Tag: Stock pick

Yesterday after market, Region Group (ASX: RGN) announced an extension of its on-market securities buy-back, increasing its support for shareholders with $33.1 million of shares already purchased so far.

What did Region Group report?

• Extension of on-market buy-back for up to $100 million of RGN securities
• Buy-back period extended to 21 April 2027 (unless completed or terminated earlier)
• 14.4 million securities bought back to date at an average price of $2.298 per security
• Total value of securities bought back to date: $33.1 million
• Buy-back supports capital management and portfolio optimisation

What else do investors need to know?

The buy-back is being undertaken in line with the “10/12” rule of the Corporations Act 2001, ensuring regulatory compliance while affording flexibility. Region Group says the timing and number of shares bought back will depend on prevailing market conditions and share price.

This initiative aims to optimise the portfolio and maintain the company’s capacity to fund ongoing capital requirements and future growth opportunities. Investors can view more details in the accompanying Appendix 3C released to the ASX.

What’s next for Region Group?

Region Group remains focused on its strategy of ongoing portfolio optimisation and disciplined capital management. The continuation of the buy-back provides scope to support the share price while retaining capacity for growth initiatives.

Investors will be watching to see how Region Group balances returning funds to shareholders through buy-backs with investing in future developments and acquisitions.

Region Group share price snapshot

Over the past 12 months, Region Group shares have risen 5%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Region Group extends $100m securities buy-back – earnings update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Region Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

It hasn’t been the smoothest ride for Energy One Ltd (ASX: EOL) shareholders over the past year.

Despite operating in a sector benefiting from structural tailwinds, the ASX small-cap’s share price has fallen more than 35% from its recent peak. For many investors, that kind of decline can raise red flags.

But dig a little deeper, and the underlying business appears to be telling a very different story.

What does Energy One actually do?

Energy One is not your typical energy company.

Rather than producing or supplying power, it provides software, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets across Australia and Europe.

Its platform helps participants manage complex tasks like trading, market communication, and power plant operations — effectively acting as digital infrastructure for increasingly sophisticated energy markets.

As grids become more decentralised and volatile, software like this becomes more critical.

Strong results hiding behind the share price fall

While the share price has pulled back, recent financial results paint a picture of a business gaining momentum.

For the latest half, Energy One reported:

• Revenue of $34.8 million, up 21%
• Annual recurring revenue (ARR) of $64.0 million, up 20%
• Operating margins (EBITDA margin) expanding to 21%
• Underlying net profits (underlying NPAT) of $4.5 million, up 56%
• Net debt reduced to $5.8 million (down $7.2 million)

This is the kind of profile investors often look for in small-cap software businesses: recurring revenue, expanding margins, and improving balance sheet strength.

In particular, the growth in ARR suggests increasing visibility and predictability, which can be valuable in more uncertain market environments.

Why the disconnect?

So why has the share price gone backwards?

There’s no single answer, but a few themes may be at play.

First, ASX small-cap tech and software names have been under pressure more broadly as interest rates rise and expectations remain elevated. Higher discount rates can weigh on valuations, particularly for growth-oriented businesses. 

Second, Energy One operates in a niche that doesn’t always attract widespread attention. Unlike high-profile AI or consumer tech names, its role in energy market infrastructure is more behind the scenes. 

And finally, the software industry as a whole has faced valuation headwinds in the face of AI disruption. Sentiment against software as a service (SaaS) stocks turned negative in early this year, described as a “SaaSpocalypse”, driven by fears that AI tools will disrupt the traditional software business model. 

Broker sees potential upside

Interestingly, at least one broker sees the current weakness as an opportunity.

Ord Minnett has placed a buy rating on the stock with a price target of $21.58, implying potential upside of more than 50% over the next 12 months.

The broker also highlighted the company’s margin expansion and its position as a profitable, cash-generative business growing revenue at over 20% annually.

That combination — growth plus profitability — is not always easy to find in the ASX small-cap universe.

The bigger picture

Zooming out, Energy One sits at the intersection of several long-term trends.

Energy markets are becoming more complex, driven by electrification, renewables, and decentralisation. That complexity tends to increase demand for software, data, and automation.

If that theme continues to play out, companies providing the “plumbing” of these markets could quietly benefit.

Of course, small caps come with their own risks — including execution, competition, and market volatility.

But with strong recent growth, improving margins, and a share price well below its highs, this ASX small cap may be one to keep on the radar.

The post This energy focussed ASX small-cap could surge 50% as earnings build appeared first on The Motley Fool Australia.

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• Ord Minnett tips these ASX All Ords shares to rise 30% to 50%

Motley Fool contributor Leigh Gant 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 Energy One. 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.

With conflict in the Middle East rattling global markets, there have been pockets of resilience. 

For example, here in Australia, energy shares have provided relief for many investors. 

In the month of March, the S&P/ASX 200 Index (ASX: XJO), Australia’s benchmark index, is down roughly 9%. 

The S&P 500 Index (SP: .INX), one of the key benchmarks in the US, is down more than 4%. 

In contrast, the S&P/ASX 200 Energy (ASX: XEJ) is up 11%. 

ASX energy stocks are climbing largely due to a spike in oil and gas prices, fueled by geopolitical tensions tightening global supply.

However it isn’t only ASX energy shares offering relief for investors. 

Here are three ASX ETFs that have managed to weather the storm this month. 

Global X Bloomberg Commodity ETF (Synthetic) (ASX: BCOM)

This ASX ETF invests in a highly liquid, broad-based basket of commodities, including energy, grains, precious metals, industrial metals, softs and livestock.

I covered earlier this week why Global X believes commodities could outperform other asset classes over the next 12-24 months.

Regardless of future growth, this ASX ETF has already proven resilient in the current environment. 

It has risen almost 5% in the last month. 

The fund tracks the Bloomberg Commodity Excess Return 3 Month Forward Index.

According to Global X, the fund aims to maintain exposure to contracts which expire ~3 months in the future, helping minimise negative roll yield by investing further up the curve.

BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL)

Another ASX ETF that has outperformed in the last month is this fund from Betashares. 

It aims to track the performance of an index (before fees and expenses) that comprises the largest global energy companies (ex-Australia), hedged into Australian dollars.

According to Betashares, it offers exposure to approximately 32 energy companies that are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies.

The fund is up nearly 9% in the last month. 

It has provided annual returns of roughly 17% in the last 5 years. 

BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO)

This ASX ETF aims to track the performance of an index (before fees and expenses) that provides exposure to crude oil futures, hedged for currency movements in the AUD/USD exchange rate.

Unsurprisingly, it has exploded this year with conflict putting heavy pressure on global oil supply. 

In the last month, this fund has risen 41%. 

For investors considering this ASX ETF, The Motley Fool’s Sebastian Bowen covered earlier this week whether this ASX ETF or individual oil stocks could continue to rise in the near term. 

The post ASX ETFs holding up amidst global volatility  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Monthly-paying dividend stocks are the bees knees for passive-income-hunting investors. 

I’m always on the lookout for great ASX shares that dish out a reliable and timely payment to investors, especially if they have a dividend yield as high as 8%, or even higher.

I wrote about the high-yield Metrics Income Opportunities Trust (ASX: MOT) earlier this month. It pays a 9% dividend yield from a diversified portfolio of private credit investments.

But there’s another similar stock which I think is just as good: Metrics Master Income Trust (ASX: MXT).

What does Metrics Master Income Trust do?

The Metrics Master Income Trust is a listed investment trust (LIT) which gives direct exposure to the Australian corporate loan market. This is a space currently dominated by regulated Australian banks.

Rather than owning a portfolio of ASX shares, the trust has a portfolio of corporate loans and private credit investments (an increasingly popular asset class for income-focused investors) and currently manages around $30 billion in assets.

Its goal is to provide investors a monthly cash income with reduced capital volatility. It also aims to give attractive risk-adjusted returns from a diversified portfolio and diversification into Australian corporate fixed income.

What passive income does the ASX stock pay?

Metrics Master Income Trust said it targets a return of the Reserve Bank cash rate plus 3.25% per annum through the economic cycle. This is net of around 7.10% per annum fees. Distributions are paid monthly and there is also a distribution reinvestment plan (DRP), which allows its investors to reinvest their monthly income distributions.

The Trust’s latest payout in February was 1.17 cents per share, unfranked. This was paid out to investors on the 9th of March. The latest dividend means that the fund has paid 12 dividends to investors over the past 12 months totalling 15.5 cents per share. At the time of writing, this gives the trust a dividend yield of 8.12%.

At the close of the ASX on Tuesday afternoon, the passive income stock’s shares are 1.6% higher for the day, at $1.91 a piece. However the shares have declined 4% over the past month, and they’re now 2.8% lower than this time last year.

Despite being in the red over the past month, the trust has still outperformed the S&P/ASX 200 Index (ASX: XJO) which is down 7% over the same period. 

However, over the longer-term, the investment trust has underperformed the index. The ASX 200 is 5.65% higher than this time last year. 

The post Passive income investors: This ASX stock has an 8% yield and monthly payouts appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Some ASX dividend stocks offer high yields. Others offer something different.

When I look at Commonwealth Bank of Australia (ASX: CBA), I’m not drawn in by the headline yield. I’m drawn to the consistency.

At a share price of $171.12, it’s not cheap. But I think it’s one of those businesses where quality has historically come at a premium.

A track record that’s hard to ignore

Commonwealth Bank has built a reputation over decades.

It has consistently delivered strong returns, maintained a leading position in Australian banking, and continued to pay fully franked dividends through a wide range of economic conditions.

Even in its latest half-year results, the bank highlighted its focus on long-term decision making, balance sheet strength, and delivering sustainable outcomes for shareholders.

That kind of consistency is what I think income investors are really paying for.

What the dividends look like

According to CommSec, consensus estimates point to Commonwealth Bank paying shareholders fully franked dividends of $5.20 per share in FY26 and $5.50 per share in FY27.

At the current share price, that puts the forward dividend yield at around 3%.

That’s not the highest on the ASX. But I don’t think that tells the full story.

For me, the more important point is that there is potential for those dividends to keep growing over time.

More than just yield

When I think about returns, I don’t just focus on income.

With a business like Commonwealth Bank, you’re also getting potential capital growth over time, fully franked dividends, which can enhance after-tax returns, and exposure to one of the strongest banking franchises in the country.

That combination has historically delivered strong outcomes for long-term investors.

In fact, over the past 15 years, CBA shares have achieved an average annual return of 10.7% per year.

It doesn’t mean it will always outperform, but clearly the track record is there.

The valuation question

There’s no getting around it. This ASX dividend stock trades at a premium.

It has done so for years, and that premium reflects its market position, profitability, and consistency.

Would I prefer to buy CBA shares cheaper? Of course.

A pullback would make it more attractive, and I think that’s when it really starts to stand out as a compelling opportunity.

But even at current levels, if I didn’t already have exposure to the banking sector, I’d still be considering it.

Foolish takeaway

Commonwealth Bank may not offer the highest dividend yield, but I think it offers something more valuable.

Consistency, resilience, and the potential for long-term dividend growth.

At current prices, it’s not a bargain. But on a pullback, I think it becomes a compelling option for investors looking for quality ASX dividend stocks to buy.

The post A top ASX dividend stock to buy on a pullback appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

A new report from Global X has shed light on the shifting priorities and criteria investors are seeking in equities. 

Billy Leung, Senior Investment Strategist, said for much of the past decade, equity markets rewarded companies that required relatively little physical capital. 

This included software platforms and digital businesses.

These companies demonstrated how scale could be achieved without extensive infrastructure, allowing revenue growth to accelerate faster than investment.

Asset-light models became associated with high returns on capital, rapid scalability and structural market leadership.

However, Mr Leung contends there is a different set of economic forces is now drawing attention to industries built on physical capacity. 

Rising real interest rates increase the cost of capital and change how markets value long-duration growth. At the same time, geopolitical fragmentation and supply chain restructuring are forcing governments and corporations to reconsider how critical systems are built and maintained. Energy networks must expand, industrial production is being reshored across multiple regions, and infrastructure once taken for granted is being reassessed as strategically important.

This has brought attention to the HALO investing framework. 

What is HALO investing?

The HALO acronym stands for Heavy Assets, Low Obsolescence. 

According to Global X, the concept focuses on companies built around substantial physical infrastructure. It also focusses on long-lived capital assets that are difficult to replicate. 

Their advantage is not based on rapid innovation cycles but on scale, engineering complexity and the time required to build the systems they operate. These assets often sit at the centre of economic activity, quietly supporting the movement of energy, goods and materials across entire economies.

However, several structural forces are now shifting the balance in favour of these equities. 

Governments across major economies are investing heavily in energy security, domestic manufacturing capacity and strategic infrastructure. 

Supply chains once prioritised efficiency. They are now being redesigned with resilience and redundancy in mind.

This is prevalent in sectors linked to energy systems, transportation networks and advanced industrial production.

What are examples of HALO industries?

For investors interested in how this looks in the real world, some examples include: 

• Energy infrastructure (power grids, pipelines, generation) – requires huge investment and becomes foundational once built
• Transportation networks (rail, ports, freight corridors) – are long-term projects enabling regional and global trade
• Industrial manufacturing – depends on complex facilities and machinery that take years to develop and are hard to replicate.

According to Global X, viewing markets through the HALO framework highlights a different source of competitive advantage.

Instead of focusing exclusively on companies capable of scaling rapidly with minimal capital investment, the approach emphasises industries where value is embedded in infrastructure and physical capacity.

Assets such as power grids, pipelines, rail corridors and industrial facilities cannot be recreated quickly. Their value reflects decades of investment, regulatory frameworks and specialised engineering capabilities. These systems underpin the movement of energy, materials and goods that support broader economic activity.

How can investors gain exposure?

For investors looking for exposure to HALO investment opportunities, some ASX ETFs to consider include: 

• Global X Ai Infrastructure ETF (ASX: AINF) – Exposure to companies involved in the physical infrastructure supporting modern computing, including data centres, power systems and network capacity.
• Global X Uranium ETF (ASX: ATOM) – Provides exposure to companies across the uranium and nuclear fuel ecosystem supporting nuclear power generation.
• Global X Green Metal Miners ETF (ASX: GMTL) – Tracks producers of metals such as copper, nickel and lithium that are essential inputs for infrastructure, energy systems and industrial capacity. 

The post What is HALO investing and how do investors gain exposure to it? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

When I think about safe ASX 200 dividend stocks, I’m thinking about businesses that can keep rewarding shareholders year in and year out.

The kind with reliable cash flow, strong market positions, and services people continue to use regardless of what’s happening in the economy.

That said, here are three ASX 200 dividend stocks that I think fit that description.

Coles Group Ltd (ASX: COL)

Coles is about as close as you get to everyday reliability.

Supermarkets sit at the centre of household spending. People don’t stop buying groceries when conditions get tougher, which gives Coles a steady and defensive stream of revenue.

What I like is how that translates into cash flow and supports its ability to pay dividends year after year, even when other sectors are under pressure. This was evident during the COVID pandemic when many ASX 200 dividend stocks paused their payouts but Coles continued as normal.

It’s not a high-growth business, but that’s not really the goal here. It’s about dependability.

APA Group (ASX: APA)

APA Group offers a different type of stability. It owns and operates energy infrastructure, including gas pipelines and energy assets that are critical to Australia’s energy system.

A large portion of its revenue is contracted or regulated, which provides visibility over future cash flows.

That’s important for income investors. Because when you have predictable earnings, it becomes much easier to support consistent distributions over time.

Another positive is that its dividend yield is traditionally higher than average. This is the case right now, with the ASX 200 dividend stock guiding to a 58 cents per share distribution. At the current share price, APA offers a forward yield of 6%.

Telstra Group Ltd (ASX: TLS)

Telstra Group rounds out the list with a mix of infrastructure and recurring revenue.

Its telecommunications network underpins how Australians connect, work, and consume data. That creates a steady demand base, which in turn supports cash generation.

Telstra has also spent the past few years simplifying its business and focusing on returns, which has helped stabilise its dividend profile.

It may not offer the highest dividend yield on the market, but I think its reliability makes it a strong option for income-focused investors.

Foolish takeaway

Coles, APA Group, and Telstra share a common theme. They provide essential services and generate relatively stable cash flow.

For investors looking to build a more defensive income stream, I think these types of businesses are worth serious consideration as part of a broader portfolio.

The post 3 of the safest ASX 200 dividend stocks in Australia appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investing for the long term, quality tends to stand out.

Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth are often the ones that deliver the best returns over time.

While short-term market movements can be unpredictable, high-quality companies can continue compounding over many years.

Here are two ASX shares that could be worth buying and holding for the next decade.

REA Group Ltd (ASX: REA)

The first ASX share that fits the definition of quality is REA Group.

It operates Australia’s leading online property marketplace and has built a dominant position that is difficult for competitors to challenge. Its platform is deeply embedded in the real estate industry, making it the go-to destination for buyers, sellers, and agents.

This dominance gives REA Group significant pricing power. Even in softer property markets, the company has historically been able to grow revenue through premium listings and value-added services.

Over time, its digital platform has continued to evolve, with additional tools and data services enhancing its offering.

With a strong market position, high margins, and exposure to long-term housing activity, REA Group appears well placed to continue delivering growth over the next 10 years.

Bell Potter recently put a buy rating and $211.00 price target on its shares. Based on its current share price of $153.78, this implies potential upside of 37% for investors.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that could be a strong long-term investment is TechnologyOne.

It is an enterprise software company that provides solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service model has transformed the business, leading to more predictable and annual recurring revenue (ARR).

One of TechnologyOne’s key strengths is the stickiness of its customer relationships. Once its software is embedded into an organisation’s operations, switching providers can be costly and complex.

This creates a high level of customer retention and supports long-term revenue growth.

The company also has a growing international presence, particularly in the United Kingdom, which could provide an additional growth runway over time.

With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that could continue compounding over the next decade.

Morgan Stanley is one of a number of brokers that is bullish on TechnologyOne. It has an overweight rating and $34.00 price target on its shares. Based on its current share price of $27.43, this suggests that upside of 24% is possible between now and this time next year.

The post 2 high-quality ASX shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares have tumbled 8.9% since the war in Iran broke out on 28 February (US time).

ASX 200 energy shares have surged 17%, while materials stocks — incorporating mining shares– have been the worst hit, down 19%.

While the broader market has fallen heavily this month, many investors have responded in a surprising way.

Exclusive data from online investment platform Stake implies that some investors are buying the dip.

The data reveals the 10 most traded ASX 200 shares on the platform between 2 March and 18 March.

The strongest hint that a buying-the-dip trend is afoot is that only one ASX 200 energy share is among the 10 most traded stocks.

That’s despite energy shares being the clear momentum trade this month.

Another strong hint is that several of the 10 most traded stocks have experienced significant declines over the past 12 months.

Perhaps some investors see long-term opportunity in these downtrodden stocks, some of which are trading at multi-year lows.

Prime examples include CSL Ltd (ASX: CSL), Zip Co Ltd (ASX: ZIP), Xero Ltd (ASX: XRO), and Wisetech Global Ltd (ASX: WTC).

Yesterday, we looked at the first five of the top 10 most traded ASX 200 shares since the war began.

Here, we reveal the ASX 200 shares ranking six to 10 in that group, and ponder why they’re among the most traded this month.

CSL Ltd (ASX: CSL)

The CSL share price closed at $139.39 yesterday, down 0.3%.

The market’s largest healthcare stock has been the sixth most traded ASX 200 share on the Stake platform this month.

Long considered an ASX 200 blue chip, CSL has been in a downward spiral since mid-2024.

CSL shares have fallen 5% since the war in Iran began, and hit an eight-year low of $133.35 this month.

The CSL share price is down 45% over 12 months.

Multiple macro issues, such as falling global vaccination rates and company-specific challenges, have profoundly impacted CSL’s valuation.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price closed at $17.57 yesterday, up 2.1% for the day and down 2% over 12 months.

The gold stock has been the seventh most traded ASX 200 share on the Stake platform this month.

Northern Star shares have fallen 42% since the war began, although a second guidance downgrade from the miner contributed to the fall.

The 16% 30-day decline in the gold price has also contributed, as investors deleverage and US Treasury yields reach a 10-month high.

Many experts maintain ambitious forecasts for the gold price amid structural long-term tailwinds, primarily central bank buying.

PLS Group (ASX: PLS)

Formerly known as Pilbara Minerals, PLS Group is the market’s largest ASX 200 pure-play lithium share.

PLS closed at $4.54 per share yesterday, up 6.6%, making it the second-fastest riser of the ASX 200 on Tuesday.

So far in March, PLS shares have tumbled 12.5% amid lithium prices holding up fairly well during the Iran conflict.

The lithium carbonate price has fallen by only 3.6% over 30 days.

Lithium has a bright outlook given the green energy transition and resurgent demand for electric vehicles (EVs).

There is no dip to buy this stock at, which has risen 141% over 12 months.

As the eighth most traded ASX 200 share on the Stake platform this month, it’s likely investors are cashing in their gains.

Lynas Rare Earths (ASX: LYC)

The Lynas Rare Earths share price closed at $19.56 on Tuesday, up 3.2%.

The ASX rare earths share is vastly outperforming its peers in the materials sector this month.

The Lynas share price has increased 3.1% since 28 February, and is up 172% over 12 months.

Strong interest in critical minerals and positive company news appear to have insulated Lynas shares from the broader market downturn.

Lynas announced the extension of a Japanese offtake agreement to 2038, and first production of samarium oxide at its Malaysia site.

Experts say the next mining boom will centre on critical materials with industrial applications tied to electrification and energy security.

Xero Ltd (ASX: XRO)

The Xero share price finished at $74.95 yesterday, down 2.2% for the day and down 54% over six months amid the broader tech downturn.

Xero shares have been smashed due to fears about AI’s potential impact on SaaS businesses.

However, many experts think the sell-off has been overdone, and perhaps many Stake investors agree.

This might be why Xero was the 10th-most-traded ASX 200 share on the platform between 2 and 18 March.

Xero shares have fallen 9.9% since 28 February.

Foolish takeaway

Here are some words of wisdom from Kylie Purcell, Senior Markets Analyst at Stake, regarding the ASX 200’s volatility this month:

For equity investors, this is another reminder of how unpredictable the markets can be during a geopolitical crisis.

Prices can swing sharply in both directions as more information emerges and these moments can become incredibly difficult to trade.

The key for investors is not to react to every headline or price swing and to remain diversified.

The post The war in Iran has inspired an unexpected ASX 200 market trend appeared first on The Motley Fool Australia.

More reading

• Region Group extends $100m securities buy-back – earnings update
• 5 things to watch on the ASX 200 on Wednesday
• Which ASX battered tech stock has the most upside according to brokers?
• ASX gold shares down 31% since war began: What should you do?
• ASX mining shares have slumped but long-term outlook is positive

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains and ended the session modestly higher. The benchmark index rose 0.15% to 8,379.4 points.

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

ASX 200 to rise

The Australian share market looks set to rise again on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.8% higher. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is down 0.35% and the Nasdaq is 0.8% lower.

Buy Life360 shares

Bell Potter sees significant value in Life360 Inc. (ASX: 360) shares at current levels. According to the note, the broker has retained its buy rating on the family safety technology company’s shares with a trimmed price target of $37.75. This implies potential upside of 94% for investors. It said: “We see the release of the Q1 result on 12th May as a potential catalyst given the company has already lowered expectations and the potential of a small beat in adjusted EBITDA.”

Oil prices rebound

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 4% to US$91.68 a barrel and the Brent crude oil price is up 3.6% to US$103.53 a barrel. Traders were buying oil after optimism faded over a de-escalation in the US-Iran war.

Gold price eases

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price traded lower overnight. According to CNBC, the gold futures price is down 0.2% to US$4,399 an ounce. A stronger US dollar and rate hike concerns have weighed on the gold price.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes diversified mining services company Perenti Ltd (ASX: PRN), toll road operator Atlas Arteria Group (ASX: ALX) and travel agent Flight Centre Travel Group Ltd (ASX: FLT). Perenti is paying shareholders a 3.3 cents per share dividend on 9 April, Atlas Arteria is paying 20 cents per share on the same day, and Flight Centre is paying 12 cents per share on 16 April.

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

More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares
• ASX gold shares down 31% since war began: What should you do?
• ASX mining shares have slumped but long-term outlook is positive
• 5 most traded ASX 200 shares since the war began
• Why ASX 200 gold stocks like Northern Star and Evolution Mining are storming higher today

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.