More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why ASX 200 shares are at a 6-week high
• NZ-Australia bubble opens! Qantas (ASX:QAN) shares take off
• Why the PointsBet (ASX:PBH) share price shot up 7% today
• Why the Webjet (ASX:WEB) share price closed 5% higher today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post LIVE COVERAGE: ASX to fall; oil rebounds appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Arppiz

On Tuesday the S&P/ASX 200 Index (ASX: XJO) started the shortened week on a very positive note. The benchmark index rose 0.85% to 6,885.9 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back some of its gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning. This follows a weak night of trade on Wall Street, which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.1%, and the Nasdaq edge lower.

Oil prices rebound

It could be a better day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 1.3% to US$59.40 a barrel and the Brent crude oil price has risen 1% to US$62.78 a barrel. Strong economic data gave oil prices a lift.

Gold price storms higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be on the rise after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.9% to US$1,744.70 an ounce. The price of the precious metal rose after the US dollar and bond yields eased.

Qantas rated as a buy

The Qantas Airways Limited (ASX: QAN) share price is good value according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating and $6.38 price target on the airline operator’s shares following the announcement of an Australia-NZ travel bubble. Goldman notes that New Zealand accounted for ~13% of Qantas’ international passengers prior to COVID-19.

Dividends being paid

A number of companies will be rewarding their shareholders later today with dividend payments. Among the companies paying shareholders are waste management company Cleanaway Waste Management Ltd (ASX: CWY) and engineering company Perenti Global Ltd (ASX: PRN). In other news, the Adbri Ltd (ASX: ABC) share price will be trading ex-dividend this morning for its 7.3 cents per share dividend.

More reading

• Why ASX 200 shares are at a 6-week high
• NZ-Australia bubble opens! Qantas (ASX:QAN) shares take off
• Why the Webjet (ASX:WEB) share price closed 5% higher today
• ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars
• Trans-Tasman Bubble: Does this mean take off for ASX listed airports?

Motley Fool contributor James Mickleboro 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 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mmkV04

ASX 200 shares got off to a flier this week after a strong day of trade on Tuesday. The S&P/ASX 200 Index (ASX: XJO) closed up 0.8% at 6,885.9 points as a number of sectors saw strong gains.

Why are ASX 200 shares at a 6-week high?

There were a couple of big themes in Tuesday’s trade. The morning session saw strong gains across resources, technology and more after the Easter break.

Several big-name shares led the benchmark index higher, including Cleanaway Waste Management Ltd (ASX: CWY) and Afterpay Ltd (ASX: APT). The Afterpay share price rocketed 10.0% higher to start the shortened trading week despite no new announcements.

Strong investor sentiment helped propel several big-name ASX 200 shares higher on Tuesday, but the second big factor came in the early afternoon.

New Zealand Prime Minister Jacinda Ardern announced a new trans-Tasman travel bubble at 2pm. That saw ASX travel shares rocket higher as investors reacted well to the news.

The new quarantine-free arrangement will come into effect on 19 April and marks an important step in a return to normality amid the coronavirus pandemic. Australia and New Zealand will stick to a traffic light system for the bubble to encourage travel between the two nations.

That’s good news for the economy, with more jobs and economic spending likely to flow from the bubble arrangement. ASX 200 shares like Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) surged higher on the back of the news.

That, combined with a strong start in the morning session, helped propel ASX 200 shares higher. The S&P/ASX 200 closed at 6,885.9 points – its highest point since Tuesday 16 February this year.

Foolish takeaway

Several sectors saw strong gains in a good start to the trading week today. A number of high-profile ASX 200 shares surged higher on the back of bullish sentiment and a big step forward for the travel industry.

More reading

• Why the Webjet (ASX:WEB) share price closed 5% higher today
• ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars
• Records on Wall Street, why the ASX 200 isn’t following, and house prices through the roof: Motley Fool CIO Scott Phillips on Sky News
• Afterpay (ASX:APT) share price rockets on US update
• Why the SG Fleet (ASX:SGF) share price surged 10% today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why ASX 200 shares are at a 6-week high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uq7TBn

New Zealand and Australia have opened a “travel bubble” between the two countries.

The bubble, which opens on the night of 18 April, allows travellers from either side to visit without enduring a 14-day COVID-19 quarantine period.

Since October, New Zealand residents could already travel to Australia in a “one-way bubble”. 

But Kiwi prime minister Jacinda Ardern announced on Tuesday afternoon that quarantine requirements would now be scrapped for travellers going the other direction.

“This is an exciting day – the trans-Tasman bubble represents the start of a new chapter in our COVID response and recovery,” she said.

“I know families, friends and significant parts of our economy will welcome it, as I know I certainly do.”

The first significant re-opening of international travel for Australia has meant that ASX shares related to that activity have gone gangbusters Tuesday.

Qantas Airways Limited (ASX: QAN) was an obvious beneficiary. Its share price shot up 3.14% to close the day at $5.26. 

That’s more than double what it was just over a year ago when coronavirus panic struck markets.

Dust off your passports – let’s fly!

Qantas International chief Andrew David said travellers on both sides of the Tasman were chomping at the bit.

“We know Australians are keen to head overseas again, so we expect strong demand for flights to New Zealand. And there are many Kiwis who can’t wait for a winter escape to warmer weather in Australia.”

Qantas had only been operating 3% of pre-COVID capacity between Australia and New Zealand since the pandemic struck. That will be ramped up to 83% as soon as the bubble starts.

In normal times, international tourists outside the two countries account for 20% of the demand for trans-Tasman flights.

The airline and its budget brand Jetstar will start the bubble with 122 return flights each week servicing 15 routes across the Tasman Sea. This equates to about 52,000 per week.

For the first 3 days of the bubble, all seats will be available for Qantas frequent flyers to book as Classic Flight redemptions.

David added that aside from tourism, reconnecting loved ones would be especially satisfying.

“Hopefully, stories of missed weddings and birthdays on either side of the ditch will now be a thing of the past.”

Shares for Qantas’ counterpart across the ditch, Air New Zealand Limited (ASX: AIZ), did even better Tuesday, soaring more than 8.2% before closing at $1.83, up 5.8%.

More reading

• Why the Webjet (ASX:WEB) share price closed 5% higher today
• Trans-Tasman Bubble: Does this mean take off for ASX listed airports?
• Air New Zealand (ASX:AIZ) share price takes off on Trans-Tasman travel bubble news
• Qantas (ASX:QAN) share price takes off after latest COVID updates
• The Air New Zealand (ASX:AIZ) share price is slipping today. Here’s why

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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 NZ-Australia bubble opens! Qantas (ASX:QAN) shares take off appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ukTTsw

The PointsBet Holdings Ltd (ASX: PBH) share price just hit the proverbial jackpot. At close of trade today, the online bookmaker’s shares were trading for $13.93 – up 7.32%. The upwards movement came as the company announced it was strategically placed to deal with upcoming regulatory hurdles.

For comparison, the S&P/ASX 200 Index (ASX: XJO) finished the day up 0.84%.

Let’s take a closer look at today’s news and how it might have affected the PointsBet share price.

Illinois reverts back to in-person betting

The PointsBet share price flew today. In a statement to the ASX, PointsBet confirmed the US state of Illinois would no longer suspend rules on in-person registration for online betting. The regulation, which was signed into law in June 2019, was suspended by Illinois Governor JB Pritzker one year later due to the COVID-19 pandemic and social distancing concerns.

Illinois is the fifth largest state in the US by population and GDP.

The Governor refused to extend the executive order at its most recent expiry date. As a result, from 4 April 2021, in-person registration will again be mandatory for Illinois residents wishing to make online bets. People will need to register at a licensed gaming location.

In its statement, PointsBet claims it has “a significant competitive advantage in an in-person registration environment.” The company believes its sportsbook locations are strategically situated in the Chicago metro area. The statement highlights the Hawthorne Race Course, which is only 8.5 miles from downtown Chicago. The company also states it has 3 other betting locations in the windy city, of which 2 are currently operational. Investors seemingly agree and are pushing up the PointsBet share price as a result.

The company believes it is well situated to transition due to the changing regulation in the state. In addition, PointsBet says it is onboarding and training retail staff in the area ahead of the two biggest events for gambling in the state – the start of Major League Baseball and the Kentucky Derby horse race.

PointsBet share price snapshot

Over the last 12 months, the PointsBet share price has increased a staggering 506.42%. It has, however, come down from its all-time peak of $18.13 it achieved in early February. Concerns over the changing regulatory environment in the US, which PointsBet is aggressively expanding into, has led to a fall in its share price since then.

PointsBet has a market capitalisation of $2.6 billion.

More reading

• Why the PointsBet (ASX:PBH) share price was suddenly sold off in March 
• Why Aristocrat Leisure, Opthea, PointsBet, & Spirit are storming higher:
• ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update
• Leading broker puts buy rating on PointsBet (ASX:PBH) share price
• 5 things to watch on the ASX 200 on Wednesday

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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 PointsBet (ASX:PBH) share price shot up 7% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mpdvJf

The Webjet Limited (ASX: WEB) share price rocketed higher on Tuesday afternoon after the unveiling of the Trans-Tasman Travel Bubble. 

Travel bubble sees Webjet share price surge

ASX travel shares rocketed higher on Tuesday afternoon after the much-anticipated announcement from New Zealand Prime Minister Jacinda Ardern. Ms Ardern said plans were in place for an April 19 two-way travel bubble between Australia and New Zealand.

That marks the first quarantine-free travel arrangement for Australia since the coronavirus pandemic began over 12 months ago. Naturally, investors piled into ASX travel shares following the good news for the sector.

The Webjet share price was no exception as it closed 5.7% higher on Tuesday. It was also a good day for other ASX travel shares given the broad boost to the travel sector.

Qantas Airways Limited (ASX: QAN) shares closed 3.1% higher at $5.26 per share while Air New Zealand Limited (ASX: AIZ) shares rocketed 8.2% higher on the news.

The S&P/ASX 200 Index (ASX: XJO) also had a broadly strong day across the board. The benchmark index closed up 0.8% at 6,885.9 points on Tuesday afternoon.

What’s the deal with the travel bubble?

The two-way bubble will open in less than a fortnight despite warnings from Ms Ardern that borders could be closed in the event of outbreaks. The arrangement will allow for both Australian and New Zealand tourists to visit across the ditch without hotel quarantine procedures.

A traffic light system has been introduced to help manage any potential outbreaks across the two countries. That announcement was good enough for investors who sent the Webjet share price surging on Tuesday.

Foolish takeaway

Tuesday was a strong day of trade for many ASX 200 shares. However, the Webjet share price was among a select group of ASX travel shares that rocketed higher on the back of the Trans-Tasman Travel Bubble news in the early afternoon.

More reading

• ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars
• Trans-Tasman Bubble: Does this mean take off for ASX listed airports?
• Records on Wall Street, why the ASX 200 isn’t following, and house prices through the roof: Motley Fool CIO Scott Phillips on Sky News
• Air New Zealand (ASX:AIZ) share price takes off on Trans-Tasman travel bubble news
• Why the SG Fleet (ASX:SGF) share price surged 10% today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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 Webjet (ASX:WEB) share price closed 5% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2PwtCsO

The S&P/ASX 200 Index (ASX: XJO) rose by 0.8% to 6,886 points today.

One of the highlights of the day was that New Zealand will start allowing Australians to fly there without quarantine in a couple of weeks. However, if there’s an outbreak then people may need to be prepared for borders to be closed again or hotel quarantine coming back temporarily.

Here are some of the other highlights for the ASX:

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price jumped around 16% today after the waste management business gave an update regarding its proposed acquisition of the Suez recycling and recovery business in Australia. It may buy the business for $2.52 billion.

At this stage it’s still not a done deal because Suez may terminate the deal if Veolia Environnement ends up acquiring the parent Suez business.

If Cleanaway’s acquisition is going ahead, it will fund it through new equity and debt.

However, if the deal is terminated because of an agreement in principle for a takeover offer, then Cleanaway will buy some post collection assets in Sydney for $501 million.

In the 2020 calendar year, Cleanaway generated $1.4 billion of revenue, normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $216 million and operating free cashflow of $199 million.

The acquisition price is 11.7x normalised CY20 EBITDA before synergies, which are expected to be $70 million per annum, which should be realised by FY25 by the ASX 200 share.

Cleanaway chief operating officer Brendan Gill said:

Importantly, there is also strong alignment of operating approaches. The transition is expected to bring together two highly complementary businesses and be strongly accretive to earnings per share when the integration is completed.

Cleanaway will continue to maintain a strong balance sheet following whichever transition is completed and will retain ample capacity to support future growth for the combined group.

Afterpay Ltd (ASX: APT)

The Afterpay share price was one of the best performers in the ASX 200 today, rising by around 10%.

Afterpay revealed that its Afterpay Day sales in the US was a success, which drove a 35% increase in new active customers to the platform and traffic to merchants was also strong, with almost six million referrals to global merchants.

The buy now, pay later business said that the total number of customers that have signed up to Afterpay in the US now exceeds 16 million and the total number of global retail partners has reached almost 75,000. There is also a strong pipeline of new merchants continuing to launch in 2021.

Melissa David, Afterpay head of North America, said:

As evidenced by the numbers, Afterpay Day delivered new customers, drove increased sales and increased basket sizes online and in-store for the more than 3,000 participating merchants in North America.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price went up around 3.4% after the gold miner announced that acceleration of exploration at the Ben Hur deposit after the acquisition in late 2020 has grown the mineral resource by 34% and allows the declaration of its maiden ore reserve.

Regis’ managing director, Jim Beyer, said:

Regis prioritised the work at Ben Hur and as a result the team has been able to efficiently realise some of the potential of the project within seven months of acquiring it.

The maiden reserve feeds straight into Regis’ strategy of internal value growth through mine life extension for our Duketon operations. We remain very excited by the potential for continued exploration success at Ben Hur and across the Duketon Greenstone Belt generally.

More reading

• Records on Wall Street, why the ASX 200 isn’t following, and house prices through the roof: Motley Fool CIO Scott Phillips on Sky News
• Afterpay (ASX:APT) share price rockets on US update
• Why the SG Fleet (ASX:SGF) share price surged 10% today
• Why the Cleanaway (ASX:CWY) share price is soaring 9% today
• ASX 200 up 0.9%: Cleanaway jumps, tech shares rise, Incitec Pivot sinks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 jumps, Cleanaway’s treasured acquisition, Afterpay soars appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39GFC1F

This afternoon the Reserve Bank of Australia opted to keep the cash rate on hold at 0.1%. While this was largely expected to be the case, cash rate futures were hinting that a cut to zero could be coming.

Unfortunately, the central bank looks unlikely to be raising rates any time soon. Governor Lowe stated: “…wage and price pressures are subdued and are expected to remain so for some years.”

And while there may be a slight uptick in inflation in the near term, this is only expected to be temporary.

Mr Lowe explained: “It will take some time to reduce this spare capacity and for the labour market to be tight enough to generate wage increases that are consistent with achieving the inflation target. In the short term, CPI inflation is expected to rise temporarily because of the reversal of some COVID-19-related price reductions. Looking through this, underlying inflation is expected to remain below 2 per cent over the next few years.”

In light of this, ASX dividend shares look set to be the best place to earn a passive income for the foreseeable future.

But which ASX shares should you buy? Two to consider are listed below:

Coles Group Ltd (ASX: COL)

This supermarket operator could be a top option for income investors. This is due to its strong market position, defensive qualities, positive long term growth outlook, and attractive valuation.

Goldman Sachs thinks its shares are good value. Its analysts have a buy rating and $20.70 price target on its shares currently. 

Goldman is also forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a fully franked 3.9% yield.

Rural Funds Group (ASX: RFF)

Rural Funds is another ASX dividend share to consider. It is an Australian agricultural property company with a collection of high quality assets.

These are leased to some of the biggest players in the industry on long term agreements. And thanks to fixed rental increases, the company is positioned to deliver on its target of 4% growth in its distribution each year.

In FY 2021, Rural Funds plans to pay a distribution of 11.28 cents per share. After which, it has provided guidance for an FY 2022 distribution of 11.73 cents per share.

Based on the current Rural Funds share price, this will mean yields of 4.8% and 5%, respectively, over the next couple of years.

More reading

• Lynch Group (ASX:LGL) share price falls after completing $206 million IPO
• 3 reasons why Rural Funds (ASX:RFF) is a great ASX dividend share
• 2 ASX dividend shares to buy this April
• Top ASX shares to buy in April 2021
• 2 top ASX dividend shares to buy this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Beat low rates with these quality ASX dividend shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wy8CCi

The Greenvale Mining Ltd (ASX: GRV) share price shot up again today as investors continued to back its Georgina Basin Project in the Northern Territory.

The Greenvale share price has risen 12.9% to close at 17.5 cents per share today.

Greenvale is an international energy company focused on the discovery and exploitation of oil shale deposits. The company owns a 99.99% interest in the Alpha oil shale deposit located in Queensland, Australia and, more recently, 100% of the Georgina Basin IOCG Project in the NT. 

Project backed by Geoscience Australia

The Greenvale share price has now risen more than 34% since early March, when the company announced the initial drilling results of its Georgina Basin project enhanced the “prospectivity” of the mine. 

The Australian Government undertook the drilling through its National Drilling Initiative (NDI) program conducted with Geoscience Australia.

“This shows that the East Tennant area is an exciting frontier area for mineral exploration in Australia,” said Dr Andrew Heap, the Minerals, Energy and Groundwater Division chief at Geoscience Australia. This government-backed interest in the area has continued to drive up the Greenvale share price. 

Drilling results

The NDI said its preliminary data released from 10 deep diamond holes drilled across the Barkly Tableland, east of Tennant Creek, showed that “the area is set to become one of Australia’s most exciting exploration frontiers”.

The holes contain mineralogical and geochemical evidence of large-scale gold- and copper-rich mineral deposits. Greenvale’s exploration team is currently reviewing the results and will combine this information with data from a recently completed airborne geophysical survey. 

Greenvale says the geology intersected by the drill holes has confirmed the presence of rocks of the right age to host large-scale copper and gold deposits. The company has yet to release the results of those surveys. However, it has since passed resolutions for executive pay increases and incentive-based performance rights.

What Greenvale management said

Greenvale managing director Neil Biddle said the government’s initial program had unlocked the potential of the region.

Having high-quality stratigraphic diamond drill holes completed by the government to unlock the potential of this exciting frontier mineral province is a huge leg-up for companies exploring in this area.

The preliminary results of the drilling, based on the photos of the core I have seen are absolutely outstanding and have provided a massive injection of confidence into the district. The holes have provided clear evidence that we are well and truly in the right area to unlock an entirely new generation of IOCG (iron-oxide copper gold) deposits in Australia.

Greenvale share price snapshot

The Greenvale share price is up 34% year-to-date. Its return of more than 1,700% over the past 12 months has beaten both the basic materials sector and the S&P/ASX 200 Index (ASX: XJO) by more than 1,670%.

More reading

• Trans-Tasman Bubble: Does this mean take off for ASX listed airports?
• Why did the Exopharm (ASX:EX1) share price surge 12% today?
• Is the GameStop (NYSE:GME) share price about to go in full retreat?
• 2 of the best small cap ASX shares to watch
• Why is the Cobre (ASX:CBE) share price up 17% today?

Motley Fool contributor Lucas Radbourne-Pugh 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 The Greenvale (ASX:GRV) share price up 13% today. Here’s why appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wsqw9I

ASX listed airports might be set to take off today after the trans-Tasman Bubble was announced this afternoon. The Sydney Airport Holdings Pty (ASX: SYD) share price has jumped slightly since the news was announced but the Auckland International Airport Limited (ASX: AIA) share price is experiencing some turbulence.

At the time of writing, the Sydney Airport share price is up 2.8% today, trading for $6.24.

While the Auckland International share price is $7.15, up 1.13%.

Here’s what we know so far about the implications of the trans-Tasman bubble for the ASX listed airports and their share prices.

What it means for the Auckland International and Sydney Airport share prices

The Trans-Tasman Bubble will see Australians and New Zealanders able to travel between the two countries without quarantining on arrival.

It will begin on April 19. Though, New Zealand’s prime minister Jacinda Ardern cautions that travel plans may change at short notice as a result of outbreaks.

Ardern also stated there may be deemed necessary for Australians to receive a COVID-19 test prior to travel to New Zealand and participation in the bubble may vary from state to state. With that said, Queensland is not expected to be participating on 19 April.

Airline input

Qantas Airways Ltd (ASX: QAN) has announced that it and Jetstar will operate up to 122 return flights over 15 routes between Australia and new Zealand per week, beginning on 19 April.

While the airline hasn’t announced how many flights will be taking off or landing at either Sydney Airport or Auckland International, it has stated it will initially be flying only to Auckland. There, Qantas and Jetstar will continue to operate its domestic schedules. There’s a potential that the Auckland International share price may fare better than that of Sydney Airport as there looks to be more flights landing and taking off there. 

Qantas will also launch two new direct routes from Auckland. It will be flying return to Cairns 3 times a week and daily to the Gold Coast. The two new routes are set to launch in time for the June long weekend.

Qantas says these flights will see its operating capacity increase to 83% of what it was before the pandemic. The statistic is good news for both ASX listed airports. 

Air New Zealand (ASX:AIZ) is also flying across the ditch, starting on 19 April. It will be operating 3 to 5 direct flights a day between Sydney and Auckland.

It will also be operating between 17 and 28 return flights from Wellington, Christchurch, and Queenstown to Sydney. Auckland will be receiving Air New Zealand flights from 8 other Australian airports, with between 25 and 31 flights a week landing and taking off from the city.

While it is likely flights to and from Auckland and Sydney will be land in or taking off from one of the two ASX listed airports, it hasn’t yet been confirmed.

Comments from Virgin

Virgin Australia has stated it won’t begin flights to New Zealand until September. Even then it will only fly into Queenstown until late October.

It commented:

While the airline remains committed to Trans-Tasman flying when the market fully recovers, we are mindful of evolving border requirements which add complexity to our business as we push ahead with plans to grow our core domestic Australia operations.

Sydney Airport share price in a nutshell 

The Sydney Airport share price is powering up on the ASX, having climbed 24% higher over the last 12 months. 

Though, even with today’s gains the airports share price is still down 2% year to date. 

It has a market capitalisation of around $16 billion, with 2.7 billion shares outstanding.

Auckland International share price snapshot

The Auckland International share price isn’t travelling as high on the ASX as its Australian counterpart today. It’s doing well in the long haul though. 

It has broke even year to date, and is up 43.78% over the last 12 months. 

Auckland International has a market capitalisation of around $10 billion, with approximately 1.47 billion shares outstanding.

More reading

• Air New Zealand (ASX:AIZ) share price takes off on Trans-Tasman travel bubble news
• Top broker picks the best ASX shares to buy for the new quarter
• Are ASX 200 value shares still good value? Why these experts are at loggerheads
• Qantas (ASX:QAN) share price takes off after latest COVID updates
• What’s driving the Sydney Airport (ASX:SYD) share price today?

Motley Fool contributor Brooke Cooper 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 Trans-Tasman Bubble: Does this mean take off for ASX listed airports? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wyP7Ke