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The S&P/ASX 200 Index (ASX: XJO) is off its intraday lows but remains on course to start the week with a decline. In afternoon trade, the benchmark index is down 0.3% to 7,500.5 points.

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

BlueBet Holdings Ltd (ASX: BBT)

The BlueBet share price has crashed 19% to $2.00. Investors have been selling the sports betting company’s shares after it was dealt another blow with its US expansion plans. On advice from the regulator, Virginia Lottery, BlueBet has withdrawn its application for a Sports Betting Permit in the US State of Virginia. All application fees will be refunded.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has crashed 10.5% to $18.64. The iron ore giant’s shares have come under significant pressure on Monday after they traded ex-dividend for its fully franked $2.11 per share final dividend. Eligible shareholders can now look forward to receiving this dividend on 30 September.

Hansen Technologies Limited (ASX: HSN)

The Hansen share price has tumbled 9% to $5.61. Investors have been selling the billing technology company’s shares after BGH Capital withdrew its takeover proposal. While the private equity firm didn’t provide a reason for withdrawing its offer, it comes following the conclusion of its extensive due diligence.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price has dropped 5% to $59.00. The catalyst for this was news that the health imaging company’s shares have been downgraded by a leading broker. According to a note out of Goldman Sachs, it has downgraded the company’s shares to a sell rating with a $54.00 price target. The broker made the move on valuation grounds. It believes it is hard to justify the premium the Pro Medicus share price is trading on.

The post Why BlueBet, Fortescue, Hansen, & Pro Medicus shares are sinking appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are leading the way on the ASX 300?
• ASX 200 midday update: Fortescue & Pro Medicus sink, gold miners rise
• Hansen (ASX:HSN) share price sinks 13% after withdrawn acquisition proposal
• Why the Fortescue (ASX:FMG) share price is crashing 11% today
• Pro Medicus (ASX:PME) share price down 5% on broker downgrade

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hansen Technologies and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended BlueBet Holdings Ltd. 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 Greenvale Mining Ltd (ASX: GRV) share price has slipped into the red on Monday.

Greenvale shares are trading down today despite the company making an announcement on its maiden drilling program in NT.

Let’s investigate further.

A quick recap on Greenvale Mining

Greenvale Mining is an international energy company. It is in the business of exploiting oil shale deposits.

The company owns the Alpha oil shale deposit in Qld and the Georgina Basin IOCG project in NT.

At the time of writing, Greenvale has a market capitalisation of $170 million.

What did Greenvale announce?

Greenvale advised that it was “on track” to start its “maiden diamond drilling program” at its Georgina Basin Iron Oxide Copper Gold (IOCG) project” by around 15 September.

The project is located in Australia’s “East Tennant district”, which was recently labelled as “one of Australia’s ‘hot spots’” as per the release.

Greenvale also announced that all site preparations are complete, and the field team is now in place.

From its preliminary studies, Greenvale has obtained “encouraging preliminary results” which point to “large-scale” IOCG deposits in a zone known as the “twin peaks”.

This twin peaks section will be targeted by Greenvale’s “initial phase of drilling”. As such, the company has also made significant investment in the specialised mine equipment for drilling and the exploration camp. These factors demonstrate the company’s “commitment to being a long-term player in broader East Tennant area”, as per the announcement.

In addition to these updates, Greenvale also announced it has an “initial four diamond holes” planned across “Eastern and Western targets” at the site.

This coincides with a “high-resolution 12,168–line kilometre airborne, radiometric and geophysical survey” which Greenvale plans to start in the next few weeks.

Investors haven’t bought the news on Monday, and have pushed the Greenvale Mining share price lower on the day.

Greenvale shares are now changing hands at 40.5 cents apiece, an almost 6% drop from the open.

What did management say?

Commenting on the announcement, Greenvale’s managing director, Neil Biddle said:

Our initial program will focus on the large-scale magnetic and gravity targets which we call the ‘Twin Peaks’. The recently completed ground-based gravity program has helped us to refine these targets, which will be tested initially by four deep diamond holes commencing in the middle of this month.

Greenvale Mining share price snapshot

The Greenvale Mining share price has posted a year to date return of 212%. This extends the previous 12 month’s mammoth gain of 820%.

Both of these results have far outpaced the S&P/ASX 200 index (ASX: XJO)’s return of 25% over the past year by a country mile.

The post Greenvale (ASX:GRV) share price slides 6% despite project update appeared first on The Motley Fool Australia.

More reading

• Why BlueBet, Fortescue, Hansen, & Pro Medicus shares are sinking
• The Qantas (ASX:QAN) share price is having a great start to the week
• Why the Pushpay (ASX:PPH) share price is edging higher on Monday
• Why AnteoTech, Appen, Aussie Broadband, & Tyro shares are charging higher
• Here’s why the Tyro (ASX:TYR) share price is leaping 5% today

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 Qantas Airways Limited (ASX: QAN) share price is starting the week on the right foot.

The airline’s shares are in the green today, despite not releasing any news.

Right now, the Qantas share price is $5.39, 0.84% higher than its previous close.

The gains come at the same time Singapore – one of the first stops Qantas is planning to make in coming months – is preparing to open a travel bubble with vaccinated Europeans.

Let’s take a look at the latest step towards potential global travel.

Singapore-Europe travel bubble to open

The Qantas share price is on the rise today amid reports that could bring a tear to many a traveller’s eye.

A travel bubble between Germany and Singapore is expected to open this week. It’s the first travel bubble in which vaccinated travellers could travel relatively freely between Singapore and Europe.

Singapore is also expected to open a bubble between it and Brunei this week. Though, Brunei has placed limits on tourism.  

According to Bloomberg, Singapore and Hong Kong were previously planning to allow free travel between them. However, Hong Kong has since tightened its entry requirements.

The publication states the travel bubble between Germany and Singapore will be testing the risks of travelling between 2 highly vaccinated nations.

It might map out a blueprint for Qantas’ planned restart to international travel in December. The Qantas share price boosted 2% on the back of its plans to restart international flights.   

According to Singapore Airlines Ltd., people looking to travel between Germany and Singapore must have had 2 shots of a COVID-19 vaccine.

Additionally, those travelling to Singapore must have been in Germany for the 21 days before their flight. They must also undergo one COVID-19 test 48 hours before take-off and another upon landing.

Travelling to Germany is simpler. Travellers to Germany need to be fully vaccinated and have avoided places where COVID-19 variants of concern exist.

Qantas share price snapshot

Today’s boost included, the Qantas share price has gained 11% since the start of 2021. It has also increased by 38% since this time last year.

The post The Qantas (ASX:QAN) share price is having a great start to the week appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• If you invested $1,000 in Qantas (ASX:QAN) shares a decade ago, here’s what they would be worth now
• Qantas (ASX:QAN) share price falls while international ‘Points Planes’ considered
• Here’s why the Qantas (ASX:QAN) share price rallied 10% in August
• ASX 200 company bosses lobby for reopening plan

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 Pushpay Holdings Ltd (ASX: PPH) share price is tinkering slightly higher today following the company’s senior leadership change.

During mid-afternoon trade, the donor management platform provider’s shares are up 0.30% to $1.685. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.62% to 7,476 points.

Pushpay appoints new interim CFO

In a statement to the ASX, Pushpay advised it has appointed Richard Keys as the new interim chief financial officer.

Effective today, Mr Keys will replace current CFO, Shane Sampson, who is scheduled to depart at the end of September. Mr Keys will join the company on a consultancy basis.

With over 30 years experience in healthcare and management, Mr Keys has worked for both public and private organisations. This includes a number of executive and non-executive roles such as CEO of Abano Healthcare Group from 2005 to 2021.

In addition, Mr Keys also served as chief operating officer (2011 to 2015) and CFO (2003 to 2011) during his tenure at Abano Healthcare Group.

Mr Keys is a member of the New Zealand Markets Disciplinary Tribunal, a member of the chartered accountants Australia and New Zealand, and a chartered member of the Institute of Directors in New Zealand. He holds a Bachelor of Commerce from the University of Auckland.

Management noted that its search for a permanent United States-based CFO is progressing well. A market update will be provided in due course once a suitor has been selected.

Pushpay share price snapshot

In 2021, Pushpay shares have gone on a mini-rollercoaster ride to register a 5% loss for the 9 months. When looking at pre-pandemic levels, the company’s share price is up around 50%, highlighting gradual growth over a longer term.

Current, the Pushpay share price is sitting in the lower-mid area of its 52-week range of $1.405 to $2.25.

Pushpay commands a market capitalisation of $1.92 billion and has more than 1.13 billion shares on its books.

The post Why the Pushpay (ASX:PPH) share price is edging higher on Monday appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares with strong growth potential
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• Pushpay (ASX:PPH) share price higher on US$150 million Resi Media acquisition

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 0.5% to 7,484.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

AnteoTech Ltd (ASX: ADO)

The Anteotech share price is up 6% to 18 cents. This morning the surface chemistry company announced the signing of a distribution agreement in Turkey with Pera Medikal Anonim Sirketi. This deal is for the distribution of the EuGeni Reader platform and SARS-CoV-2 Antigen Rapid Diagnostic Test (RDT) in the country.

Appen Ltd (ASX: APX)

The Appen share price is up 4% to $10.93. This is despite there being no news out of the artificial intelligence data services company today. However, with its shares down heavily in 2021, some investors may believe that they have fallen into the bargain bin now. One broker that appears to believe this is the case is Citi. Late last month it put a buy rating and $18.80 price target on its shares.

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price has climbed 4.5% to $4.49. Investors have been buying the broadband provider’s shares after it announced a 10-year deal with VicTrack. This deal will see the two companies swap access to their respective fibre networks. Aussie Broadband expects the agreement to significantly increase the geographic reach of its fibre network, especially into regional Victoria.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 6% to $3.99. This appears to have been driven by a positive weekly update and news that the payments company will be added to the ASX 200 at the next rebalance. The latter means that index tracking funds will have to buy its shares. It also brings it onto the radar of fund managers with strict investment mandates.

The post Why AnteoTech, Appen, Aussie Broadband, & Tyro shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Tyro (ASX:TYR) share price is leaping 5% today
• Which ASX shares are leading the way on the ASX 300?
• ASX 200 midday update: Fortescue & Pro Medicus sink, gold miners rise
• Up 9%, the Aussie Broadband (ASX:ABB) share price hits all-time high
• Why Tyro (ASX:TYR) and SeaLink (ASX:SLK) share prices could be moving up

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd, Aussie Broadband Limited, and Tyro Payments. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended Aussie Broadband 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 Tyro Payments Ltd (ASX: TYR) share price is a top performer today, rallying 5.87% to $3.97.

What’s lifting the Tyro share price on Monday?

Weekly COVID-19 trading update

Tyro has been providing weekly transaction value updates since March 2020. This measure was introduced to provide transparency as to the impact of COVID-19 on its EFTPOS machines business.

This week’s update highlighted a 28% increase in date-on-date transaction values to 3 September of $219 million.

While September year-to-date figures were up 23% to $4.579 billion.

Tyro’s transaction value has remained buoyant despite prolonged lockdowns taking place across Victoria and New South Wales.

Tyro joins the ASX 200

S&P Dow Jones Indices announced a rebalance on Friday 3 September. The rebalance will be effective before market open on 20 September.

The Tyro share price, in addition to Lifestyle Communities Limited (ASX: LIC), Pinnacle Investment Management Group Ltd (ASX: PNI) and SeaLink Travel Group Ltd (ASX: SLK), will be added to the S&P/ASX 200 Index (ASX: XJO).

While weak performers G8 Education Ltd (ASX: GEM), NRW Holdings Limited (ASX: NWH), Nuix Ltd (ASX: NXL) and Westgold Resources Ltd (ASX: WGX) will be removed from the index.

Tyro shares performing strongly post-FY21 results

The Tyro share price has rallied 10.5% since releasing its FY21 results on Thursday 26 August.

Despite terminal connectivity issues in January and rolling COVID-19 lockdowns across major cities, the company delivered a well-rounded result.

The payment solutions company delivered a 26% increase in transaction values to a record $25.5 billion and a 13% increase in revenue to $238.5 million.

The company’s bottom line showed signs of improvement with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.2 million compared to a $4.4 million loss in FY20. This is in addition to a normalised net loss before tax of $10.9 million, compared to a $25.9 million loss in FY20.

The post Here’s why the Tyro (ASX:TYR) share price is leaping 5% today appeared first on The Motley Fool Australia.

More reading

• Why AnteoTech, Appen, Aussie Broadband, & Tyro shares are charging higher
• Which ASX shares are leading the way on the ASX 300?
• Why Tyro (ASX:TYR) and SeaLink (ASX:SLK) share prices could be moving up
• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200
• 5 things to watch on the ASX 200 on Monday

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 PINNACLE FPO and Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended PINNACLE 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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Well, this Monday certainly hasn’t started the week in the way that many investors would have hoped it would. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by roughly 0.7% to 7,470 points. However, one ASX 200 share is doing far worse. That would be the AGL Energy Limited (ASX: AGL) share price.

AGL shares are currently down a nasty 1.25% to $6.33 a share at the time of writing. But earlier in the trading day, this energy generator and retailer was down all the way to $6.22 a share, a loss of 2.5%.

$6.22 a share is both a new 52-week low, and a 19-year low for AGL. And that’s saying something for a company that is more than 180 years old. 

By this writer’s rough calculations, you have to go back to September 2002 to find the last time AGL shares were trading at the current level.

Today’s new low also means that the AGL share price is now down around 47.7% year to date. As well as by 57.8% over the past 12 months. The company is also down a painful 77% from its most recent all-time high. This was around $27.70 and was hit way back in April 2017.

Why is the AGL share price at a 19-year low?

As you might have gathered, AGL shares have been under enormous pressure over 2021. For one, the company made several downward revisions to its earnings guidance for FY21 before finally releasing its numbers last month.

The company ended up reporting a statutory loss of more than $2 billion. Revenues were down by 10% over the previous year to $10.9 billion. Underlying earnings per share (EPS) also fell by 31.6% to 86.2 cents.

At the time, AGL CEO Graeme Hunt blamed the results on a number of factors. Here’s some of what he said on these results at the time:

Our FY21 result reflects a challenging year for AGL Energy as we realised the impact of lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll-off of legacy supply contracts in Wholesale Gas…

Our result reflected the impact over the past two years of increasing generation supply and lower demand arising from the COVID-19 pandemic and milder weather.

With a series of earnings downgrades leading up to this report, which was also not too well received from investors, it’s perhaps no surprise the AGL share price has struggled in recent times.

Accel Energy demerger plans fail to inspire investors

But another anchor that seems to have attached itself to the AGL share price has been the company’s upcoming plans for a demerger. On 30 June, the company announced that it plans to separate its generational assets from its retailing business in a brand new company. This new company will be called Accel Energy. AGL is anticipating that this demerger will be completed by the fourth quarter of FY22.

AGL clearly thinks this demerger is in the best interests of shareholders. Even so, we can’t ignore how the AGL share price has fallen more than 30% since this announcement was made public. It’s fair to say the market has concerns here.

At the current AGL share price, the company has a market capitalisation of $3.95 billion. It also has a dividend yield of 10.25%.

 

The post AGL Energy (ASX:AGL) share price hits 19-year low appeared first on The Motley Fool Australia.

More reading

• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200
• The AGL (ASX:AGL) share price is now trading on a forecast 11.7% dividend yield
• These ASX 200 dividend shares slashed their payouts in August
• AGL Energy (ASX:AGL) hits record low, slides a further 12% in August
• AGL (ASX:AGL) share price struggles amid major management shake-up

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

APA Group (ASX: APA)

According to a note out of Ord Minnett, its analysts have upgraded this energy infrastructure company’s shares to a buy rating with a $10.75 price target. The broker has been looking at the utilities sector and believes APA is the top option. This is due to its strong free cash flows and growth opportunities. The latter includes both organic and inorganic opportunities. The APA share price is trading at $9.26 today.

GUD Holdings Limited (ASX: GUD)

A note out of Citi reveals that its analysts have upgraded this diversified products company’s shares to a buy rating with a $12.30 price target. The broker made the move on valuation grounds following a sizeable pullback in its share price. Citi believes this has left its shares trading at an attractive level, particularly in comparison to peers. The GUD share price is fetching $10.97 on Monday afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at UBS have retained their buy rating and lifted their price target on this airline operator’s shares to $6.25. According to the note, the broker believes that Qantas will be a stronger airline on the other side of the pandemic. It is also expecting the company’s profits to exceed pre-pandemic levels in FY 2024. This is expected to be underpinned by pent-up demand and its transformation program. The Qantas share price is trading at $5.40 on Monday afternoon.

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

More reading

• The Qantas (ASX:QAN) share price is having a great start to the week
• If you invested $1,000 in Qantas (ASX:QAN) shares a decade ago, here’s what they would be worth now
• Qantas (ASX:QAN) share price falls while international ‘Points Planes’ considered
• ‘Price makers’: 2 ASX shares to protect against inflation
• Here’s why the Qantas (ASX:QAN) share price rallied 10% in August

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 APA Group. 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 Suncorp Group Ltd (ASX: SUN) share price is having an uneventful day following its latest media release.

At the time of writing, Suncorp shares are up just 0.39% to $12.71 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.61% to 7,476 points.

What did Suncorp announce?

Investors appear unfazed by the company’s entry into the buy now, pay later (BNPL) market, moving Suncorp shares only marginally higher today.

According to the release, Suncorp has introduced its new BNPL offering in partnership with credit provider, Visa Inc (NYSE: V).

The BNPL solution, called “PayLater” will comprise both a physical and digital Visa debit card. This can be used in-store and online at more than 70 million merchant locations worldwide.

The offering is expected to be available to Suncorp customers via the Suncorp app sometime in November 2021.

Eligible customers are reportedly able to receive quick approval when applying online or through the Suncorp app. However, this will be primarily based on a credit check to assess the customer’s propensity to pay.

Once approved and when purchases are made, the payment plan will be split over four separate and equal interest-free instalments.

The card will have a limit of $1,000 per customer.

Suncorp CEO Clive van Horen touched on the bank’s latest product offering, saying:

Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank.

This solution is also a win for Australian businesses, many of whom are doing it tough right now as we learn to live with COVID-19. Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees.

Suncorp share price summary

Over the past 12 months, Suncorp shares have accelerated by 40% with a year-to-date rise of 30%. The company’s share price reached a 52-week high of $13.26 last month before investors took profit off the table.

Suncorp presides a market capitalisation of roughly $16.2 billion, making it the 29th largest company on the ASX.

The post Suncorp (ASX:SUN) share price remains flat despite BNPL offering appeared first on The Motley Fool Australia.

More reading

• Top broker says Suncorp (ASX:SUN) share price is a buy
• 2 excellent ASX shares for a retirement portfolio
• Suncorp (ASX:SUN) share price on watch amid $350m capital raising
• How does the IAG (ASX:IAG) earnings result compare to Suncorp?
• 2 high yield ASX dividend shares named as buys

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. 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 is sliding today, down 1% in early afternoon trade to $5.34 per share.

Below we take a look at the insurance giant’s latest market announcement.

What did IAG announce?

The IAG share price is slipping lower today after the company reported CMC Hospitality has filed an application starting a representative proceeding against it in the Federal Court of Australia.

The S&P/ASX 200 Index (ASX: XJO) listed insurance giant could not yet provide details of the application as it had not been served with it. However, IAG noted the application “appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19“.

CGU Insurance Limited is an intermediary-based insurance company that is part of IAG.

With a new wave of lockdowns impacting business operations across Australia’s most populous states, business interruption losses are growing into the multiple billions of dollars.

IAG stated it is among a number of other insurers who will be part of “an industry test case” in Federal Court hearings that are commencing today. It said the test case is “the most efficient process to obtain clarity and to resolve issues for customers with business interruption claims”.

The insurance company said it will follow the court’s final rulings and assess any business interruption claims “as quickly as possible” once the case is resolved.

As it stands, IAG said it “remains satisfied with the adequacy of its provision for business interruption claims”.

IAG share price snapshot

The IAG share price is up just over 13% in 2021, compared to a year-to-date gain of just under 12% for the ASX 200.

Over the past month IAG’s share price has gained 7%. The past month’s returns are largely credited to a strong results reported in early August for the 2021 financial year. That included a 170% increase in cash earnings from FY20 and a doubling of its dividend payout.

The post Here’s why the IAG (ASX:IAG) share price is slumping today appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX:IAG) share price is up 10% in a month
• Here’s why the IAG (ASX:IAG) share price is down 3% in a week
• Here’s why the IAG (ASX:IAG) share price is up 6% in the last 3 months
• If you invested $1,000 in IAG (ASX:IAG) shares a decade ago, here’s what it would be worth now
• 10 ASX shares we’re overweight in right now: fund

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 Insurance Australia 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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