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The S&P/ASX 200 Index (ASX: XJO) took off on Tuesday, rising 1.04% to close at 7,034.1 points amid rallying lithium stocks.

The Liontown Resources Ltd (ASX: LTR) share price rocketed on news it had turned down a $5.5 billion takeover bid from international lithium giant Albemarle.

Many of the ASX 200 company’s peers also leapt higher – bolstering the S&P/ASX 200 Materials Index (ASX: XJO) to gain 2.2%.

Meanwhile, a $1.5 billion takeover offer posed to United Malt Group Ltd (ASX: UMG) was better received. The maltster has entered an exclusivity deed with French suitor Malteries Soufflet.

Stock in the takeover target led the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) 0.4% higher today.

But it was the S&P/ASX 200 Energy Index (ASX: XEJ) that came in as today’s top-performing sector, leaping 4.1%.

On the other hand, the S&P/ASX 200 Health Care Index (ASX: XHJ) underperformed all others, falling 0.9%.

But which share posted the index’s biggest gain on Tuesday? Keep reading to find out.

Top 10 ASX 200 shares countdown

Surprise, surprise! Today’s top-performing ASX 200 stock was, of course, Liontown.

The lithium hopeful’s share price leapt a whopping 68.5% today to close at $2.57 following Albemarle’s rejected $2.50 per share acquisition offer.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Liontown Resources Ltd (ASX: LTR)	$2.57	68.52%
United Malt Group Ltd (ASX: UMG)	$4.50	30.81%
Core Lithium Ltd (ASX: CXO)	$0.90	15.38%
Allkem Ltd (ASX: AKE)	$11.53	13.71%
Pilbara Minerals Ltd (ASX: PLS)	$3.85	11.92%
Sayona Mining Ltd (ASX: SYA)	$0.205	10.81%
Paladin Energy Ltd (ASX: PDN)	$0.605	9.01%
Chalice Mining Ltd (ASX: CHN)	$6.84	8.92%
Lake Resources N.L. (ASX: LKE)	$0.45	8.43%
Beach Energy Ltd (ASX: BPT)	$1.385	7.78%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 8 ASX 300 lithium stocks surging over 10% today
• Why Chalice Mining, Core Lithium, Liontown, and United Malt shares are racing higher
• Here’s why the Sayona Mining share price is shooting 14% higher today
• 3 ASX 200 shares cracking multi-year highs on Tuesday

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. 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 Scott Phillips.

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As any investor who hasn’t found a new home under a rock lately would know, the ASX share market has had a very rough few weeks lately. After climbing over 7,500 points back in February (representing a year-to-date gain of 8.8% at the time), the S&P/ASX 200 Index (ASX: XJO) promptly cratered.

By mid-March, it was back under 6,900 points, having lost close to 9% of its value peak to trough. Although the market has seen a bit of an upswing over the past few days, we convincingly remain well below where we were at the start of February.

So why has the stock market dropped so convincingly over the past few weeks, in stark contrast to the happy start it had to 2023?

Well, it’s hard to put a finger on exactly. But there’s little doubt that the crises we have seen with the global financial system have played an outsized role.

It all started with the unexpected collapse of the SVB Financial Group (Silicon Valley Bank) in early March. SVB is, or at least was, a specialty bank catering to startups, tech companies and other businesses that inhabited the United States’ famous Silicon Valley tech hub.

It seems that the rapid rate of interest rate rises in most countries around the world (including and especially the US) destabilised SVB’s finances to such a degree that it endangered the entire company.

If it was just SVB then perhaps the markets would be back to where they were in February. But SVB’s collapse started something of a chain reaction, with the giant Swiss bank Credit Suisse following suit shortly after. Credit Suisse has since been acquired by its fellow Swiss bank UBS. But fears of financial contagion are clearly well-entrenched now.

So it’s this banking crisis, together with high interest rates, that we can probably blame for the share market’s recent woes.

And now, onto the question everyone wants to know: when will the markets recover?

When will the stock market be as it was?

Well, I have a simple answer: I have no clue. And nor does anyone else, no matter what they might say.

If someone knew how to consistently pick the tops and bottoms of any share market, they would be richer than Warren Buffett, Jeff Bezos or Elon Musk. But seeing as the global rich list is devoid of stock pickers, it just goes to show how tricky this business is.

So I’m not trying to ‘time a bottom’ here. And nor should you. Instead, do what has always worked in the stock market: find quality businesses you can buy for a reasonable price. That’s how Warren Buffett got (and stays) rich.

And that’s the best ticket that any of us have to gain real wealth from ASX shares. Don’t worry about tops and bottoms, or crises and banks.

Both the stock market and the many quality shares it houses have never failed to regain previous all-time highs. That’s despite global recessions, depressions, wars and pandemics. I don’t think this trend will end with the collapse of a couple of banks in 2023.

The post Why has the stock market dropped and when will it recover? appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price lifts on production update
• Here are the top 10 ASX 200 shares today
• How I’d invest $20k in ASX 200 shares to earn a second income of $140 a month
• Why I think the Qantas share price can keep soaring higher
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has fallen 4% since its March peak, and the downturn has likely left plenty of shares boasting notable dividend yields. That means now could be an ideal time to work on building a second income.

This month has brought the collapse of Silicon Valley Bank, UBS’ takeover of Credit Suisse, and worries Deutsche Bank could also be in trouble.

That’s likely left many wondering if such liquidity concerns among international financial giants could be the first sign of a market crash. Such sentiment may have, in turn, weighed on quality shares.

As a result, now might be a good time for me to consider building my passive income by buying ASX 200 dividend shares.

How I’d invest for a second income, starting TODAY

Falling share prices often herald more appealing dividend yields. I think I could find some particularly juicy offerings in the aftermath of the ASX 200’s recent 4% fall.

In fact, I think I could find a handful of ASX 200 shares capable of providing an average dividend yield of more than 8.5%.

If I invested $20,000 in such stocks, I could realise $1,700 of annual passive income without lifting a finger. That’s more than $140 a month.

At the same time, I’d make a point to manage the risks associated with investing.

First, I’d diversify my passive income portfolio. By buying at least five shares across different industries, I could better protect my investments from single-sector falls.

Second, I’d also aim to hold my investments for at least 10 years. That way I’d hope to make the most of the stock market’s volatility.

5 ASX 200 shares yielding over 8.5%

But what handful of shares can provide an average dividend yield of more than 8.5%?

These five ASX 200 shares each offer a dividend yield of more than 7% and, together, provide an average yield of 8.8%. Take a look:

ASX 200 share	Dividend yield at the time of writing
New Hope Corporation Ltd (ASX: NHC)	8.51%
Fortescue Metals Group Ltd (ASX: FMG)	9.48%
Harvey Norman Holdings Ltd (ASX: HVN)	10.1%
Fletcher Building Limited (ASX: FBU)	8.83%
Bank of Queensland Ltd (ASX: BOQ)	7.09%
Average:	8.8%

If I were to invest $20,000 equally across the five above stocks, I could secure an 8.8% average dividend yield.

At that point, my portfolio would be capable of providing $1,760 of passive income each year – or approximately $147 a month.

And that could be just the beginning.

I would hope the value of my investments rises over the coming years and decades, thereby growing my passive income in the future. Who knows, my ASX 200 shares might even allow me to retire a little bit earlier than I could have otherwise.

Though, no investment is guaranteed to provide returns and past performance doesn’t indicate future performance.

The post How I’d invest $20k in ASX 200 shares to earn a second income of $140 a month appeared first on The Motley Fool Australia.

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More reading

• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Guess which ASX All Ords stock is lifting on a $55m deal with Fortescue
• Goldman Sachs says these ASX dividend shares with 7%+ yields are buys
• BHP share price dips as coal mines catch attention
• 8 ASX All Ords shares trading ex-dividend this week

SVB Financial provides credit and banking services to The Motley Fool. 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. has positions in and has recommended Harvey Norman and SVB Financial. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price has risen more than 20% over the last six months. I think the ASX travel share can keep flying higher as the industry recovers from COVID-19 impacts.

There are few businesses that saw as much of a demand decline as airlines during COVID-19 with the closure of international borders, and even state borders, with lockdowns.

However, there has been a huge amount of pent-up demand that is now coming through, which Qantas is benefiting from.

I think that the ongoing normalisation of domestic and international demand could mean the Qantas share price is undervalued. Its international capacity is still not back to pre-COVID levels.

Demand and earnings drive Qantas share price higher

The FY23 first half showed a lot of promising numbers, with underlying profit before tax of $1.43 billion, statutory profit after tax of $1 billion, the net debt declined $2.4 billion, and the statutory earnings per share (EPS) came in at 53.9 cents.

Qantas explained that the drivers of this result were “consistently strong travel demand, higher yields and cost improvements”.

Leisure demand is leading the recovery, according to Qantas, while business travel remained “strong”. The company is benefiting from freight earnings being above pre-COVID levels, with a permanent increase of e-commerce domestically leading to a “structural shift” in freight volumes and earnings. That sounds like good news for the Qantas share price.

It also revealed that ‘Qantas Loyalty’, which includes the Qantas points, saw revenue of $1 billion and underlying earnings before interest and tax (EBIT) of $220 million for the half (a 73% rise). It saw a solid increase in bookings via its holidays offers, a 14% rise in Qantas health insurance customers, growth of travel insurance, and so on.

Every single area of the business seems to be doing well, which bodes well for the future in my opinion.

Why I think it can fly higher

In the second half of FY23, the business is expecting domestic capacity to increase from 94% to 103% of FY19 levels, while international capacity is expected to rise from 60% to 81%.

FY23 second-half fares are expected to remain “significantly above” FY19 levels. The most promising thing for the Qantas share price, in my opinion, is that travel demand is expected to remain strong throughout FY23 and into FY24.

I think a return of Asian, American, and European tourists to Australia will be a very useful support for Qantas earnings.

According to Commsec, the business is expected to generate 99.7 cents of EPS in FY24, which would put the Qantas share price at just 6.5x FY24’s estimated earnings. Even a forward price/earnings (p/e) ratio of eight could lead to a rise of more than 20% for Qantas.

Shareholder returns like dividends and share buybacks could also be a boost for the Qantas share price.

In a world of uncertainty amid higher interest rates, I think Qantas is one of the ASX shares that can still do well because of pent-up demand and reopened borders, which can help maintain and grow earnings over the next two financial years.

The post Why I think the Qantas share price can keep soaring higher appeared first on The Motley Fool Australia.

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More reading

• Beach and bling: 2 ASX 200 shares Firetrail is loving right now
• Refuelled with profits, how ASX 200 favourite Qantas plans to stick the landing on growth
• Why Adairs, Liontown, Qantas, and Synlait shares are dropping today
• Qantas share price takes a dive amid more takeover delays
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is building on the gains we saw yesterday and is pushing higher during Tuesday’s session. Investors seem to be in a good mood, with the ASX 200 presently basking in a pleasing 1.02% rise, which lifts the index back over 7,000 points.

But let’s dive a little deeper into these happy gains by taking stock of the shares currently at the peak of the ASX 200’s share trading volume charts, according to investing.com. And boy, do we have some volumes to discuss today.

The 3 most traded ASX 200 shares by volume this Tuesday

Pilbara Minerals Ltd (ASX: PLS)

First up is the ASX 200 lithium leader Pilbara Minerals. So far this Tuesday, a significant 46.23 million PIlbara shares have been changed on the ASX. We haven’t had anything out of Pilbara itself that could explain this volume. But it’s pretty obvious what is behind so many shares bouncing around.

As my Fool colleague Brooke covered this morning, one of Pilbara’s lithium peers on the ASX has received (and rejected) a takeover offer. As a result, all ASX lithium shares are going through the roof today. Pilbara is no exception, with the company recording a happy 13% rise so far this session, leaving the company at $3.88 a share.

Sayona Mining Ltd (ASX: SYA)

Next up is another ASX 200 lithium stock in Sayona Mining. This Tuesday has seen a massive 49.7 million Sayona shares change hands as it currently stands.

It seems we have a very similar situation to that of Pilbara today. In Sayona’s case, this lithium producer has bagged a chunky 11.9% rise, putting the company at 21 cents a share. This easily explains the high volumes on display here.

Liontown Resources Ltd (ASX: LTR)

Thirdly today, it’s another ASX 200 lithium stock in Liontown Resources, with a monstrous 113.8 million shares bought and sold.

The mystery ASX 200 lithium stock that has swatted away a takeover bid today is none other than Liontown. As we discussed this morning, Liontown has received a takeover offer from US lithium company Albemarle to acquire the company for $2.50 a share.

Liontown has rejected the offer outright, calling it “opportunistic”. But investors have gone to town celebrating anyway. The Liontown share price is currently up a whopping 64% to $2.50 a share. So it’s no surprise to see more than 100 million shares flying around today.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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More reading

• 8 ASX 300 lithium stocks surging over 10% today
• Why Chalice Mining, Core Lithium, Liontown, and United Malt shares are racing higher
• Here’s why the Sayona Mining share price is shooting 14% higher today
• 3 ASX 200 shares cracking multi-year highs on Tuesday
• Why are ASX lithium shares going gangbusters on Tuesday?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The National Australia Bank Ltd (ASX: NAB) share price is heading in the right direction on Tuesday.

In afternoon trade, the banking giant’s shares are up 1.5% to $27.81.

However, NAB’s shares are still down 13% over the last 12 months and almost 18% from their 52-week high.

While this share price weakness is disappointing, it could have created a great buying opportunity for investors.

Could NAB shares generate strong returns?

Let’s take a look to see what might happen over the next 12 months if you were to invest $10,000 into NAB shares today.

According to a note out of Goldman Sachs, its analysts currently have a buy rating and $35.42 price target on the bank’s shares.

Based on the current NAB share price, this implies potential upside of approximately 27.3% for investors between now and this time next year.

If the bank’s shares were to rise in line with Goldman’s price target, it would turn a $10,000 investment into approximately $12,700. Not bad at all!

Don’t forget the dividends

Let’s not forget that NAB, like the rest of the big four, is a popular option for income investors thanks to its tendency to pay big fully franked dividends.

The good news is that Goldman Sachs expects this to be the case in the coming years.

Its analysts are forecasting the bank to increase its fully franked dividend from $1.51 per share in FY 2022 to $1.73 per share in FY 2023 and then $1.76 per share the following year. Based on where NAB’s shares are trading currently, Goldman’s estimates imply a generous 6.2% yield for investors.

That’s the equivalent of $620 of income from our $10,000 investment, which increases our total return to $13,320.

If Goldman is on the money with its recommendation, this will ultimately mean a very attractive 33.2% return on our original investment.

The post If I buy NAB shares today, what could my returns be in a year’s time? appeared first on The Motley Fool Australia.

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More reading

• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Investing in ASX 200 banks for dividends? Read this
• ASX 200 bank shares lift despite Deutsche Bank stock tumble
• Should ASX 200 banks pay more for this implicit government backstop?
• ASX big four bank shares close the day ahead as financial fears linger

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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If you’re searching for ASX dividend shares to buy, then the two listed below could be worth looking at.

Both have been tipped as buys with decent upside potential and attractive yields. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider buying is supermarket operator Coles.

It has been tipped as a buy by analysts at Morgans, which have an add rating and $19.50 price target on its shares. This compares to the latest Coles share price of $17.84.

According to the note, Morgans thinks Coles’ shares are attractively priced given the company’s defensive qualities. It believes the latter put it in “a good position to navigate through a weaker economic environment.”

The broker also highlights that “the unwinding of local shopping should also help further market share gains.”

Morgans is forecasting fully franked dividends of 66 cents per share in FY 2023 and FY 2024. Based on the current Coles share price, this will mean yields of 3.7%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that brokers have named as a buy recently is Rural Funds.

Rural Funds is a real estate property trust which owns a diversified portfolio of Australian agricultural assets. This includes almond orchards, macadamia orchards, poultry property and infrastructure, vineyards, cattle properties, cropping properties, cattle, and water rights.

Bell Potter is positive on the company and has a buy rating and $2.65 price target on its shares.

The broker believes its shares are trading at a level that could be “an attractive entry point” for investors.

As for dividends, the broker is expecting an 11.7 cents per share dividend in FY 2023 and then a 12.2 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.03, this represents yields of 5.75% and 6%, respectively.

The post Here are 2 ASX dividend shares that brokers rate as buys appeared first on The Motley Fool Australia.

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More reading

• 8 ASX All Ords shares trading ex-dividend this week
• For $1,000 in monthly passive income, buy 18,462 shares of this ASX 200 stock
• Passive income beasts: 3 ASX dividend shares I’d buy for retirement
• Why is the Coles share price smashing the ASX 200 this year?
• Buy Pilbara Minerals and this high yield ASX dividend share: analysts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 300 Index (ASX: XKO) lithium stocks are enjoying a stellar run today.

The big push higher comes after significant weakness in the sector this calendar year as lithium prices have retraced sharply from November’s all-time highs.

But that weakness is nowhere to be found today.

Here’s how these ASX 300 lithium stocks are performing in afternoon trade on Tuesday:

• Allkem Ltd (ASX: AKE) shares are up 15%
• Pilbara Minerals Ltd (ASX: PLS) shares are up 13%
• Liontown Resources Ltd (ASX: LTR) shares are up 63%
• Argosy Minerals Ltd (ASX: AGY) shares are up 14%
• Core Lithium Ltd (ASX: CXO) shares are up 14%
• Sayona Mining Ltd (ASX: SYA) shares are up 12%
• Allkem Ltd (ASX: AKE) shares are up 14%
• Leo Lithium Ltd (ASX: LLL) shares are up 12%

Why are these ASX 300 lithium stocks soaring today?

While all of the above ASX 300 lithium stocks are up over 10%, one of them stands out from the pack.

With shares up a whopping 63% today that would be Liontown Resources.

And that remarkable surge is throwing up some heady tailwinds for Liontown’s rivals.

So, why is the Liontown share price shooting out the lights?

What’s sending the Liontown share price rocketing?

Investors are bidding up the ASX 300 lithium stock after the company reported on a takeover proposal from United States-based lithium giant Albemarle Corporation (NYSE: ALB). Albemarle boasts a market cap of some US$25.7 billion.

The US lithium company lobbed an unsolicited, conditional, and non-binding proposal to acquire all of Liontown’s stock for $2.50 per share.

However, the Liontown board rejected the offer, believing it undervalues the quality of the company’s assets. Those include its core holding, the Kathleen Valley Lithium Project, which is nearing production.

According to Liontown, the project, located in Western Australia, “will be one of the world’s largest lithium mines, supplying approximately 500,000 tonnes of 6% lithium oxide (Li₂O) concentrate per year when it comes on stream in 2024”.

Albemarle’s $5.5 billion takeover offer shows clear enthusiasm about its mid and longer-term outlook for the battery-critical metal, giving a big leg up to all the above ASX 300 lithium stocks today.

The post 8 ASX 300 lithium stocks surging over 10% today appeared first on The Motley Fool Australia.

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More reading

• Why Chalice Mining, Core Lithium, Liontown, and United Malt shares are racing higher
• Here’s why the Sayona Mining share price is shooting 14% higher today
• 3 ASX 200 shares cracking multi-year highs on Tuesday
• Why are ASX lithium shares going gangbusters on Tuesday?
• Why is the Core Lithium share price rocketing 19% on Tuesday?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The market may be charging higher today, but the A2 Milk Company Ltd (ASX: A2M) share price hasn’t been able to follow its lead.

In afternoon trade, the infant formula company’s shares are down 1.5% to $5.87.

Why is the A2 Milk share price underperforming?

The weakness in the A2 Milk share price on Tuesday has been driven by the release of a broker note out of Bell Potter this morning.

According to the note, the broker has downgraded the company’s shares to a hold rating with a reduced price target of $6.80.

While this still implies decent upside from current levels, the broker doesn’t appear to believe the risk/reward is compelling enough to retain its buy rating.

What did the broker say?

Bell Potter has been analysing the results and commentary from A2 Milk’s dairy processing partner Synlait Milk (ASX: SM1) and seems a touch concerned with what it saw.

The broker believes that A2 Milk could now be destined to fall short of consensus estimates in the near term. It explained:

The recent SM1 downgrade was reflective of changes to existing IMF customer orders, elevated cost structures (some of which is recoverable in customer agreements) and a delayed ramp-up of the new Pokeno nutritionals customer. What the SM1 result highlighted to us, was that our nutritionals forecasts for SM1 (and hence A2M IMF demand) have been softer than consensus expectations and this is also reflected in our below consensus FY24e A2M forecasts

We downgrade from Buy to Hold. Ultimately A2M and SM1 balance dates don’t align and SM1 issues may simply reflect restocking and destocking decisions on the part of A2M around SAMR registration. While we like the long-term story in A2M, we are cognisant that FY24e market expectations are higher than ours and unfortunately we saw more in the recent SM1 1H23 result to support our current forecasts than make us consider materially upgrading them.

The post Why is the A2 Milk share price underperforming on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Should I buy A2 Milk shares at $6?
• Why A2 Milk, Accent, Northern Star, and Select Harvests shares are dropping
• A2 Milk share price slides amid $139 million buyback completion
• At almost $7, can the A2 Milk share price go any higher?
• What caused the A2 Milk share price to spill almost 6% in February?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a positive day overall for ASX shares and the All Ordinaries Index (ASX: XAO) so far this Tuesday. At the time of writing, the All Ords has put on a happy 1.05%, lifting the Index back over 7,200 points. But that joy is not extending to one All Ordinaries stock. So let’s check out the Kingsgate Consolidated Limited (ASX: KCN) share price.

Kingsgate shares are having a shocker today. The All Ords gold miner closed at $2.01 a share yesterday but is now trading at $1.495 a share, a nasty 25.62% fall.

So what on earth is going on with this gold miner that has prompted investors to wipe a quarter of the company’s value off the markets today?

Kingsgate shares tank 25%

Well, Kingsgate shares have actually just returned from a trading halt. Yes, yesterday morning, just before market open, the company announced that its shares would be frozen. The purpose of this suspension was to allow Kingsgate to conduct a capital-raising program.

It was only on Friday last week that the gold miner told investors it had produced its first gold from its Chatree mine in Thailand. It’s the first pouring in six years.

Then on Monday, we got news of the trading halt. Kingsgate announced that it intended to conduct an institutional placement of shares. In fact, 30.7 million new shares are to be issued (equivalent to 13.9% of the shares on issue prior to the announcement).

The shares would be issued at a price to be determined by a bookbuild, somewhere between $1.50 and $1.60 per share.

The company also announced that a share purchase plan would also be available for retail investors following the placement. It will be offered at the same price that institutional investors were offered.

Why is this All Ordianries stock raising capital?

According to Kingsgate, the funds will be used to “successfully re-start operations at Chatree and strengthen Kingsgate’s balance sheet as alternative funding sources are secured”.

Well, today, we got the news of how it all went. The company reported that the placement was successful and raised $42 million for Kingsgate. The new shares have been issued at a price of $1.50 each. Retail investors can now apply for up to $30,000 in new shares at that price as well.

Kingsgate chair Ross Smythe-Kirk said the following on this news:

The strong support shown from both new Australian and international investors and existing shareholders in this Placement is a firm endorsement for the Company and its strategy. We are thrilled to be recommencing operations at Chatree and returning to production. 

We thank shareholders for their long-standing support and look forward to seeing Chatree once again become a meaningful ASX-listed gold producing project.

Kingsgate was evidently only able to raise its new capital at the lower end of its pricing target. As such, we probably have this news to thank for Kingsgate’s less-than-triumphant return to trading today.

This isn’t a large ASX share, so with the offer of the share purchase plan on the table, there probably aren’t too many investors willing to pay over $1.50 a share for Kingsgate right now.

This All Ordinaries stock is now down by 14.3% in 2023 to date:

The post Guess which ASX All Ordinaries stock just crashed 25% appeared first on The Motley Fool Australia.

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More reading

• Why Atlas Arteria, Kingsgate, Kogan, and Synlait Milk shares are dropping today
• Why Core Lithium, Estia Health, Kingsgate, and St Barbara shares are charging higher
• Sigma Healthcare share price falls despite company’s return to profit
• 2 ASX All Ordinaries shares rocketing over 10% today
• Why Corporate Travel Management, Kingsgate, Liontown, and Neuren shares are racing higher

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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