Key points
- The Transurban share price has slumped 12% since the end of 2021 to trade at $12.12
- That’s despite no news having been released by the company
- However, its home sector has also suffered during the new year so far
January has been a bumpy road for many ASX stocks, and the share price of Transurban Group (ASX: TCL) hasn’t come out unscathed.
In fact, the company’s stock has slipped 12.30% so far this year for no obvious reason.
At the time of writing, the Transurban share price is $12.12, down its final close of 2021 – $13.82.
For context, the S&P/ASX 200 Index (ASX: XJO) has struggled through this month as well. It has fallen 8% year to date.
Let’s take a look at what might be weighing on the toll road operator’s share price in 2022.
Why is the Transurban share price suffering in 2022?
The Transurban share price has tumbled since the end of last month despite no news having been released by the company.
However, its seemingly tracking its home sector – the S&P/ASX 200 Industrials Index (ASX: XNJ) – to a tee. Take a look at the graph below to compare the pair’s performance over 2022 so far.
Its also worth mentioning the company has been hit hard by COVID-19 outbreaks in the past, as lockdowns saw road traffic plunge.
While the current Omicron outbreak hasn’t seen Australians officially stuck at home, it might have impacted the market’s sentiment for the toll road operator’s shares.
Fortunately, the Transurban share price isn’t alone in its suffering. It’s been a dismal start to the year for many of the industrial sector’s participants.
None of them have come up in the green for 2022 so far. Though, Sydney Airport (ASX: SYD) has come in close. Its share price has slipped just 0.4% since the end of last year.
Meanwhile, the Reece Ltd (ASX: REH) share price is bringing up the rear, having slumped 24% over the same time frame. It’s worth noting, Reece’s stock hit multiple 52-week highs in late December and early January.
While there’s been no price-sensitive news out of Transurban since mid-December, the market isn’t expected to wait much longer for an update on the company.
Transurban has pencilled 17 February as the day it will drop its results for the first half of financial year 2022.
The last time the company released half year results, its share price slumped 0.6% on news of COVID-19 impacts.
The post Why has the Transurban (ASX:TCL) share price tumbled 12% so far in 2022? appeared first on The Motley Fool Australia.
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More reading
- 2 ASX dividend shares Morgans rates as buys
- Brokers name 2 ASX 200 dividend shares to buy
- Own Transurban (ASX:TCL) shares? Here’s what its 2022 dividends might look like
- 2 top ASX shares for a retirement portfolio
- Why analysts slapped buy ratings on these ASX shares
Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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