Tag: Motley Fool

Are you looking for some ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

BWP is the largest owner of Bunnings Warehouse sites across Australia with 68 properties leased to the home improvement giant.

Bunnings has proven to be a great tenant to have during the pandemic. With many consumers redirecting their spending to improving their homes, Bunnings has experienced very strong sales growth. This means BWP has been one of just a handful of retail landlords that has been able to collect rent largely as normal.

This and positive property revaluations led to the company’s profit climbing 6% to $144 million during the first half of FY 2021.

In addition to this, its solid form has allowed management to reaffirm its distribution guidance of ~18.3 cents per share in FY 2021. Based on the current BWP share price, this represents a generous 4.8% dividend yield.

Westpac Banking Corp (ASX: WBC)

With trading conditions in the sector improving rapidly, this banking giant could be a good option for income investors.

Last month Westpac released its first quarter update and reported a $1.97 billion first quarter cash profit. This was more than double the quarterly average cash earnings it recorded during the second half of FY 2020. In addition to this, the bank reversed ~$500 million of COVID-19 related impairments due to the improving economic conditions.

This went down well with Morgans, which put an add rating and $27.50 price target on its shares. The broker is also forecasting a fully franked $1.32 per share dividend in FY 2021.

Based on the current Westpac share price, this represents a generous 5.3% dividend yield. This is significantly better than anything you’ll receive from its term deposits or savings accounts.

More reading

• Can ASX bank shares keep rallying after hitting 52-week highs?
• Is the Westpac (ASX:WBC) share price a buy for a 6.3% dividend?
• Why the Westpac (ASX:WBC) share price just hit a 52-week high
• ANZ (ASX:ANZ) hits 3 year high. Can we thank dividends?
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff

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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.5% to 6,771.2 points.

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

ASX 200 futures pointing higher

It looks set to be another positive day for the Australian share market on Wednesday after Wall Street rallied higher. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.40% higher this morning. In late trade in the United States, the Dow Jones is up 0.8%, the S&P 500 is up 2%, and the Nasdaq index is trading 4.1% higher.

Tech shares to rebound

It looks set to be a very good day for Australian tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) on Wednesday. This follows a material rebound on the Nasdaq index overnight. In late trade the tech-heavy index is up a massive 4.1%. Among the biggest movers has been electric vehicle giant Tesla with a 20% gain. A decline in bond yields sent investors rushing back into beaten down tech stocks.

Oil prices drop

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure today after the oil price rally fizzled out. According to Bloomberg, the WTI crude oil price is down 1.7% to US$63.94 a barrel and the Brent crude oil price has fallen 1.1% to US$67.45 a barrel. Easing concerns of supply disruptions in Saudi Arabia weighed on oil prices.

Gold price rebounds

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) could charge higher today after the gold price rebounded. According to CNBC, the spot gold price is up 2.2% to US$1,716.20 an ounce. Traders were buying gold after bond yields pulled back.

Shares going ex-dividend

Another group of shares will be going ex-dividend this morning and could trade lower. This includes logistics solutions company Brambles Limited (ASX: BXB), horticulture company Costa Group Holdings Ltd (ASX: CGC), gold miner Regis Resources Limited (ASX: RRL), and plumbing parts company Reliance Worldwide Corporation Ltd (ASX: RWC).

More reading

• ASX 200 rises, Afterpay sinks, Vocus jumps
• 2 ASX tech shares to buy after the selloff
• ASX tech correction? 10 of the worst-hit shares
• Why did the Openpay (ASX:OPY) share price slide today?
• Latest broker ASX buy ideas for 2021

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Reliance Worldwide Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Reliance Worldwide 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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The Zimplats Holdings Ltd (ASX: ZIM) share price surged over 10% higher today to hit an all-time high. For the first time ever, shares in the platinum miner closed at $20.05 – up on yesterday’s close of $18.15.

The S&P/ASX 200 Index (ASX: XJO) by comparison, performed at a more mediocre level. The index was only up 0.5% at close of trade.

Let’s take a closer look at what Zimplats does and why investors are going crazy for it.

What does Zimplats do?

Zimplats is a platinum miner based in Zimbabwe. It specialises in the extraction of six elements: platinum, palladium, iridium, ruthenium, osmium, and rhodium. The last element, rhodium, is the key to its astronomical share price rise.

According to the Royal Society of Chemistry, rhodium is the rarest non-radioactive element on Earth. Only 30 tonnes of the metal are produced a year. Some of its uses include fibre optic cable coating, crucible manufacturing, and headlight reflectors.

Rhodium’s most important use, however, is in car exhausts.

The element is used as a catalyst in cars to reduce the amount of nitrogen oxide in exhaust fumes. Nitrogen oxide is an air pollutant. The website Trading Economics claims many car manufacturers are increasingly demanding rhodium as nations around the world increase environmental regulations. Supply has also diminished due to COVID-19 work stoppages. As a result of this increasing demand and decreasing supply, rhodium’s price is surging.

The other element going gangbusters on increased environmental considerations is lithium.

At the moment, the metal is selling for US$29,200 an ounce in the commodities market. It’s up 34% in the past month and 71.8% over the year. To put that in perspective, gold is valued at $1,689 an ounce and has fallen 8.37% in the past month.

Zimplats performance reflects the success of rhodium. In its half-yearly report for FY21, the company’s net profit after tax increased 209% on the prior corresponding period (pcp) to total $251 million. Revenues were up 79% on the pcp.

The company paid a 40.88 cent dividend to its shareholders for the half-year.

Zimplats share price snapshot

Only 1 month ago, the Zimplats share price was $12.33. At today’s price that’s a 62.6% increase in just over 4 weeks! Near the end of March last year, the share price was at a 52-week low of $6.96. If an investor was smart enough to purchase into the company then, they would be sitting on a monumental 188.1% return on investment.

After today’s successes, Zimplats market capitalisation is now $2.2 billion.

More reading

• ASX 200 rises, Afterpay sinks, Vocus jumps
• Saxo Bank CEO on the “seismic shift” in ASX retail investors
• Is Australia’s stagnant wage growth worse than we thought?
• Here are the US shares ASX investors have been buying
• 2 ASX tech shares to buy after the selloff

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.

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The S&P/ASX 200 Index (ASX: XJO) went up by around 0.5% today to 6,771 points.

Here are some of the highlights from the ASX today:

Vocus Group Ltd (ASX: VOC)

The best performer in the ASX 200 today was Vocus, rising by around 8.5%.

Vocus announced that it has agreed to enter into a scheme implementation deed with a consortium comprising Macquarie Infrastructure and Real Assets (MIRA) and its managed funds, as well as Aware Super. In other words, it accepted the takeover offer.

The accepted offer is $5.50 cash per share.

The Vocus Chair Bob Mansfield said:

The Vocus board is unanimous in our view that this offer is in the best interest of Vocus shareholders. In making this assessment, the board considered a range of alternatives, including the execution of our existing strategy under which the proceeds of an IPO of Vocus New Zealand would reduce debt and be invested in our core business. Feedback from shareholders in recent weeks on the indicative offer of $5.50 originally received from MIRA has been overwhelmingly positive and there is broad recognition that this is a very fair value for Vocus shareholders.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price was one of the most volatile shares in the ASX 200 today.

Whilst it ended the day 4% lower to $4.62, it went as low as $4.32 just after midday on worries about its exposure to Greensill.

IAG said that in response to market enquiries, the ASX 200 company said that it has no net insurance exposure to trade credit policies, including those sold through BCC Trade Credit to Greensill entities.

The insurance giant solid its 50% interest in BCC on 9 April 2019 to Tokio Marine Management with the result of eliminating net exposure to trade credit insurance.

In addition to extensive reinsurance placed by IAG, as part of the sale IAG entered into agreements with Tokio Marine for it to hold any remain exposure to trade credit insurance written by BCC through Insurance Australia Limited.

Big ASX 200 market movements

In the ASX 200 there were strong market movements both positively and negatively.

At the red end of the ASX 200, the Pro Medicus Ltd (ASX: PME) share priced dropped 5.7%, the Megaport Ltd (ASX: MP1) share price fell 4.4%, the Xero Limited (ASX: XRO) share price declined 3.8%, the Afterpay Ltd (ASX: APT) share price fell 3.6% and the Zip Co Ltd (ASX: Z1P) share price fell 1.6%.

However, there were also some positive gains for the travel industry, including the Corporate Travel Management Ltd (ASX: CTD) share price which rose 7.5% and the Webjet Limited (ASX: WEB) share price which rose almost 5% after the Prime Minister said that the aviation and travel sector will continue to receive government subsidies.

More reading

• ASX tech correction? 10 of the worst-hit shares
• Why did the Openpay (ASX:OPY) share price slide today?
• Latest broker ASX buy ideas for 2021
• IOUpay and Zip were among the most traded ASX shares last week
• Credit Suisse just rated the Afterpay (ASX:APT) share price as ‘outperform’

Tristan Harrison 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 MEGAPORT FPO and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended MEGAPORT FPO and Pro Medicus 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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In case you needed any more evidence of the rising influence of retail investors, Saxo Bank Group’s 2020 results provide it.

In 2020 Saxo reported it brought on a record 238,000 new active clients globally. This brought its total number of active clients to 660,000, also a record for the company.

Huge Aussie retail investor growth

Adam Smith, CEO Saxo Capital Markets Australia, told the Motley Fool that Saxo’s Australian trading client base had also seen phenomenal growth, up 56% in 2020. And the number of new clients who placed their first trade with Saxo in 2020 increased 114%.

Kim Fournais, CEO and founder of Saxo Bank, cited, “a seismic shift that has sparked much greater participation in financial markets.”

Fournais added:

[T]he empowerment of retail investors is fundamentally positive – as they take ownership of their investments to better navigate their financial future, and also harness the benefits of long-term compounded growth, that only investments can offer over time.

The incoming tide of ASX retail investors

So what’s driving ever more Aussies to invest in shares?

According to Adam Smith:

In recent years retail investment has been on the rise with people increasingly driven towards self-directed investing and trading. Meanwhile the events of the past year have accelerated the move to online retail investment, much in the same way as we’ve seen ecommerce going through the roof – it’s simply a build on an existing trend.

Smith says that Saxo’s investments into its digital platforms and the breadth of its products have helped drive its success, enabling the company, “to develop a level of quality and choice that’s ultimately built trust within our growing customer base.”

According to Smith, Australian investors are increasingly keen to invest in international shares. The recent GameStop Corp. (NYSE: GME) phenomenon is also sending more clients to Saxo’s doorstep.

We have seen a lot of stock and ESG investors come to Saxo looking for access to global markets as the breadth of our international stock and ETF offering is unique in the local market.

More recently, since GameStop hit the headlines, clients have contacted us regarding short squeeze stocks and how to manage risk around those investments.

There is no doubt that GameStop accelerated interest in retail investment, but that trend towards greater participation in financial markets already existed. Especially throughout 2020 when investors saw opportunity in the volatility of the capital markets and felt empowered to take advantage of it.

This empowerment is in part down to the availability of digital trading platforms, as well as access to the advice and resources required to undertake risk management.

Smith stresses that brokers have “a huge responsibility” to educate newbie investors on this front. While times of volatility provide some big opportunities, those do not come without risk.

With far more investors in the world than traders, he says Saxo will continue its focus on offering international investment opportunities.

More reading

• Here are the US shares ASX investors have been buying
• Goldman Sachs CEO: GameStop share price and the Reddit phenomenon
• Subreddit ASX Bets is gambling these 4 ASX shares will follow in GameStop’s footsteps
• The risky nature of Robinhood style day trading revealed
• Is Reddit’s GameStop (NYSE:GME) crowd targeting Asian shares?

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.

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Australia is currently approaching its 10th year of wage stagnation and underemployment, and Professor Ross Garnaut, the University of Melbourne’s Professorial Research Fellow in Economics, believes the situation is worse than we think.

Professor Garnaut was quoted by the ABC as saying the increasing incomes of Australia’s largest earners have been disguising falling wage growth for everyday Australians.

EY.com reported there are approximately 44 million hours each week of spare capacity in Australia’s labour market. That equates to $649 million a week not reaching household pockets.

In his new book, Reset: Restoring Australia after the Pandemic Recession, Professor Garnaut has described the Australian economy between 2013 and 2019 as the “dog days”, and said the government’s actions keep Australian’s underemployed.

He commented:

Economic growth continued from 2013, but with much slower growth in total output, stagnant output per person, and decline in the typical household’s real wages and income per person.

In the seven years from 2013 to 2019, the whole developed world experienced slow and grumpy times, [but] Australia drifted to the back of a slow-moving pack.

Underemployment has grown and grown. Average household disposable income ended the seven lean years where it began.

What’s to blame for Australia’s wage stagnation?

According to Professor Garnaut, wage stagnation is a result of changes to Australia’s immigration policy and the drive towards a budget surplus.

The Howard Government’s immigration policy, continued by successive governments, has resulted in the nation’s population growing 35% over 20 years. Further, a shift away from permanent migration and towards temporary migration integrated the Australian labour market with the global one.

“It contributed to persistent unemployment, rising underemployment and stagnant real wages during the expansion of total economic activity during the Dog Days”, said Garnaut.

Professor Garnaut also commented that the increase in migrants allowed breaches of labour laws to become common, as workers had less knowledge of their rights. An example of such is the infamous 7-Eleven wage fraud scandal.

He also blamed successive federal treasurers’ obsessions with a budget surplus for stagnating wage growth, saying that, by taxing more than they invested into the community, governments have short-changed Australians by slowing down the economy and lessening people’s spending power.

How can investing help those affected by wage stagnation?

If a person’s household income is stagnant, with no signs of gaining momentum again, investing may provide another much needed income source. 

Investing is a popular means of generating passive income, although care must be taken while doing so.

At the moment, low interest rates and rising bond prices mean that cash savings accounts and investment grade bonds aren’t as prosperous as they have been in the past.

One option for receiving a passive income from investing in 2021 is to invest in dividend-paying shares.

Dividend paying shares entitle shareholders to a share in a company’s profits. Most dividend paying companies listed on the ASX pay dividends twice a year, but they can pay more often, or even as a once-off. It’s never guaranteed that a company will pay its shareholders a dividend, but not doing so is often detrimental to its share price.

Like all investing, a personal approach must be taken when investing in dividend shares, and your individual situation must be considered before taking action.

3 high-paying dividend shares on the ASX 200

Aurizon Holdings Ltd (ASX: AZJ)

The largest rail freight operator in Australia has a current dividend yield of 7.74%.

Aurizon’ share price boasts a relatively stable performance history and the company has a market cap of $6.71 billion. Its share price is currently $3.71 apiece.

Rural Funds Group (ASX: RFF)

Rural Funds Group owns a diverse portfolio of Australian agricultural assets, leased predominantly to corporate operators. It has a target distribution growth of 4% each year, which it aims to achieve by owning and improving farms and leasing them to counter-parties.

Its current dividend yield is 4.73% and its share price has a 24% return on investment over the last 12 months. Right now, Rural Funds Group’s share price is $2.32.

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

Australia and New Zealand Banking Group, more commonly known as ANZ, didn’t pay out near the dividends this year as it has in the past. But it is predicted to bounce back in the near future.

ANZ has a market capitalisation of approximately $81 billion. Its current share price is $29.48.

More reading

• Can ASX bank shares keep rallying after hitting 52-week highs?
• 2 top ASX dividend shares with generous yields to buy
• The 3 highest paying ASX 200 dividend shares
• ANZ (ASX:ANZ) hits 3 year high. Can we thank dividends?
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff

The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Aurizon Holdings 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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Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the ASX and international shares (usually just US shares) that are the most popular with its Australian customers.

CommSec is one of the most popular share trading platforms in the country. As such, its data can be an insightful view into the mind of the average Aussie investor.

My Fool colleague, James Mickleboro, has earlier today already looked at the most popular ASX shares last week.

So here are the top 10 United States shares CommSec customers were buying last week. This week’s data covers 1-5 March. 

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.3% of total trades with an 81%/19% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 2.9% of total trades with a 71%/29% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.7% of total trades with a 74%/26% buy-to-sell ratio.
4. GameStop Corp (NYSE: GME) – representing 1.8% of total trades with a 68%/32% buy-to-sell ratio.
5. Palantir Technologies Inc (NYSE: PLTR) – representing 1.8% of total trades with an 81%/19% buy-to-sell ratio
6. ARK Innovation ETF (NYSE: ARKK)
7. Churchill Capital Corp IV (NYSE: CCIV)
8. Square Inc (NASDAQ: SQ)
   
9. NVIDIA Corp (NASDAQ: NVDA)
10. PayPal Holdings Inc (NASDAQ: PYPL)

What can we learn from these trades?

Tech shares continue to dominate this list, despite the well-publicised sell-off in this sector over the past few weeks (last week in particular). It’s interesting to see Aussie investors still buying up companies (for the most part) like Tesla and Nio, despite heavy losses. To illustrate, Tesla is down almost 34% over the past month, while Nio shares have lost 44%. Data miner Palantir is another one to watch. It’s down a hefty 42% over the past month as well.

There still seems to be some heavy appetite for risk out there as well, with the notorious GameStop once again making an appearance. You might have thought that investors would leave this one alone, since it cratered by more than 83% between 29 January and 4 February. Then again, perhaps not, considering GameStop is up 332% since 23 February.

We’ve also discussed the growing popularity of ARK Invest exchange-traded funds before. The ARK Innovation ETF evidently remains popular, despite this fund selling off dramatically in recent weeks (it’s down 29.5% since 12 February).

I’m looking forward to next week’s numbers – especially so if this US tech sell-off continues over the next week. It will be interesting to see if the ‘net buyer’ mentality holds if that’s the case!

More reading

• Goldman Sachs CEO: GameStop share price and the Reddit phenomenon
• Can ASX bank shares keep rallying after hitting 52-week highs?
• The tech-heavy Nasdaq is now in a correction!
• Why Tesla Stock Fell Further on Monday
• Subreddit ASX Bets is gambling these 4 ASX shares will follow in GameStop’s footsteps

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, NVIDIA, PayPal Holdings, Square, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Palantir Technologies Inc and recommends the following options: short March 2023 $130 calls on Apple, long March 2023 $120 calls on Apple, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Apple, NVIDIA, and PayPal Holdings. 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 selloff in the tech sector has been very disappointing for investors. However, every cloud has its silver lining. In this case, the cheaper prices is the silver lining.

Two ASX tech shares that are trading significantly lower than their 52-week highs are listed below. Here’s why now could be an opportune time to make a patient long term investment in their shares:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider. Especially with the Altium share price now down 36% from its 52-week high.

Altium appears well-positioned for long term growth thanks to its industry-leading platform and a number of tailwinds which are underpinning ever-increasing demand for electronic design software. These tailwinds include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally.

One broker that believes the recent weakness in the Altium share price is a buying opportunity is Citi. Last month its analysts upgraded the company’s shares to a buy rating with a $33.50 price target.

Appen Ltd (ASX: APX)

Another ASX tech share to look at is Appen. The shares of the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence have come under significant pressure in recent months. This has been caused by both the selloff in the tech sector and its underperformance due to COVID-19.

The selling has been so severe that the Appen share price is down 61% from its 52-week high.

However, with artificial intelligence and machine learning expected to grow in importance over the next decade, demand for its services looks set to increase as well. This could mean the selling has been overdone.

One broker that appears to believe this is the case is Ord Minnett. It recently upgraded Appen’s shares to a buy rating with a $24.75 price target. It is positive on its long term growth and notes that its shares are trading on undemanding multiples.

More reading

• ASX tech correction? 10 of the worst-hit shares
• ASX All Technology Index teetering on verge of a bear market
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded
• ASX 200 sinks, Xero reveals acquisition, ARB driven higher

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. 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 CSL Ltd (ASX: CSL) share price is treading into green territory today. A sight that is foreign, after a week of red days on the market for the biotech giant. Coincidentally, CSL’s Chief Executive Officer, Paul Perreault addressed the AFR’s Business Summit this afternoon.

At the close of trade today, the CSL share price is 1.69% higher at just over $250 a share.

CEO’s Business Summit comments

Anytime a CEO gives a public address, it can give valuable insights into the company’s current operations. Mr Perreault joined other distinguished speakers, including Qantas Airways Limited (ASX: QAN) CEO, Alan Joyce; and Commonwealth Bank of Australia (ASX: CBA) CEO, Matt Comyn.

Mr Perreault emphasised the key to recovering from COVID-19 is through investments.

We have to invest in things that will bring scale to things we operate but also bring scale beyond our borders. The government has to understand that and try to help with that, especially with innovation.

In addition to these comments, the CEO went on to explain the situation in the US, “Some small businesses have disappeared, and will not come back. Some larger businesses are doing okay, but there will be some businesses that will struggle to come out of this economic climate.” CSL’s US staff are described to be drained, along with the rest of the public due to the situation.

Mr Perreault detailed that the focus for CEOs must remain on their people.

CSL share price and recent developments

The CSL share price has been in free fall over recent weeks but has also been suffering a longer-term decline as well. Since late February, the company’s value has dropped a staggering 15%. Even more unsettling, the biotech has wiped nearly 22% off its market capitalisation since November 2020.

Recent news of the EU interfering with Australia’s supply of the AstraZeneca vaccine hasn’t done much for the price either. Despite CSL being Australia’s local manufacturing partner for the vaccine, the possible additional reliance on CSL has not been reflected in the share price.

More reading

• IOUpay and Zip were among the most traded ASX shares last week
• How the CSL (ASX:CSL) share price weakness exposes its dividend strength
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• How to turn $20,000 into $300,000 in 10 years with ASX shares
• Outsourced AstraZeneca blockade not an issue for local COVID vaccine rollout

Mitchell Lawler 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 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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It certainly has not been a good month to own ASX tech shares. As we reported this morning, the S&P/ASX All Technology Index (ASX: XTX) is way past being in a technical ‘correction’ (a drop of 10% from the most recent high). In fact, it is now on the edge of being in an actual bear market (a drop of 20%-plus), since it has fallen more than 18% since 10 February.

The phrase ‘bear market’ hasn’t been in play on the ASX for almost a year now, so this is certainly a dramatic turn of fortune.

So which ASX tech shares have been hardest hit over the past month? 

10 of the hardest-hit ASX tech shares

1. Limeade Inc (ASX: LME) – Limeade is one of the worst-hit ASX tech shares, down around 43% from where it was a month ago. Limeade had a shocker last Monday in particular when investors made their feelings known about the company’s full-year earnings results.
2. Nuix Ltd (ASX: NXL) – Nuix has also had a disastrous month, falling more than 42% since 9 February, despite rocketing close to 17% today. This company remains more than 30% down from its December 2020 IPO.
3. Tesserent Ltd (ASX: TNT) – Network security company Tesserent has lost around 32% of its valuation over the past month. This appears to have been accelerated by a poor reaction to this company’s half-year earnings back on 1 March as well.
4. Afterpay Ltd (ASX: APT) – As a leading ASX growth share and a rocket of a performer for years now, Afterpay was always going to be caught up in any kind of growth or tech sell-off. And lo and behold, it came to pass. Afterpay shares are down just a tad over 30% over the past month.
5. Splitit Ltd (ASX: SPT) – Buy now, pay later (BNPL) player Splitit has had a rough month, losing 28.28% of its value since 9 February. BNPL companies (see above) have been especially hard-hit in this tech sell-off, and Splitit is no exception. As we reported this morning, trading volumes have been especially high this week.
6. Damstra Holdings Ltd (ASX: DTC) – Damstra shares have been on a slide for a few months now, but the past month has seen sellers step on the gas, sending the shares down almost 28%. Earnings may have played a role here, given Damstra reported an after-tax loss of $5.5 million last month.
7. Appen Ltd (ASX: APX) – WAAAXer Appen has seen its shares lose about 27% of their value since 9 February. Again, earnings didn’t give investors a lot of confidence, but Appen has also been out of favour for months now since peaking in August last year.
8. ELMO Software Ltd (ASX: ELO) – Elmo shares are down close to 25% over the past month. Earnings weren’t a factor here, so we can probably put this one down to general unenthusiasm for ASX tech shares. Interestingly though, Elmo insiders have been buying shares lately, as we reported last week.
9. Bigtincan Holdings Ltd (ASX: BTH) – Bigtincan has also copped a beating, down close to 25% over the month. This software-as-a-service (SaaS) company reported a seemingly strong set of earnings numbers last month, but that hasn’t been enough to stop investors from hitting the sell button since then.
10. Zip Co Ltd (ASX: Z1P) – Zip is more of a bonus inclusion today. This BNPL company is ‘only’ down 8.8% over the past month, which doesn’t seem too shabby compared to the ASX tech shares above. But if we go from 16 February rather than 9, we can see that Zip is down 37.5% from those highs. Ouch!

More reading

• 2 ASX tech shares to buy after the selloff
• Why did the Openpay (ASX:OPY) share price slide today?
• IOUpay and Zip were among the most traded ASX shares last week
• Credit Suisse just rated the Afterpay (ASX:APT) share price as ‘outperform’
• Why Adairs, Afterpay, IAG, & Livetiles shares are sinking

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 and recommends BIGTINCAN FPO, Damstra Holdings Ltd, and Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Appen Ltd, Limeade, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Damstra Holdings Ltd, Elmo Software, and Nuix Pty 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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