ubs

Australian miners are set to reap the benefits of rising demand for lithium, with some analysts upgrading earnings for listed companies.

Higher interest rates, a slowing property market and the promise of loan defaults is curbing the enthusiasm of analysts on future bank earnings.

Elon Musk once famously claimed, “lithium batteries are the new oil”. Yet lithium-ion batteries merely trade the oil problem for a lithium problem.

Falling resource and commodities prices are worrying investors and resource companies have dropped sharply in price in July. Analysts are mixed on their outlook for resources companies, with some tipping energy companies to outperform while other experts favour diversified resources companies.

The Australian share market is tipped to fall by up to 9 per cent in 2022 but to rise 5 per cent to 8 per cent over 2023, according to new forecasts from CommSec. While share prices have fallen this year, Australian companies remain well cashed up and profits sit at record highs, which will help to drive gains next year

As we say goodbye to a volatile financial year, most investors are glad it’s over and can’t wait to say hello to FY23. Markets will be hoping that this new financial year will bring about calmer trading conditions with fewer geopolitical tensions and no devastating pandemics.

Collins Foods (ASX:CKF) has posted a better-than-expected profit result for the financial year, which has pushed the share price up more than 11 per cent.