Star (ASX:SGR) share price struggles following lockdown news

With all of its major businesses in Sydney, Brisbane, and the Gold Coast, Star Entertainment could be facing some tough times
The post Star (ASX:SGR) share price struggles following lockdown news appeared first on The Motley Fool Australia. –

Shares in Star Entertainment Group Ltd (ASX: SGR) endured a lacklustre day after an announcement by the company that it will be impacted by Queensland’s lockdown.

At the closing bell, the Star share price was down by 0.27% to $3.63.

Let’s take a look at the lockdown facing parts of Queensland and how it could affect Star Entertainment.

Home you go, Queensland

Queensland’s Premier Annastacia Palaszczuk announced at a press conference earlier today parts of the state will go into lockdown from 6pm tonight until 6pm on Friday.

Southeast Queensland, Townsville, Magnetic Island, and Palm Island will be entering a 3-day lockdown after a travelling hospital worker was found to have COVID-19.

The state’s stay-at-home order will take place while Greater Sydney is undergoing a 2-week lockdown.

The current lockdowns have already caused many ASX travel shares to drop, and investors will be weighing up the possible impact on Star Entertainment.

Star’s lockdown woes

Star Entertainment’s businesses are based in 3 of Australia’s east-coast cities, which are normally a blessing for the hotel and casino operator.

Unfortunately, given the current COVID-19 situation, those cities are Sydney, Brisbane, and the Gold Coast.

Yesterday, Star restated its Sydney casino and hotel, The Star Sydney, will be closed to the public until the end of Greater Sydney’s lockdown. However, it will continue to operate limited hotel facilities.

Sydney’s lockdown was initially for a 7-day period, but it has since been extended. It will now last for a fortnight and end on 9 July.

The company has committed to continuing to pay staff at its Sydney business for the 2-week period.

Today, Star announced it will be closing its remaining casinos at 6pm tonight. The Star Gold Coast and Brisbane’s Treasury Casino & Hotel are expected to reopen on Friday evening. However, there is no guarantee the lockdown will end then.

The company has also committed to keep paying its Queensland-based staff for the duration of the lockdown.

Star Entertainment share price snapshot

The Star Entertainment share price hasn’t been noticeably affected by news of lockdowns. However, its shares have slightly fallen each day since it acknowledged Sydney’s most recent lockdown after close on 25 June. Star shares are currently trading for 1.63% less than they were then.

The Star share price has dropped 2.9% since the start of 2021. However, it’s 33.8% higher than it was this time last year.

The company has a market capitalisation of around $3.4 billion, with approximately 946 million shares outstanding.  

The post Star (ASX:SGR) share price struggles following lockdown news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Star Entertainment right now?

Before you consider Star Entertainment, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Star Entertainment wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 rises, Charter Hall up, Boral jumps

Crown (ASX:CWN) share price lower despite Oaktree proposal
ASX 200 drops, Altium soars, Skycity drops, NAB falls

Star (ASX:SGR) share price latest to fall on anti-money laundering investigation
Crown (ASX:CWN) share price under pressure from AUSTRAC enforcement investigation

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!