ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.

A2 Milk Company Ltd (ASX:A2M) and Corporate Travel Management Ltd (ASX:CTD) shares are in the news on the ASX 200 on Tuesday…

| More on:
Worried young male investor watches financial charts on computer screen

Image source: Getty Images

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) has given back the majority of its morning gains but is still trading higher. The benchmark index is currently up 0.15% to 5,961.2 points.

Here’s what is happening on the market today:

A2 Milk sinks again.

The A2 Milk Company Ltd (ASX: A2M) share price has continued its slide on Tuesday. This decline has been driven by the infant formula and fresh milk company’s disappointing guidance update on Monday. The company warned that its first half sales would be down in FY 2021 due largely to weakness in the daigou channel. I suspect the fact that management sold millions of dollars worth of shares last month could also be impacting investor sentiment.

Bank of Queensland provisions.

The Bank of Queensland Limited (ASX: BOQ) share price has come under pressure on Tuesday after increasing its COVID-19 provisions. The regional bank’s COVID‐19 related collective provision expense is now expected to be $133 million (pre‐tax) in FY 2020. This is up from an estimate of $71 million previously. In addition to this, a further $11 million (pre‐tax) expense will be recognised for staff underpayments.

Corporate Travel Management’s acquisition.

This morning Corporate Travel Management Ltd (ASX: CTD) revealed that it is raising $375 million via a fully underwritten accelerated non-renounceable entitlement offer. These funds will be used to acquire Travel & Transport for $274.5 million. Travel & Transport is a leading US travel management company which is expected to be highly accretive to earnings. Post-synergies, management is forecasting that it will be approximately 30% earnings per share accretive.

Best and worst performers.

The Janus Henderson Group PLC (ASX: JHG) share price is the best performer on the ASX 200 today with a 4% gain. This is despite there being no news out of the fund manager. The worst performer has been the a2 Milk share price for a second day in a row. Its shares are down over 4% at the time of writing.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Two workers on site discuss the next stage of this civil engineering job, one points his hands upwards.
Share Gainers

Why did this ASX nickel share surge 23% today?

Investors keep rewarding ASX listed metals and mining companies in 2022.

Read more »

A woman sits at her computer with hand to mouth and a contemplative smile on her face although she is considering or thinking about information she is seeing on the screen.
Growth Shares

Why I think the EML share price is a long-term buy

Here's why I think EML shares are looking very good value for the long haul.

Read more »

a man sits on a rocket propelled office chair and flies high above a city
IPOs

Aurora Energy Metals share price rockets 35% on ASX debut

This lithium and uranium explorer debuted the ASX in style.

Read more »

Share Fallers

Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping

These ASX shares are under pressure on Wednesday...

Read more »

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.
Share Market News

Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?

These analysts are predicting big returns for banks in the rising interest rate environment.

Read more »

An office worker and his desk covered in yellow post-it notes
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Share Gainers

Why BlueScope, Firefinch, Monash IVF, and South32 shares are pushing higher

These ASX shares are on form on Wednesday...

Read more »

Five happy miners standing next to each other.
Share Gainers

3 ASX mining shares surging more than 10% today

Metals and mining stocks continue to be rewarded in 2022

Read more »