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The Wesfarmers Ltd (ASX: WES) share price had a tough time in 2022 – can things improve this year?

For investors that haven’t heard of this company, it’s the owner of a number of different Australian businesses such as Bunnings, Kmart, Target, Priceline and Officeworks. It also has a chemical, energy and fertiliser division (called WesCEF) and an industrial and safety segment.

In 2022, the Wesfarmers share price dropped by over 22%, compared to the S&P/ASX 200 Index (ASX: XJO) which fell by around 7%.

What went wrong in 2022?

Aside from the FY22 result and the important numbers within that, the biggest company-specific thing that happened during 2022 was the completion of the acquisition of the Australian Pharmaceutical Industries (API) business.

This API business, which owns Priceline, Soul Pattinson Chemists and Clear Skincare Clinics, will “form the basis of a new healthcare division of Wesfarmers and a base from which to invest and develop capabilities in the health and wellbeing sector.”

Wesfarmers says that its capabilities in retail distribution, a strong balance sheet and willingness to invest in businesses for growth over the long term can help.

In terms of the FY22 report, Wesfarmers said that revenue grew by 8.5% to $36.8 billion and underlying net profit after tax (NPAT) dropped 2.9% to $2.35 billion. While Kmart Group saw earnings before tax (EBT) plunge 39.7% to $418 million, Bunnings EBT grew 0.9% to $2.2 billion and WesCEF EBT jumped 40.6%.

The company noted that the first half of FY22 was affected by COVID-19, with almost half of the stores subject to trading restrictions or closed. This was a key factor in Kmart Group earnings.

How could 2023 play out?

The company has said that the Australian economy is starting from a “strong base” with low unemployment and high levels of household savings, but the “effects of inflation and higher living costs are placing pressure on parts of the economy, including household budgets.”

Management believes that the company’s retail businesses are “well positioned” as cost of living pressures impact household budgets and value becomes “increasingly important to customers.” Management believes that Kmart and Bunnings can excel during this period as a key part of their offering is providing good value products.

While the first half of FY23 was the last six months of 2022, we won’t learn about it until February 2023, so the Wesfarmers share price could be influenced by that.

Management said that Australian retail trading conditions have remained “robust” and the managing director said at the annual general meeting (AGM) that he had been “pleased” with sales in FY23 to date. Consumers are becoming more price sensitive.

Bunnings’ overall sales growth in FY23 to October had been “resilient”. Kmart and Target sales growth has been “pleasing”, even when adjusting for lockdown impacts.

However, the company warned that “elevated supply chain costs, rising wages and the higher cost of utilities, together with the lower Australian dollar, will impact the Group’s businesses in the 2023 financial year.”

But, Wesfarmers suggested it’s well placed compared to its competitors to manage costs and “will continue to leverage the benefits of scale, sourcing capabilities and employment brand.”

Foolish takeaway

While it’s impossible to say for sure what the Wesfarmers share price will do in 2023, I think the 24% fall over the past year means it’s now noticeably better value. Commsec profit projections put the company at under 21 times FY23’s estimated earnings.

The post 2022 was brutal for Wesfarmers shares. What now? appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’ll be investing my money in ASX shares in 2023
• Boost your passive income with these buy-rated ASX dividend shares: experts
• How to swap your job for $75,000 in retirement income using ASX dividend shares
• Seeking passive income in 2023? These ASX 200 dividend shares could help – analysts
• 3 reasons to buy Wesfarmers shares before 2023

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 positions in and has recommended Wesfarmers. 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was well and truly out of form and dropped into the red. The benchmark fell 0.6% to 7,107.7 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday despite a very volatile night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.7% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.8%, the S&P 500 is down 1.1%, and the Nasdaq is 1.3% lower. The latter was up over 1% at one stage.

Oil prices sink

It could be a difficult day for energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after a very poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 4.2% to US$76.90 a barrel and the Brent crude oil price has tumbled 4.4% to US$82.10 a barrel. Concerns about Chinese demand and the global economy led to the selling.

Growth shares on watch

ASX 200 growth shares such as Brainchip Holdings Ltd (ASX: BRN) and Pilbara Minerals Ltd (ASX: PLS) will be on watch on Wednesday after a tough night on Wall Street. Interest rates and recession concerns, Tesla’s deliveries miss, and the market’s aversion to growth stocks put pressure on this side of the market.

Gold price hits six-month high

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed to a six-month high overnight. According to CNBC, the spot gold price is up 1% to US$1,844.3 an ounce.

ANZ shares return to normal

ANZ Group Holdings Ltd (ASX: ANZ) shares will begin trading under the ANZ ticker code again on Wednesday after completing its switch to a non-operating holding company model. The banking giant’s shares have been trading under the ANZDA ticker code since late last year. ANZ chair, Paul O’Sullivan, explained: “The restructure is about making our banking business more efficient by creating a better structure for investing in our non-bank partners. It will provide greater strategic and operational flexibility.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Broker tips significant upside for the Woodside share price
• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• What’s going on with ANZ shares on Tuesday?
• Why are ASX 200 lithium shares running on empty today?

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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The Woodside Energy Group Ltd (ASX: WDS) share price could keep lifting higher, according to one global asset management company.

Woodside shares closed 0.28% lower today to finish at $35.34 apiece. However, the S&P/ASX 200 Index (ASX: XJO) fell 1.31% today.

Let’s take a look at what could be ahead for the Woodside share price.

What’s ahead for the Woodside share price?

Analysts at AllianceBernstein have lifted the price target on Woodside shares to $46 apiece, the Australian Financial Review reported.

This implies a 27% upside based on today’s closing price.

Analysts are optimistic gas and oil prices can go higher. In comments cited by the publication, AllianceBernstein said:

[Woodside may] further benefit from a potential spike in gas prices on lower Russian gas exports to Europe and a recovery of oil prices on a China reopening.

Woodside is a major global oil and gas producer. The Brent crude oil price is currently down 0.31% to US$85.64 a barrel, according to Bloomberg. WTI crude oil has fallen 0.26%.

Meantime, natural gas prices have tumbled a massive 7.84% to US$4.12/MMBtu amid milder weather in Europe.

The gas price caps in Australia may be another factor weighing on the Woodside share price this year. Woodside has gas projects in Australia and overseas.

In December, Woodside raised concerns about the federal government’s plan to “intervene in the Australian gas market”. Prices on new domestic wholesale gas contracts by east coast producers are set to be capped at $12/GJ for 12 months.

Commenting on the government’s gas plans, Woodside CEO Meg O’Neill said:

We need to unlock gas supply now. For example, Woodside has been looking at options to increase supply, including through new LNG import terminals, exploration spending and further development on the east coast. Unfortunately, the proposed market intervention will make it very difficult for industry to economically invest to increase supply.

Woodside supplies about 20% of domestic gas on the east coast of Australia, the Australian Financial Review reported. Commenting on the impact of the changes on Woodside, O’Neill said (as cited by the AFR):

One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark.

It would make investing in Australia riskier than other jurisdictions where you’ve got confidence in the stability of the fiscal regime for the long haul.

Share price snapshot

The Woodside share price has soared 61% in the last year.

Woodside has a market capitalisation of about $67 billion based on its current share price.

The post Broker tips significant upside for the Woodside share price appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• 2022 was strong for the NAB share price. What’s next?
• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received

Motley Fool contributor Monica O’Shea 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 Whitehaven Coal Ltd (ASX: WHC) share price had a rough first day of 2023 trading.

Whitehaven shares closed down 6.26% at $8.83 apiece. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) finished 1.33% lower today.

Let’s take a look at what might have been impacting the Whitehaven Coal share price today.

What’s going on?

Whitehaven was not the only ASX coal share to decline today. New Hope Corporation Ltd (ASX: NHC) shares finished 8.49% lower, while Coronado Global Resources (ASX: CRN) shares closed 4.77% in the red. Yancoal Australia Ltd (ASX: YAL) shares also dropped 4.95%.

The coal price fell 3.6% in a day to US$389.60 a tonne, Trading Economics data shows.

Milder-than-expected weather in Europe could be weighing on the coal price. Seven European countries recorded their warmest January day on record on New Year’s day, the Washington Post reported.

It comes as European nations, including Germany, have been turning to coal for power generation in 2023 amid the Russian invasion of Ukraine, Reuters reported.

The natural gas price also tumbled 7% overnight. Natural gas is also used to generate electricity.

Whitehaven operates four coal mines in New South Wales and is developing two assets in Queensland.

A federal Department of Industry report recently predicted thermal coal prices to fall from US$360 a tonne in FY22 to around US$200 a tonne in FY24.

The report from the office of the department’s chief economist also predicts metallurgical coal prices to drop from US$377 a tonne in the 2022 financial year to US$230 a tonne in FY24.

Meanwhile, the team at Macquarie has put an outperform rating on the Whitehaven share price with a $12.50 price target, my Foolish colleague James reported today.

Share price snapshot

The Whitehaven Coal share price has soared 238% in the last year.

Whitehaven has a market capitalisation of about $7.9 billion based on the latest share price.

The post Why did the Whitehaven Coal share price tumble 6% today? appeared first on The Motley Fool Australia.

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More reading

• 23 ASX shares to buy in 2023 – brokers
• These were the best-performing ASX 200 shares of 2022
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• The Whitehaven share price skyrocketed 261% this year, what could 2023 look like?
• 9% and 12% dividend yields! Should I buy these ASX 200 income shares?

Motley Fool contributor Monica O’Shea 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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Are you wanting to boost your passive income with some ASX dividend shares?

If you are, then you may want to check out the two shares listed below that have been named as buys and tipped to provide generous yields.

Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that has been named as a buy is Baby Bunting.

It is Australia’s largest baby products retailer with a growing network of superstores across the country.

Like many retailers, trading conditions have been tough for the company in FY 2023. However, the team at Morgans believes investors should take advantage of recent share price weakness.

Its analysts believe that Baby Bunting’s margin pressures in FY 2023 are transitory and points out its “compelling opportunities to grow its share of a growing market.”

As for dividends, Morgans is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.75, this will mean yields of 5.1% and 5.8%, respectively.

Morgans has an add rating and $3.60 price target on its shares.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share that has been named as a buy is Charter Hall Social Infrastructure REIT.

Similar to Baby Bunting, this property company has exposure to the little side of the market as one of the biggest owners of childcare centres in Australia. In addition, it owns other social infrastructure properties such as bus depots and police and justice services facilities.

Goldman Sachs is a fan of the company. It commented that “despite the challenging macroeconomic backdrop, childcare fundamentals are solid, and we remain attracted to CQE’s resilient underlying cash flows.”

Goldman is expecting this to underpin dividends of 17.2 cents per share in in FY 2023 and then 18 cents per share in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.31, this will mean yields of 5.2% and 5.4%, respectively.

The broker has a conviction buy rating and $4.13 price target on its shares.

The post Buy these ASX dividend shares for a passive income boost: analysts appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX dividend shares for a passive income boost in 2023 – experts
• Buy these ASX dividend shares for a passive income: analysts
• Experts name 2 ASX 200 dividend shares to buy now
• Here are the top 10 ASX 200 shares today
• The cheap ASX shares to buy for dividends: broker

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 positions in and has recommended Baby Bunting Group. The Motley Fool Australia has recommended Baby Bunting 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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The first session of 2023 brought chaos to the market as the S&P/ASX 200 Index (ASX: XJO) fell 1.31%. The index closed Tuesday at 6,946.2 points.

It was the banks that weighed heaviest on the ASX. The S&P/ASX 200 Financials Index (ASX: XFJ) dropped 1.9% with the Westpac Banking Corp (ASX: WBC) share price leading the downturn, falling 2.7%.

Also struggling were stocks in the S&P/ASX 200 Health Care Index (ASX: XHJ) and the S&P/ASX 200 Consumer Staples Index (ASX: XSJ). The sectors tumbled 1.8% and 1.7% respectively.

Interestingly, the S&P/ASX 200 Energy Index (ASX: XEJ) performed on par with the broader index despite New Hope Corporation Limited (ASX: NHC) posting today’s biggest fall. The coal stock plummeted 8.5% on Tuesday despite the company’s silence.

It wasn’t all dire, however. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) clambered its way into the green this afternoon, though it ultimately closed 0.1% lower.

But which ASX 200 share outperformed all others to post the strongest start to the new year? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top-performing stock on the index was gold explorer De Grey Mining Limited (ASX: DEG). It gained 5% to close today’s session at $1.35.

Interestingly, there was no price-sensitive news released by the company today.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
De Grey Mining Limited (ASX: DEG)	$1.35	5.06%
Tabcorp Holdings Limited (ASX: TAH)	$1.105	2.79%
Star Entertainment Group Ltd (ASX: SGR)	$1.815	2.54%
Gold Road Resources Ltd (ASX: GOR)	$1.73	2.37%
Evolution Mining Ltd (ASX: EVN)	$3.04	2.01%
Northern Star Resources Ltd (ASX: NST)	$11.11	1.83%
Breville Group Ltd (ASX: BRG)	$18.67	1.74%
Blackmores Ltd (ASX: BKL)	$73.23	1.43%
Lottery Corporation Ltd (ASX: TLC)	$4.54	1.34%
Ramelius Resources Limited (ASX: RMS)	$0.94	1.08%

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

• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• 2022 was strong for the NAB share price. What’s next?
• Why HT&E, Seven West Media, Tabcorp, and Weebit Nano shares are rising
• Why ASX 200 gold shares top my 2023 investment radar
• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income

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 recommended Blackmores and Westpac Banking. 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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We are only three days into 2023 and the expectations of a recession this year are mounting. A tougher economic environment could mean even more pain for ASX shares after an already brutal 12-month stint for investor portfolios last year.

How dire could it really get in 2023? According to the managing director at the International Monetary Fund (IMF), Kristalina Georgieva, quite dire indeed. In a recent interview, Georgieva revealed that the IMF expects one-third of the world economy to be in recession this year.

I’m not concerned about what a company’s share price does in the short term. However, a recession can have real impacts on a portfolio. The main concerns for investors, in my opinion, are:

• Potential for companies to go bankrupt, resulting in permanent loss
• Exiting long-term investment strategy due to the psychological toll created by volatility
• Concentrating investments in long-term underperformers

Here’s how I plan to recession-proof my ASX share portfolio this year and hopefully not succumb to the above pitfalls.

Short rope for debt dependents

The most at-risk ASX shares of bankruptcy in a recession are those that are unprofitable and rely on debt to fund operations and/or development.

The possibility of interest rates sustaining between 2% to 3% and a slowing economy could make funding harder to come by. If the company can’t produce its own capital to continue operations, it could fall on its sword.

To try to avoid a 100% loss, I’ll be quick to cut loose any such companies in my portfolio that begin to show signs of financial distress. Furthermore, I won’t be deploying cash to any new investments that hold these characteristics in 2023.

One such holding I’m currently wary of is Genex Power Ltd (ASX: GNX). As of June 2022, the clean energy developer was saddled with $322 million in net debt. The company is in the process of a costly endeavour to construct a hydro project, which could put it at financial risk if costs blow out.

Smoother ride with more ASX shares

Often the greatest enemy to our investing success is ourselves. You can invest in the greatest companies in the world but if volatility gets the better of you when the market crashes, you will never enjoy the fruits of your labour — that’s where diversification comes in handy.

To recession-proof my ASX portfolio against my own undoing, I plan to hold a greater variety of companies. My portfolio is heavily exposed to the tech industry with approximately a 46% weighting.

For my risk appetite, this is adequate. However, I personally want to keep this below 50% this year so that any drawdown, specifically in tech, doesn’t deal too harsh a blow to my psyche.

Dodging the biggest mistake

Investing in ‘safe’ ASX shares probably isn’t something that is usually highlighted as a possible mistake. Yet, I believe it could be one of the most detrimental traps to fall into in anticipation of, and during, a recession.

The inclination to abandon all growth investments and buy blue chips like National Australia Bank Ltd (ASX: NAB) and Telstra Group Ltd (ASX: TLS) might be tempting, but it could lead to severe underperformance long term.

These ‘safe’ ASX shares have underperformed the S&P/ASX 200 Index (ASX: XJO) by 18% and 42% respectively since June 2008, as shown above.

A small portion of my portfolio is held for defensive ASX shares such as Commonwealth Bank of Australia (ASX: CBA) and CSR Limited (ASX: CSR). However, I will continue to add companies with large opportunities still ahead of them.

Companies like Pro Medicus Limited (ASX: PME) and Jumbo Interactive Ltd (ASX: JIN) operate in underdeveloped and riskier markets. But the lack of market saturation means there could be much more growth in the future.

The post Here’s how I plan to recession-proof my ASX share portfolio this year appeared first on The Motley Fool Australia.

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More reading

• 2022 was strong for the NAB share price. What’s next?
• Telstra shares fell short in 2022. Can they deliver in 2023?
• 23 ASX shares to buy in 2023 – brokers
• The CBA share price was nowhere near the best performing ASX bank share in 2022. What now?
• How I’d use a stock market crash to boost my passive income

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia, Csr, Genex Power, Jumbo Interactive, and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive and Pro Medicus. The Motley Fool Australia has positions in and has recommended Pro Medicus and Telstra Group. The Motley Fool Australia has recommended Jumbo Interactive. 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 Bitcoin (CRYPTO: BTC) price currently stands at US$16,699 (AU$24,454).

That’s right about where BTC kicked off the new year three days ago.

But it’s some 65% lower than the US$47,170 the world’s first and still top crypto commanded on 1 January 2022.

Adding in the selling action in the final seven weeks of 2021, the Bitcoin price closed 2022 down 76% from its all-time 10 November 2021 highs, according to data from CoinMarketCap.

Here’s what went wrong for the leading digital token in the year gone by.

Bitcoin price hit by multiple headwinds

On a macroeconomic level, the Bitcoin price was hammered by the same forces which saw tech shares take a beating last year.

Namely, fast-rising interest rates instituted by almost every leading central bank the world over.

The rapid increase in the cost of money saw the tech-heavy NASDAQ Composite Index finish the year down a painful 34%. Here on the ASX, the S&P/ASX All Technology Index (ASX: XTX) fell a similar amount.

If nothing else, 2022 showed that the Bitcoin price is closely linked to the performance of growth stocks. And highly susceptible to the impacts of rising interest rates.

The crypto world was also rocked by a number of massive meltdowns in 2022.

First, there was the implosion of TerraUSD (CRYPTO: UST) in May. The so-called stablecoin was intended to be pegged to the US dollar. But a liquidity crunch saw crypto investors rush to sell their holdings, driving the token to mere pennies on the dollar.

Jittery investors sold off most cryptos over the following weeks, and the Bitcoin price was not spared.

As if that wasn’t enough, November saw the collapse of global crypto exchange FTX.com.

Co-founded by Sam Bankman-Fried, FTX was one of the top five crypto exchanges in the world.

But in another instance of liquidity evaporating, FTX went belly up almost overnight and Bankman-Fried is now facing a potentially lengthy jail term in the United States.

In the immediate aftermath of the FTX collapse, the Bitcoin price fell to more than two-year lows of US$15,599.

What’s next?

As for what crypto investors might expect in the year ahead for the Bitcoin price, much of that will hinge on interest rates.

Should the US Federal Reserve and other leading global central banks begin to ease off on their aggressive tightening paths, it should throw up some welcome tailwinds for tech stocks and crypto assets alike.

The post The Bitcoin price crashed 65% in 2022. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• What’s going on with ANZ shares on Tuesday?
• Warren Buffett: the 3 vital investing rules the world’s best investor follows
• Bell Potter names the ASX healthcare shares to buy in 2023
• 3 ASX All Ordinaries shares defying today’s downturn to rocket higher

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 positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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Two S&P/ASX 200 Index (ASX: XJO) shares have started 2023 off on the right foot, leaping to 52-week highs on the first session of the new year.

Making their achievement more impressive is the broader market’s suffering. The ASX 200 has plummeted 1.43% at the time of writing to hit 6,938.1 points.

That was despite a strong start to today’s trade. The index lifted 0.46% early this morning before plunging into the red.

Fortunately, not all has been dire on the market on Tuesday. Let’s take a look at the two ASX 200 shares that launched to their highest point in 12 months today.

The ASX 200 shares starting 2023 with fresh highs

The first ASX 200 share starting 2023 off with a new 52-week high is QBE Insurance Group Ltd (ASX: QBE). It lifted 0.44% in early trade to peak at $13.49 – marking a new post-pandemic high.

Sadly, the stock didn’t hold onto its gains. It has since slipped 2.57% to trade at $13.09 at the time of writing.

And that could be a great entry point if broker Morgans is to be believed. It’s tipping the QBE share price to soar to $14.93, my Fool colleague James reports, a potential 14% upside.

Joining QBE in posting a new 52-week high today is ASX 200 wagering company Tabcorp Holdings Limited (ASX: TAH). Its stock is soaring 2.79% right now to post a new 52-week high of $1.11.

Of course, that’s accounting for the change to the company’s valuation brought about by its demerger of the Lottery Corporation Ltd (ASX: TLC). The Tabcorp share price plummeted more than 80% when it spun out the now-ASX 200 giant in May.

The Lottery Corporation currently has a market capitalisation of $10.1 billion while that of Tabcorp sits at $2.5 billion.

The post Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs appeared first on The Motley Fool Australia.

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More reading

• 2022 was strong for the NAB share price. What’s next?
• Why HT&E, Seven West Media, Tabcorp, and Weebit Nano shares are rising
• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income
• Morgans names 2 ASX 200 dividend shares to buy with 5%+ yields
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received

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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ANZ Group Holdings Ltd (ASX: ANZ) shares are having a tough start to the year.

In afternoon trade, the banking giant’s shares are down over 3% to $22.89.

This follows broad weakness in the banking sector today amid heightened market volatility.

What else is going on with ANZ shares?

As you might have noticed recently, ANZ has been trading under the ticker code ANZDA since late last year.

This is due to its decision to establish ANZ Group Holdings Limited as the new listed non-operating holding company (NOHC) of the ANZ group.

In order to make this change, ANZ shares had to be shifted temporarily to the ANZDA ticker code so the company could issue new ANZ NOHC shares to shareholders under the original ticker code.

This change is now more or less complete after the bank issued ANZ NOHC shares to eligible shareholders this morning on a one-for-one basis.

However, some ineligible foreign shareholders did not receive ANZ NOHC shares. Instead, these shareholders will receive the cash proceeds of the sale of the ANZ NOHC shares by the sale agent.

The release reveals that there are 1,838,105 ANZ NOHC shares attributable to ineligible foreign shareholders that will be sold for this reason. It’s unclear if these have been sold today. But if they have, this would explain why ANZ shares are falling more than other big four banks this afternoon.

Why the change?

Last month, ANZ chair, Paul O’Sullivan, explained the rationale for the change to a non-operating hold company model. He said:

Customers are demanding more from their banks. Better services, better products and better digital solutions. Consistent with this, traditional banking is facing significant disruption from new non-bank competitors, mainly global technology companies launching financial services products.

Understandably, these businesses are not regulated in the same way as banks like ANZ. This new NOHC will allow ANZ to partner with technology companies on a level playing field. Essentially, the restructure is about making our banking business more efficient by creating a better structure for investing in our non-bank partners. It will provide greater strategic and operational flexibility.

ANZ shares are expected to resume trading under the original ANZ ticker code from the commencement of trade on Wednesday.

The post What’s going on with ANZ shares on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Better buy for 2023: Westpac vs. ANZ shares
• What is ANZDA and why has it just hit my ASX portfolio?
• 2 reasons to buy CBA shares before 2023 (and 2 reasons to sell)
• Is there something strange going on with ANZ shares today?
• Here are the top 10 ASX 200 shares today

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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