ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher

The ASX 200 is struggling to push higher on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is having a bit of a mixed time. The benchmark index is currently flat at 7,357.8 points.

Here’s what is happening on the ASX 200 on Thursday:

Afterpay and Zip continue to slide

The Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price have continued to slide on Thursday. Investors have been selling the shares of the buy now pay later (BNPL) providers due to speculation that tech giant Apple is planning to enter the BNPL market. While it has not commented on the speculation, Apple is understood to be planning to launch Apple Pay Later in an effort to boost Apple Pay transactions.

ARB update impresses

The ARB Corporation Limited (ASX: ARB) share price is surging higher on Thursday after investors responded positively to its market update. According to the release, the 4×4 parts manufacturer achieved a 33.9% increase in unaudited sales revenue to $623 million in FY 2021. And on the bottom line, it expects its profit before tax to be within the range of $145 million to $150 million. This will be an increase of 85.5% to 92% on FY 2020’s profit before tax of $78.1 million.

Sydney Airport rejects takeover approach

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is edging higher today despite formally rejecting the takeover offer from a consortium of infrastructure investors. The Sydney Airport board believes the offer “undervalues Sydney Airport and is not in the best interests of Securityholders.” It also notes that the offer is “opportunistic” and is taking advantage of the COVID-19 pandemic.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the ARB share price with a gain of 8%. This follows the release of an update after the market close yesterday. The worst performer on the ASX 200 today has been the Polynovo Ltd (ASX: PNV) share price with a 5.5% decline. This morning Bell Potter retained its hold rating and cut its price target by 3.6% to $2.65 after the medical device company’s sales update fell short of its expectations.

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