Tag: Motley Fool

The De Grey Mining Limited (ASX: DEG) share price is backtracking in early afternoon trade despite the company announcing a new shear-hosted gold discovery. At the time of writing, the gold and mineral exploration company’s shares are fetching $1.0475, down 2.1%.

What were the results?

Investors are dumping De Grey shares regardless of the initial positive results obtained from its RC spaced drilling campaign.

According to its release, De Grey has identified new shear-hosted gold deposits at the Gillies prospect. This is located within the Farno McMahon joint venture and is about 30 kilometres southwest of the Hemi gold discovery.

The drilling results yielded strong gold mineralisation which included a strike of 15 meters @ 1.8g/t (grams per tonne) Au (gold) from 90 meters in GLR016. This was within the broader 52 meters @ 0.7g/t Au from 53 meters in GLC016.

De Grey has increased its equity in the Farno McMahon joint venture to 75%, up from the original 30%. The other joint venture partner is Novo Resources Inc, which holds the remaining 25%.

The Gillies prospect is relatively untouched with only early-stage exploration activities focused on target generation and mapping bedrock gold systems. The new gold target is shear-hosted and intersected over a broad 50-meter-thick zone downhole.

The initial drilling program completed 21 reverse circulation (RC) holes with over 4,400 meters drilled. Previously in late 2019, air-core and soil sampling results led to encouraging finds.

De Grey revealed that the prospect area contains sandstones and siltstone units over 3 kilometres long by 600 meters wide. The northern-half of the prospect is of particular interest as shallow and spatial gold results were identified in the 2019 air core program. These findings included 1 meter @ 1.2g/t Au in GLAC013 and 1 meter @ 0.9g/t Au in GLAC012.

The company noted that a follow-up RC drilling program is scheduled to be undertaken in Q2 2021. Over 2,000 meters is being planned to be drilled across a number of holes. Additional air-core drilling is also planned to test numerous bedrock gold anomalies.

Management commentary

De Grey managing director Glenn Jardine commented:

De Grey has formed a dedicated regional exploration team which is preparing for the Company to restart exploration outside of the Greater Hemi area, in parallel with extensional and exploration work within the Greater Hemi area. We anticipate following up the Gillies discovery hole in the next quarter.

About the De Grey share price

The De Grey share price has accelerated by almost 340% since this time last year. However, it’s a different picture when looking at the company’s shares year to date. De Grey shares have fallen by around 4% so far in 2021.

On valuation grounds, De Grey commands a market capitalisation of about $1.38 billion, with almost 1.3 billion shares on hand.

More reading

• The De Grey (ASX: DEG) share price lower despite outstanding gold results

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 Calix Ltd (ASX: CXL) share price has had an outstanding performance so far in 2021. Most recently, surging more than 100% from $1.07 to a close of $2.29 on Monday. The company’s core technology is used to develop more environmentally friendly solutions for industries including batteries, agriculture, and aquaculture. 

Today, the company announced that its demonstration project, LEILAC-2 (low emissions intensity lime and cement) has passed its pre-FEED (pre-front end engineering and design) study go/no go milestone. 

Calix share price on watch after passing key milestone 

Calix believes that its CO₂ mitigation technology is the lowest cost solution for reducing emissions for cement and lime production. The LEILAC-2 project demonstrates the efficient separation of CO₂ in the production of lime and cement. This project was undertaken at a commercial scale at a HeidelbergCement plant in Hanover, Germany. Additionally, the project cost €23 million (A$35 million).

The project successfully delivered a design that was technically viable. It fulfilled the operational objectives of the overall plant and posed low integration risks. Additionally, it was within the required ±30% cost estimate of the budget.

The pre-FEED was assessed by a full General Assembling of the LEILAC-2 Project consortium. This included key cement industry representatives such as HeidelbergCement, Cemex, and Cimpor, and lime representatives such as Lhoist. 

The company said that the project will now enter full Front-End-Engineering and Design. This is in preparation for a final investment decision by early 2022.

This represents another key milestone for the commercialisation of its CO₂ mitigation product in the European market. 

Calix has previously highlighted a number of tailwinds for its CO₂ mitigation product in its half-year results including: 

• 2018 – EU ratifies phase 4 of the Emissions Trading Scheme. CO2 permit price jumps from €5 to over € 25, where it has remained
• 2019 – HeidelbergCement pledges net zero CO2 by 2050, and a 30% reduction by 2030
• 2020 – EU legislates net zero CO2 by 2050. Several countries follow

Comments from the CEO 

Calix CEO and MD Phil Hodges commented on the agreement and increasing interest in the company’s technology:

We have seen a significant increase in inbound enquiries in Calix technology driven by the rapidly increasing interest in Environment, Social and Governance, from countries, companies and investors. This important project is a world-first in ambition to produce zero-emissions lime, one of the most important industrial products globally, and it is great to be developing this in partnership with Adbri, in an Australian project, with Australian technology.

Calix executes an agreement to c0-develop lime production 

Coinciding with the successful milestone, Calix announced a Heads of Agreement with Adbri Ltd (ASX: ABC) to co-develop a Calix calciner for lime production with CO₂ capture.

The agreement outlines the intent of the parties to commence feasibility work on the project. This will cover lime production of around 30kTpa including demonstration of 20kTpa CO₂ capture. 

The production of lime currently emits roughly 1 tonne of CO₂ per 1 tonne of lime produced. Additionally, the company highlights that lime is used extensively in producing a variety of core materials including steel, aluminium, rare earth, and gold. Thus, it is a significant contributor to a producer’s carbon footprints.

More reading

• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• These were the best performers on the ASX 200 last week
• How are ASX 200 shares faring in the carbon revolution?
• Why the Calix (ASX:CXL) share price is down today

Motley Fool contributor Kerry Sun 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.

The post Why the Calix (ASX:CXL) share price is eyeing record highs appeared first on The Motley Fool Australia.

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The Digital Wine Ventures Ltd (ASX: DW8) share price is surging today after the company ended a trading halt with news its platform WINEDEPOT has partnered with a leading beverage distributor.

Digital Wine says the partnership with Bibendum Wine Co. will introduce WINEDEPOT to thousands of trade buyers. The company also announced that it would roll out its own delivery fleet.

The Digital Wine share price hit an intraday high of 19 cents this morning, up 31%. At the time of writing, shares are 27.5% higher, trading at 18.5 cents.

Let’s have a closer look at today’s news.

Bibendum and WINEDEPOT

The partnership between the two beverage suppliers means WINEDEPOT will stock a large part of Bibendum’s portfolio. 

Bibendum represents 160 local and international wine producers and craft spirits. It will invite its customers to join the WINEDEPOT platform, offering a $250 voucher as an incentive. The voucher will have minimum spend restrictions and will have to be used within a time frame.

The companies will also link their IT systems so WINEDEPOT customer accounts can be opened easily. The integration of IT will delay the partnership until late April. However, Digital Wine CEO Dean Taylor believes a faster uptake will offset any delay.

In return for its partnership with WINEDEPOT, Bibendum will have access to WINEDEPOT’s logistics service, as well as a particularly large incentive: Should the partnership fulfil a number of achievements within 2 years, Bibendum will receive 20 million shares in Digital Wine.

These include Bibendum listing more than 280 products on WINEDEPOT and sending at least 4000 WINEDEPOT referral vouchers – of which at least 800 must be activated, thereby generating at least $800,000 in sales.

WINEDEPOT delivery fleet

Digital Wine also announced a partnership between WINEDEPOT and Direct Couriers.

The two companies will develop a dedicated WINEDEPOT delivery fleet for commercial customers. Deliveries will be dedicated to metro areas, allowing customers fast access to orders regardless of freight congestion.

Commentary from management

CEO Dean Taylor is excited about the potential the partnership with Bibendum has to fast-track WINEDEPOT’s uptake.

Bibendum are without a doubt one of the most successful wholesale beverage businesses in Australia. You only need to look at the calibre of brands in their portfolio or speak with any major wine buyer to get a gauge on their position within the industry.

This partnership allows us to leverage Bibendum’s unique product range, highly experienced sales force, long-term customer relationships and revered presence within the industry to drive rapid awareness of the benefits that our marketplace provides to trade buyers.

Bibendum founder and owner Robert Walters also welcomed the partnership.

I honestly believe that the wine and beverage trade has been crying out for an integrated trading, logistics and payment solution like WINEDEPOT market.

To play a key part in the launch of this revolutionary platform is exciting. It offers the potential of allowing us to service our client base at an even higher level, and this is one of the keys to our involvement.

Digital Wine Venture share price 

The Digital Wine share price has had a remarkable year so far, and today’s news has brought only the latest boost.

On Friday, the company announced that WINEDEPOT had partnered with eBay Inc (NASDAQ: EBAY), which saw its share price soar 27% by the close of trade.

With today’s gain included, the Digital Wine share price is up 375% year to date. It is also up a huge 1800% over the last 12 months.

The company boasts a market capitalisation of around $241 million, with approximately 1.6 billion shares outstanding.

More reading

• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• Why the Digital Wine (ASX:DW8) share price is on ice
• How eBay has sent the Digital Wine (ASX:DW8) share price up 50%
• Why the Digital Wine (ASX:DW8) share price is up an astonishing 18%

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

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay. 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.

The post Why the Digital Wine (ASX:DW8) share price has surged 31% today appeared first on The Motley Fool Australia.

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The Fortescue Metals Group Limited (ASX: FMG) share price is currently more than triple its previous 10-year high and significantly outperforming its major ASX rivals.

Given they share high iron ore prices but differ majorly in their climate-change targets, this makes now the perfect time to deep dive into Fortescue’s share price history.

Fortescue’s recent share price information

The Fortescue share price has risen 100% over the past 12 months on the back of strong iron ore prices, but has fallen 10% this month and 18% this calendar year.

In this period, Fortescue has been in the news nearly constantly. Among its 20 ASX company updates so far in 2021, Chair Andrew ‘Twiggy’ Forrest’s environmentally focused Boyer Lectures for the ABC and Fortescue’s target for carbon neutrality by 2030 were the stories that broke through into mainstream attention.

For recent context’s sake, the Fortescue share price rose 2.13% yesterday to break its monthly downward trend, however hasn’t retained those gains today, dropping 1.38% at the time of writing.

With all the ups, downs and news bites considered, we look back at Fortescue’s share price over the past few years and the biggest movements that have affected it, to see whether public attitudes towards the company may be having an impact.

How important is climate change to resources investors?

Andrew ‘Twiggy’ Forrest — who is largely synonymous with Fortescue — and his public environmental focus could be noteworthy, given Fortescue’s share price gains are 50% up against its basic materials sector.

At $20 per share, it’s important to remember it does have bigger scope for growth.

However, Rio Tinto Limited (ASX: RIO) is also on a 10-year share price high and its share price has almost quadrupled since 2016. But it’s still down 20% against the same sector.

Meanwhile, BHP Group Ltd (ASX: BHP), at $45 per share, is currently beating its decade-high set all the way back in March 2011, but by less than $3 per share. It’s only 5% up against the sector.

Fortescue share price over time

Fortescue’s share price hovered around the $5 mark for the best part of the last decade, never rising above $6.66 until 2019. This is despite the iron ore price being roughly equivalent in 2012 to its price today. Fortescue’s share price is now just over $20 per share.

This shows that despite Fortescue being largely reliant on iron ore as a major resources company, it’s not the end-all to its share price conversation.

After an initial rise, the iron ore price had dropped back to $82 USD/T by April 2020 but that didn’t prevent the Fortescue share price from consistently rising through April and May that year.

While the period from 2010 to 2012 was a boom for iron ore, far exceeding its price today, Fortescue was embattled in a high-profile legal stoush with Indigenous native-title holders, which is an issue the company manages to largely avoid today — unlike some of its competitors — although perhaps that’s partly dumb luck.

By 2013, Fortescue had achieved its target of awarding more than $1 billion in contracts to Indigenous businesses. It signposted a shift in public relations for the miner, which is now increasingly well-known for Forrest’s environmental focus.

It’s also possible that Fortescue’s rapid share price rise has a lot to do with the company’s commitments to carbon neutrality, the development of hydrogen fuel cells, and its Chair’s public statements.

“I hope you’re going to remember this evening”

Last Wednesday, Forrest spoke optimistically to the Credit Suisse Asian Investment Conference about how Fortescue are positioned to reap the rewards of a “$12 trillion” Australian hydrogen industry.

I hope you’re going to remember this evening as the heralding of massive change, which you can invest in, you can be part of, or you can watch happen around you. But it will happen.

We see the future of energy as hydrogen. I think our greatest natural resource is no longer iron ore, it isn’t gold, it isn’t oil, and it’s certainly not coal.

The question is not whether green hydrogen will become the next global energy form, it’s just a question of by whom. …Who will mass produce, have a ship leaving the port every half an hour on a scale of the greatest energy companies in the world?

Which company would be that strong, that we could allocate sufficient risk to test green hydrogen at global industrial scale? Last year the board and I at Fortescue Metals Group decided that would be Fortescue.

Fortescue dividends a greater appeal?

Fortescue offers a dividend of 12.3%, which fully franked grosses up to over 17%. This symbolises the company’s strong track record, with its share price rising more than 680% over the past five years. Fortescue calculates its dividends based on a ratio of 50% to 80% of full-year net profits after tax (NPAT).

Its publicly secure status as a blue-chip share and high-profile ASX 200 Index company complements its dividends and can appeal to retiree investors. It’s impossible to discuss the Fortescue growth without keeping these facts front and centre. 

The Fortescue future

But what will become another stone cold fact in time, is how important carbon-reduction targets are to investors.

BHP’s target of a 30% drop in emissions by 2030 and Rio’s target of 15% (with carbon intensity of 30%) pale compared to Fortescue’s. 

If Twiggy and co appear on track to reach their targets, this question may be answered a lot sooner than 2030.

More reading

• Why Macquarie thinks the BHP (ASX:BHP) share price and 2 others will outperform
• ‘Remarkable resilience’ in Aussie farmland a tailwind for ASX agriculture shares
• Leading brokers name 3 ASX shares to buy today
• Why the South32 (ASX:S32) share price is outperforming today
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

Motley Fool contributor Lucas Radbourne-Pugh 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.

The post Is the Fortescue share price ring-fenced by Twiggy and its climate targets? appeared first on The Motley Fool Australia.

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RXP Services Ltd (ASX: RXP) was removed from the official list of ASX Limited at the closing bell yesterday.

This follows on from the digital services company’s announcement on Friday that the scheme of arrangement regarding its acquisition by Capgemini Australia Pty Limited – a wholly-owned subsidiary of Capgemini SE (EPA: CAP) – had been implemented.

Capgemini is now the sole shareholder in RXP, in a deal the French consulting giant first announced it was pursuing in early November 2020. The RXP share price surged 54% on the day of the announcement.

RXP share price lifted 148% in 12 months

RXP shareholders received 50 cents per share plus a 5-cent special dividend for a total cash consideration of 55 cents per share. That’s 148% more than the 22 cents per share RXP Services was trading for on 30 March last year.

Findex’s Corporate Finance Division advised RXP on its successful sale in a deal Findex reports is valued at over $100 million.

Capgemini was advised by Luminis Partners and Herbert Smith Freehills.

Commenting on the completion of the deal Findex Senior Partner Simon Gennari said:

The transaction represents strong value for RXP shareholders being undertaken at a significant premium to the pre-bid share price. Capgemini will benefit from a committed team with a great customer base, adding strongly to their market position.

We’re delighted to have supported RXP Group in their successful sale to Capgemini, which marks one of our largest transactions to date.

More reading

• Is the Fortescue share price ring-fenced by Twiggy and its climate targets?
• Why the Kazia Therapeutics (ASX:KZA) share price is rocketing 11%
• Which is the better investment: An ASX share portfolio or an index fund?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• ASX banks are facing millions of cyber attacks each day

Motley Fool contributor Bernd Struben 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.

The post It’s official – Why RXP Services (ASX:RXP) shares de-listed from the ASX appeared first on The Motley Fool Australia.

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The Kazia Therapeutics Ltd (ASX: KZA) share price is shooting for the moon today. The positive movement comes after the company announced a licence agreement to sell a brain cancer treatment in Greater China.

Kazia is an oncology-focused biotech company. It is working on several forms of cancer treatment, including for brain cancer and ovarian cancer.

At the time of writing, shares in the medical company are trading at $1.61 – up 11.03%. By comparison, the All Ordinaries Index (ASX: XAO) is up 0.36%.

Let’s take a closer look at Kazia’s announcement.

Licence agreement in Greater China

The Kazia share price is rocketing after the dual-listed company revealed it has entered into a licensing agreement with Simcere Pharmaceutical Group Ltd. The purpose of the agreement is “to develop and commercialise Kazia’s investigational new drug, paxalisib, in Greater China.” Paxalisib is used in the treatment of brain cancer.

Under the deal, Simcere will develop, register, and commercialise paxalisib in Mainland China as well as in Hong Kong, Macau, and Taiwan. Kazia holds the rights to the drug in all other nations. Kazia will receive an upfront payment of US$11 million. Simcere will divide the payment into US$7 million in liquidity and a US$4 million equity investment. The equity investment is priced at a 20% premium on the most recent price.

Kazia also pointed out it retains the right to commercialise the drug in the United States, where profit margins are higher. 

Simcere will pay Kazia up to US$281 million, depending on milestones being met on the treatment of glioblastoma – an aggressive form of brain cancer. Further payments may be payable if the drug is found to be effective in other types of brain cancer.

Management commentary

Kazia CEO Dr James Garner spoke on the deal. He said:

China is one of the world’s largest pharmaceutical markets, with specific requirements and opportunities for innovative oncology products. We are delighted to partner with Simcere to secure the commercial success of paxalisib in this critical territory. Simcere’s track record of success is unrivalled, and they bring to paxalisib first-class capabilities in clinical development, regulatory affairs, and commercialisation. We look forward to working closely with our new partners to make paxalisib available for Chinese patients as swiftly as possible.

Dr Renhong Tang, Senior Vice-President at Simcere, added:

We are tremendously excited by the potential for paxalisib to make a difference in this very challenging disease. The need for new therapies in brain cancer is significant in China, and we share Kazia’s commitment to bringing forward new treatment options for patients.

Kazia share price snapshot

Over the last 12 months, the Kazia share price has increased by around 335%. Just since the beginning of this year, Kazia shares have increased by more than 35%. The share price hit a 52-week high of $1.78 in November after the company released positive clinical data about paxalisib.

Kazia has a market capitalisation of around $184 million.

More reading

• Which is the better investment: An ASX share portfolio or an index fund?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• ASX banks are facing millions of cyber attacks each day
• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• Why the CleanSpace (ASX:CSX) share price is diving 50%

Motley Fool contributor Marc Sidarous 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.

The post Why the Kazia Therapeutics (ASX:KZA) share price is rocketing 11% appeared first on The Motley Fool Australia.

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Here at the Motley Fool, we love spruiking the benefits of owning a diversified portfolio of top ASX shares. However, owning shares can come with its own set of hurdles any investor has to jump. The reality is that some investors might be better off investing in exchange-traded funds (ETFs) that track an index. Index funds can provide a cheap, effective path to investing without some of the hassles that we share investors have to wade through from time to time. And they are arguably a lot better than leaving your cash in the bank. However, index funds won’t deliver the kind of share market gains that have made Warren Buffett rich. So which are better for you, ASX shares or index funds? Here’s the argument in a nutshell:

3 ways index funds are better than ASX shares

There’s not a lot to worry about

The first benefit of owning index funds is that there’s just not that much to worry about, at least when comparing them to a portfolio of ASX shares. If an investor has a portfolio of 15 ASX shares, that is 15 companies to keep abreast of. 15 management teams to follow. 15 annual reports to read every year. 15 share prices to potentially watch crater in a market crash. This can easily become overwhelming for any investor, especially one just starting out. You don’t get any of that hassle with an index fund. Especially so if you find the whole ‘investing thing’ boring.

You can leave an index fund on autopilot

One of the best things about an index fund is that it does the work for you. Part of that work is selecting the companies that make up an index in the first place. Fortunately, the providers of an index fund have a simple and effective way of doing this. If a company grows in size, it grows its presence in the index. And vice versa. In this way, the poor companies are weeded out over time, while the best companies are added to. CSL Limited (ASX: CSL) never used to be a large part of the S&P/ASX 200 Index (ASX: XJO). Now it’s a top holding.

The index provider does this process for us. So once you buy an index fund, you can leave it in the bottom drawer if you want.

Index funds can outperform managed funds

Managed funds used to be the only way to passively invest in ASX shares before index funds came along. There are many top-notch managed funds out there. But there are also many poor ones too. The problem for investors is that it can take years for patterns of poor performance to become evident in a fund’s figures. And while you’re waiting, the fund is usually charging you a hefty fee, often between 1-2% per annum. In contrast, index funds have a fee that can be a tenth of that or less. For example, the Vanguard Australian Shares Index ETF (ASX: VAS) charges 0.1% per annum. The iShares S&P 500 ETF (ASX: IVV) costs just 0.04% per annum.

3 ways ASX shares are better than index funds

ASX shares can help you outperform the market

This might go without saying, but it’s worth saying anyway. When you buy an index fund, you are signing up for the performance of the broader market. Nothing more, and nothing less. That walks hand in hand with the fact that you can never do better than what the market does if all you own is the market.

Now, an ASX index fund like the  SPDR S&P/ASX 200 Fund (ASX: STW) will give you a decent return over time, an average of 8.1% per annum since 2001 in fact. But a top-notch portfolio of ASX shares has the potential to do better than that. Some skilled investors can get to the point where their portfolios generate 15%, 20% or even 30% per annum on average. That takes patience, time and temperament, but it can be done. And if you get to that point with your ASX shares, the benefits of compounding your wealth at that rate become very powerful.

Your ASX share portfolio is free

If you ask someone else, whether that be a managed fund, or an index fund, to manage your money for you, you are going to have to pay them for the privilege. Whilst it’s true that some index ETFs offer very low management fees, running your own portfolio yourself will always be cheaper. Fees can add up over long periods of time, so managing your money yourself will always give you the edge here.

You can learn a lot along the way

Investing in an ASX share is the same as investing in a business. You’d be surprised at how your perspective can change when it becomes ‘your company’s annual report’ you are reading. Warren Buffett once said that “I am a better businessman because I am an investor”. Investing in individual businesses can help in many other aspects of life, some obvious and some not. Understanding how different companies are planning for the future or adapting to technological change can give a unique perspective that you might not find through other mediums. Good investors like to say that they are always learning. And learning is good for the soul!

Foolish takeaway

We Fools think most people have what it takes to be a successful ASX share investor. But there are some people out there who find the whole process too stressful, boring or hard to follow. And that’s ok! Index funds can often fill these gaps so that these investors can still participate in the wealth creation of the markets in a more passive way, without paying through the nose. Index funds can be an easy and useful way to invest in the share market. But there’s no doubt that building your own portfolio of ASX shares can be far more rewarding in more ways than one. If you’re up for the challenge, that is.

More reading

• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Australia’s first cryptocurrency fraud case filed to the Federal Court
• 3 things to expect from CSL (ASX:CSL) over the next decade
• Where to reinvest your Commonwealth Bank (ASX:CBA) dividends
• 2 of the best ASX 50 shares to buy in April

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Which is the better investment: An ASX share portfolio or an index fund? appeared first on The Motley Fool Australia.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and more. The benchmark index is currently down 0.15% to 6,788.8 points.

Here’s what has been happening on the market today:

AGL to split into two

The AGL Energy Limited (ASX: AGL) share price is pushing higher after announcing plans to split its business into two. The “New AGL” business will be Australia’s largest multi-product energy retailer, whereas “PrimeCo” will be Australia’s largest electricity generator. Management believes the proposed separation will give each business the opportunity to execute their own respective strategies and growth agendas. The market appears to see value in these plans.

NAB acquisition of 86 400 approved by ACCC

The National Australia Bank Ltd (ASX: NAB) share price is trading lower today after market weakness offset positive news. That positive news was the Australian Competition and Consumer Commission (ACCC) revealing that it will not oppose the bank’s proposed acquisition of digital bank, 86 400. The ACCC’s Chair, Rod Sims, said that the regulator’s consultation included banks, non-bank lenders, fintechs, mortgage brokers, industry and consumer bodies. However, most interested parties raised no or limited concerns with the transaction.

Santos pushes ahead with Barossa

The Santos Ltd (ASX: STO) share price is trading lower today despite the release of a big announcement. This morning the energy producer has made a final investment decision (FID) on the Barossa joint venture and will push ahead with the US$3.6 billion gas and condensate project. Management notes that Barossa is one of the lowest cost, new LNG supply projects in the world. It expects the project to give Santos and Darwin LNG a competitive advantage in a tightening global LNG market.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Xero Limited (ASX: XRO) share price with a 3% gain. On Monday Morgan Stanley retained its buy rating and lifted its price target to $140.00. The worst performer has been the Pointsbet Holdings Ltd (ASX: PBH) share price with a 7.5% decline. This appears to have been driven by sizeable declines by some of its rivals in the US overnight.

More reading

• ASX banks are facing millions of cyber attacks each day
• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• Australia’s first cryptocurrency fraud case filed to the Federal Court
• NAB (ASX:NAB) share price higher after ACCC approves 86 400 acquisition
• Santos (ASX:STO) share price rises on Barossa final investment decision

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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 big ASX banks are seeing millions of cyber attacks each day.

That’s according to the boss of the Australia and New Zealand Banking Group Ltd (ASX: ANZ) institutional bank, Mark Whelan, who was talking at the Australian Financial Review’s Business Summit.

Mr Whelan said that ANZ alone sees 8 million to 10 million cyber attacks every day on the bank’s system. He believes that each ASX bank would be seeing similar things. That means that the other banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) could all be seeing the same thing.

One of the main ways that the ASX bank is trying to help the situation is by teaching staff and customers about cyber crime, with the bank practicing sending phishing attempts to staff.

We also learned at the AFR summit that Westpac is seeing a growing number of cyber attacks, so it’s putting more money and people to defend against attacks.

Mr King said:

You’ve got to think about who you are hiring because they try and get in through your employees.

Cyber attacks are happening all over the world. There was reportedly an attack on Australia’s federal parliament IT services.

The diversified media business Nine Entertainment Co Holdings Ltd (ASX: NEC) has also experienced a cyber attack.

In-fact, there have been many high-profile cyber attacks in recent years that led to many millions of accounts being exposed.

What can be done about these attacks?

It’s good to know how to protect your own personal details and accounts where you can, but in terms of these breaches there’s not much we can personally do.

However, there are a number of global cybersecurity businesses that aim to protect businesses, governments and organisations against attacks.

If you want exposure to these cybersecurity businesses, then Betashares Global Cybersecurity ETF (ASX: HACK) is an exchange-traded fund (ETF) provided by BetaShares. It’s invested in both global players as well as emerging companies in the sector.

It’s invested in businesses like Cisco Systems, Accenture, Splunk, Zscaler, Crowdstrike, VMWare, Leidos, Juniper Networks, F5 Networks and Akamai Technologies.

BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. Since inception in August 2016, the Betashares Global Cybersecurity ETF has delivered a return of an average of 19.2% per annum.

Australian Prudential Regulation Authority (APRA) deputy chair John Lonsdale explained to the AFR Summit that cyber attacks have risen since COVID-19 and that the digitisation of the economy, particularly people working from home, is posing risks and issues.

More reading

• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• NAB (ASX:NAB) share price higher after ACCC approves 86 400 acquisition
• Is the CBA (ASX:CBA) share price a buy right now?
• Where to reinvest your Commonwealth Bank (ASX:CBA) dividends
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd (ASX: NAB) share price is pushing higher on Tuesday morning.

At the time of writing, the banking giant’s shares are up 0.5% to $26.31.

Why is the NAB share price pushing higher?

As well as climbing higher with the rest of the market, the NAB share price was given a lift by a positive announcement relating to an acquisition.

According to the release, the Australian Competition and Consumer Commission (ACCC) will not oppose the bank’s proposed acquisition of digital bank, 86 400.

This follows NAB’s approach in January to acquire the neobank for approximately $220 million. At that point, the banking giant already owned an 18.3% stake in the 86 400.

What did the ACCC say?

“Innovative fintechs play an increasingly critical role in the market, challenging the established banks, leading to more innovative and cheaper banking for consumers. We therefore examined the proposed acquisition particularly closely, including extensive consultation with industry participants, given the important role of that innovation.” ACCC Chair Rod Sims said.

Mr Sims advised that the regulator’s consultation included banks, non-bank lenders, fintechs, mortgage brokers, industry and consumer bodies. However, most interested parties raised no or limited concerns with the transaction.

Mr Sims explained: “Market feedback suggested that while 86 400 is innovative, particularly in reducing the time and effort in completing home loan applications, there are a number of other businesses with similar offerings or the ability to replicate them. These other competitors continue to bring a similar disruptive influence to the market.”

In addition to this, the ACCC notes that other banks and non-bank lenders have been investing heavily in their technology and service offering to improve user experience.

ACCC will keep watch

Mr Sims revealed that the ACCC will be keeping a close eye on the sector.

He said: “Whilst in this instance we found that the removal of 86 400 is unlikely to substantially lessen competition in the market, we will continue to closely scrutinise proposed acquisitions of emerging competitors, particularly by major banks.”

“The ACCC’s home loan price inquiry reports of 2018 and 2020 show competition between the big four banks has been muted at best. They tend to accommodate each other rather than competing strongly to win market share. Therefore any acquisition of a rival or potential rival by any of the big four needs to be very closely considered,” he concluded.

More reading

• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• Is CBA (ASX:CBA) the best bank for dividends in 2021
• The ANZ (ASX:ANZ) share price is Macquarie’s top big four bank pick
• How to counter the ASX 200’s Achilles heel
• Will mounting competition break the Afterpay (ASX:APT) share price?

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