Tomorrow will be a big day for income investors, with a huge number of ASX 200 stocks trading ex-dividend for their next payments.

When a share goes ex-dividend, it means the rights to an upcoming dividend have been settled.

As a result, if you want to receive any of these dividends, you have until the close of play today to buy shares.

Which ASX 200 shares are trading ex-dividend on Thursday?

There are 10 ASX 200 stock that are due to trade ex-dividend on Thursday. This includes some of the biggest dividend payers on the Australian share market.

Here's a summary:

ASX Ltd (ASX: ASX)

This stock exchange operator's shares will go ex-dividend for its fully franked interim dividend of 116.2 cents per share tomorrow. This will be paid to shareholders on 29 March.

BHP Group Ltd (ASX: BHP)

Last month, the Big Australian declared a fully franked interim dividend of 130.6 cents per share. This is scheduled to hit shareholders' bank accounts on 30 March.

CSL Limited (ASX: CSL)

After going ex-dividend tomorrow, ASX 200 biotherapeutics giant CSL will be paying its shareholders a partially franked 154.9 cents per share interim dividend on 5 April.

IDP Education Ltd (ASX: IEL)

This language testing and student placement company declared a 21 cents per share partially franked dividend last month. This will be paid at the end of the month on 31 March.

Mineral Resources Ltd (ASX: MIN)

Last month, thanks to surging lithium earnings, this ASX 200 mining and mining services company increased its interim dividend to a fully franked $1.20 per share. The payment date for this dividend is 30 March.

Monadelphous Group Ltd (ASX: MND)

This mining services company declared a fully franked interim dividend of 24 cents per share last month. This will be paid to shareholders at the end of the month on 31 March.

Perpetual Limited (ASX: PPT)

This fund manager was forced to slash its interim dividend last month to a partially franked 55 cents per share. This will be paid to shareholders on 31 March.

Reliance Worldwide Corporation Ltd (ASX: RWC)

This plumbing parts company declared a partially franked 6.5 cents per share interim dividend last month. It plans to pay this to shareholders next month on 6 April.

Rio Tinto Ltd (ASX: RIO)

Although this mining giant was forced to cut its final dividend in response to falling iron ore prices, it was still able to declare a hefty 326.5 cents per share fully franked dividend. This is expected to be paid to eligible shareholders on 20 April.

South32 Ltd (ASX: S32)

This diversified miner released its half-year results last month and declared a 7.1 cents per share fully franked dividend. This will be lining the pockets of shareholders on 6 April.

The post 10 ASX 200 stocks trading ex-dividend tomorrow appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is up 0.85% today as companies continue to release their half-year results for the six months ending 31 December 2022.

Here we take a look at the results of the biggest real estate investment trust (REIT) among the ASX 200 stocks, Goodman Group (ASX: GMG), as well as those of the operator of the Australian Securities Exchange, ASX Limited (ASX: ASX).

Goodman Group profit up 11.5%

Goodman Group is one of the largest ASX 200 stocks, with a market capitalisation of $37.25 billion. The Goodman share price is up 1.2% today to $20.05 after the industrial property specialist reported an 11.5% profit boost and upgraded its full-year FY23 guidance.

Here are the highlights of 1H FY23 for Goodman Group:

• Operating profit of $877 million, up 11.5% on the prior corresponding period (pcp) of 1H FY22
• Operating earnings per share (EPS) of 46.4 cents, up 10.7% pcp
• Gearing at 9.7%, (8.5% at 30 June 2022) with look through gearing at 20.7%
• Available liquidity of $2.8 billion
• Net tangible assets (NTA) of $8.87 per share, up 6% from 30 June 2022
• Total assets under management of $79.5 billion, up 17% pcp
• $1.4 billion of revaluation gains across the group and partnerships during the half
• Portfolio occupancy at 99% and like-for-like net property income growth of 4.2%
• Development pipeline valued 9% higher on pcp to $13.9 billion, with a forecast yield on cost of 6.4%.

In a statement, Goodman Group said "the business is performing better than originally anticipated".

Goodman said:

We've seen continued rental growth in our markets which has underpinned strong cash flows.

The capital position is strong, the portfolio remains almost fully leased, and development activity
continues to be robust.

As a result, the Group expects to achieve full year OEPS growth of 13.5% compared to the previous guidance of 11%.

Massive CHESS derecognition cost impacts ASX profit

This ASX 200 stock is the company that runs the largest securities exchange in Australia. The ASX share price is down 0.7% to $69.55.

Here are the key points for 1H FY23:

• Statutory profit of $73.7 million (impacted by the CHESS derecognition charge of $176.3 million announced in November 2022)
• Underlying net profit after tax (NPAT) of $250 million, down 0.1% pcp
• Operating revenue of $499.5 million, down 0.4% pcp
• Interim dividend of 116.2 cents per share declared.

In a statement, ASX CEO Helen Lofthouse said it was a "pleasing performance … achieved in a period of notable change for our organisation and volatility in our external environment".

The post 2 ASX 200 stocks on the move following earnings updates appeared first on The Motley Fool Australia.

There was likely a spring in the step of S&P/ASX 200 Index (ASX: XJO) investors today as the market jumped higher. The index closed Thursday's session 1.18% higher at 7,280.4 points.

It followed a joyous session on Wall Street overnight. The Dow Jones Industrial Average Index (DJX: .DJI) lifted 0.8% on Wednesday while the S&P 500 Index (SP: .INX) rose 1.3% and the Nasdaq Composite Index (NASDAQ: .IXIC) gained 1.8%.

Back home, the banks led the way, with the S&P/ASX 200 Financials Index (ASX: XFJ) flying 1.5% higher.

The S&P/ASX 200 Energy Index (ASX: XEJ) also posted a 1.2% gain after a strong night for oil prices and bullish comments from market experts.

Bringing up the ASX 200's rear on Thursday was the S&P/ASX 200 Utilities Index (ASX: XUJ). It rose just 0.2%.

So, with all that in mind, let's take a look at the shares that posted the ASX 200's biggest gains today.

Top 10 ASX 200 shares countdown

Lithium share Pilbara Minerals Ltd (ASX: PLS) took out today's top spot with a 4.5% gain, closing the session at $4.16. That leaves it a whopping 15% higher than where it started 2023.

These shares made today's biggest gains:

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.

When it comes to analysing ASX shares, one important aspect to dig into is financial strength.

A snapshot of a company's financial position is found on its balance sheet. 

A quick way to get a pulse check on a company's financial health is by looking at its net debt position. In other words, its cash reserves against how much debt it has (if any).

I like to invest in companies with cash reserves that comfortably exceed their debts. Avoiding excessive debt helps a company weather economic downturns. And those with big cash balances are rewarded with optionality, having the ability to pounce on acquisition opportunities that may arise in the market or reinvest those funds back into the business for future growth.

What's more, balance sheets also provide insight into a company's business model and efficiency. 

The absence of debt often points to a capital-light and self-sufficient business. In other words, the company generates enough money on its own, without needing to rely on external funding.

There are some exceptions to this. For example, ASX 200 shares like Liontown Resources Ltd (ASX: LTR), Chalice Mining Ltd (ASX: CHN), and Core Lithium (ASX: CXO) all currently boast debt-free balance sheets. 

However, these companies are pre-revenue, capital-intensive, and far from being self-sufficient. Instead of debt, they've been relying on equity to fund the future growth story, turning to investors to raise capital.

Debt-free ASX 200 shares

Excluding those types of companies, let's take a look at three ASX 200 shares from different industries that don't have any borrowings on their balance sheet.

I've recently profiled ASX 200 shares with enormous insider ownership, founders steering the ship, juicy gross profit margins, and mission-critical products.

So even though WiseTech Global Ltd (ASX: WTC), Altium Limited (ASX: ALU), Pro Medicus Limited (ASX: PME), and Netwealth Group Ltd (ASX: NWL) all boast debt-free balance sheets, I'll be looking past them in favour of some new names.

Nanosonics Ltd (ASX: NAN)

First up, Nanosonics is an ASX 200 growth share involved in the business of infection prevention. Its flagship Trophon device disinfects ultrasound probes, replacing what's primarily been a manual process in the past.

The company operates a razor and blade business model, selling hospitals its Trophon device which requires Nanosonics' proprietary disinfectant liquid to operate.

Customers pay a bigger upfront price for the Trophon device. But Nanosonics actually makes the bulk of its revenue from the higher-margin consumables sales.

With respect to its balance sheet, Nanosonics ended FY22 with $95 million in cash and no debt. This provides the company with a strong foundation for continued investment in growth initiatives, such as global expansion and product innovation.

Nanosonics has been consistently profitable and operating cash flow positive for several years. 

ARB Corporation Limited (ASX: ARB)

Next up is ARB, the ASX 200 share behind Australia's favourite 4×4 accessories. 

With origins dating back to 1975, ARB has grown to become the nation's largest manufacturer and distributor of 4×4 accessories. Its strong local presence is complemented by an export network that extends through more than 100 countries across the globe.

ARB has a long track record of strong cash flow generation and profitability, going back decades. It's reinvested this cash at high rates of return, expanding its distributor network, product offering, manufacturing facilities, and original equipment manufacturer (OEM) relationships to great effect.

ARB has been debt-free for many years. It finished FY22 with cash reserves of $53 million, ensuring the company continues to be well-placed to take advantage of investment opportunities.

ASX Ltd (ASX: ASX)

Finally, let's take a closer look at the company that operates the Australian Securities Exchange. 

ASX Ltd is a vertically-integrated, multi-asset exchange group. It's best known for collecting annual listing fees from companies on the ASX. But it also operates futures and options markets, and offers a range of services including trading, clearing, settlement, and market data.

The company has a debt-free balance sheet, which currently boasts $5 billion in cash. However, a lot of this money doesn't belong to ASX. Instead, it is collateral put up by clearing participants to cover their margin obligations in the futures markets.

As a result, the company's balance sheet isn't as clean as a typical ASX share. This muddies the company's other financial statements as well. But its lack of reliance on external funding is a positive sign. 

ASX Ltd last raised capital in 2013 when it launched a $550 million entitlement offer. Around half of the proceeds were used to pay down debt, and the company has been debt-free ever since.

The post 3 ASX 200 shares boasting debt-free balance sheets appeared first on The Motley Fool Australia.

With hundreds of shares to choose from on the ASX share market, building an ASX share portfolio with confidence is a hard thing for many investors to do. We can do our own research until the cows come home, but it sure helps to get a headstart by considering ASX 200 shares named by other experts to get started.

So with this in mind, it's time to check out five ASX 200 shares that brokers at Macquarie have just recommended to their clients as buys.

Brokers like Macquarie can run 'model portfolios' of shares to help guide clients in building a portfolio. According to reporting in The Australian this week, Macquarie has just dramatically rejigged its model portfolios in light of the broker's belief that next year will see the US economy go into recession.

As such, Macquarie's team has "swung to backing defensive stocks, arguing risks are too high for a range of stocks that did well from the first phase of the rate rises this year".

The ASX 200 shares that Macquarie has decided to ditch in this light include Australia and New Zealand Banking Group Ltd (ASX: ANZ), Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT), and Tabcorp Holdings Ltd (ASX: TAH).

The broker has also put a few more shares on its 'reduction' list. These include National Australia Bank Ltd (ASX: NAB), BHP Group Ltd (ASX: BHP), and Pilbara Minerals Ltd (ASX: PLS).

So which ASX 200 shares does Macquarie actually like right now?

Macquarie names 5 ASX 200 shares for clients' portfolios

Well, the broker names five.

There is Commonwealth Bank of Australia (ASX: CBA), for starters. Macquarie likes CBA as a "quality choice within the banking sector" and a better alternative to ANZ.

Then there's ASX 200 toll road operator Transurban Group (ASX: TCL), viewed as a defensive share and 'bond proxy' with a reliable income stream.

APA Group (ASX: APA), an owner of gas pipelines, is the third ASX 200 share, selected for similar reasons to Transurban.

Next, we have ASX Ltd (ASX: ASX), the operator of the Australian Securities Exchange. This is despite the recent woes with the company's failed blockchain alternative to the CHESS system.

Finally, Macquarie has named Orora Ltd (ASX: ORA), an ASX 200 packaging company that specialises in bottling and canning.

So those are the ASX 200 shares that Macquarie is currently recommending its clients build an ASX share portfolio around. Make of them what you will.

The post 5 ASX 200 shares Macquarie just recommended its clients buy appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is up 0.67% today but remains down 5.3% over the year to date.

That's better than where it was in mid-June — down 15% — when the market appeared to turn.

So, where to from here? Are we at, or close to, the bottom for ASX 200 shares?

Are ASX 200 shares close to the bottom?

According to The Australian, top broker Macquarie thinks the bottom is at least six months away.

Macquarie's Matthew Brooks says ASX shares are more likely near the end of a bear market rally. That's very different to being at the start of a bull market rally.

Standing in the way of an ASX 200 shares comeback is a forecasted United States recession in 2023.

Brooks said:

We may emerge from the shadow of a boom in 2023 but a lot of water needs to flow under the
bridge before then — our best guess is a market bottom around July 2023.

To this end, the broker has kicked a bunch of high-profile ASX 200 shares out of its model portfolios.

Which ASX 200 shares is Macquarie dumping?

Brokers publish model portfolios to help their clients keep their ASX shares portfolios up-to-date and growing.

However, changes to the model portfolios do not indicate an official buy, sell or hold recommendation.

The companies kicked out of Macquarie's model portfolios include ASX travel shares Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN).

Also dismissed: Australia and New Zealand Banking Group Ltd (ASX: ANZ), Tabcorp Holdings Ltd (ASX: TAH), South32 Ltd (ASX: S32), James Hardie Industries plc (ASX: JHX), and Seven Group Holdings Ltd (ASX: SVW).

Macquarie has also reduced its model portfolio holdings in Suncorp Group Ltd (ASX: SUN), National Australia Bank Ltd (ASX: NAB), Insurance Australia Group Ltd (ASX: IAG), BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), Pilbara Minerals Ltd (ASX: PLS) and Computershare Limited (ASX: CPU).

Which ASX 200 shares is Macquarie backing?

On the other side of the coin, the ASX 200 shares Macquarie is adding to its model portfolios are Commonwealth Bank of Australia (ASX: CBA), Transurban Group (ASX: TCL), APA Group (ASX: APA), Orora Ltd (ASX: ORA), and ASX Ltd (ASX: ASX).

The broker has also increased its holdings in CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC).

Brooks explains:

The portfolio changes we have made are done to reduce exposure to earnings risks, while still trying to minimise exposure to highly valued stocks.

We also reduce exposure to stocks that benefit from higher bond yields and rotate to 'bond proxies'. Our changes are also informed by what worked in past recessions.

What happens in America follows in Australia

The Australian Financial Review (AFR) reports that two other brokers think the key to a market pivot for the S&P 500 Index (SP: .INX) lies in the US Federal Reserve ceasing its interest rate rises.

These comments are relevant to ASX 200 shares because the Australian stock market tends to follow US market trends.

LPL Financial's Adam Turnquist and Marc Zabicki said:

If you factor in the fed funds futures timeline of a May or June peak in the terminal rate, you could see around an 11 per cent second half rally on the S&P 500 (based on six-month average returns).

Will growth stage a comeback? History shows growth and value trading higher but largely in line during the six-month period after a Fed pivot.

However … growth outperformance typically becomes more pronounced after the six-month post-pivot window. One of the catalysts driving growth's relative strength likely stems from falling interest rates and inflation during this period.

With a potential peak in interest rates occurring near a Fed pivot, we suspect growth could make a comeback during the back half of 2023.

Mike Wilson, a US equity strategist at Morgan Stanley, said his team expects the S&P 500 to continue rallying for a short while.

Wilson said:

We still expect higher highs for this tactical rally before the deteriorating fundamentals take us to lower bear market lows next year.

The post Will ASX 200 shares bottom before the year is out? Here's Macquarie's 'best guess' appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) ended the week in the green. The index closed Friday's session 0.23% higher at 7,151.8 points. That marks a week-on-week fall of 0.09%.

That was despite a weak performance from the S&P/ASX 200 Energy Index (ASX: XEJ). It slumped 0.4% amid tumbling oil prices.

The Brent crude oil price fell 3.3% to US$89.78 a barrel overnight and the US Nymex crude oil price dumped 4.6% to trade at US$81.64 a barrel.

Fortunately, the energy sector's suffering was offset by gains across the S&P/ASX 200 Industrials Index (ASX: XNJ), the S&P/ASX 200 Communications Index (ASX: XTJ), and the S&P/ASX 200 Utilities Index (ASX: XUJ). They lifted 0.9%, 0.8%, and 0.7% respectively

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) traded flat amid news OZ Minerals Limited (ASX: OZL) will likely accept BHP Group Ltd (ASX: BHP)'s increased takeover bid.

All in all, seven of the ASX 200's 11 sectors closed in the green. But which share outperformed all others to close the week on a high? Keep reading to find out.

Top 10 ASX 200 shares countdown

It might come as no surprise that the stock topping the lot on Friday was OZ Minerals.

It returned to trade this morning after a two-day trading halt on news BHP upped its bid for the company to $28.25.

Today's biggest gains were made by these shares:

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.

It's been a big week for ASX fans – plenty of exciting news has likely kept their eyes glued to the market.

Keep reading to learn of five of the most exciting announcements to hit the Aussie bourse.

The S&P/ASX 200 Index (ASX: XJO) has slipped 0.3% so far this week. Meanwhile, the All Ordinaries Index (ASX: XAO) is down 0.15%.

5 things making huge news on the ASX this week

Cannon-Brookes' boardroom victory

First up was Mike Cannon-Brookes' victory over the AGL Energy Limited (ASX: AGL) board at the company's annual general meeting (AGM).

The tech billionaire put forward four nominations for the board, of which only one was recommended by the company.

Despite the board's pushback, shareholders voted to elect all four nominations, marking Cannon-Brooke's second triumph over those in control.

ASX 200 travel favourite survives 'valley of the shadow of death'

More weird and wonderful news came amid Webjet Limited (ASX: WEB)'s earnings for the first half. Particularly, as managing director John Guscic opened its earnings conference with the altered lyrics of Coolio's Gansta's Paradise:

As Webjet walked through the valley of the shadow of death we took a look at our life to see what was left, and it looked like there is more than ever before.

The company also flipped the script on its earnings. It closed the period in the green for the first time since the COVID-19 pandemic's onset – revealing a $32 million underlying profit.

Lithium stocks soar then plummet

It was a wild week for most ASX lithium favourites, with many roaring up to 12% higher on Monday before plunging as much as 14% on Tuesday.

The mammoth moves came amid word China will ease some of its COVID-19 restrictions – seemingly good news for commodities. Tuesday's slump might have also been in response to reported bearishness from Goldman Sachs and a major cathode maker, as well as a falling lithium futures contract.

Topping off the lithium news this week, Pilbara Minerals Ltd (ASX: PLS) flagged its maiden dividend and posted a successful lithium auction result.

ASX's $250m hit as CHESS replacement abandoned

Meanwhile, mind-blowing news was released by ASX Ltd (ASX: ASX). The market operator has hit the emergency stop button on its CHESS upgrade – ongoing since 2015.

It also revealed its upcoming earnings will take a $245 million to $255 million hit as the replacement system's capitalised software is derecognised.

The decision was made after an independent review found the shiny new software might not meet ASX's requirements.

CBA posts $2.5b quarterly profit

Finally, ASX 200 goliath Commonwealth Bank of Australia (ASX: CBA) made news this week. The banking giant announced a whopping $2.5 billion first-quarter profit.

It also revealed a 9% jump in income and a 4.5% lift in expenses. 

The post 5 of the craziest things making news on the ASX this week appeared first on The Motley Fool Australia.

The ASX Ltd (ASX: ASX) share price is in the red in early trade, down 2.5%. This comes after Australia's largest securities exchange said it is reassessing all aspects of its CHESS replacement project.

ASX said it had conducted its own internal assessment of the CHESS replacement project, which you may recall commenced way back in 2015.

An independent review was also conducted by Accenture.

Accenture was brought in to review the project in early August this year, when the ASX reported yet another delay with its blockchain-based system upgrade plans.

At the time, the company reported the new system, being developed by application provider Digital Asset, wouldn't be up and running until 2024.

Now it appears the hyped ledger technology may be off the cards entirely.

What is the ASX CHESS system?

CHESS, if you're not familiar, stands for Clearing House Electronic Subregister System. In a nutshell, the system enables the transfer of ownership of any ASX shares you buy or sell. It also provides an electronic subregister for shares in listed companies.

Why is the exchange sticking with CHESS now?

In this morning's release, ASX said that significant challenges with the solution design and its ability to meet the exchange's requirements had been identified.

The company has halted all development activities on the blockchain system upgrade. It said the current CHESS system "remains secure and stable and is performing well".

In a financial blow, the replacement system's capitalised software is being derecognised at a cost of $245–$255 million (pre-tax) in the first half of 2023. The ASX added that this will not impact dividends.

Commenting on the decision, ASX chairman Damian Roche said, "We began this project with the latest information available at that time."

However, seven years down the road, he noted, "There are significant technology, governance and delivery challenges that must be addressed."

Roche continued:

ASX provides critical market infrastructure. What we do matters. We must do it right and we will. Importantly, our current CHESS system is performing well and investment in it will continue, giving us flexibility to reassess the various pathways for its ultimate replacement.

Addressing the roughly $250 million non-cash derecognition charge, ASX CEO Helen Lofthouse added:

To be clear, the derecognition charge reflects the uncertainty of the future value of the current solution design. It does not prevent us from using parts of what we have already built if we determine there are adjustments we could make to our current design, which will enable it to meet ASX's and the market's high standards.

The ASX will update shareholders on further developments with its CHESS system at the company's half-year results presentation in February 2023.

ASX share price snapshot

The ASX share price has underperformed the benchmark this calendar year, down 25% compared to a 6% loss posted by the S&P/ASX 200 Index (ASX: XJO).

Over the longer term, ASX shares are up 26% in five years.

The post ASX share price slides amid $250 million CHESS replacement bombshell appeared first on The Motley Fool Australia.

Top broker Macquarie says a "bear market rally" may have already started following yesterday's "dovish" interest rate increase along with weak US ISM Manufacturing data.

The S&P/ASX 200 (ASX: XJO) is up 1.56% at the time of writing after closing 3.75% higher yesterday.

That was the index's best performance in more than two years. Translation: The market loved the Reserve Bank of Australia's decision to raise rates by only 0.25% — not the 0.5% that the market expected.

Top broker names ASX 200 shares poised to outperform

In The Australian today, Macquarie's Australian equity strategist Matthew Brooks said a number of top 100 shares would likely outperform in a bear market rally.

The shares include ASX gold mining stocks and Australian real estate investment trusts (REITs).

The broker says these ASX 200 shares are the furthest below their long-term trend and are rated outperform.

• Newcrest Mining Ltd (ASX: NCM) — share price down 26% year to date
• Evolution Mining Ltd (ASX: EVN) — share price down 48% year to date
• Goodman Group (ASX: GMG) — share price down 35% year to date
• Dexus Property Group (ASX: DXS) — share price down 28% year to date
• GPT Group (ASX: GPT) — share price down 26% year to date
• James Hardie Industries plc (ASX: JHX) — share price down 39% year to date
• Ramsay Health Care Limited (ASX: RHC) — share price down 20% year to date
• ASX Ltd (ASX: ASX) — share price down 21% year to date
• ARB Corporation Limited (ASX: ARB) — share price down 46% year to date
• Reliance Worldwide Corporation Ltd (ASX: RWC) — share price down 44% year to date.

Brooks said:

We think these stocks are more likely to outperform in a bear market rally.

In terms of stocks that may lag, A2 Milk Company Ltd (ASX: A2M) is rated underperform, while Woodside Energy Group Ltd (ASX: WDS), Medibank Private Ltd (ASX: MPL), Brambles Limited (ASX: BXB), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU) are rated neutral.

The post Macquarie reveals ASX 200 shares 'more likely to outperform in a bear market rally' appeared first on The Motley Fool Australia.

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

ASX 200 expected to fall

The Australian share market looks set to give back yesterday's gains on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.65% lower this morning. On Wall Street, the Dow Jones dropped 0.4%, the S&P 500 fell 0.2%, and the Nasdaq edged 0.25% higher.

Oil prices rebound

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 2.3% to US$78.50 a barrel and the Brent crude oil price has risen 2.5% to US$86.14 a barrel. This was driven by supply cuts in the Gulf.

Westpac rated as a buy

The Westpac Banking Corp (ASX: WBC) share price remains great value according to analysts at Goldman Sachs. This morning the broker has retained its conviction buy rating with an improved price target of $27.08. Goldman believes that "product profitability suggests consensus NIM forecasts remain conservative given higher rates." This has led to the broker bumping its Westpac NIM estimate by 3 basis points and cash earnings per share by 2.1% in FY 2024.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,636.7 an ounce. A cooling US dollar boosted the gold price.

ASX annual general meeting

The ASX Ltd (ASX: ASX) share price dropped to a 52-week low on Tuesday. Shareholders will no doubt be hoping that management has something positive to say at its annual general meeting today to get the stock exchange operator's shares heading in the right direction once again. A trading update could be released at the event.

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

Prime minister Anthony Albanese declared on Sunday that Thursday 22 September will be a one-off public holiday as a memorial for the recently passed Queen Elizabeth II.

In response, there is some consternation in the business community about the impacts of a day off at such short notice.

Similarly the big question for readers of The Motley Fool will be whether the ASX will be open for trade that day.

The ASX response

An ASX Ltd (ASX: ASX) spokesperson originally told The Motley Fool on Monday that an official announcement about 22 September would be coming soon.

"ASX is ordinarily closed on national public holidays. We expect that to be the case on the 22nd too," said the spokesperson.

"However, given the circumstances of this public holiday, there are some logistic and technical matters that we're working through at the moment, including with customers, before we can confirm."

The ASX then provided official confirmation late Tuesday that the local bourse would, in fact, close on 22 September, stating:

"In line with the Australian Government's decision to hold a National Day of Mourning and Public Holiday to commemorate Queen Elizabeth II on Thursday 22 September 2022, ASX has declared that the ASX Trade (equities) market will be closed on that day"

"While the relatively short notice presents operational, technical and business challenges for ASX and the markets, ASX appreciates the support of its stakeholders to help honour the significance of the occasion."

The post Will the ASX open for trade on the Queen's memorial public holiday? appeared first on The Motley Fool Australia.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday after a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.45% higher this morning. On Wall Street, the Dow Jones rose 1.4%, the S&P 500 climbed 1.8%, and the NASDAQ stormed 2.15% higher. Comments out of the US Federal Reserve boost sentiment.

Xero named as a buy

The Xero Limited (ASX: XRO) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker retained its buy rating and $111.00 price target on the cloud account platform provider's shares. The broker was pleased with what management said at the Xerocon Sydney event.

Oil prices crash

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a very difficult day after oil prices crashed on Wednesday night. According to Bloomberg, the WTI crude oil price is down 5.75% to US$81.88 a barrel and the Brent crude oil price is down 5.5% to US$87.69 a barrel. Recession fears sent oil prices to a seven-month low.

Shares going ex-dividend

Another group of shares will be going ex-dividend on Thursday and could trade lower. This includes stock exchange operator ASX Ltd (ASX: ASX), engineering company Monadelphous Group Limited (ASX: MND), and energy giant Woodside. The latter has also been dealing with sinking oil prices, which could make for a particularly tough day.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.9% to US$1,728.70 an ounce. Traders were buying gold after the US Federal Reserve said it would raise rates but be careful not to go too far.

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

1) It's doom and gloom almost everywhere you look…

After a late drop on Wall Street overnight, the Australian Financial Review (AFR) this morning says: "Australian shares are poised to start the month of September sharply lower, amid further selling in New York as investors position for ever higher interest rates."

According to Mike Wilson, chief United States equity strategist and chief investment officer at Morgan Stanley, US equity investors should be braced for more pain, as indexes haven't yet hit bottom for the year.

"June probably was the low for the average stock," he said in an interview on Bloomberg Markets, but index directions are "down for at least [the] next quarter or two".

"September is usually the worst month of the year," said Wilson.

Right on cue, the S&P/ASX 200 Index (ASX: XJO) is trading almost 2% lower on Thursday.

2) Welcome to the month of September — "usually the worst month of the year" — according to Sam Stovall, chief investment strategist at CFRA in New York, as reported by Reuters.

This comes after US markets posted their weakest August performance in seven years. For the month, the S&P 500 lost 4.2% and the NASDAQ fell 4.64%.

By comparison, here in Australia, we had a decent month, with the ASX 200 index gaining 0.6% for the month as rises in resources stocks offset losses in companies like Domino's Pizza Enterprises Ltd (ASX: DMP), Bendigo and Adelaide Bank Ltd (ASX: BEN), and ASX Ltd (ASX: ASX), down 12.3%, 12.2%, and 11.1% respectively in August. 

3) It's been a decent ASX reporting season, the highlight being the dividend windfalls from mining stocks, with bumper dividends declared by the likes of BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Woodside Energy Group Ltd (ASX: WDS). 

But that might be as good as it gets for a while for the mega-cap mining stocks. Earlier this week, Bloomberg reported the iron ore price had dropped below $US100 a tonne for the first time in over five weeks on signs that the crisis in China's steel industry is worsening.

"Output in China's vast steel sector is already running well behind last year's pace as the industry reels from a property crisis that shows no signs of abating."

According to AFR, London-based Liberum Capital has a sell rating on BHP and Rio Tinto Limited (ASX: RIO) shares. It might be a case of taking the dividends and running.

4) With petrol prices through the roof, the war in Ukraine ongoing, and Woodside having tripled its interim dividend, you'd be thinking the oil price might be riding high.

Not so fast, with Bloomberg reporting oil registered its third straight monthly decline, its longest losing run in more than two years on concern that tighter monetary policy and China's economic slowdown will impact crude demand.

Add to that Europe is almost certainly careering towards a deep recession, with the best case scenario in the US being a mild recession, and the outlook for oil doesn't look so rosy. 

Add it all up, and the ASX 200 could be in for a rough few months.

5) A few choppy months will likely pale into insignificance when looked back at in five years' time.

Even the global financial crisis – the most painful period in recent history for investors – is nothing more than a blip in the long upward progression of the stock market.

And, for those who think they might sell up now and get back into the market later, once the recessionary dust has settled, a few words of caution…

1. The stock market is not the economy. A forward looking beast, it moves in advance of recessions and recoveries. See June this year, when it looked ahead to 2023 the first interest rate cuts, despite the RBA and other central banks currently being slap bang in the middle of a hiking cycle.
   
2. In order to profit from market timing, you have to get two decisions right — the selling and the buying. It's hard enough to get one right let alone two.
   
3. Research from Wells Fargo suggests missing a handful of the best days over longer time periods drastically reduces the average annual return an investor could gain by simply holding on to their equity investments during market sell-offs. Disentangling the best and worst days can be difficult, since they often occur in a very tight time frame, sometimes even on consecutive trading days.

If you are invested in the stock market, you should look at it as a lifelong endeavour, not one to dip in to and out of depending on your mood, the market's mood, the economy, the government, or inflation.

6) That's not to say you can't make changes to your portfolio. In hindsight, like many others, I should have sold out of some of my loss-making tech stocks when it became apparent inflation was not going to be transitory, something that would necessitate central banks to quickly hike interest rates.

Then there are genuine investing mistakes. The very best investors only get six out of every 10 picks right. When your investing thesis turns out to be wrong, sell and move on.

In late June, I thought bombed out initial public offering (IPO) Doctor Care Anywhere Group PLC (ASX: DOC) was a bargain. The company was cashed up with no debt and growing quickly, with remote primary healthcare being on an upward trend. 

All was looking good as the Doctor Care Anywhere share price quickly soared from my 14 cents purchase price to almost double by mid-August. 

Move aside Warren Buffett, I was thinking, there's a new investing genius in the house!

A few days later, the company revealed it had experienced platform issues, accompanied by a severe shortage of United Kingdom doctors, leading not only to the departure of the CEO but an inevitable profit warning.

Naturally, Doctor Care Anywhere shares sank, and I headed for the exits as fast as I could, thankfully still pocketing a small profit, but only courtesy of a large dose of luck. Today, Doctor Care Anywhere shares trade at just 10.5 cents.

The post Reason for hope as 'worst month of the year' starts off badly appeared first on The Motley Fool Australia.

ASX shares closed yesterday trading for $84.64 and are currently at $82.89.

This comes following the release of the Australian securities exchange operator's results for the 2022 financial year (FY22).

ASX share price slides despite profit boost

• Operating revenue of $1.02 billion, up 7.5% year on year
• Net profit after tax (NPAT) increased 5.7% from FY21 to $508.5 million
• Earnings before interest and tax (EBIT) of $689.2 million, up 7.5% year on year
• Total expenses of $333.5 million increased 7.5% from the prior year
• Final dividend, fully franked, of $1.20 per share, up 7.9% from FY21

What else happened during the year?

The full-year dividend payout from the ASX came to $2.36 per share, up 5.7% from the previous year. That reflected a 5.7% increase in earnings per share (EPS), which increased in line with higher profits.

The ASX maintained its 90% payout ratio to shareholders.

The company said the strong results were spurred by growth in listings and equity-related activities, while lower futures volumes threw up some headwinds.

Over the year the ASX continued to invest in technology with an eye on future growth opportunities.

What did management say?

Commenting on the results, ASX CEO Helen Lofthouse said:

ASX continues to benefit from its diversified business model. We saw decade-high levels of listings activity, particularly in the first half, with 217 new listings in the period – the highest number since FY08. And the total amount of capital raised increased 56% to $159.4 billion (excluding the BHP capital unification), a new record overall.

The Markets business benefited from higher equity trading activity and demand for commodities products. However, this was partly offset by the impact of the lower interest rate environment on futures volumes…

The strength of ASX's core business has allowed us to deliver long-term growth for shareholders during a period of significant volatility and uncertainty.

What's next?

Looking ahead, ASX said a key focus area is its customers, noting that technology is fundamental to what the company does.

Regarding the ongoing CHESS replacement project, which has faced technical issues and setbacks, Lofthouse said, "We have identified that more development is needed in parts of the application software to meet the market's scalability and resilience requirements for new CHESS. We have commissioned an independent review of the application by Accenture."

Acknowledging that it was disappointing to delay the go-live timeline for a third time, Lofthouse added, "But we all agree that new CHESS must be implemented safely and with the functionality to serve the market's needs."

ASX share price snapshot

So far in 2022, the ASX share price is down 10%. That compares to a 6% year-to-date loss posted by the ASX 200.

The post 6% dividend boost in FY22 yet ASX share price slides today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price has dropped a further 1.5% to $4.08. This artificial intelligence data services company's shares have been sold off this week following a very disappointing trading update. Appen is expecting to report a 69% decline in half-year underlying EBITDA to $8.5 million due to softer digital advertising demand and a resultant slowdown in spending by some of its large customers. This morning Macquarie downgraded Appen's shares to an underperform rating with a lowly $3.50 price target.

ASX Ltd (ASX: ASX)

The ASX share price is down 3.5% to $87.30. Investors have been selling this stock exchange operator's shares after the release of a disappointing update on its CHESS replacement project. ASX is now expecting the system to go live in late 2024.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down 2% to $22.58. This could have been driven by a broker note out of Morgans this morning. While the broker has retained its add rating, it has slashed its price target by over 20% to $26.80. Morgans was disappointed with Credit Corp's guidance for FY 2023 but sees enough value in its shares to retain its add rating.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is down 2.5% to $19.04. This gold miner's shares have come under pressure after the price of the precious metal dropped overnight. But it isn't just Newcrest that is falling. The S&P/ASX All Ords Gold index is down 0.75% in afternoon trade on Wednesday.

The post Why Appen, ASX, Credit Corp, and Newcrest shares are dropping today appeared first on The Motley Fool Australia.

The ASX Ltd (ASX: ASX) share price is in the red. Its tumble comes after the market operator announced that its long-awaited CHESS replacement likely won't be operational until at least 2024.

The company has also commissioned an independent expert to assess the remaining work needed to deliver the software.

The ASX share price is $88.45 at the time of writing, 2.39% lower than its previous close.

Let's take a closer look at the latest delay facing the implementation of updated trade processing software.

New CHESS not expected until late 2024

The ASX share price is slipping today. Its fall comes amid news the company doesn't think its CHESS replacement system will go live until at least late 2024.

ASX and its application provider Digital Asset have found that more development is needed than was previously anticipated to make sure the software meets scalability and resilience requirements.

The company has brought in Accenture to review the work needed to deliver the application. The outcome of the review will be made public.

The expert will also work to help ASX communicate a new timetable for its implementation.

The CHESS system, an acronym for Clearing House Electronic Subregister System, facilitates the transfer of ownership of all ASX shares bought or sold. It also provides an electronic subregister for shares in listed companies.

The ASX began working on the CHESS replacement system in 2015. The company said it would likely miss its anticipated April 2023 implementation in March before confirming the delay in May.

ASX managing director and CEO Helen Lofthouse commented on the news weighing on the company's share price today, saying:

CHESS is a critical system and we must have high confidence in the schedule to deliver new CHESS safely.

[I]t is important that we take time for a careful, independent review of the work done to date and the work still to do.

Existing CHESS remains secure and stable and continues to perform well as we transition to a replacement CHESS system.

Australian Securities & Investments Commission chair Joseph Longo and Reserve Bank of Australia governor Philip Lowe both said the delay is "disappointing". Lowe continued:

The review initiated by ASX is an important step in providing assurance that the new CHESS application software will be fit for purpose. The replacement system must be safe and reliable to maintain investor confidence and the stability of Australia's financial system.

ASX share price snapshot

Despite today's dip, the ASX share price is outperforming this year.

It's fallen just 4% since the start of 2022. That means it has outperformed the S&P/ASX 200 Index (ASX: XJO) by 4.5% in that time.

The post ASX share price sinks as CHESS replacement delayed appeared first on The Motley Fool Australia.

The amount of cash a company has is a critical consideration no matter the circumstances.

As Warren Buffett once said, "Cash is to a business as oxygen is to an individual…" But where can an investor find cash-heavy companies inside the S&P/ASX 200 Index (ASX: XJO) outside of the typical major banks and miners?

Firstly, there is nothing wrong with investing in banks and mining giants. Some of those companies have even outperformed the benchmark index over the last five years. However, being concentrated in these sectors can come with risks, as is with any form of concentration.

At the end of the day, strong balance sheets are what matters. So, what are a few options for investors seeking cash behemoths beyond the two dominant sectors of the ASX?

Here are a few ASX 200 shares with billions to boot.

ASX 200 shares with bank accounts burst at the seams

CSL Limited (ASX: CSL)

Starting from the top, Australia's largest healthcare company — CSL — claims the largest stash of cash apart from the banks and miners. Sitting atop A$8.73 billion in cash and cash equivalents, the biotechnology giant has a fortified balance sheet.

Although, it is important to note this amount is likely to change as CSL moves toward the acquisition of Vifor Pharma. In December 2021, the ASX-listed company designated A$8.4 billion of new debt and existing cash to partly fund the A$17.2 billion acquisition.

Block Inc (ASX: SQ2)

Another ASX 200 share with billions to its name is US-based fintech company, Block (formerly Square). At the end of March 2022, the Afterpay and Cash App owner counted A$6.6 billion on its balance sheet. This is despite operations becoming unprofitable for the trailing 12-month period.

In addition, it is worth highlighting that Block has a chunk of debt that is almost equivalent to its cash levels. Based on this, the company's net cash level is approximately A$142 million.

ASX Ltd (ASX: ASX)

The final company to stand out among a spattering of banks and mining companies is Australian stock exchange operator, the ASX. With profit margins consistently above 40%, it's no wonder this ASX 200 company has accumulated billions.

At the end of December 2021, the ASX had reached a bountiful $7.344 billion in cash and cash equivalents. That amount of money ensures plenty of cushioning during a down.

Recently, Catapult Wealth portfolio manager Tim Haselum named this company as its pick to hold if the market was closed for four years.

The post 3 ASX 200 shares swimming in billions, besides banks and miners appeared first on The Motley Fool Australia.

The ASX Ltd (ASX: ASX) share price is in the red during trade on Thursday.

This comes after the company announced the appointment of its first female CEO.

At the time of writing, the stock exchange operator's shares are down 1.61% to $80.12 apiece.

ASX welcomes first female CEO

Prior to market open, ASX revealed that Helen Lofthouse would take over the role as managing director and CEO.

Outgoing CEO Dominic Stevens will continue to hold the top position until 31 July 2022. He will remain in an advisory role to ensure a smooth transition before retiring on 30 September 2022.

Ms Lofthouse is currently ASX's Group Executive Markets which is its largest business by revenue. Her responsibilities include cash and derivatives trading, including equities, interest rates, commodities and energy products, and the benchmark's business and international sales.

Ms Lofthouse joined ASX in September 2015 as a member of the executive leadership team.

An accomplished financial markets executive with more than 20 years of experience in cash equity and debt markets, Lofthouse will become the company's first female CEO.

It marks a milestone move for ASX as an increasing number of women are beginning to take the helm.

Prior to joining ASX, Ms Lofthouse was based in London where she was a managing director at UBS.

Before that she worked in various senior roles at JPMorgan.

Commenting on the move, ASX chair Damian Roche said:

Given the high calibre of experienced candidates attracted to the position, we are delighted that the outstanding choice to lead ASX as its new CEO comes from within the organisation.

It is testament to Helen's qualities and highlights the strength within ASX's executive ranks. It also reflects the Board's confidence in the strategy and performance of the company in recent years.

We look forward to the fresh ideas and enthusiasm Helen will bring to the role as our new CEO. Her appointment ensures a smooth and orderly CEO transition. ASX's exciting future is in strong and capable hands.

ASX share price snapshot

The past 12 months have been a wild ride for investors, with the ASX share price up more than 4.5%.

Year-to-date, its losses are hovering at almost 14%.

Based on the current share price, ASX commands a market capitalisation of around $15.51 billion.

The post ASX share price slips following first female CEO appointment appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum explains why one particular ASX share would sit comfortably in his stable for years to come.

The ASX share for a comfortable night's sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Tim Haselum: I went for an easy one here, and it's just the ASX Ltd (ASX: ASX).

We like the fact that it's a near monopoly, but obviously making some good moves upgrading the tech. They've had some wobbles and issues but that's fine. 

I would say, look, if you're on a 20-year timeframe, maybe I'd be a little bit worried about something happening, but on a four-year timeframe, we think that the earnings are pretty predictable and stable here. We think there's going to be lots of capital raisings here, equity market volumes seem to be relatively strong.

We think that now the RBA is not trying to tamper with [the] yield curve, the bond trading revenue's going to come back, I just think when it comes to predictability of earnings and market share, ASX is one that's for four years, there's no worries there. It's pretty high quality in our books.

MF: Great to hear your opinion on ASX the stock, because we don't have a lot of analysts that cover it.

TH: Probably because it's boring!

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

TH: I would say the missed opportunity, it has to be Afterpay, right?

For us, we looked at it and we were just like, "The valuations are just… Where are you pulling it from?"

You could argue that the buy now, pay later segment in general, that was our generation's tech boom. It was insane. 

We just thought it looked so frothy and even though Afterpay had the first-mover advantage and it did look prestigious and it clearly got a lot of traction, it was just too hard a call to put it in the portfolio. 

What'd it get to? $7 at the bottom of COVID [in March 2020]?

MF: Yes, around there.

TH: The amount of upside that we missed out on was humongous, but for us when we think about quality and value and those measures, it was just too hard a call to put it in. 

I mean, I know a lot of people were pumping up Zip Co Ltd (ASX: ZIP) and look what happened to that, right? Maybe flip a coin, Afterpay or Zip, and maybe it was right just to stay away but that was a tough one. Especially when it got taken over, the regret… I was like, "damn it"!

MF: But one could argue, if it was still a standalone stock now, it would be quite low.

TH: That's right. Yeah.

The post 'An easy one': Expert reveals which ASX share he'd hold for 4 years appeared first on The Motley Fool Australia.