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The iron ore price is lifting on Asian markets today following the latest inflation data from China.

Given that iron ore is used to make steel and China is the largest steel producer in the world, the state of China’s economy is relevant to iron ore producers in Australia.

ASX 200 iron ore producers include BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO).

Let’s take a look at what could be on the horizon for the iron ore price.

Chinese inflation still remains low

BHP shares were trading 2.01% higher at the market close today, while shares in Fortescue Metals were up 0.59% and Rio shares had lifted 0.85%.

Iron Ore Futures for a November 22 contract lifted 1.54% to US$93.40 on the Singapore Exchange this afternoon.

This follows news that Chinese inflation data leapt 2.8% year on year in the month of September. This was a better result than expected. Economists were predicting a 2.9% jump in inflation, Bloomberg reported.

However, it’s not all good news. Trading economics data shows that prices for iron ore cargoes for delivery into Tianjin fell to the lowest point in nearly 11 months overnight.

Commenting on the iron ore outlook price in a research note this morning, ANZ senior rates strategist Jack Chambers said:

Investors are waiting for more clarity on steel demand for the rest of the months this year. Supply side is weakening as well with falling exports from Australia and Brazil.

An Industry Department Resources and Energy quarterly report released last week predicts iron ore export earnings will fall from $134 billion in the 2022 financial year to $119 billion in FY23 and $95 billion in FY24.

Share price snapshot

Shares in BHP and Fortescue Metals are up a respective 19% and almost 20% over the past 12 months, while Rio shares have fallen 4%.

In comparison, the ASX 200 has lost 7.5% in the last 12 months.

The post Do you want the good news or the bad news on the iron ore price? appeared first on The Motley Fool Australia.

More reading

• Morgans names the best ASX resources shares to buy now
• Could Rio Tinto be coming for your ASX lithium shares?
• My Fortescue shares have returned 33% in a year. Here’s why I’m still expecting big things
• What’s been dragging the Rio Tinto share price lower this week?
• 3 reasons the BHP share price is in the buy zone: Goldman Sachs

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 S&P/ASX 200 Index (ASX: XJO) ended the week on a high. The index soared 1.75% on Friday to close at 6,758.8 points. That marks an 0.01% fall for the week just been.

Friday’s rebound followed a similarly strong session on Wall Street overnight. That saw the Dow Jones Industrial Average Index (DJX: .DJI) gain 2.8%, the S&P 500 Index (SP: .INX) rise 2.6%, and the Nasdaq Composite Index (NASDAQ: .IXIC) lift 2.2%.

Those gains came on the back of the latest US inflation data, which found that the nation’s headline inflation lifted 8.2% over the prior 12 months while its core consumer price index rose 6.6%, marking a 40-year high.

Back home, the S&P/ASX 200 Energy Index (ASX: XEJ) led the way on Friday, gaining 3.7% amid rising oil prices.

The Brent crude oil price gained 2.3% to US$94.57 a barrel overnight while the US Nymex crude oil price rose 2.1% to US$89.11 a barrel

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) and the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) also rose 1.7% and 2% respectively, while the S&P/ASX 200 Materials Index (ASX: XMJ) added 1.4%.

At the end of Friday’s trade, all of the ASX 200’s 11 sectors were trading higher. But which share outperformed all others? Let’s take a look.

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share was Virgin Money UK CDI (ASX: VUK). Stock in the digital bank rose 9.5% despite no news having been released by the company.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Virgin Money UK CDI (ASX: VUK)	$2.30	9.52%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$57.05	7.6%
Liontown Resources Limited (ASX: LTR)	$1.635	7.57%
Beach Energy Ltd (ASX: BPT)	$1.605	5.59%
Nanosonics Ltd (ASX: NAN)	$3.61	5.56%
Suncorp Group Ltd (ASX: SUN)	$10.77	5.38%
Perpetual Limited (ASX: PPT)	$25.76	5.1%
QBE Insurance Group Ltd (ASX: QBE)	$12.23	5.07%
Cochlear Limited (ASX: COH)	$195.60	5.05%
Origin Energy Ltd (ASX: ORG)	$5.74	4.94%

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.

More reading

• Why Jumbo, Origin, Qantas, and Woodside shares are racing higher
• Top broker says opportunities abound for ‘high quality’ ASX shares
• 3 ASX 200 dividend shares with the highest yields in Q1
• Expert forecast: Here’s where UBS says the ASX 200 will finish the year
• Could Rio Tinto be coming for your ASX lithium shares?

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 Cochlear Ltd. and Nanosonics Limited. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Dominos Pizza Enterprises Limited. 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 Aussie Broadband Ltd (ASX: ABB) share price is an investment opportunity, according to a fund manager.

Readers may know Aussie Broadband as a growing telecommunications business that aims to offer better customer service.

While it has built up its market share of NBN household customers, there are other areas that the company is focusing on. It offers solutions for business, enterprise and government customers. It also provides wholesale access to other telcos and managed service providers.

The ASX telco share provides broadband services nationally through a wholesale agreement with NBN Co, its own fibre network, and some leased backhaul infrastructure from third parties.

Aussie Broadband claims to be the fifth largest provider of broadband services in Australia and is one of only six tier 1 voice providers in Australia.

Why this expert likes the Aussie Broadband share price

Ben Rundle from Hayborough Investment Partners rated the telco a buy on Livewire’s ‘buy hold sell’ segment.

Starting off his case for the company, Rundle said:

I feel like I’m sticking my neck out a little bit with this company because it’s trading like it’s faced a monster downgrade.

Rundle said he liked businesses with higher customer satisfaction levels, which he thinks Aussie Broadband has achieved in its residential broadband division. It has built a “huge amount of market share”.

In its FY22 results, the ASX telco share revealed that its residential broadband connections had increased by another 28% to 464,979. It also revealed that revenue went up 57% to $546.9 million and it achieved $39.4 million of earnings before interest, tax, depreciation and amortisation (EBITDA) – up 107%.

Rundle also noted that the business was in a transition phase and “nobody’s really seeing the fruits of that yet”.

On the Aussie Broadband share price — down around 60% over the past six months — Rundle said:

It’s quite cheap for what I think it is. It’s a founder-led business that has a fantastic management team. So, I think that it’s offering a pretty good opportunity to buy it here.

In FY23 the company expects the underlying EBTIDA margin to grow to between 10% to 10.5%, up from 7.2% in FY22.

Snapshot

The Aussie Broadband share price is up 7.8% trading at $2.21 at the time of writing. Shares in the telco have lifted 13% since the close of trade on Wednesday, 12 October.

The post Aussie Broadband share price is ‘quite cheap for what it is’: expert appeared first on The Motley Fool Australia.

More reading

• Morgans names the best ASX resources shares to buy now
• IAG share price halted amid High Court ruling
• Why Jumbo, Origin, Qantas, and Woodside shares are racing higher
• Top broker says opportunities abound for ‘high quality’ ASX shares
• NAB share price lifts amid ‘first for a major Australian bank’

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 positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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 looking for options in the resources sector, then read on. The team at Morgans recently named some of their top picks from this side of the market.

Listed below are three of the resources shares that the broker has on its best ideas list:

BHP Group Ltd (ASX: BHP)

Morgans rates the Big Australian as one of the best options in the resources sector. The broker likes the mining giant due to its strong balance sheet and the diversity of its operations across both commodities and geographies. It explained:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has an add rating and $47.40 price target on BHP’s shares.

Santos Ltd (ASX: STO)

Another ASX resources share that Morgans has on its best ideas list is Santos. It likes the energy producer due to its solid growth outlook and diversified earnings base. Morgans commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

Morgans has an add rating and $9.30 price target on Santos’ shares.

South32 Ltd (ASX: S32)

A final ASX resources share that Morgans rates highly is South32. In fact, the mining giant is the broker’s top pick in the sector right now. It likes South32 due to the diversity of its operations and its portfolio transformation. The broker explained:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earningslinked dividend policy.

Morgans has an add rating and $5.40 price target on South32’s shares.

The post Morgans names the best ASX resources shares to buy now appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 dividend shares with the highest yields in Q1
• Why is the Santos share price outperforming the ASX 200 today
• 3 reasons the BHP share price is in the buy zone: Goldman Sachs
• Why has the iron ore price taken a hit this week?
• The South32 dividend is being divvied out today. Here’s what you need to know

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 Insurance Australia Group Ltd (ASX: IAG) share price was put on hold on Friday afternoon following a company-requested pause in trading.

The company released an announcement just after lunchtime Australian Eastern Time outlining some of the details of the decision.

It followed a High Court ruling against the company and its insurance peers today regarding business interruption claims made during COVID-19.

Before its shares were put on ice, IAG was trading at $4.81 apiece, up more than 2.5% on the day.

What did IAG announce?

The company announced the decision shortly after the High Court’s ruling today. It said the halt was requested to “consider the impact” of the ruling.

A number of test cases regarding business interruption insurance during COVID-19 – and all its subsequent drama – were put to the High Court today.

The Court refused the applications made by a group of Australian insurers, who were seeking to have the cases dismissed.

Instead, it put an end to further test cases on whether the insurance industry was liable for interruption claims caused by COVID-19.

The trading halt is requested to enable IAG to consider the impact of today’s determination by the High Court of Australia to dismiss the applications by IAG and the policyholders for special leave to appeal the judgment of the Full Federal Court of Australia in the second business interruption test case handed down on 21 February 2022, including to assess the financial impact.

Shares will remain halted until the company makes an announcement regarding the financial impact of the High Court’s determination.

This should be done on or before Tuesday, 18 October, IAG says. Shares are up 12% this year to date.

The post IAG share price halted amid High Court ruling appeared first on The Motley Fool Australia.

More reading

• Could this be a looming risk for IAG shares?
• The IAG dividend is hitting bank accounts today. What you need to know
• IAG shares ‘highest quality’ in the sector: fundie

Motley Fool contributor Zach Bristow 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 Insurance Australia Group Limited. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.8% to 6,762.8 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is up almost 5% to $12.21. This morning Goldman Sachs initiated coverage on the lottery ticket seller’s shares with a buy rating and $15.30 price target. Goldman is forecasting earnings growth ahead of consensus estimates in the coming years. This is thanks partly to its Powered by Jumbo business, which it believes is well-placed to grow its market share at home and overseas.

Origin Energy Ltd (ASX: ORG)

The Origin share price is up 5% to $5.74. This could have been driven by a bullish broker note out of UBS this morning. According to the note, the broker has retained its buy rating on the energy company’s shares with an improved price target of $7.40. UBS likes Origin due to its APLNG business.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 10% to $5.68. Investors have continued to buy this airline operator’s shares following the release of a market update on Thursday. A number of brokers have responded very positively to the update today. For example, the team at UBS has retained its buy rating and lifted its price target on the company’s shares to $7.20.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 4% to $33.96. The catalyst for this has been a solid rise in oil prices during overnight trade. It isn’t just the Woodside share price that is rising today. A number of energy shares are recording solid gains along with it. This has led to the S&P/ASX 200 Energy index rising a sizeable 3.8% on Friday.

The post Why Jumbo, Origin, Qantas, and Woodside shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Why is the Woodside share price smashing it on Friday?
• Is the Qantas share price fully valued following this week’s surge?
• Qantas flying; Chalmers and Biden disagree on recession. Scott Phillips on Nine’s Late News
• 5 things to watch on the ASX 200 on Friday

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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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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ASX shares are having a great day on Friday, with the S&P/ASX All Ordinaries Index (ASX: XAO) up 1.9%.

And there’s more to come, according to top broker, UBS.

The Australian reports that UBS has upgraded its outlook for the Australian technology and consumer discretionary sectors, and downgraded consumer staples.

That is the complete opposite of market sentiment all year.

Why does UBS think ASX shares are about to flip?

S&P/ASX 200 Consumer Staples (ASX: XSJ) are down 9.5% in 2022. But that’s nothing compared to S&P/ASX 200 Info Technology (ASX: XIJ), down 36%, and S&P/ASX 200 Consumer Discretionary (ASX: XDJ), down 24%. And that’s where UBS sees value today.

The broker has altered its outlook because ASX shares are now “priced for a recession” next year. And the UBS team reckons it’s not going to happen.

This is because the Reserve Bank has signalled it intends to slow down the pace of interest rate hikes.

UBS equity strategist Richard Schellbach said:

Domestic cyclicals have been notable underperformers, with sectors exposed to the local consumer or housing down about 30 per cent year to date.

Given we do not expect a recession to play out in Australia, these moves seem overly pessimistic, and present an opportunity to buy into some high-quality businesses with solid medium-term prospects.

He argues that domestic cyclical ASX shares are “no longer expensive”:

Despite gloomy press headlines, and continued challenges from supply chain constraints, input cost pressures, and more recently labour market shortages, the reality is that the end-demand which ASX businesses are seeing is firm.

Schellbach notes that Australia had an “even more abrupt” rate hiking cycle in 1994 with no recession. ASX shares rose by 16% in 1995 and returned 11% per annum for the next five years.

The Australian Financial Review (AFR) reports that UBS is also overweight on energy and mining stocks.

UBS expects the ASX 200 to be back up around the 7,000-point mark by year’s end.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up 1.9% to 6,769 points.

The post Top broker says opportunities abound for ‘high quality’ ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 dividend shares with the highest yields in Q1
• Expert forecast: Here’s where UBS says the ASX 200 will finish the year
• 3 ASX All Ords shares smashing multi-year highs on Friday
• ANZ shares: Buy, hold, or fold?
• When can Suncorp shareholders expect their cash from the ANZ deal?

Motley Fool contributor Bronwyn Allen 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 on fire on Friday, and the National Australia Bank Ltd (ASX: NAB) share price is no exception.

Despite inflation data from the United States coming in above expectations last night, investors are loading up today. This follows a similar reaction in the US share market overnight, with the Nasdaq composite grinding 2.2% above its previous closing point.

In afternoon trading, shares in one of Australia’s largest banks are humming along. At present, the NAB share price is firming up by 1.8% to $31.15 apiece.

The positive move is somewhat perplexing. Let’s delve into why might NAB shares — and other ASX 200 banks — be responding swimmingly to the latest economic data.

What’s the silver lining for the NAB share price?

For households, the latest US inflation data is not a pleasing sight by any measure. The stubbornness of living costs means more interest rate hikes are likely on the agenda of central banks. However, for banks, it could mean a further thickening of the bottom line.

Earlier in the week, the Bank of Queensland Limited (ASX: BOQ) surprised the market with a solid full-year result for FY22. Most notably, the bank’s exiting net interest margin (NIM) was 1.81%, tracking above its second-half average of 1.75%.

Many of us have seen this firsthand, unfortunately. Upon the Reserve Bank of Australia (RBA) announcing a cash rate increase, banks have been quick to action increases to loans, but slow to pass on higher rates to savers — the latter normally being only partially increased.

Hence, with the latest US data suggesting more rate hikes to come, Aussie investors could be anticipating improved margins across all ASX 200 bank shares, including NAB. Whether that actually plays out also depends on default rates and the level of competition between lenders.

Another feather in this ASX 200 bank’s cap

In other news, NAB has announced the launch of a new payment technology of its own today dubbed NAB Easy Tap.

According to the press release, the Australian first for a major bank will allow small businesses to accept contactless payments from customers via an eligible android mobile phone or tablet.

The capability comes after Apple Inc (NASDAQ: AAPL) announced its own ‘Apple Tap to Pay‘ earlier in the year, as payment processing becomes more mobile-centric.

Furthermore, NAB’s offering will remove the need for a small business to buy or rent a separate payment terminal.

The NAB share price is up more than 6% so far this year, while the broader benchmark has endured a near 11% blow.

The post NAB share price lifts amid ‘first for a major Australian bank’ appeared first on The Motley Fool Australia.

More reading

• Top broker says ‘we struggle to see CBA underperforming peers’. Here’s why
• Why are ASX 200 bank shares having such a top run on Thursday?
• Why is the NAB share price having such a stellar run today?
• Why investors were looking on the bright side for ASX 200 bank shares today
• What’s the outlook for ASX 200 bank shares in Q2?

Motley Fool contributor Mitchell Lawler has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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 200 Index (ASX: XJO) gold shares are underperforming the benchmark index on Friday. Though not all of the big gold producers are trading lower today, despite bullion prices dipping to two-week lows.

In afternoon trading, the ASX 200 is up 1.9%, following a strong day in US markets overnight.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold shares outside of the ASX 200 – is heading in the other direction, down 0.7%.

As for some of the big ASX 200 gold shares:

• Northern Star Resources Ltd (ASX: NST) shares are down 1.1%
• The Newcrest Mining Ltd (ASX: NCM) share price is down 0.5%
• The Evolution Mining Ltd (ASX: EVN) mining share price is bucking the trend, up 0.5%

What’s happening with the gold price?

Though gold has edged higher over the past few hours to US$1,668 per ounce, earlier today, bullion prices dipped to two-week lows. Prices remain down 3.5% since 5 October and down 19% from the highs in early March.

Gold, and by extension ASX 200 gold shares, have come under pressure amid fast-rising interest rates intended to tame soaring inflation. And September CPI data out of the US yesterday showed little sign that inflation in the world’s top economy is close to tame just yet. This portends more rate hikes ahead from the US Federal Reserve.

Gold is a haven asset, a status that has helped support prices amid 2022’s increasing geopolitical and global economic risks.

But the headwinds of aggressive central bank tightening have proven the stronger force. At least for now. Gold pays no yield. And as rates rise, so too does the appeal of other haven assets, like government bonds and cash deposits, in turn decreasing demand for bullion.

The hawkish rate hiking path taken by the Fed has also seen the US dollar rally. That’s also impacted gold, as it’s priced in US dollars.

Though it’s worth noting the gold price in Aussie dollars has fared much better. The Aussie dollar is now down to 63.4 US cents, from 75.8 cents in early April.

How have these ASX 200 gold shares performed longer-term?

All three of the ASX 200 gold shares we looked at above are deep in the red so far in 2022.

Going back five years, only one of the gold miners has returned outsized capital gains.

Over the five years, the Newcrest Mining share price is down 19%, and the Evolution share price is down 15%.

However, if you’d invested in Northern Star five years ago, you’d be sitting on a gain of 60% today.

The post Here’s how ASX 200 gold shares are reacting as gold price hits 2-week low appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why did ASX 200 gold shares rise today?
• Is the Northern Star share price on the comeback trail? Check these charts out
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is racing higher on Friday. In afternoon trade, the benchmark index is up 1.9% to 6,770.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 1% to 88 cents. Investors don’t appear impressed that the semiconductor is granting its former chairman 8 million restricted stock units for free after his previous options lapsed. These shares have a market value of over $7 million. The issuing of new shares is nothing new for the company. 10 years ago, BrainChip had 220.3 million shares outstanding. It now has over 1.7 billion shares outstanding plus 100 million unquoted securities.

Emeco Holdings Limited (ASX: EHL)

The Emeco share price is down 10% to 80 cents. This morning this mining equipment provider revealed that it is struggling to collect a major receivable. A customer owes Emeco $32 million, but “a potential issue regarding the full recoverability of outstanding amounts” has emerged. Emeco is currently demobilising its people and equipment.

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down 4% to $3.99. This retail giant’s shares are falling today after trading ex-dividend for its latest final dividend. Eligible shareholders can now look forward to receiving Harvey Norman’s fully franked 17.5 cents per share dividend in a month on 14 November.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 5% to $4.70. Investors have been selling this lithium miner’s shares this week following a bearish broker note out of Morgan Stanley. It has warned that lithium demand and pricing could be falling in China. Investors may have concerns that the high flying Pilbara Minerals share price could come under pressure if prices start to fall and have been taking profit off the table.

The post Why BrainChip, Emeco, Harvey Norman, and Pilbara Minerals shares are dropping appeared first on The Motley Fool Australia.

More reading

• Is Pilbara Minerals the most profitable ASX lithium share?
• Could Rio Tinto be coming for your ASX lithium shares?
• Why is the BrainChip share price underperforming on Friday?
• 5 things to watch on the ASX 200 on Friday
• Why Baby Bunting, Mirvac, NIB, and Pilbara Minerals shares are dropping

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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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