ASX 200 down 0.3%: Altium FY 2021 guidance, Crown drops, insurance shares sink

Altium Limited (ASX:ALU) and QBE Insurance Group Ltd (ASX:QBE) shares are making waves on the ASX 200 on Thursday…

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. The benchmark index is currently down 0.3% to 6,509.9 points.

Here’s what is happening on the market today:

Altium AGM update.

The Altium Limited (ASX: ALU) share price has edged lower following the release of its annual general meeting update. At the event, the electronic design software provider revealed that it is continuing to be impacted by COVID-19. However, it has been seeing positive signs in the last two months and is gaining confidence about the strength of its second half performance. FY 2021 guidance has been reaffirmed as revenue of US$200 million to US$212 million and operating earnings of US$76 million to US$89 million.

Crown share price drops lower

The Crown Resorts Ltd (ASX: CWN) share price has dropped lower this morning amid concerns over the opening of its new Crown Sydney operation. Yesterday the New South Wales Independent Liquor and Gaming Authority (ILGA) said it would delay the opening of Crown Sydney due to money laundering revelations. The gambling regulator intends to wait until it has seen the final report into an ongoing inquiry, which is due in February.

Insurance shares hit by COVID ruling.

A number of insurance companies such as QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) are dropping lower today. This follows news that the NSW Court of Appeal has ruled in favour of policyholders in relation to business interruption (BI) insurance. The Court held that certain policy exclusions referencing the “Quarantine Act and subsequent amendments” cannot be read as references to the Biosecurity Act and cannot be relied on in relation to COVID-19 BI claims.

The best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the ALS Ltd (ASX: ALQ) share price with a 7.5% gain. This morning Macquarie retained its outperform rating and lifted the price target on the testing services company’s shares to $10.65. The worst performer has been the QBE share price with a 4% decline following the aforementioned court verdict.

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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 recommends Altium. The Motley Fool Australia has recommended Crown Resorts Limited. 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.

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