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Another company has successfully joined the ASX boards on Wednesday. Touch Ventures Ltd (ASX: TVL), formerly known as AP Ventures, is now a bonafide ASX-listed company.

Shortly after listing at 11am, the Touch Ventures share price eclipsed 74 cents – setting an intraday high.

Investors have taken to Touch Ventures’ shares like ducks to water. Perhaps there is some speculation over it following in the successful footsteps of its substantial shareholder, Afterpay. Regardless, it’s worth taking a quick look at the path so far for the listed investment company.

Touch Ventures opens up ASX opportunities

Unlike its largest shareholder, Touch Ventures is not directly operating in the buy now, pay later (BNPL) space. In fact, the company isn’t operating in any sector directly. Instead, Touch invests in startups both in Australia and internationally.

Specifically, the company tends to invest $10 million to $25 million (sometimes more) in unlisted companies in the retail innovation, consumer, finance, and data segments. Its objective is to invest in such companies during their growth stage.

Essentially, ASX-listed Touch Ventures seeks to find similar businesses to what Afterpay was before its initial public offering (IPO) and capture the upside in its rise to prominence – or at least that’s what is hoped for.

Currently, the portfolio of investments consists of 5 companies including Sendle, Happay, PlayTravel, Basiq, and Postpay. Around $75 million has been poured into these various investments. However, the goal is to expand this to 8 to 10 companies in the short to medium term.

Afterpay will maintain a close relationship with Touch Ventures under a collaboration agreement. This means the $35 billion BNPL company will, at its discretion, refer opportunities on and potentially provide expertise to Touch Ventures. The company would be financially motivated to do so, with it holding a 24% stake in the newly debuted company.

What’s next?

Touch Ventures now holds $100 million in funds following the successful capital raise from its IPO offer. The company will likely use these funds to invest in its next round of opportunities.

Following its ASX listing, there isn’t much of a hint where Touch Ventures plans to invest next. However, the company did take part in a recent funding round held by Refundid. This Aussie startup brings the buy now, pay later model to refunds.

For now, shareholders of Touch Ventures can rejoice in a mighty first day of trade on the ASX. Since peaking this morning, Touch Ventures shares are now trading at 51 cents apiece.

The post Afterpay’s Touch Ventures (ASX:TVL) leaps 50% on ASX debut appeared first on The Motley Fool Australia.

More reading

• Why Sigma, Smartgroup, St Barbara, & Touch Ventures are pushing higher
• This Afterpay-backed company is listing on ASX next week

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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If you’re looking to diversify your portfolio with some mining shares, then the two listed below could be worth considering.

Here’s what you need to know about these ASX 200 miners:

Orocobre Limited (ASX: ORE)

The first ASX 200 mining share to consider is this lithium miner. It could be a top option for investors looking for exposure to the clean energy/electric vehicle thematic.

Orocobre recently completed its merger with Galaxy Resources. This has created a top five global lithium mining company, which will soon be rebranded as Allkem. The merged company has a collection of strong operations and equally strong growth prospects. This puts it in a great position to benefit from the increased demand and strong prices for the battery making ingredient.

The team at Macquarie are very positive on Orocobre. The broker currently has an outperform rating and $11.80 price target on its shares. This compares to the current Orocobre share price of $8.52.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to consider is South32. The BHP Group (ASX: BHP) spin off could be a top option due to the diversity of its operations and positive growth outlook.

Among the commodities that the company produces are alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

The one that is getting investors excited right now is aluminium. With the metal believed to be in the early stages of a multi-year bull market, South32 looks set to benefit from strong prices in the coming years.

Goldman Sachs certainly expects this to be the case. So much so, the broker has a conviction buy rating and $3.80 price target on its shares. Goldman is also forecasting double digit dividend yields through to at least FY 2026.

The South32 share price is currently fetching $3.39.

The post 2 ASX 200 mining shares to buy in October appeared first on The Motley Fool Australia.

More reading

• Why the South32 (ASX:S32) share price has surged 16% in a month
• These 3 ASX 200 shares are topping trading volumes today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Top brokers name 3 ASX shares to buy today
• South32 (ASX:S32) share price edges higher after plan to restart Brazil plant

Motley Fool contributor James Mickleboro owns shares of Orocobre 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 Beach Energy Ltd (ASX: BPT) share price has been a relatively positive performer today.

The energy company’s shares are currently trading a fraction higher at $1.37.

This compares to a 1% decline by the S&P/ASX 200 Index (ASX: XJO) this afternoon.

Why is the Beach share price outperforming?

The Beach share price appears to be faring better than others today due to a number of positive broker notes.

One of those came from the team at Bell Potter. This morning the broker retained its buy rating and lifted its price target on the company’s shares to $1.62.

Based on the current Beach share price, this implies potential upside of 18% over the next 12 months.

The broker is also forecasting a 1.5% dividend yield, bringing the total potential return to almost 20%.

What did the broker say?

According to the note, the broker was pleased with Beach’s investor update and its plan to increase its production to 28 MMboe by FY 2024. This represents a 27% increase on the midpoint of its FY 2022 guidance.

Bell Potter commented: “BPT has a strong, fully funded energy production growth outlook. This production growth is diversified across five energy basins and across four separate gas markets, including the global LNG trade. The company should benefit from tightening east coast gas markets and international LNG markets flowing through to higher realised prices. BPT is trading at materially lower earnings multiples compared with its ASX-listed peers.”

The broker also suspects that Beach may outperform its targets. It has pencilled in production of 29.5 MMboe in FY 2024.

It explained: “We are forecasting production of 29.5MMboe in FY24. This forecast assumes production at the Cooper Basin Joint Venture, BassGas and Kupe to remain steady, Western Flank to decline to 4MMboe per year, successful ramp-up to near nameplate capacity at the Victorian Otway to 7.3MMboe per year and an expansion in production at the Perth Basin assets to 5.2MMboe per year.”

All in all, the broker feels this makes the Beach share price good value at the current level.

The post Top broker sees 18% upside for the Beach (ASX:BPT) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares so far this Tuesday
• Which ASX shares are the top movers in the ASX 300 today?
• Why Beach, Collins Foods, Origin, & Tuas shares are racing higher

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. 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 Splitit Payments Ltd (ASX: SPT) share price has slipped into the red during afternoon trade today, going for 43.5 cents at the time of writing.

Yet Splitit shares have climbed over 23% in the past week of trading, well ahead of the S&P/ASX 200 Index (ASX: XJO)’s slump of 1% in this time.

Let’s investigate further.

What’s fuelling the Splitit share price lately?

The Splitit share price has reversed some of its losses in the last week after a board member took the opportunity to buy some of the company’s shares at discounted prices.

Splitit’s non-executive chairperson Dawn Robertson collected 100,000 shares last week, fully paid for, at a price of 34.5-35.5 cents apiece.

This is all well and good, but what does it mean for Splitit shares?

It comes down to the market’s perception and reaction to Robertson’s in-house purchase.

When a public company’s executive, board member or key stakeholder increases the size of their investment in the entity, it generally suggests that a particular individual is confident of the company’s good fortune moving forwards.

Why else would they be buying more shares? Surely not just because it’s good policy.

Contrast this to the opposite situation – where insiders sell their shares as they aren’t confident the company will continue performing.

That generally results in a dramatic share price decrease, and fittingly so.

These are important data points because executives and board members have privileged access to information about the company that we, as investors, simply don’t.

Investors don’t necessarily have the in-depth knowledge of the inner workings of most public companies. So when a non-executive director purchases a bunch of shares out of their own pocket, putting two + two together, it signals that something is up. Perhaps, something good.

All of this is common market behaviour in response to board directors and company executives buying or selling their shares in the company.

It’s just one other indicator that investors use to make informed decisions on which direction a shares’ price is set to go into the future.

Splitit share price snapshot

The Splitit share price has been bathing in a pool of red this year, having posted a loss of around 67% since January 1.

This increases its loss over the past 12 months to 69.5%. Both of these results are well behind the broad index’s return of about 25% this past year.

The post Despite today’s falls, the Splitit share price is up 23% in 7 days. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why the Splitit (ASX:SPT) share price is surging 10% today
• ASX tech shares are leading the market’s gains on Thursday
• Why the Splitit (ASX:SPT) share price has tumbled 32% in a month
• How have ASX BNPL shares performed during the August 2021 earnings season?
• Splitit (ASX:SPT) share slips on record half-year result and CEO transition

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 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 Australian Foundation Investment Co. Ltd (ASX: AFI) share price booked gains this morning while the major benchmarks swam in a sea of red.

The tide turned slightly on the ASIC share price around lunch, slipping below the opening price this afternoon alongside the S&P/ASX 200 index (ASX: XJO), which is down 1.1% into the red today. At the time of writing, however, AFIC shares are trading steady at around $8.36.

What’s up with the AFIC share price today?

Firstly, there is no market-sensitive information for the company today that is likely to impact the AFIC share price. So we can rule that out.

However, in view of the broader market selloff today, it’s important to realise some of the mechanics behind the market’s psychology, in order to explain why AFIC hasn’t slumped with the broader market today.

In times where risk, volatility and market uncertainty are high, investors tend to display a herd-like behaviour where they shift capital from risker investments into ‘safer’, more conservative ones.

This is called a ‘flight to quality’, and may occur within the same type of investment, or across different asset classes in times of financial market turbulence.

When talking about the share market in these instances, investors generally define risk as high volatility or fluctuations in price.

On this basis, the flight to quality involves shares that have low historical volatility, when looking in the rearview mirror.

The historical volatility of a share is measured using a fancy term called standard deviation – but there is a much easier way for Foolish investors to see this for themselves.

One easy way to examine this is to simply check a company’s share price chart, and see the style of the price line.

If it looks like a hyperactive 2-year-old drew it – with high peaks and low troughs – this is what high volatility looks like.

Conversely, a stable, gradually increasing line indicates the opposite scenario.

Looking at AFIC’s chart, it doesn’t take a rocket scientist to see that its volatility has been low this past 12 months.

Compare this to Afterpay Ltd (ASX: APT)’s share price over this same time, and one clearly see’s the difference.

How AFIC share price volatility compares to Afterpay

Data: Google Finance. Google and the Google logo are registered trademarks of Google LLC, used with permission

Hence, investors who want to take some risk off the table as market uncertainty grows, are likely to seek out shares such as AFIC, in a flight to quality, to help preserve capital.

What else could be at play?

Another factor to consider is that AFIC is a diversified investment company.

And one way that investors tend to reduce their investment risk is to diversify their portfolio – not keep all their eggs in one basket.

Given that AFIC has a high number of investments in the local share market, it offers investors a diversified way of staying invested in ASX shares.

Except they can achieve this benefit by owning one share – AFIC – instead of purchasing a bunch of individual shares at who knows what prices.

This increases the popularity of shares like AFIC in times of market uncertainty, as it offers investors a way to hedge their bets, and diversify their investment portfolio.

That way investors aren’t left catching the falling knife if a basket of shares begins to crash – as in today’s example – they can simply sell their AFIC shares instead, no dramas.

In a nutshell, AFIC shareholders gain access to the returns offered by a whole range of ASX shares but get to reduce their risk at the same time, because they aren’t holding the shares individually.

There’s a bit of a cap on the total return (as one trades some reward in exchange for lower risk), but that’s still a pretty attractive scenario for large institutions and investors with millions/billions of dollars at stake.

AFIC share price snapshot

It hasn’t been a terrible year for the AFIC share price, which posted a gain of 14.5% since January 1.

This extends its climb over the past 12 months to almost 33%. Both of these results are well ahead of the broad index’s return of around 25% in the last year.

The post The AFIC (ASX:AFI) share price is steady today as the ASX 200 falls appeared first on The Motley Fool Australia.

More reading

• How does the AFIC (ASX:AFI) share price compare to its net tangible assets?
• Own AFIC (ASX:AFI) shares? Here’s what you’re invested in
• Own AFIC (ASX:AFI) shares? Then you also own these US tech stocks

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 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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It has been another disappointing day for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index is down 1.1% to 7,191.6 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why these shares are pushing higher:

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is up 3% to 62 cents. Investors have been buying this pharmacy chain operator’s shares this week after a bidding war broke out between Wesfarmers Ltd (ASX: WES) and Australian Pharmaceutical Industries Ltd (ASX: API). Investors appear to be hoping that Wesfarmers comes back with a higher offer.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price has jumped 18% to $9.29. This morning the fleet management and salary packaging company announced the receipt of a takeover approach of its own. A consortium led by private equity firm TPG Global has tabled an all-cash offer of $10.35 per share. Four weeks of due diligence has been granted.

St Barbara Ltd (ASX: SBM)

The St Barbara share price has stormed 7% higher to $1.36. Investors have been buying gold miners today amid the market volatility. And with the St Barbara share price down materially this year, it has been particularly popular with investors. The S&P/ASX All Ordinaries Gold index is up 2.7% at the time of writing.

Touch Ventures Ltd (ASX: TVL)

The Touch Ventures share price is up 31% to 52.5 cents. This morning the Afterpay Ltd (ASX: APT) spin off completed its IPO with a listing price of 40 cents per share. Touch Ventures is an investment holding company focused on high growth, scalable investment opportunities in Australia and internationally. This includes companies that may benefit from Afterpay’s ecosystem.

The post Why Sigma, Smartgroup, St Barbara, & Touch Ventures are pushing higher appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are leading the way mid-week?
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Afterpay tumbles
• Smartgroup (ASX:SIQ) share price soars 17% on TPG Global takeover bid
• Wesfarmers (ASX:WES) share price wobbles amid rival bid for API
• Why AVZ, Flight Centre, Fortescue, & Sigma shares are storming higher

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended SMARTGROUP DEF SET. 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 Little Green Pharma Ltd (ASX: LGP) share price is gaining today as its leaders comment on the company’s “laser focus” towards rapid growth.

The medicinal cannabis producer and distributor released its annual report for financial year 2021 today. Within it, the company’s bosses looked back on the year that brought its maiden profit and first expansion into Europe.

At the time of writing, the Little Green Pharma share price is 69.5 cents, 1.46% higher than its previous close.

Let’s take a closer look at what Little Green Pharma’s leaders had to say about its financial year 2021 and its future.

Financial year 2021 for Little Green Pharma

The Little Green Pharma share price is in the green today amid the release of its annual report.

The company’s managing director and chair both provided comments within the report, each detailing a successful financial year.

Over financial year 2021, Little Green Pharma acquired a medicinal cannabis cultivation and manufacturing facility in Denmark and grew its relationship with its German distribution partner, Demecan.

It has also positioned itself to break into the French, Danish, and Polish markets.

Additionally, Solomon noted the company’s products saw record growth in demand in financial year 2021, with 10,600 new patients.

Little Green Pharma’s managing director, Fleta Solomon, said:

To know we could batten down the hatches, ride out the pandemic, and grow organically was a testament to our strong business model and team.

Little Green Pharma’s chair, Michael Lynch-Bell, noted the acquisition of the Denmark facility represented a “step change” for the company. Particularly, as the placement it underwent to purchase the facility received strong institutional support.

The Little Green Pharma share price gained 10% on news of the acquisition and placement.

Now, the company is working on an observational study conducted by the University of Sydney. The findings of the study are expected to be peer-reviewed and published in 2022.

Additionally, a clinical investigation into its LGP Classic 10:10 medicinal cannabis oil has found it can safely treat chronic refractory pain. Little Green Pharma is now progressing another clinical trial into the efficacy of medicinal cannabis in the treatment of symptoms of fibromyalgia.

Finally, the company’s ARISE project is moving through the first of 3 phases.

Little Green Pharma share price snapshot

Today’s boost included, the Little Green Pharma share price has gained 24% since the start of 2021. It is also 148% higher than it was this time last year.

The post Little Green Pharma (ASX:LGP) share price lifts as bosses reflect on a big year appeared first on The Motley Fool Australia.

More reading

• The Little Green Pharma (ASX:LGP) share price has fallen 7% this month
• What’s going wrong for ASX cannabis shares lately?
• Why the Little Green Pharma (ASX:LGP) share price has lost 20% since July

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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The Crown Resorts Ltd (ASX: CWN) share price is under pressure today regardless of the casino operator’s latest announcement.

During afternoon trade, Crown shares are down 0.95% to $9.38 a pop.

What’s dragging Crown shares lower?

Investors are selling off Crown shares amid Wednesday’s broader S&P/ASX 200 Index (ASX: XJO) slump. The weak investor sentiment comes as United States markets fell last night, with the Dow Jones dropping 1.63% to 34,299 points.

At the time of writing, the benchmark index is sinking 1.2% to 7,188.1 points.

Board appointment

According to today’s release, Crown advised it has appointed Anne Ward as its new independent non-executive director to the board. Although the news wasn’t enough to prop up the flailing Crown share price.

Ms Ward is an experienced company director with proficiency in business management, strategy, governance, risk and finance. She has worked across a number of sectors that include financial services, technology, healthcare, government, education and tourism.

Currently, Ms Ward is chair of e-commerce group Redbubble Ltd (ASX: RBL) and communication software provider MNF Group Ltd (ASX: MNF). In addition, she works as a council member at RMIT University.

Previously, Ms Ward has worked as a commercial lawyer and in other senior executive positions with National Australia Bank Ltd (ASX: NAB) and Minter Ellison.

Crown interim chair Jane Halton commented:

I am pleased to welcome Anne as a director. Anne brings to the Crown Board rich experience from her extensive board and executive careers. Her appointment further strengthens the mix of capability and experience as we continue the refresh of the Board.

Ms Ward is expected to join the Crown board immediately once it has received all necessary regulatory approvals.

Crown share price snapshot

Over the past 12 months, Crown shares have travelled sideways amid a series of negative updates.

Recently, the company’s auditor, KPMG, identified that legal and regulatory issues could force it to sell its assets. This comes as the Victorian Royal Commission is actively considering whether to revoke the company’s gaming licence in the state.

Crown’s full-year results recorded a net loss after tax of $261.6 million, down 429% on FY20.

The company’s shares are down 2.49% year to date. For the last 12 months they have posted a ~5% increase.

The post Crown Resorts (ASX:CWN) share price falls despite new board appointment appeared first on The Motley Fool Australia.

More reading

• Crown (ASX:CWN) share price seesaws amid mandatory vaccination policy
• Crown (ASX:CWN) share price outperforms despite auditor concerns
• Crown (ASX:CWN) share price slumps as problem gambler lawsuit heats up
• How does the Crown Resorts (ASX:CWN) earnings result compare to Star Entertainment (ASX:SGR)?
• Crown Resorts (ASX:CWN) share price slumps amid dividend suspension

Motley Fool contributor Aaron Teboneras 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 MNF Group Limited. The Motley Fool Australia owns shares of and has recommended MNF 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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ASX 200 tech shares plunged on Wednesday, following a sharp overnight selloff on Wall Street.

Major US indices logged a sea of red with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average down 2.04%, 1.63% and 2.83% respectively.

Headlining the selloff was a jump in benchmark 10-year US Treasury yields, trading at its highest levels since June.

The yield on the benchmark 10-year Treasury note spiked in the past week, surging 242 basis points from 1.304% to 1.546%.

ASX 200 tech shares have thrived under a low-interest rate environment.

The opposite is now unravelling as the Federal Reserve signalled last week that it could begin to reverse its pandemic stimulus and raise interest rates sometime next year.

5 worst-hit ASX 200 tech shares on Wednesday

Tyro Payments Ltd (ASX: TYR)

Things were looking good for the Tyro share price in September, rallying back to pre-COVID levels of ~$4.30 on Monday.

It looks like the recent weakness in tech and broader market volatility has stopped Tyro’s road to recovery.

Its shares tanked 5.34% today to $3.90.

Afterpay Ltd (ASX: APT)

Weakness in the Afterpay share price might come as no surprise following Square’s selloff overnight.

Afterpay shares have closely tracked the performance of Square after the US payments company came forth with a $39 billion takeover offer in early August.

The Afterpay share price is currently trading 4.11% lower to $122.

Nextdc Ltd (ASX: NXT)

The Nextdc share price has fallen off a cliff in recent days, down 12.62% since last Thursday, 23 September.

Shares in the data centre provider extended their losses on Wednesday, down another 3.77% to $11.99.

Xero Limited (ASX: XRO)

The Xero share price fell off a cliff on Tuesday, sliding 6.49% to $140.10.

The selloff continued today, down another 3.67% to $135.20.

The company has not released any market sensitive announcements since its FY21 results on 13 May.

Altium Limited (ASX: ALU)

Its been a wild ride for Altium shares after it plunged 14.25% on the day of its FY21 results before a V-shaped recovery to 2-month highs.

Volatility continues for the software company, down 2.68% to $34.65 in today’s trading session.

The post ASX 200 tech correction? 5 of the worst-hit shares appeared first on The Motley Fool Australia.

More reading

• The Xero (ASX:XRO) share price is down 10% this week, is it a buy?
• Why ASX tech shares are crashing on Wednesday
• The S&P 500 just dropped 2%. Why is this impacting ASX 200 shares?
• Why CSL, Domino’s, Temple & Webster, & Xero shares are tumbling
• Technology shares are dragging the ASX 200 down on Tuesday

Motley Fool contributor Kerry Sun 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 Altium, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended Tyro Payments and carsales.com 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 Sydney Airport Holdings Ltd (ASX: SYD) share price is in the red today amid the Australian Competition and Consumer Commission’s (ACCC’s) latest report into the airline industry.

The consumer watchdog’s report declares it’s the first time there are no flights to or from Sydney Airport in the top 10 most traversed Australian routes.

Additionally, it noted it will be keeping a close eye on anticompetitive behaviour by Australian airports and airlines coming out of COVID lockdowns.

At the time of writing, the Sydney Airport share price is $8.205, 0.18% lower than its previous close. That’s comparatively better than most of the broader market today.

Right now, the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) are down 1.08% and 1.06% respectively. Additionally, much of the travel sector is recording falls greater than those of the major indices.

Let’s take a look at the ACCC’s findings regarding Sydney Airport.

Sydney Airport in ACCC’s line of sight

The Sydney Airport share price is sliding today amid the release of the ACCC’s latest Airline Competition in Australia report.

The new report found that, for the first time, no flights to or from Sydney Airport made the top 10 busiest routes in Australia.

Instead, most of Australia’s busiest routes were those within Queensland. Flights between Brisbane and Cairns topped the list.

The ACCC’s chair Rod Sims commented on the shift in traffic, saying it’s “a sign of the state of the industry”.

Additionally, the watchdog, alongside the Australian government, is planning to crack down on anticompetitive behaviour by airlines.

The government recently released a report that proposes changes to airlines’ allotted take-off and landing slots at the airport. The ACCC supports the changes, saying they will increase competition at Sydney Airport.

The proposed changes include implementing a stronger system for monitoring compliance with slot-use rules. Particularly, the rule that an airline must use a slot 80% of the time.

Airlines might also face more scrutiny when cancelling flights. Continuously cancelling excessive numbers of flights could see them land in the Federal Court.

The Minister for Infrastructure, Transport and Regional Development has temporarily relaxed the slot-use rules, allowing airlines to use their allocated slots 50% of the time. That rule is relaxed further when COVID-related travel restrictions apply.

Finally, the ACCC has put a spotlight on Australian airports, warning them not to increase the prices they charge airlines in an attempt to recoup lost revenue, noting:

Should airports increase their aeronautical charges to recover their losses from COVID-19, this would be a clear example of airports systematically taking advantage of their market power. The ACCC is concerned that such increases in airport charges could damage both the vulnerable airline sector’s ability to recover.

Sydney Airport share price snapshot

A series of takeover offers has potentially saved the Sydney Airport share price from plummeting alongside its traffic volume in recent months.

Right now, the airport’s share price is 27% higher than it was at the start of 2021. It has also gained 37% since this time last year.

The post Sydney Airport (ASX: SYD) share price slips amid ACCC’s latest findings appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price falls amid ACCC report into COVID-19 impacts
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Afterpay tumbles
• The S&P 500 just dropped 2%. Why is this impacting ASX 200 shares?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

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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