Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) has had a rather rocky day of trading so far this Thursday. At the time of writing, the ASX 200 is currently down 0.32% to 7,331 points after oscillating between gains and losses all day. So let’s take a look at some of the ASX 200 shares that are being most heavily traded during this session:

3 heavily traded ASX 200 shares on Thursday

Telstra Corporation Ltd (ASX: TLS)

Telco Telstra is our first ASX 200 share that’s been making some moves on the share market today. So far, around 12.75 million Telstra shares have changed hands today. This may be a direct result of how the Telstra share price has performed today. Soon after market open this morning, Telstra hit a new 52-week high of $3.80 a share, putting its year to date gains at an impressive 26%. Telstra shares have cooled somewhat since, and are currently going for $3.78 a piece.

Zip Co Ltd (ASX: Z1P)

Buy now, pay later (BNPL) bigwig Zip Co is out next ASX 200 share that’s been er… zipping… around the markets today. In fact, today has seen a lofty 17.02 million Zip shares swap owners so far. This is probably correlated to the nasty 4.92% drop to $6.96 that Zip shares have been subjected to this Thursday.

As recently as Tuesday afternoon, Zip shares were trading above $8.20. But news that its BNPL competition might be heating up has evidently spooked investors a little. This has resulted in an elevated number of Zip shares trading ever since.

Spark Infrastructure Group (ASX: SKI)

And our ASX 200 winner for most traded shares today is… Spark Infrastructure. A very hefty 21.12 million shares have traded so far today. Spark shares are up a very healthy 6.45% so far to $2.64 a share. This seems to be a result of the confirmation of a takeover bid the company has received. The company told investors this morning that a proposal from the Ontario Teachers’ Pension Plan Board along with Kohlberg Kravis Roberts & Co. was being considered.

This group is seeking to acquire 100% of Spark shares for $2.70 a share in cash (not including an upcoming dividend of 6.25 cents per share). It’s clearly this news that is pushing up the Spark share price towards this offer price today. Which has naturally been accompanied by a surge in trading volume.

The post Here are 3 of the most heavily traded ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Flight Centre, PolyNovo, Vulcan, & Zip shares are sinking
• Afterpay & Zip shares: Brokers react to Apple and PayPal BNPL news
• Fresh blow to ASX 200 travel shares as Victoria lockdown looms large
• Why ARB, Rhythm Biosciences, Sezzle, & Spark shares are storming higher
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.3% to 7,331.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 2% to $14.77. Investors have been selling travel shares on Thursday amid reports that the Victorian government is planning a snap lockdown in Melbourne tonight. Investors appear concerned that this will derail the travel market recovery once again.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price has sunk 9% to $2.09. This decline appears to have been driven by a couple of broker notes this morning in response to its sales update yesterday. Both Bell Potter and Ord Minnett have downgraded the medical device company’s shares to hold ratings and cut their price targets. Bell Potter’s price target has reduced to $2.65 whereas Ord Minnett has cut its price target to $2.54.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price has tumbled 10% lower to $9.22. This is despite there being no news out of the lithium explorer on Thursday. However, prior to today, the Vulcan share price was up 24% in the space of a week. This could have led to some investors taking a bit of profit off the table today.

Zip Co Ltd (ASX: Z1P)

The Zip share price has continued its slide and is down a further 5.5% to $6.92. This buy now pay later (BNPL) provider’s shares have been sold off amid reports that Apple is intending to enter the BNPL market. In addition to this, PayPal has announced the removal of late fees, which is further intensifying competition in the industry.

The post Why Flight Centre, PolyNovo, Vulcan, & Zip shares appeared first on The Motley Fool Australia.

More reading

• Afterpay & Zip shares: Brokers react to Apple and PayPal BNPL news
• Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price
• Fresh blow to ASX 200 travel shares as Victoria lockdown looms large
• What these 2 best performing ASX shares have in common….and what to expect next
• Why the PolyNovo (ASX:PNV) share price is sinking 6% lower on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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The ARB Corporation Ltd (ASX: ARB) share price has soared firmly into the green during trading today.

ARB shares are currently changing hands for $44.55 a piece — up 7.63% — after the company released its preliminary unaudited set of accounts yesterday.

Let’s take a closer look at what ARB announced after market close yesterday.

ARB’s growth engine is on full display

ARB reported yesterday, ARB recorded unaudited sales revenue of $623 million for the financial year. This figure implies a 34% growth in revenue from the same time last year.

The company also reported profit before tax for the financial year in the range of $145 – $150 million.

The news sent the ARB share price flying this morning, reaching an intraday high of $45.23, before retreating back to its current levels.

The release comes after the company reported first-half sales revenue of approximately $284 million back in February.

In the preliminary report, ARB stated:

The company maintains a positive short-term outlook based on its consistently strong customer order book…The current pandemic and economic conditions remain very uncertain and it is not possible to provide financial or operational guidance beyond the short term.

Investors can expect ARB’s results for the full financial year to be released on 17 August 2021.

What is ARB?

ARB stands on the podium as Australia’s largest manufacturer and distributor of four-wheel drive accessories.

It has a market capitalisation of around $3.4 billion at the time of writing, and is a member of the S&P/ASX 200 Index (ASX: XJO).

Since first listing in 1987, ARB has expanded its geographical footprint into the US, European and Asian markets.

ARB share price snapshot

ARB shares have waltzed through this year to date in the green, posting a return of 46%.

This extends the previous 12 month’s return of 142%, which has beaten the S&P/ASX 200 Index (ASX: XJO)’s return of 11.7% over this same time.

The ARB share price has also finished the previous 5 trading sessions 7% in the green.

The post ARB (ASX:ARB) share price jumps 8% after preliminary profit release appeared first on The Motley Fool Australia.

More reading

• Why ARB, Rhythm Biosciences, Sezzle, & Spark shares are storming higher
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• 5 things to watch on the ASX 200 on Thursday
• ARB (ASX:ARB) share price on watch after reporting stellar FY2021 growth
• 2 booming ASX shares show exactly what Aussies are up to during COVID

The author Zach Bristow has no positions 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 recommended ARB Corporation Limited. 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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The Pendal Group Ltd (ASX: PDL) share price is moving onwards and upwards today. This movement follows the global investment manager’s funds under management (FUM) update for the quarter ending June 2021.

At the time of writing, the Pendal share price is 2.49% higher to $8.22.

Let’s have a closer inspection of the company’s FUM for the past quarter.

What’s moving the Pendal share price?

Prior to the market open, Pendal Group released its funds under management update for the quarter ending June 2021.

According to the release, the fund manager’s FUM increased $5 billion from the previous quarter. This increase took total FUM at the end of June to $106.7 billion. However, the growth in managed funds was largely attributed to investment performance and positive currency conversion.

If not for these factors, the total FUM would have decreased from $101.7 billion at the end of March to $101 billion. The fund manager experienced net outflows largely in its cash balance, amounting to $1.9 billion. It seems the cash outflows have not worried investors, with the Pendal share price rising today.

On the other hand, Pendal Australia experienced net inflows of $0.4 billion when excluding cash. Additionally, the company’s US operations notched up $0.8 billion of net inflows when excluding cash.

CEO commentary and performance fees

Commenting on the quarterly result, Pendal Group Chief Executive Officer, Nick Good said:

In overview, we continue to see the strength of the US region and its potential for future growth from the perspective of flows and FUM, and margins. As well, the benefits of our scale and diversified business continue to be evident with the significant uplift in total FUM

Another catalyst for the Pendal share price may have been its realised performance fees. Pendal Australia realised performance fees of $16.4 million, an increase of 29% on the prior financial year.

The fund manager currently trades on a price-to-earnings (P/E) ratio of 15.82.

The post Pendal Group (ASX:PDL) share price climbs higher despite net outflows appeared first on The Motley Fool Australia.

More reading

• These 2 ASX dividend shares are offering trailing yields of 10% today
• Afterpay & Zip shares: Brokers react to Apple and PayPal BNPL news
• Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price
• The Medibank (ASX:MPL) share price just hit a new 52-week high
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Mitchell Lawler 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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When it comes to ASX dividend shares, a high yield is an obvious starting point for income investors looking for their next investment. After all, what’s the point of an income investor buying a dividend share if they’re not getting a substantial amount of cash back from their investment every 6 months?

So today, let’s check out 2 ASX dividend shares that seemingly have fully franked, trailing 12-month yields of 10% or more today.

2 ASX dividend shares with fully franked yields over 10%

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue Metals share price is on fire today, up a very healthy 2.02% today so far at $25.77 a share. That’s not too far from the company’s all-time high of $26.40 that we saw a few months ago. This latest rise has pushed Fortescue’s trailing dividend yield below 10%, with it sitting at 9.61% at the time of writing. However, if you factor in Fortescue’s full franking credits, this trailing yield rises to a very attractive 13.73% grossed-up.

Whilst earnings (and dividends) from ASX resources companies such as Fortescue are always going to be subject to the whims of the commodity markets, iron ore prices are still at historically high levels over US$200 a tonne today. As such, many brokers are expecting to see even higher dividends from Fortescue over the rest of 2021 and into 2022.

WAM Capital Ltd (ASX: WAM)

WAM Capital is a listed investment company (LIC) with a long-built reputation as a sturdy ASX dividend share. This reputation has not deteriorated over the past year. WAM Capital shares are now offering a trailing dividend yield of 7.01%. Including the full franking that usually comes with this LIC’s payouts, this yield grosses-up to 10.01%.

As a LIC, WAM Capital invests in a portfolio of underlying shares. It typically banks dividends received from these shares, as well as profits from sales, into its profit reserve.

It’s this reserve from which dividends are paid out. As of 30 June 2021, the company had a profit reserve of 21 cents per share. That is enough to cover its current payout of 15.5 cents per share for at least the next 6 months.

Some of WAM Capital’s current holdings include Bega Cheese Ltd (ASX: BGA), Aristocrat Leisure Limited (ASX: ALL) and Virgin Money UK (ASX: VUK).

The post These 2 ASX dividend shares are offering trailing yields of 10% today appeared first on The Motley Fool Australia.

More reading

• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• Why the Fortescue (ASX:FMG) share price has rallied 6% in the last week
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Mineral Resources (ASX:MIN) share price up 4% today?
• The Fortescue (ASX:FMG) share price is surging, but what’s next for iron ore?

Motley Fool contributor Sebastian Bowen 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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The big news this week that is rocking the Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price is that Apple is reportedly planning to enter the buy now pay later (BNPL) market.

Over the last two trading sessions, these two BNPL shares have lost 11.5% and 16% of their value, respectively. That’s over $4 billion collectively wiped from their market capitalisations in less than 48 hours.

Why is Apple entering the BNPL market?

According to Bloomberg, Apple is interested in entering the BNPL market to help drive Apple Pay adoption and convince more iPhone users to pay for items using their phone instead of traditional debit or credit cards.

As Apple receives a slice of transactions made with Apple Pay, if the tech behemoth can achieve this, it would be another boost for its US$50 billion per year services business.

The new Apple Pay Later service is understood to have two options for consumers to choose from when paying in store and online. These are known internally as Apple Pay in 4 and Apple Pay Monthly Instalments.

As the name implies, Apple Pay in 4 will allow consumers to pay across four interest-free payments made every two weeks. Whereas Apple Pay Monthly Instalments will allow users to pay across several months with interest. Investment bank Goldman Sachs is reportedly the lender for the instalment loans.

Also weighing on the Afterpay share price and Zip share price yesterday was news that PayPal is removing late fees for its BNPL service. Competition certainly is heating up in the space!

How did brokers react?

Analysts at Macquarie were quick to react to the news of intensifying competition in the BNPL market.

In response, the broker has retained its outperform rating on Afterpay’s shares but trimmed its price target down by 7% to $130.00. This compares to the current Afterpay share price of $104.79. The broker suspects there will be a period of industry consolidation before a stronger outlook emerges.

Over at Citi, its analysts believe the bigger threat to Afterpay and Zip comes from PayPal. Though, it sees Afterpay as better positioned to fend off the increasing competition.

It commented: “We continue to see a future state where the ability to Pay-in-4 will become a commodity, and see the key to success for Afterpay and Zip being their ability to be more than a payment option and own the consumer’s shopping experience.”

It feels Afterpay’s strong consumer engagement and usage levels are key to its success in the market. And with the Afterpay share price faring a bit better over the last couple of days, it appears as though the market agrees.

The post Afterpay & Zip shares: Brokers react to Apple and PayPal BNPL news appeared first on The Motley Fool Australia.

More reading

• The ASX 200 is trading near record highs – time to worry about popping bubbles?
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• Canva valuation beats out Afterpay (ASX:APT), what’s next?
• The Zip (ASX:Z1P) share price just had its worst day since 17 February. Here’s why
• The Afterpay share price just had its worst day since February 2021. Here’s why

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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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The Vulcan Energy Resources Ltd (ASX: VUL) share price performance has had its ups and downs this week.

Shares in the emerging lithium producer rallied 10.87% on Wednesday to close at $10.20 apiece.

However, the Vulcan Energy share price has come under heavy selling pressure today, losing most of yesterday’s gains in a 9.61% slide to $9.22 at the time of writing.

Despite a brief euphoric moment above the $10 mark, the company’s shares are still up an impressive 20.5% in July and 235% year-to-date.

Vulcan Energy share price rallies in July

The lithium sector is a hot space right now, with Forbes warning of a potential “perpetual deficit” in lithium supply on the back of surging electric vehicle and battery storage demand.

The Global X Lithium & Battery Tech exchange-traded fund (ETF), comprising companies in lithium mining and refining through to battery production, surged to a new record all-time high on Monday.

Coinciding with the selloff in Vulcan Energy shares today, the Lithium ETF slumped 2.38% overnight, but is still up a solid 26.85% year-to-date.

Within the Lithium ETF’s holdings are ASX-listed lithium heavyweights Pilbara Minerals Ltd (ASX: PLS), Orocobre Ltd (ASX: ORE) and Galaxy Resources Ltd (ASX: GXY).

These household ASX lithium miners account for 1.11%, 0.93% and 0.71% respectively, of the ETF’s net assets.

Positive milestones ahead

Despite hitting a $1 billion market capitalisation, Vulcan Energy has yet to produce any of its zero-carbon lithium product.

The company is currently busy finalising pre-production milestones such as further exploration, a bankable feasibility study, securing offtake agreements and permitting.

According to Vulcan’s project timeline, construction of its zero-carbon lithium project should begin by the end of 2022 with a maiden lithium production by mid-2024.

Last Monday, the company announced that it appointed two companies to assist with the project’s definitive feasibility study (DFS).

Vulcan said it aimed to complete the DFS within the next 12 months.

In other news on Monday, Vulcan Energy announced a new exploration license for geothermal energy, geothermal heat, brine and lithium in the Upper Rhine Valley in Germany.

The post Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price appeared first on The Motley Fool Australia.

More reading

• What these 2 best performing ASX shares have in common….and what to expect next
• The 5 best ASX shares of FY21 revealed
• ASX lithium shares are surging on Tuesday. Here’s why
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Why the Vulcan Energy (ASX:VUL) share price is surging higher today

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. 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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The Medibank Private Ltd (ASX: MPL) share price hit another 52-week high today, despite no news having been released by the company.

Right now, the Medibank share price is $3.28, 0.15% lower than its previous close.

However, earlier today it reached $3.39. That represents a gain of 3.24%.

Let’s take a look at what Medibank has been up to lately.

The latest from Medibank

The last time the market heard price-sensitive news from Medibank was way back on 19 April.

Then, the healthcare and health insurance company announced it had found its new chief executive officer (CEO), David Koczkar.

News of Koczkar’s appointment was met with indifference from the market. The Medibank share price ended the session at the exact same point it had ended the previous day’s.

Koczkar seated himself behind Medibank’s biggest desk on 17 May, after Medibank’s now former-CEO Craig Drummond cleared it out.

Before he took the role of CEO, Koczkar had been Medibank’s chief customer officer – a role in which Medibank’s chair, Mike Wilkins, said he was “instrumental”.

Koczkar commented on his appointment, saying:

I am thrilled to be able to continue this work, working with the amazing team at Medibank to continue to ensure our focus remains on meeting the needs of our customers and transforming the way we work as we become a broader healthcare company.

Koczkar has also previously been the group chief commercial officer at Jetstar.

Despite not moving from news of a new CEO, the Medibank share price has gained 13.7% since.

Medibank share price snapshot

The Medibank share price has been having a good roll on the ASX lately.

Right now, it’s 7.7% higher than it was at the start of this year. It has also gained 9.9% since this time last year.

The company has a market capitalisation of around $9 billion, with approximately 2.7 billion shares outstanding.

The post The Medibank (ASX:MPL) share price just hit a new 52-week high appeared first on The Motley Fool Australia.

More reading

• Top brokers name 2 ASX dividend shares to buy today
• Medibank Private (ASX:MPL) share price sets new 52-week high today
• Medibank (ASX:MPL) share price up as customers get millions in support
• ASX 200 up 0.35%: SEEK upgraded, Afterpay lower

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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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

AGL Energy Limited (ASX: AGL)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $8.88 price target on this energy company’s shares. The broker has been looking at the sector and continues to prefer its rival Origin Energy Ltd (ASX: ORG), particularly given the uncertainty with AGL’s demerger. Morgan Stanley notes that the new AGL business is attractive, but the Accel business wouldn’t be for ESG reasons. The AGL share price is fetching $8.05 on Thursday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Macquarie reveals that its analysts have downgraded this banking giant’s shares to an underperform rating but lifted their price target on them to $88.50. The broker made the move largely on valuation grounds after a strong gain this year. Speaking of which, it suspects that the outperformance could be over. The broker suggests that investors expecting bank share prices to outperform as interest rates rise may be disappointed. Macquarie’s analysis found that any rate increase benefit is less than what is commonly expected. The CBA share price is trading at $98.33 today.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have retained their underperform rating and $16.50 price target on this investment platform provider’s shares. According to the note, the broker has been impressed with its fund inflows but feels its shares are fully valued now. It also highlights that its price target already factors in upside from a rise in the cash rate and a recovery in deposit spreads in the coming years. The Netwealth share price is fetching $16.77 this afternoon.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• The ASX 200 is trading near record highs – time to worry about popping bubbles?
• CBA (ASX:CBA) share price outperformed Westpac over the past 3 months
• Why are ASX 200 bank shares in focus on Wednesday?
• Broker warns that small lenders are set to beat ASX bank shares
• What to consider before investing in blue-chip ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. 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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Victoria looks set to follow the country’s largest state into lockdown, which will deliver a big blow to the economy and travel-related ASX 200 shares.

The Corporate Travel Management Ltd (ASX: CTD) share price slumped 3.5%, Webjet Limited (ASX: WEB) share price dived 2% and Flight Centre Travel Group Ltd (ASX: FLT) descended 1.5% at the time of writing.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) dipped 0.3% in the red as news of the potential lockdown broke.

ASX 200 travel shares hit by new lockdown

Victorian Premier Daniel Andrews is expected to announce that the snap lockdown will start from midnight tonight, reported the Australian Broadcasting Corporation.

The drastic move comes as the state recorded two cases of COVID-19 infections that were transmitted at the AFL game at the MCG on Saturday.

A COVID-positive case linked to the NSW removalists at the Ariele apartment attended the match and is believed to be the source of the infection. The 60-year-old man was asymptomatic but carries the highly transmittable Delta variant.

Uncertainty clouds ASX 200 travel shares

The ABC reported that one of the two new cases sat close to the man at the MCG, while the other was further away but in the same section.

It’s not known how long the Victorian lockdown will last as authorities are said to be still in discussions.

Victoria takes the unenviable title of being the most locked-down and restrictive state in Australia as this snap lockdown will be its fifth.

Victoria adds to Sydney-induced economic contraction

These are nervous times for shareholders of ASX 200 travel shares. These shares have been whipped sawed as states move in and out of lockdowns to contain the virus.

As it stands, the lockdown in Sydney that started three weeks ago will likely cause Australia’s GDP to contract in the third quarter, reported Reuters.

This was before the news of the likely Victorian lockdown broke. If our economy was to shrink as forecast, it would be the first time it contracted since the June 2020 quarter.

ASX travel shares heading for more turbulence

ASX 200 travel related shares will take the brunt of the lockdowns as borders slam shut to Aussies living in the two biggest states in the country.

Interestingly, the Qantas Airways Limited (ASX: QAN) share price is just able to keep its head above breakeven today. But it’s down by around 17% from last November’s peak.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is another holding up better than most today. A takeover battle to seize control of our largest airport is helping.

This makes me wonder if any sell-off in ASX 200 travel shares are a buying opportunity. Activity tends to rebound sharply once the lockdown is lifted and M&A interest provides a second safety net.

The post Fresh blow to ASX 200 travel shares as Victoria lockdown looms large appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• These ASX shares are the latest buy ideas from top brokers
• Sydney Airport (ASX:SYD) share price on watch after takeover bid rejected
• 3 ASX shares to snap up before reporting season: expert
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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