ASX travel stocks experienced a solid takeoff today.
The post Here’s why travel shares led the ASX 200 on Monday appeared first on The Motley Fool Australia. –
Monday has been a big day for ASX 200 travel shares as the sector faced numerous exciting happenings.
Earlier this afternoon (Australian time), the United States’ international borders were flung open to vaccinated travellers.
However, there was perhaps more exciting news for ASX market watchers. This morning, Sydney Airport (ASX: SYD) confirmed it had agreed to a $23.6 billion takeover offer.
Though, it was the ASX 200 travel agents that walked away with the best wins.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.06% today.
Let’s take a closer look at the news that likely piqued the market’s interest in the ASX 200 travel sector on Monday.
ASX 200 travel shares outperform
ASX 200 travel shares had a great day’s trade as the world awaited the United States’ international borders reopening, which happened the moment the market closed.
As of 12:01 am eastern standard time Monday (3:01 pm AEST and 4:01 pm AEDT), vaccinated travellers from all over the world are welcome to travel to the United States for non-essential purposes.
It’s the first time non-essential travel has been allowed into the United States since March 2020 when then-President Donald Trump slammed the borders shut to help stop the spread of COVID-19.
Perhaps in anticipation, some United States-based travel shares surged higher on Friday. Expedia Group Ltd (NASDAQ: EXPE) gained 15% on Friday, while Airbnb Inc (NASDAQ: ABNB) soared 12%.
Those gains might have helped inspire today’s movements on the ASX.
Meanwhile, the market was spoilt by exciting news from Sydney Airport on Monday.
The ASX-listed airline has accepted the Sydney Aviation Alliance’s takeover bid of $8.75 per share.
Though, shareholders might want to wait before getting too excited. The acquisition is still subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. It will also need to be approved by 75% of Sydney Airport’s shareholders.
The post Here’s why travel shares led the ASX 200 on Monday appeared first on The Motley Fool Australia.
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