The Chorus Ltd (ASX: CNU) share price is on watch this morning after a pre-market announcement from the telecommunications infrastructure group.
Why is the Chorus share price on watch?
Chorus today reduced its indicative Maximum Allowable Revenue (MAR) range. The Kiwi telco group reduced its MAR range to $680 million to $710 million. That represents a reduction from the previous $715 million to $755 million per annum range.
All of this is part of the group’s submissions and calculations for the latest New Zealand Commerce Commission regulatory process. Chorus CFO David Collins said the company holds “the strong view that the MAR should be set above forecast fibre revenue to maximise the socio-economic benefits of the investment we and the government have made in the Chorus fibre network”.
The MAR is a key component of the regulatory assessment for the Commerce Commission. It also comes as part of the wide-ranging review of the New Zealand fibre network industry.
The Chorus share price will be one to watch following this morning’s update on both the ASX and New Zealand’s Exchange (NZX). Shares in the Kiwi telco climbed 1.6% higher on Friday to close at $6.44 per share.
That’s not far from the group’s 52-week low of $5.95 having slid 11.4% lower in 2021.
What else is happening on the ASX?
There is a bit happening for the S&P/ASX 200 Index (ASX: XJO) after the Easter break. The Reserve Bank of Australia will meet this afternoon for their monthly cash rate decision. No doubt investors will be keeping a close eye on any announcements.
Shares in major oil producers could be under pressure as crude oil prices sank lower before the weekend.
Away from ASX 200 shares, the SG Fleet Group Ltd (ASX: SGF) share price will be on watch as it returns to trade for the first time since Wednesday 24 March. The company announced a ~$86 million capital raising as it looks to fund its $387 million LeasePlan ANZ acquisition.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- UBS is calling time on the ASX iron ore supercycle
- 5 things to watch on the ASX 200 on Tuesday
- Top broker picks the best ASX shares to buy for the new quarter
- These were the worst performing ASX 200 shares last week
- These were the best performing ASX 200 shares last week
Motley Fool contributor Ken Hall 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 Bruce Jackson.
The post Why the Chorus (ASX:CNU) share price is on watch appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2PtWSQX
Leave a Reply