- Kiwi investors who are looking to diversify their investments while keeping the investment process easy may want to invest in ASX-listed firms.
- Zip posted strong results in Q3 FY22 with growth in revenue and transaction numbers.
- BHP Group reported significant reductions in output in its Q3 activities report.
New Zealand is considered a hub for start-ups, especially technology-based companies, providing access to capital and driving innovation. Investors are always in search of profitable firms to gain from profitable investments and get a good income stream.
Kiwi investors who are looking to diversify their investments while keeping the investment process easy may want to invest in ASX-listed firms. Moreover, many NZ companies may list on the ASX and not on the NZX, subsequently, attracting NZ investors’ attention.
Let’s look at the 4 ASX stocks pertaining to varied sectors that are in news and can be explored by Kiwis.
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Wesfarmers Limited (ASX:WES)
Wesfarmers, a retail, industrial and financial services provider in Australia, has a market cap of $56.03 billion and has given a YTD return of -5.22%. WES ended the day 1.11% in the red to close at $48.86.
WES showcased its strong portfolio and the capacity of its teams to adapt quickly to fulfil demand amid a disruptive environment due to the COVID-19 pandemic. The Group posted robust results for the half year ended 31 December 2021, supported by a strong performance from Bunning and WesCEF. WES also acquired all shares in API on 31 March 2022.
The Group paid an interim dividend of $0.8 per share on 30 March 2022. It expects FY22 net capital expenditure to range between $900 million and $1100 million.
Zip Co Limited (ASX:ZIP)
Zip is a leading BNPL firm of Australia, providing payment and retail finance solutions to SMEs and consumers. Zip has a market cap of A$750.3 million and has given a YTD return of -75%. Zip ended the day 0.46% in the red to close at $1.09.
The Group delivered topline growth and strong revenue margins in Q3 FY22. The Group posted 39% growth YOY in the quarterly revenue to $159.2 million while its transaction volume was up 27% YOY to $21.1 billion in the quarter.
Zip also raised $172.7 million through institutional placement and a share purchase plan. The Group has made many adjustments to its strategy with a new focus on sustainable growth, strong unit economics and fast-tracking profitability.
BrainChip Holdings Ltd (ASX:BRN)
BrainChip Holdings is an Australian firm that extends software and hardware-enhanced solutions for AI and machine learning applications. It has a market cap of AU$1.688 billion and has given a YTD return of 10%. BRN ended the day 6.12% in the red to close at $0.92.
BRN fared well in 2021, despite several challenges, due to its technical strengths and increased interest in AI worldwide. As per its annual report released in February, the Group has attained significant technical advancements in Akida brain-inspired Neuromorphic AI architecture, created key development partnerships, and has gone into the commercial production of chips.
BrainChip remains focused on practising and preserving patent protection on all current and future developments across various global jurisdictions.
BHP Group Limited (ASX:BHP)
Australian mining company BHP has a market cap of AU$243 billion and has given a YTD return of 12.54%. BHP ended the day 0.25% in the red to close at AU$47.89.
BHP released its quarterly activities report for Q3 FY22 on 21 April. The Group reported significant reductions in output with gross iron ore and nickel output falling roughly 10% and 13%, respectively, in the quarter on the prior quarter. This was majorly due to COVID-19-related manpower scarcities and labour restraints.
The Group’s potash projects are as planned. The merger of BHP’s oil and gas portfolio with Woodside Petroleum Ltd is likely to be completed on 1 June 2022.
BHP paid an interim dividend of $2.08 per share on 28 March 2022.
New Zealanders can invest in Australian stocks via funds and brokers that facilitate trading on the ASX. Recently, options for Kiwi investors to invest in Australian stocks have vastly improved.
(NOTE: Currency is reported in AU Dollar unless stated otherwise)