a focus on the private patient market. It is also a leading provider of high-acuity care.

The offer of 240 pence per share values Spire’s entire issued and to be issued share capital at approximately 1 billion pounds (A$1,822 million) on a fully diluted basis and approximately 2 billion pounds (A$3,707 million) on an enterprise value basis.

The good news for Ramsay and its shareholders is that the Spire Board is unanimously recommending its shareholders vote in favour of the scheme. In addition, directors that own shares have irrevocably undertaken to vote in favour of the scheme, as has major shareholder Mediclinic International and the former Chairman of Spire, Garry Watts.

Though, Mediclinic International’s vote is subject to no competing higher offer emerging at 10% or more than the offer consideration.

Combined, the irrevocable undertakings represent approximately 30.4% of Spire’s issued share capital.

Acquisition rationale

Management believes the acquisition will be transformational for Ramsay’s UK business.

It is expecting it to create a leading private health care services provider. It will also diversify Ramsay UK’s payor sources, and case mix, expanding the geographic reach of its capabilities and improving capacity utilisation.

Ramsay also expects the acquisition to establish an enhanced offering for private patients, deliver scale to further invest in clinical research, development and innovation to improve patient outcomes, and provide the foundation for further growth. This is in line with Ramsay’s strategic vision of creating the leading ecosystem for patient centric, integrated care.

Positively, for shareholders and the Ramsay share price, the deal is expected to deliver significant value. This will be driven by benefits of at least 26 million per annum from procurement savings, improved capacity utilisation, and cessation of UK listing costs. This is forecast to result in high single digit earnings per share accretion in FY 2024.

Ramsay will be funding the acquisition through debt. And despite taking on the extra debt, it has no plans to change its dividend payout ratio in FY 2021. It intends to keep it in line with historical levels.

More reading

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• 3 top ASX 200 shares that could be in the buy zone
• 2 blue chip ASX 200 shares rated as buys

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The Core Lithium Ltd (ASX: CXO) share price has finished the day significantly up following a positive market announcement.

At market close, the lithium producer’s shares were trading at 24 cents a pop, up 6.67%.

What was announced?

According to its announcement, Core Lithium has entered into an agreement with Darwin Port Operations Pty Ltd (DPO).

The 5-year Port Operating Agreement (POA) gives Core Lithium access to the port’s facilities to export its products. It covers the company’s direct ship ore (DSO) and spodumene concentrate.

Port facilities include a truck dump, ship loader and conveyor, and berths for vessels.

Core Lithium’s wholly-owned subsidiary Lithium Development will supply all labour to operate the facilities when handling its product.

The agreement follows a non-binding deal signed by Core Lithium and DPO in early 2017.

Core Lithium said the short distance on existing roads from the company’s Finniss project to Darwin’s port means minimal capital and low operating costs on haulage. The company estimates it has one of the lowest logistics costs among hard-rock lithium miners and developers in Australia.

Core Lithium managing director Stephen Biggins said:

Access to key infrastructure like Darwin Port and the capital city of Darwin in northern Australia enables Core to build one of the most capital efficient and cost competitive hard-rock lithium projects in the world.

With a successful FID expected in coming months, Core is aiming to commence export of high-quality lithium concentrate from Darwin Port by the end of next year.

Core Lithium share price summary

In the past year, Core Lithium shares have surged by 300%, with year-to-date performance putting the company’s value around 65% higher. The Core Lithium share price reached an all-time high of 42 cents in early January this year.

The company has a market capitalisation of around $281 million, with more than 1.1 billion shares on its registry.

More reading

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Last week we discussed Commonwealth Bank of Australia‘s (ASX: CBA) move to raise its fixed-term interest rates on mortgages. At the time, CBA’s move was an interesting one, and as we flagged, a potential harbinger for the ASX banking sector going forward. Since the Reserve Bank of Australia (RBA) has repeatedly indicated that interest rates will be on hold at the current near-zero levels until 2024 at the earliest, CBA’s move could be construed as defiant. It implied the bank saw a possible risk in blindly following what the RBA was preaching, essentially betting rates will move higher at least a little sooner than the RBA has flagged.

Today we colour in that picture a little more. According to a report in the Australian Financial Review (AFR) today, National Australia Bank Ltd. (ASX: NAB) has also raised its fixed-term interest rates. Its 4-year rate rose by 21 basis points to 2.19% and its 5-year rate went up by 25 basis points to 2.49%. Both moves were effective from 12 May. 

Is NAB defying the RBA too?

On the surface it looks to be a similar move to CBA. But the AFR quotes NAB’s chief economist Alan Oster on the matter, who provides some nuance. Oster, perhaps contrary to what many commentators are saying right now, doesn’t believe rates will rise substantially until 2025.

Essentially people are worrying about inflation, that inflation is going up faster than the [US] Federal Reserve or the Reserve Bank anticipated, and they have to move earlier… Also there is an issue for the banks with the [rising popularity of] fixed rates in that there is not as much margin in them. I think it’s just fine-tuning… When the bank [RBA] finally gets going they might feel a bit behind and have to go up probably by 2 per cent in 12 to 18 months, but we are talking 2025… You can’t have cash rate at 0.1 per cent forever.

Oster seems to indicate that the hikes the big banks are making have more to do with a self-fulfilling prophecy, rather than an actual belief the RBA will move sooner than it has flagged. If bond yields rise, it indicates that the market is pricing in higher interest rates down the road. But rising bond yields raise the cost of funding for the banks, forcing them to pass this on to borrowers, and giving the impression the banks think the RBA is wrong. Oster indicates this is what’s behind NAB’s recent move.

Only time will tell how quickly the RBA raises rates, whether that’s 2022, 2024 or 2025. One thing looks more certain than it did a few months ago; interest rates seem to have found their bottom.

More reading

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• NAB (ASX:NAB) share price lifts amid reports of another pay scandal
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