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• Up 25% this month, is the Afterpay (ASX:APT) share price a buy?
• These are the 10 most shorted shares on the ASX
• Why the Sims (ASX:SGM) share price is on watch today
• Crown (ASX:CWN) share price in focus after Oaktree offers to fund $3bn Packer exit
• What happened to the Cleanspace (ASX:CSX) share price?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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 Sims Ltd (ASX: SGM) share price will be on watch this morning after the company released a trading and forecast earnings update. At last week’s market wrap, the metal recycling company’s shares finished at $15.20.

Let’s take a closer look and see how Sims has been performing.

What could impact the Sims share price?

The Sims share price could be on the move today as investors digest the company’s latest results.

According to this morning’s release, the company’s business units are performing strongly, with some key improvements driving the lift. Highlights include:

• Intake volumes for Q3 FY21 have increased to roughly 95% of FY19’s average monthly volumes, compared to 85% in 1H FY21;
• Progress in gross margin per tonne has been made due to higher scrap prices and margin management;
• Annualised fixed cost savings in excess of $70 million in FY21 compared to FY19 have been achieved; and
• There was a significant contribution from SA Recycling led by high scrap prices, particularly for zorba linked products, intake volumes, and margin management.

Forecast earnings

In further news that could bump up Sims shares, the company provided a forecast earnings outlook. Sims is expecting to achieve underlying earnings before interest and tax (EBIT) of around $260 million to $310 million.

The company noted several factors that could weigh down the overall FY21 result, however. These include possible disruptions to operations caused by COVID-19, volatility in metal and non-metal prices, and supply chain issues. Furthermore, any macroeconomic and geological risks could also affect the end result.

Management commentary

Sims CEO and managing director Alistair Field hailed the company’s progress, saying:

It is pleasing to see the strong improvement in profitability driven by improved volumes, margin management, and achievement of targeted cost savings.

While the short-term outlook still has risks that could result in earnings volatility, in the medium-term Sims is well positioned to benefit from global infrastructure spending, the need for countries and companies to reduce their carbon footprint from steel production to meet CO2 commitments, and the potential for China to import meaningful volumes of recycled ferrous products.

Sims share price snapshot

Over the past 12 months, the Sims share price has accelerated by over 120%, with year-to-date gains above 10%. The company’s shares are within a whisker of breaking their 52-week high of $15.56 reached earlier this month.

On valuation grounds, Sims commands a market capitalisation of about $3 billion, with just over 201 million shares outstanding.

More reading

• Crown (ASX:CWN) share price in focus after Oaktree offers to fund $3bn Packer exit
• What happened to the Cleanspace (ASX:CSX) share price?
• Galaxy (ASX:GXY) and Orocobre (ASX:ORE) announce mega lithium merger
• The Eagers (ASX:APE) share price is near all-time highs
• What’s happening with the Neometals (ASX:NMT) share price?

Motley Fool contributor Aaron Teboneras 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 Crown Resorts Ltd (ASX: CWN) share price could be on the move on Monday morning.

This follows news that another private equity firm has tabled a proposal.

What did Crown announce?

This morning the casino and resorts operator announced that it has received an unsolicited, preliminary, non-binding and indicative proposal from a company on behalf of funds managed and advised by Oaktree Capital Management.

According to the release, Oaktree Capital Management has offered to provide a funding commitment of up to ~A$3.0 billion to Crown via a structured instrument.

Why is Oaktree offering to provide funds to Crown?

The release explains that Oaktree Capital Management has proposed that Crown uses the funds to buy-back some or all of the Crown shares which are held by Consolidated Press Holdings on a selective basis.

Consolidated Press Holdings is the company owned by former Crown Chairman James Packer. It currently owns a ~37% stake in the embattled company.

What now?

Crown responded by stating that any selective buy-back of Crown shares held by CPH would be subject to shareholder approval, with no votes being cast in favour of the resolution by CPH or its associates.

However, at this point, the Crown Board has not yet formed a view on the merits of the Oaktree Proposal. It will now commence a process to assess the proposal.

Crown has also advised shareholders that they do not need to take any action in relation to the Oaktree Proposal at this stage. It also warned that there is no certainty that the Oaktree Proposal will result in a transaction.

What about the takeover?

No comments were made on what impact this proposal would have on the unsolicited, non-binding and indicative proposal by The Blackstone Group and its affiliates.

In March, Blackstone tabled a takeover offer with an indicative price of A$11.85 cash per share. This will be reduced by the value of any dividends or distributions declared or paid by Crown.

More reading

• What’s with the Crown (ASX:CWN) share price today?
• These were the best performing ASX 200 shares in March
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• These were the best performers on the ASX 200 last week
• 8 ASX 200 shares rated as ‘outperform’ by brokers

Motley Fool contributor James Mickleboro 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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Cleanspace Holdings Ltd (ASX: CSX) shares have endured a rough start to 2021. Shares in the ASX respirator company – which only listed on the ASX in October – took a sharp nosedive in late March following the release of a disappointing trading update.

The Cleanspace share price, which opened the year trading at $6.61, has shed close to a whopping 70% of its value and is now priced at just $2.05.

Company background

Founded in Australia in 2009, Cleanspace develops workplace respirators for the industrial and healthcare industries. The company sells a range of durable, lightweight respiratory protective equipment suited for many unique (and even dangerous) settings, including for use in potentially explosive environments.

While it originally targeted the industrial sector, Cleanspace began expanding more actively into healthcare during the pandemic.

What’s been impacting the Cleanspace share price?

The Cleanspace share price tumbled 50% on 30 March after the company reported that sales for the quarter ending 31 March 2021 were expected to be just $7 million. Compare that against the $39.7 million in revenues Cleanspace generated over the first half of FY21. This leaves the company with a Herculean task over the second half of the financial year if it wants to show any half-on-half growth in FY21.

Also putting pressure on Cleanspace shares is the shifts in demand for respirators being seen in the US. By the company’s own admission, “acceleration of vaccine rollout programs, spending constraints and a backlog stockpiling of low-tech disposable masks” are all combining to impact respirator sales in North America.

The question investors will be asking themselves is whether the company’s first-half FY21 results were an anomaly borne out of the pandemic, and the lower third-quarter sales represent a normalisation of the company’s revenues.

For its part, Cleanspace attempted to reassure investors that there was still plenty of room for growth beyond the COVID-19 pandemic. It values its addressable market at $6.3 billion and states that “a strong US hospital pipeline underpins sales in the medium to longer term.”

But it also conceded that “volatility is likely to continue for some time” and declined to commit to any earnings guidance for the second half of FY21.

Performance versus competitors

Cleanspace is up against some pretty stiff competition, particularly in the healthcare sector.

The two respirator heavyweights currently trading on the ASX are Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) and ResMed CDI (ASX: RMD). To get a sense of the size of these two companies compared with Cleanspace, New Zealand-based Fisher & Paykel brought in over NZ$900 million in operational revenues for the six months ended 30 September 2020, while ResMed generated US$800 million in revenues in the December quarter alone.

Despite these differences, shares in all three companies have had a rocky start to 2021 as market analysts and investors try to price in revenue projections beyond the pandemic. After starting the year at $27.50, the ResMed share price fell almost 15% to below $24 before recovering some of that ground more recently. Currently, Resmed shares are down a little over 3% year to date at $26.59. 

Fisher & Paykel shares have followed a similar trajectory, falling over 15% from their 2021 opening price of $30.77 to around $25.46 by early March. They have staged a more significant recovery than ResMed, and are currently slightly above water year to date at $30.79.

So far, the Cleanspace share price has not experienced the same rebound as either ResMed or Fisher & Paykel – but it doesn’t yet have the brand recognition or proven track record of its two established competitors. This means Cleanspace shares will undoubtedly be facing significant investor scrutiny for the remainder of this year.

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• Why the CleanSpace (ASX:CSX) share price is diving 50%

Motley Fool contributor Rhys Brock owns shares of CleanSpace Holdings Limited. The Motley Fool Australia has recommended CleanSpace Holdings 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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The Galaxy Resources Limited (ASX: GXY) share price and the Orocobre Limited (ASX: ORE) share price will be on watch on Monday.

This follows the news that the two lithium miners are looking at a merger.

What was announced?

This morning Galaxy and Orocobre announced that they have agreed to a proposed $4 billion merger of equals that will establish a new force in the global lithium sector.

According to the release, the merger will create the fifth largest global lithium chemicals company with a diversified production base and exciting growth platform. Management also notes that there is the potential to unlock significant synergies and realise value for all shareholders.

What’s next?

The release explains that the two companies will merge via a Galaxy Scheme of Arrangement (scheme) pursuant to which Orocobre will acquire 100% of the shares in Galaxy.

Galaxy shareholders will receive 0.569 Orocobre shares for each Galaxy share held at the scheme record date.

Upon implementation, Orocobre shareholders will own 54.2% of the fully diluted share capital of the combined entity and Galaxy shareholders will own the remaining 45.8%.

The scheme is unanimously recommended by the Galaxy Board and each Galaxy director intends to vote in favour of it. This is subject to no superior proposal emerging and an independent expert’s report concluding that it is in the best interests of Galaxy shareholders.

The scheme is also endorsed and supported by the Orocobre Board, subject to no proposal for Orocobre emerging.

Changes at the top

Should the merger complete as planned, Galaxy’s Chairman, Martin Rowley, would become Non-Executive Chairman. Whereas Orocobre’s Chairman, Robert Hubbard, would become its Deputy Chairman.

Leading the company will be Orocobre’s CEO and Managing Director, Martín Pérez de Solay. Galaxy’s CEO, Simon Hay, will become President of International Business, reporting to Mr de Solay.

What the company will be named remains a mystery. The release explains that a name representing the global reach of the new entity will be chosen in due course.

Management commentary

Galaxy’s Chairman, Martin Rowley, commented: “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders. The Scheme provides shareholders of Galaxy with the opportunity to share in the significant benefits of being part of a larger diversified group and the synergies expected to be available to help enhance and progress our portfolio of world class assets. The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium.”

This sentiment was echoed by Orocobre’s Chairman, Robert Hubbard.

He commented: “The logic of this merger is compelling. Both Orocobre and Galaxy shareholders, will benefit from the diversification, growth and scale of a top 5 global lithium chemicals company. I take this opportunity to re-iterate the group’s ongoing commitment to the principles of delivering the highest level of transparency of our environmental, social and governance performance, the foundations upon which our assets have and will continue to be developed.”

Orocobre’s CEO and Managing Director, Martín Pérez de Solay, also spoke very positively about the plans.

Mr de Solay said: “The merger brings together assets and teams with highly complementary skills and knowledge, with a unique opportunity to create a leading independent lithium company. The merger consolidates the combined group’s position in Argentina and will give us significant operational, technical and financial flexibility to deliver the full value of our combined portfolio.”

Galaxy CEO Simon Hay concluded: “The merger with Orocobre represents an exciting opportunity for both Orocobre and Galaxy shareholders to consolidate and realise the full potential of our asset portfolios and technical capabilities. The transaction will allow the group to materially accelerate the development of our combined growth projects.”

This news is likely to have gone down well with investors. So all eyes will be on both the Galaxy share price and the Orocobre share price at the open.

More reading

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• Why this broker thinks the Vulcan (ASX: VUL) share price can double again
• Why Ampol, Netwealth, Orocobre, & Race Oncology shares are storming higher
• Top brokers name 3 ASX shares to sell today
• Strike Energy (ASX:STX) goes into trading halt for $80m cap raise

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 Eagers Automotive Ltd (ASX: APE) share price is nudging all-time highs. Shares in Australia’s oldest listed automotive company have surged more than 300% in the past year.

Despite having limited exposure to hot sectors like e-commerce, Eagers has been an unexpected winner post-pandemic.  

So, why exactly are investors flocking to buy shares in Eagers?

Eagers share price jumps on update

Last Friday, investors were jumping to buy shares in Eagers after the company released a promising market update.

For the 3 months ending 31 March 2021, Eagers expects to record an underlying operating profit before tax from continuing operations of approximately $98 million. In addition, the company noted that on a statutory basis, net profit before tax for the quarter is expected to be $105 million.

Owning over 250 car dealerships across Australia and New Zealand, Eagers credited unusually strong market dynamics for the performance. Eagers also highlighted the company’s ongoing strategy to reduce costs for the result.

Eagers also noted the sale of its Daimler Truck Operations and Milperra property. The automotive dealer advised that the sale to its US-based business should be completed in the first half of 2021. Subject to completion, Eagers estimates a net gain before tax of $32 million to $36 million from the sale.

The outlook for Eagers

In late February, Eagers released its financial results for FY20. Despite COVID-19 lockdowns keeping consumers away from showrooms, Eagers declared statutory revenue of $8,749.7 million compared to $5,817 million in FY19. In addition, the company reported a 102% increase in underlying profit after tax of $140.4 million.

In its report, Eagers cited solid growth in its share of the new vehicle market for FY21. The company also highlighted its pre-owned vehicle strategy, which delivered strong year-on-year growth. 

Although there has been no clear explanation, there are several theories as to what’s fuelling demand in the automotive industry. Early last month, the Federal Chamber of Automotive Industries (FCAI) noted Australian new-car sales had surged 4 months in a row.

In order to capture the booming market, Eagers plans to radicalise how consumers purchase their next vehicles. The automotive conglomerate plans to construct a mega-complex near Brisbane airport. The facility is expected to host a test track and two dozen showrooms. In addition, the company also plans on expanding new-car showrooms to shopping malls from the end of this year.

More reading

• Why Eagers Auto, Mayne Pharma, Monadelphous, & Newcrest are pushing higher
• Eagers Automotive (ASX:APE) share price edges higher on trading update
• These were the worst performing ASX 200 shares last week
• Are red-hot house prices good for ASX 200 shares?
• End of oil price rally fires warning shot for the ASX COVID recovery trade

Motley Fool contributor Nikhil Gangaram 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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Neometals Ltd (ASX: NMT) shares have enjoyed a remarkable run recently. Since the beginning of 2021, the Neometals share price has skyrocketed over 70% higher and is currently trading at a new 52-week high price of 51 cents.

The gains have come on the back of a flurry of positive announcements for the ASX lithium company – the most recent of which was an agreement signed just last week with Chinese titanium slag producer Jiuxing Titanium Materials (Liaonging) Co. Ltd.

Company background

Originally a pure play on lithium, Neometals has expanded its business interests over the last few years and now markets itself as a diversified mining project development company. It currently operates three core wholly-owned assets: a lithium-ion battery recycling project, a lithium refinery project, and the Barrambie Titanium-Vanadium Project.

The company also has a long-term lithium and nickel exploration project called Mt Edwards, and a collection of other smaller mineral developments.

What has got the Neometals share price zooming higher?

The agreement signed last week with Jiuxing Titanium is a Memorandum of Understanding (MOU) between the two companies. While this doesn’t yet constitute a binding contract, it does set out the commercial foundations for a long-term offtake agreement. If enacted, the 5-year agreement would mean that Neometals would supply Jiuxing with mineral concentrates from its 100% owned Barrambie Titanium-Vanadium Project.

However, the Jiuxing agreement is only the latest in a string of positive announcements released this year by Neometals.

Earlier in April, the company announced the discovery of high-grade palladium at its Mt Edwards Nickel Project in Western Australia. Palladium is a rare mineral with a wide range of applications, most notably in fuel cells.

And in March, Neometals announced it had signed an MOU with Japanese multinational ITOCHU Corporation. The agreement could see ITOCHU and Neometals (through a joint venture named Promidius GmBH, owned 50:50 with German metals company SMS Group GmBH) create a new battery recycling corporation.

The project would involve ITOCHU supplying Promidius with stationary energy storage batteries, which Promidius would recycle in its material processing centres. Promidius would then sell back the recycled batteries to ITOCHU, creating what Neometals describes in its press release as a “circular economy”.

How has the Neometals share price performed versus its peers?

Other lithium miners have also enjoyed a strong start to 2021. The Galaxy Resources Limited (ASX: GXY) share price has soared over 50% year to date to a 52-week high price of $3.61, while the Pilbara Minerals Ltd (ASX: PLS) share price isn’t far behind, climbing almost 50% to $1.30. And the Orocobre Limited (ASX: ORE) share price has also rallied, up 37% so far this year to $6.20.

However, and perhaps a little surprisingly, the Neometals share price has outperformed all of them. New investors will, no doubt, now be watching closely to ensure that Neometals soon converts its assortment of MOUs into firm offtake agreements.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• These were the best performing ASX 200 shares last week
• Why the Neometals (ASX:NMT) share price has surged to a 52-week high
• Why this broker thinks the Vulcan (ASX: VUL) share price can double again
• Why Ampol, Netwealth, Orocobre, & Race Oncology shares are storming higher

Motley Fool contributor Rhys Brock owns shares of Galaxy Resources Limited, Neometals Ltd, and Pilbara Minerals Limited. 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 Australian share market is on a very positive run at the moment and has just hit a 13-month high.

Unsurprisingly, this has led to a number of shares climbing to 52-week highs or better. Three that have achieved this milestone are listed below. Here’s why they are on fire right now:

Codan Limited (ASX: CDA)

The Codan share price hit a record high of $18.38 on Friday. Investors have been fighting to get hold of the electronic products company’s shares over the last 12 months thanks to its impressive performance in FY 2020 and so far in FY 2021. This strong performance has been underpinned by strong demand for metal detectors following the release of new products and the high gold price. In addition to this, Codan has made a series of acquisitions that have boosted and diversified its earnings. This includes the acquisition of US-based Domo Tactical Communications for $114 million and Zetron, Inc. for US$45 million.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price climbed to a record high of 82 cents at the end of last week. A number of promising developments have given this lithium developer’s shares a huge lift in 2021. One of those was last month when the company announced that the testing of a new process has resulted in higher grade lithium product. In fact, management revealed that its end product is the same quality as that of nearby mining giants SQM and Albemarle. Galan’s Managing Director, Juan Pablo Vargas de la Vega, said: “These results are better than we envisaged and have more than solidified the serious potential of the Hombre Muerto West project.” A favourable outlook for lithium prices and demand has also given its shares a lift.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price rose to a 52-week high of 59 cents on Friday. Investors have been buying the pharmaceutical company’s shares on the belief that it is over the worst of its issues now. Particularly given the launch of new and potentially lucrative products. One of the those is a new female contraceptive. Last week Mayne Pharma announced US FDA approval for the product. It intends to launch the novel combined oral contraceptive in June and estimates that it has a US$3.6 billion opportunity in the United States.

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• Why Eagers Auto, Mayne Pharma, Monadelphous, & Newcrest are pushing higher
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Motley Fool contributor James Mickleboro 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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Commonwealth Bank of Australia (ASX: CBA) CEO Matt Comyn has hit out at Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), and other buy now, pay later (BNPL) providers. Testifying before the House Standing Committee on Economics, Comyn didn’t mince his words when talking about the increasingly popular sector.

“I would acknowledge the work and innovation that they’ve undertaken to build such a, in some instances, large and successful company, and avoiding all of that regulation is quite a feat,” Mr Comyn said in response to questions about the BNPL sector.

Commonwealth Bank, however, is also a member of that industry. Through its investment in Swedish company Klarna, and its yet to be launched CommBank branded service, Australia’s largest bank seems prepared to fight Afterpay and Zip on all fronts.

Increase BNPL regulations – Commonwealth Bank CEO

Comyn took several swipes at his company’s BNPL competitors of the course of his testimony on Friday.

Late fees and financial stress

When discussing late fees, Comyn compared and contrasted Commonwealth Bank’s proposed offer to that of Afterpay.

“We have a $10 late payment fee, capped at $120 per year,” Comyn said. He then went on to compare the fee to Afterpay’s, which charges up to a $68 late fee per purchase.

Comyn also claimed BNPL consumers face higher rates of financial hardship and larger arrears than credit card users.

Merchant fees

Comyn accused BNPL providers of leaning on credit card users.

“Non BNPL users are subsidising BNPL users,” Comyn said in relation to the inability of businesses to pass on merchant fees from Afterpay or Zip to customers.

Comyn said companies like Afterpay and Zip are charging very high merchant fees of up to 7%. In comparison, Commonwealth Bank will only charge a few of around 1%. Credit card fees are even less, at approximately 0.5%.

“I also think it’s appropriate for merchants to be entitled, contractually, to pass on those costs to the consumer.”

Other regulations

Comyn also hit out at what he sees as BNPL providers being able to skirt financial regulations.

“[BNPL providers] rely on an exclusion [in the National Consumer Credit Protection Act] that was drafted many years before the category of [BNPL] existed.”

Comyn singled out comprehensive credit reporting laws, which BNPL providers like Afterpay are exempt from, and consumer data retention laws as areas BNPL providers should face stricter regulation.

“I don’t think it’s unreasonable given the size of the market, the scale of the individual players, in one instance being an ASX 20 company, to make an investment in understanding their customers’ circumstances and financial position,” he said.

The ASX 20 company in question is Afterpay.

“Some of these payment companies have an enormous amount of data. I don’t know why they are able to avoid [data retention] regulations,” Comyn added.

At the end of his testimony, Comyn said the BNPL space, which generates $10 billion per year, is too big to avoid regulation.

“I think they are beyond a point where at least the legislative and regulatory framework that’s applied to that sector needs to be comprehensively reviewed.”

Zip responds

A spokesperson for Zip gave the following response when approached for comment by Motley Fool Australia.

“Zip has always put responsibility front and centre of our business model and, as a result, our 1.74% bad debt rate is industry leading.

“Zip has done credit checks since day one on all applications and we do not have a business model built off late fees.

“Only 1/100 Zip Pay customers is late each month compared with 1/6 for a bank credit card.  Because of this due diligence, Zip makes less than 1% of its revenue from late fees.

“Also, unlike credit cards, Zip, and all BNPLs signed up to the BNPL Code of Practice, agreed that if a customer is late in a repayment, their account is locked until the debt is cleared. They cannot keep spending and get into a debt spiral (unlike the bank credit cards).”

Afterpay was also approached for comment but none was received before publication.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 2 ASX dividend shares with generous yields in 2021
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• Why the Zip (ASX:Z1P) share price can go even higher

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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) has enjoyed yet another strong week of returns which saw the index make a new post-COVID high. In the previous week, the ASX 200 hit the 7,000 point threshold for the first time since the onset of the coronavirus back in February 2020.

Last week, the ASX 200 built on that momentum and was pushing as high as 7,067 points on Thursday afternoon. That’s less than 2% from its all-time high of just under 7,200 points that was reached on 20 February 2020. 

It was ASX tech shares that were leading the charge last week, with several of the ASX’s more well-known names enjoying big gains. Zip Co Ltd (ASX: Z1P) was the top ASX 200 performer, rising more than 12% over the week (more on that later). But we also saw healthy moves upward from tech shares like Altium Limited (ASX: ALU), Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO).

That’s not to say the ASX blue chips were missing out. We saw new 52-week highs from Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG) and Woolworths Group Ltd (ASX: WOW) last week.

ASX gold miners also had a top week. A gradual rise in the price of the precious metal helped in this endeavour, as did a slight bump in the Aussie dollar against its US counterpart. 

US growth and jobs

So what caused this continuing optimism? Well, we had some extremely encouraging economic statistics come out mid-week, which no doubt helped push the ASX 200 higher. Over the month of March, the unemployment rate fell from 5.8% to 5.65%. And that was despite a rise in the participation rate.

We also continued to see the US markets push higher into new record territory, which is never bad news for AX 200 shares. Both the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average (DJX: .DJI) closed at record highs on Friday afternoon (US time), which is a pretty incredible event if you think about it. 

But not all ASX shares were lifted by the rising tide last week. Energy generation companies Origin Energy Ltd (ASX: ORG) and AGL Energy Limited (ASX: AGL) both had shockers. The latter fell to a new 16-year low of $9.15 per share on Friday. 

But how did our own ASX 200 fair over the week?

How did the markets end the week?

Well, the ASX 200 Index started the week at 6,995.2 points and ended up at 7,063.5 points, a gain of 0.98% for the week. Monday saw the ASX 200’s only loss for the week, with a slip of 0.3%. Tuesday was essentially flat with a measly gain of 0.04%. But Wednesday saw a bit of acceleration with a 0.66% gain. This was followed up on Thursday with another 0.51%, and Friday saw a further 0.07% added.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a good week. The All Ords started out at 7,252.3 points and finished up at 7,325.8 points, a gain of 1.01%.

Which ASX 200 shares were the biggest winners and losers?

Time now for our rather salacious winners and losers segment where we take a peek at the week’s best and worst ASX 200 shares. So fetch the biscuits and put the kettle on as we, as always, start with the losers:

Worst ASX 200 losers	% loss for the week
Whitehaven Coal Ltd (ASX: WHC)	(17.7%)
Regis Resources Limited (ASX: RRL)	(14.9%)
Origin Energy Ltd (ASX: ORG)	(9.7%)
TPG Telecom Ltd (ASX: TPG)	(5.7%)

Last week’s wooden spoon recipient was Whitehaven Coal with a nasty near-18% slide. Investors were hitting the sell button in droves after the company informed the market that coal production had been hit by unexpected delays, including bad weather, in a quarterly update. 

ASX gold miner Regis was a notable exception to the outperformance of the ASX gold miners last week. Investors did not evidently approve of the company’s plans to raise cash to acquire a 30% interest in IGO Ltd (ASX: IGO)’s Tropicana Gold Project. 

As mentioned earlier, Origin Energy also had a stinker. Origin continues to face uncertainty woes, and this week the company gave investors an update which consisted of an FY2021 guidance downgrade. It seems investors’ patience with this one is wearing thin.

Finally, TPG Telecom was also in investors’ sights, despite no major news out of the company. It might still be suffering from the announcement of CEO David Teoh’s resignation last month.

With the losers out of the way, let’s now take a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
Zip Co Ltd (ASX: Z1P)	12.9%
Pilbara Minerals Ltd (ASX: PLS)	12.1%
Pendal Group Ltd (ASX: PDL)	9.7%
Resolute Mining Ltd (ASX: RSG)	8.4%

Zip Co topped the ASX 200 last week with a near-13% gain. Fuelling this appreciation was a quarterly update the buy now, pay later (BNPL) company released on Tuesday. This outlined an impressive 114% jump in transaction volume and an 80% rise in revenues for the period.

Lithium company Pilbara was also a top performer last week. There was no major news out of the miner, but investor sentiment has been warming for a few months now in this sector. Further, as my Fool colleague James discussed on the weekend, Pilbara has been enjoying some love from brokers lately as well.

Fund manager Pendal was also basking in some attention from investors. This appears to be the result of a 4.4% increase in funds under management over March to $101.7 billion, which the company unveiled late last week. 

Finally, Resolute Mining topped the ASX gold miners last week with an 8.4% bump. This was helped by the factors discussed above, as well as the restoration of a mining license in Ghana. 

A wrap of the ASX 200 blue-chip shares

Before we go, here is a look at the major ASX 200 blue-chip shares as we start on yet another week in paradise:

ASX 200 company	Trailing P/E ratio	Last share price	52-week high	52-week low
CSL Limited (ASX: CSL)	35.22	$269.07	$332.68	$242
Commonwealth Bank of Australia (ASX: CBA)	19.57	$87.99	$89.20	$57
Westpac Banking Corp (ASX: WBC)	39.74	$25.32	$25.41	$14.53
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	23.8	$28.82	$29.55	$15.07
National Australia Bank Ltd (ASX: NAB)	24.62	$26.72	$27.10	$15
Fortescue Metals Group Limited (ASX: FMG)	7.71	$20.82	$26.40	$10.61
Woolworths Group Ltd (ASX: WOW)	37.52	$42.04	$42.47	$33.82
Wesfarmers Ltd (ASX: WES)	33.55	$55.64	$56.40	$35.58
BHP Group Ltd (ASX: BHP)	26.44	$47.57	$50.93	$28.76
Rio Tinto Limited (ASX: RIO)	15.14	$118.88	$130.30	$80.10
Coles Group Ltd (ASX: COL)	19.79	$15.56	$19.26	$14.95
Telstra Corporation Ltd (ASX: TLS)	23.02	$3.43	$3.54	$2.66
Transurban Group (ASX: TCL)	–	$13.88	$15.64	$12.22
Sydney Airport Holdings Pty Ltd (ASX: SYD)	–	$6.11	$7.49	$4.99
Newcrest Mining Ltd (ASX: NCM)	17.67	$27.72	$38.15	$23.08
Woodside Petroleum Limited (ASX: WPL)	–	$24.07	$27.60	$16.80
Macquarie Group Ltd (ASX: MQG)	23.38	$156.25	$157.38	$93.62
Afterpay Ltd (ASX: APT)	–	$127.39	$160.05	$25.67

And finally, here is the lay of the land for some leading market indicators:

• S&P/ASX 200 Index (XJO) at 7,063.5 points.
• All Ordinaries Index (XAO) at 7,325.8 points.
• Dow Jones Industrial Average at 34,200.67 points after rising 0.48% on Friday night (our time).
• Bitcoin (CRYPTO: BTC) going for US$55,938 per coin.
• Gold (spot) swapping hands for US$1,777 per troy ounce.
• Iron ore asking US$174.10 per tonne.
• Crude oil (Brent) trading at US$66.77 per barrel.
• Australian dollar buying 77.34 US cents.
• 10-year Australian Government bonds yielding 1.68% per annum.

That’s all folks. See you next week!

More reading

• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• Leading broker says the Origin (ASX:ORG) share price is dirt cheap
• Why ASX mining shares are likely to jump this morning
• 2 ASX dividend shares with generous yields in 2021
• 5 things to watch on the ASX 200 on Monday

Sebastian Bowen owns shares of Bitcoin, National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths 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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