The Nine Entertainment Co. Holdings Ltd (ASX: NEC) share price is trading lower today after the broadcaster was hacked over the weekend. Channel Nine confirmed the cyber-attack interrupted live broadcasts on Sunday morning, with afternoon news programs also affected.

At the time of writing, the Nine share price has slumped 2.4% to $2.85.

Let’s look further into the hack.

Back to basics

The cyber-attack was confirmed by Channel Nine yesterday, after its Sunday morning news program, Weekend Today, was unable to go to air.

A cyber-attack on our systems has disrupted live broadcasts today however, we have put processes in place to ensure we’re able to resume our normal broadcast schedule.

See the full story in tonight’s @9NewsAUS at 6.00pm. pic.twitter.com/N03bO33U3E

— Channel9 (@Channel9) March 28, 2021

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What’s happening? Well not much right now! Tech issues ⁦@Channel9⁩ this morning… pic.twitter.com/yvHBbxdbGC

— Richard Wilkins (@RichardWilkins) March 27, 2021

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Nine News described the attack as sophisticated and calculated. It stated that television and digital production systems, as well as 9news.com.au were all affected.

Nine News also reported that it is working with the Australian Cyber Security Centre after it offered the broadcaster assistance.

According to a report by the Nine-owned Australian Financial Review, the attack was carried out by ransomware. But with no demands having been placed, the reason for the attack is unclear.

The cyber-attack on the broadcaster’s technical system sent news programs back to the dark ages. Presenters shared images to Twitter of them replacing teleprompters with whiteboards.

A remarkable effort by many many incredible minds to get @9NewsAUS to air tonight after the network was hacked. Here’s our rundown… old school. pic.twitter.com/u2kS8Om7be

— Lauren Tomasi (@LaurenTomasi) March 28, 2021

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According to a report from ABC News, Nine wasn’t the only institution to suffer suspicious technical issues over the weekend. The Australian Federal Parliament also allegedly suffered from a major IT disruption, leaving many parliamentarians without access to email.

Nine share price snapshot

Nine Entertainment shares have been having a party on the ASX lately, with lots of good news boosting the company’s share price. On 2 March, the Nine share price reached its highest closing price of all time, finishing the day at $3.07.

Ten days later, the company entered into a regional television affiliation agreement with the WIN Corporation. Most recently, Nine shared the news it had signed a letter of intent with social media giant Facebook.

While the Nine share price is lower today following the weekend’s cyber-attack, it is still up by around 24% year to date. It is also up a whopping 175% over the last 12 months.

The broadcasting giant has a market capitalisation of $4.98 billion, with approximately 1.7 billion shares outstanding.

More reading

• Nine (ASX:NEC) and News Corp (ASX:NWS) share prices rise after Facebook deal
• ASX 200 climbs, Westpac in the clear, Nine reveals a WIN-ning deal
• Why the Southern Cross Media (ASX:SXL) share price is tumbling 14%
• Nine (ASX:NEC) share price edges higher on positive update
• 2 not-so-obvious ASX shares to cash in on the property boom

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Twitter. The Motley Fool Australia has recommended Facebook. 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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ASX lithium shares, including Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE), have continued to grind sideways despite higher lithium prices. 

Latest lithium price update 

Fastmarkets provides updates for battery-grade lithium prices across China, Europe and the US. The latest update highlights: 

• Asian seaborne lithium prices were steady against a backdrop of tight availability and firm demand; meanwhile Chinese suppliers have made aggressive offers for battery-grade lithium carbonate.
• Spot trades in domestic Chinese market remained slow with consumers conducting “hand-to-mouth” purchases, but supply continued to be tight.
• Europe, US battery-grade lithium spot prices continued to trend higher with deals reported at higher levels.

It notes that domestic lithium carbonate prices in China have increased to 87,500 yuan/tonne (~A$17,500) up from 70,750 yuan/tonne (~A$14,160) last month. 

Why have ASX lithium shares gone nowhere in 2021? 

ASX lithium shares have largely retreated back to where they were at the start of 2021.

It is worth noting that shares in the resource have more than doubled in the last 6 to 12 months. It’s possible that such price movements may have already been priced into the near-term bullish moves in spot prices.  

Despite their share prices going nowhere lately, ASX lithium shares have demonstrated significantly improved financial results and ramping up production to take advantage of improved prices. 

Pilbara Minerals, for example, reported a December half-year earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.7 million compared to the EBITDA loss of $24.1 million in the prior corresponding period. 

Similarly, Galaxy Resources is ramping up product at its flagship Mt Cattlin mine. Its production was previously lowered to ~60% of nameplate capacity to adapt to soft market conditions for most of FY20.

The mine is now positioned to ramp up production in response to strong customer demand, improving prices and reduced inventory levels. The company’s loss after tax for the December half also improved to US$31.3 million compared to the US$283.7 million in the pcp. 

More reading

• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200
• Why Galaxy, HUB24, Paradigm, & Telstra shares are pushing higher
• What’s happening with the Galaxy (ASX:GXY) share price today?
• ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months
• Here’s why the Pilbara (ASX:PLS) share price is edging higher today

Motley Fool contributor Kerry Sun 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 St Barbara Ltd (ASX: SBM) share price has jumped 1% this morning as ASX resources shares rebound strongly and the gold miner withdrew from a joint venture (JV).

Why is the St Barbara share price on the move?

Advanced gold and copper explorer, Alice Queen Ltd (ASX: AQC), advised this morning that St Barbara was withdrawing from the Horn Island JV. St Barbara entered into the JV in 2019 to explore areas outside of Alice Queen’s existing Horn Island Inferred Resource.

Alice Queen said it was “disappointed” by the withdrawal and election to not pursue further exploration expenditure under the JV. The smaller JV partner will continue pursuing exploration including a scoping study to bring Horn Island to production as soon as possible.

Under the terms of the JV, Alice Queen will retain all of the information generated by St Barbara’s ~$2.6 million expenditure so far.

The St Barbara share price has climbed in early trade following the update alongside many ASX resources shares. 

How has St Barbara been performing?

Prior to this morning, the St Barbara share price had slumped 17.8% lower in 2021 to Friday’s close. That comes amid a broader softening in gold prices as investors have pulled back on bearish views.

Record government stimulus and a rising US dollar have buoyed investor spirits and turned many away from the safe haven asset of gold.

That has put ASX gold shares like St Barbara under pressure to start the year. The Northern Star Resources Ltd (ASX: NST) share price has slumped 23.3% while Newcrest Mining Ltd (ASX: NCM) shares are down 7.7% in 2021.

What’s happening on the ASX this morning?

The S&P/ASX 200 Index (ASX: XJO) has climbed 0.4% at the open following strong stimulus signed off by the Biden administration.

Early gainers include BHP Group Ltd (ASX: BHP) and Lynas Rare Earths Ltd (ASX: LYC), which are up 2% at the time of writing. The A2 Milk Company Ltd (ASX: A2M) is among this morning’s fallers, down 0.6% at the open.

More reading

• Why top brokers want you to buy the embattled IAG (ASX:IAG) share price
• Why the South32 (ASX:S32) share price is outperforming today
• Why the News Corp (ASX:NWS) share price is one to watch today
• More Aussies now think shares are better than real estate
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 Boss Energy Ltd (ASX: BOE) share price is sinking in morning trade, down 6.45% at 14 cents.

Boss Energy emerged from a trading halt this morning after entering the pause of trade on Thursday.

Below we take a look at the ASX resource share’s latest announcement on its uranium inventories.

What did Boss Energy report on its uranium inventory?

The Boss Energy share price is falling this morning after the company reported it had completed a $60 million capital raising at 14 cents per share. Boss Energy shares closed on the last trading day (Wednesday 24 March) at 16 cents per share.

The company will use the funds to acquire 1.25 million pounds (568,000 kilograms) of U-3 O-8 on the uranium spot market at US$30.15 (AU$39.67) per pound. The uranium is warehoused at the ConverDyn Facility in Metropolis, Illinois and will remain stored there following the deal’s completion.

Boss Energy said it would acquire 0.25 million pounds of uranium by the end of April, with the other 1 million pounds acquired by the end of June. The company plans to use the remaining funds from the capital raise to cover uranium storage costs and for general working capital.

Why the stockpile?

Citing tight supply amid strong demand for uranium and the potential for further future price rises, Boss said its increased stockpiles represented a “clear strategic value and upside” for its shareholders. Boss also reported the acquisition puts it in a better financial position for its planned re-start of the Honeymoon Uranium Project.

Commenting on the uranium stockpile increase, Boss Energy’s Managing Director Duncan Craib said:

We have been able to create this unique opportunity thanks to our highly experienced and well-connected operatives in the global uranium market. The stockpile will be highly valuable to us on several levels as we secure offtake agreements, finalise project funding and move into production.

Boss Energy share price snapshot

Despite today’s fall, Boss Energy shares are up 263% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 36% in that same time.

So far in 2021, the Boss Energy share price is up 45%.

More reading

• What’s with the AGL Energy (ASX:AGL) share price today?
• Why top brokers want you to buy the embattled IAG (ASX:IAG) share price
• ASX 200 down 0.1%: Computershare raises $500m, REA Group announces acquisition
• Cimic (ASX:CIM) share price is edges higher on contract win
• Mortgage Choice (ASX:MOC) share price rockets 61% on REA takeover

Motley Fool contributor Bernd Struben 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 AGL Energy Limited (ASX: AGL) share price is edging lower in intraday trade, down 0.97%.

Below we take a look at the S&P/ASX 200 Index (ASX: XJO) energy company’s latest announcement relating to its renewable energy ambitions.

Renewable energy goals

The AGL Energy share price is largely unmoved this morning after the company reported it has entered into an agreement with the United Kingdom’s Ovo Energy Ltd.

Australia’s largest energy retailer and generator said the agreement with the leading “zero carbon living brand” will help it bring the latest digital services to customers Down Under.

Those digital services come courtesy of OVO’s Kaluza system, an AI-enabled platform designed to improve customer experience and offer energy flexibility in an age of ever-increasing renewable energy use.

With some of the highest levels of rooftop solar power generation on Earth, AGL reports Kaluza can help with grid stability as more and more energy supply comes from decentralised sources. Using its AI systems, Kaluza can move device charging to times when there is less energy demand.

The company stated that, “Kaluza orchestrates the charging of electric vehicles, energy storage systems and other flexible home devices to enable the shift to a low-carbon energy future.”

As part of the agreement, AGL will invest in OVO Energy Australia to adapt the Kaluza platform for Australia.

Commenting on the agreement, Brett Redman, AGL CEO, said:

Through this joint venture, OVO and AGL will bring world-class technology and innovation to Australia. Central to the market forces that shape our strategy, is customer demand. This collaboration will help us ensure our customers have choice and flexibility when it comes to their essential services.

AGL has been evolving our offerings, with carbon-neutral, multi-product options and decentralised energy solutions and this will allow us to continue into the future.

Stephen Fitzpatrick, CEO of OVO added, “Companies must now focus on building trust with their customers, harnessing technology that makes zero carbon living simple and affordable for everyone.”

AGL Energy share price snapshot

It’s been a tough year for AGL shareholders, with shares down by nearly 40% over the past 12 months. By comparison, the ASX 200 is up 32% over that same time.

Year to date the AGL share price is down by around 15%. AGL pays an 8% dividend yield, unfranked.

More reading

• How are ASX 200 shares faring in the carbon revolution?
• Genex (ASX:GNX) share price frozen on hydro project fund raising
• Leading brokers name 3 ASX shares to sell today
• Why the AGL Energy (ASX:AGL) share price is charging 5% higher
• ASX 200 up 0.4%: Bank shares lower, Xero shares upgraded

Motley Fool contributor Bernd Struben 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 Insurance Australia Group Ltd (ASX: IAG) share price has been put through the wringer, but this could be the time to buy the beaten down shares.

The devastating floods hitting parts of New South Wales and Queensland, and worries about the insurer’s exposure to the collapse of Greensill Capital are some its recent challenges.

Insurance Australia Goup share price lags

The Insurance Australia Group share price crashed by nearly 17% over the past year when the S&P/ASX 200 Index (Index:^AXJO) surged by over 40%.

In contrast, other general insurers are also faring better than the Insurance Australia Group share price. The QBE Insurance Group Ltd (ASX: QBE) share price and Suncorp Group Ltd (ASX: SUN) share price are up about 20% each over the same period.

Is it time to buy the downtrodden IAG share price?

Several brokers think this is the time to buy the out of favour Insurance Australia Group share price.

Insurance Australia Group assured investors it has no liabilities relating to Greensill and has quantified its exposure to the NSW floods.

Management said it received 8,000 claims from the heavy storms that started on 16 March. But Morgans believes financial impact is “relatively contained” and the risk is smaller than its potential exposure to business insurance claims from COVID-19.

Broker upgrade on valuation

But even that isn’t enough to dissuade Morgans from upgrading the Insurance Australia Group share price to “add” from “hold”.

“IAG has had a difficult recent run, mainly tied to concerns around BI claims linked to COVID-19,” said Morgans.

“However, we think substantial recent provisions raised in this area have taken this issue off the table and we think insurance margins will improve going forward on price increases and managements’ new strategy.”

The broker’s 12-month price target on the IAG share price is $5.35 a share.

Other experts think IAG is a “buy”

Meanwhile, Citigroup and UBS reiterated their “buy” recommendations on Insurance Australia Group.

Citi acknowledged management will need time to restore its credibility even though the investment case looks sound.

“IAG is now set to exceed its FY21E perils allowance following recent floods and storms,” said Citi.

“However, at this stage the overrun looks set to be only modest. The impact on EPS should also be partly mitigated by RACV’s share of the losses.”

UBS also believes the stock is looking oversold in light of the recent headwinds, although the downside risks to IAG’s FY21 earnings has increased.

Citi’s 12-month price target on Insurance Australia Group is $5.60 a share, while UBS’s target is $6 a share.

More reading

• Why the South32 (ASX:S32) share price is outperforming today
• Why the News Corp (ASX:NWS) share price is one to watch today
• More Aussies now think shares are better than real estate
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is edging lower. The benchmark index is currently down almost 0.1% to 6,817.9 points.

Here’s what is happening on the market today:

Treasury Wine hit by Chinese tariffs

The Treasury Wine Estates Ltd (ASX: TWE) share price is trading lower today after China’s Ministry of Commerce (MOFCOM) confirmed that it would be placing tariffs on Australian wine for five years. MOFCOM made the move following the final determination in its anti-dumping and countervailing investigations into certain Australian wine exports into China. A combined anti-dumping and countervailing duty rate of 175.6% will be applied to Treasury Wine’s Australian country of origin wine in containers of two litres or less imported into China.

Computershare raises $500 million

The Computershare Ltd (ASX: CPU) share price has returned from its trading halt and is pushing higher after completing the institutional component of its entitlement offer. The share registry company raised $500 million from institutional investors and will now seek to raise a further ~$335 million from retail shareholders. These proceeds are being used to partially fund its acquisition of Wells Fargo Corporate Trust Services (CTS) for US$750 million (~A$982 million). 

REA Group acquisition

The REA Group Limited (ASX: REA) share price is tumbling lower after announcing plans to acquire Mortgage Choice Limited (ASX: MOC) for $244 million or $1.94 per share. REA Group’s CEO, Owen Wilson, commented: The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business. It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities.” The Mortgage Choice board has voted unanimously in favour of the takeover.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Iluka Resources Limited (ASX: ILU) share price with a 6.5% gain on no news. Going the other way, the worst performer has been the Netwealth Group Ltd (ASX: NWL) share price with a 4.5% decline. Investors have been selling the wealth management platform provider’s shares since last week. This follows news that its deposit arrangement has been terminated.

More reading

• Mortgage Choice (ASX:MOC) share price rockets 61% on REA takeover
• Treasury Wine (ASX: TWE) share price sinks lower on China update
• Why the Computershare (ASX:CPU) share price is on watch today
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended REA 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 Cimic Group Ltd (ASX: CIM) share price is edging higher in late morning trade. This comes after the company announced its specialist building company had won a contract award.

At the time of writing, the global engineering company’s shares are trading at $18.14, up 0.89%.

Why is the Cimic share price lifting?

According to its release, Cimic’s Broad Construction has been selected to deliver Brisbane’s Ferny Grove Central development. Honeycombes Property Group and joint-venture partner MaxCap Group awarded the contract.

Broad Construction is a wholly-owned subsidiary of CPB Contractors, which is part of the Cimic Group.

Broad Construction will redevelop the existing Ferny Grove train station commuter car park into a residential, commercial and retail hub under the agreement. The company will also provide additional parking spaces for commuter vehicles, partly funded by the Queensland and Australian government.

The project complements Broad Construction’s portfolio of works completed in Queensland. The company was responsible for the development of the Inner-City South State Secondary College and the Kingaroy Hospital.

Cimic expects the new Ferny Grove Central contract to generate roughly $100 million in revenue for CPB Contractors.

Construction is scheduled to start in June 2021 and be completed by August 2023.

Management commentary

Cimic group executive chair and CEO Juan Santamaria commented:

Backed by CPB Contractors, Broad Construction is our specialist building company and is delivering a range of high-quality projects, across Queensland and Western Australia. We are very pleased to be working with the Honeycombes Property Group and the MaxCap Group on this landmark urban redevelopment.

CPB Contractors managing director Jason Spears added:

The experience of our team means that we have the capability to provide safe and certain delivery to our clients. Broad’s inclusive procurement strategies will also provide opportunities for local workers and businesses.

The Cimic share price has lost roughly 20% over the past 12 months and is down around 27% year-to-date.

More reading

• Why the CIMIC (ASX:CIM) share price is lifting this morning
• The Cimic (ASX:CIM) share price slides despite new contracts
• ASX 200 drops, Webjet reveals B2B plan, Cimic wins again
• Decmil (ASX:DCG) share price lifts on $25 million contract win
• What’s going on with the Cimic (ASX:CIM) share price today?

Motley Fool contributor Aaron Teboneras 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 Mortgage Choice Limited (ASX: MOC) share price is going gangbusters today after the company announced it is the subject of a proposed acquisition by REA Group Limited (ASX: REA). At the time of writing, the mortgage broker’s shares have surged a whopping 61.7% to $1.90.

Meanwhile, the REA Group share price is currently trading 2.23% lower at $136.94. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.04%.

Let’s take a closer look at the proposed Mortgage Choice, REA Group deal.

What did Mortgage Choice announce?

The Mortgage Choice share price is through the roof today following news of the proposed takeover. In separate statements to the ASX, both Mortgage Choice and REA Group declared they have entered into a scheme implementation agreement (SIA). 

Under the proposal, REA Group will purchase 100% of Mortgage Choice shares for $1.95 each. That price represents an outstanding:

• 66% premium on Friday’s close.
• 66.8% premium on the 1-month value weighted average price (VWAP).
• 55.6% premium on the VWAP since the release of its H1 FY21 results.
• 42.5% premium on the 3-month VWAP.
• 52.0% premium on the 6-month VWAP.

The Mortgage Choice board voted unanimously to approve the deal, subject to shareholder approval.

There are, however, still some administrative hurdles to clear before the deal can be finalised. Besides approval by the broker’s shareholders, the deal is also subject to:

• Court approval.
• Foreign Investment Review Board approval.
• No material adverse changes in either company. 
• An “independent expert concluding the Scheme is in the best interests of Mortgage Choice shareholders.”

In addition, if the deal were to fall through, either party would be liable to pay the other a $2.4 million break fee. 

Mortgage Choice shareholders are expected to vote on the deal around mid-June 2021.

Management commentary

Speaking about the upcoming deal, Mortgage Choice chair Vicki Allen said

Joining forces with REA, and in particular their Smartline broking business, combines our strong brand with REA’s impressive digital capability and property insights. It further establishes Mortgage Choice as one of the leading broking groups in Australia and will enable Mortgage Choice to operate at greater scale with an improved service offering to brokers and their customers.

The Scheme provides certainty for shareholders to realise a significant value premium of 66.0% to our closing share price on 26 March 2021. The Mortgage Choice Directors consider this to be a very attractive offer for Mortgage Choice shareholders and unanimously recommend that shareholders vote in favour of the Scheme, subject to there being no superior proposal emerging and to the independent expert concluding that the Scheme is in the best interests of Mortgage Choice shareholders.

REA Group listed the following reasons for proposing the acquisition:

• Leveraging REA’s digital expertise, high intent property seeker audience and unique data insights across a larger network.
• Providing a compelling opportunity to establish a leading mortgage broking business with increased scale.
• Complementing the existing Smartline broker footprint resulting in greater national broker coverage.

In addition, REA Group CEO, Owen Wilson, commented:

The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business. It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities.

Mortgage Choice share price snapshot

After today’s stunning increase, the Mortgage Choice share price has now surged by more than 200% over the past year. Mortgage Choice shares are also up by around 28% year to date thanks to today’s gains.

Based on the current share price, Mortgage Choice has a market capitalisation of around $147 million. 

Meanwhile, the REA share price has also rallied by nearly 70% over the past 12 months.

More reading

• 3 high quality ASX shares to buy next month
• 2 ASX 200 blue chip shares to buy
• REA Group (ASX:REA) share price jumps on broker upgrade news
• Where to invest your BHP (ASX:BHP) dividends
• 3 unstoppable ASX shares that keep growing

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It has been a difficult start to the week for the shares of Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN), and Webjet Limited (ASX: WEB).

At the time of writing, all three travel companies are in the red and underperforming the S&P/ASX 200 Index (ASX: XJO).

What’s happening?

Here’s the current state of play in the sector today:

• The Flight Centre share price is down 2% to $18.14.
• The Qantas share price has fallen 0.7% to $5.08.
• The Webjet share price is 2% lower at $5.61.

Why are travel shares under pressure?

There appear to be a couple of catalysts for today’s weakness in the travel sector.

The first is news that Greater Brisbane will go into a snap three-day lockdown from 5pm AEST today. This is in response to 10 new cases of COVID-19, four of which are from community transmission.

According to the ABC, Queensland Premier Annastacia Palaszczuk revealed that two of the community transmission cases have an unknown origin.

As things stand, other states have yet to respond to the Queensland Government’s update, but there are concerns that travel to Brisbane could be off the cards during the key Easter holiday period.

What else is weighing on travel stocks?

In addition to this, rising cases of COVID-19 across the world appear to have spooked investors.

Although vaccines are being rolled out across Europe and North America, it hasn’t been enough to slow the spread of the virus.

This has led to lockdowns being put in place in some countries to fight a third wave.

And with the Northern Hemisphere’s holiday period on the horizon, there are fears that the travel market rebound could be pushed back into 2022.

The good news for the likes of Flight Centre, Qantas, and Webjet, though, is that they have sufficient liquidity to ride out the storm well into next year.

More reading

• These are the 10 most shorted shares on the ASX
• ASX 200 travel shares poised to see pent up travel demand unleashed
• Qantas (ASX:QAN) share price lifts after ACCC ruling
• The Regional Express (ASX:REX) share price has fallen after fresh Qantas challenge
• Did Powell just blink first in the Fed’s staring contest with inflation?

Motley Fool contributor James Mickleboro 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 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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