ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low

The ASX 200 is ending the week in the red…

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a disappointing decline. The benchmark index is currently down 0.85% to 7,410.5 points.

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

Qantas shares fall following update

The Qantas Airways Limited (ASX: QAN) share price is falling on Friday. This follows an update out of the airline operator which reveals that it is cutting its capacity during the third quarter in response to rising Omicron cases. Qantas will slash its domestic capacity to 70% of pre-COVID levels and international capacity to 20% of pre-COVID levels. While this is expected to impact its earnings, it was too soon to quantify.

Pendal shares sink

The Pendal Group Ltd (ASX: PDL) share price has crashed lower today following the release of a disappointing quarterly update. The fund manager had a tough quarter and reported net fund outflows of $6.8 billion. This led to Pendal’s funds under management (FUM) falling 2.5% to $135.7 billion during the December quarter despite the benefits of favourable market movements.

Afterpay shares hit new low

The Afterpay Ltd (ASX: APT) share price is sinking notably lower and hit a new 52-week low this morning. This follows further weakness in the tech sector, which dragged the Block share price notably lower on Wall Street. As Block will soon acquire the buy now pay later provider, Afterpay shareholders will shortly have their shares convert into Block shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Alumina Limited (ASX: AWC) share price with a 4.5% gain. Yesterday Goldman Sachs retained its neutral rating but lifted its price target on Alumina’s shares by 5% to $2.10. The worst performer has been the Pendal share price with a 10% decline following its quarterly update.

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 and has recommended Afterpay Limited. The Motley Fool Australia owns and has recommended Afterpay 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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