The Sydney Airport Holdings (ASX:SYD) share price is on the rise, and with no news from the airport, some investors are scratching their heads.
The post What’s driving the Sydney Airport (ASX:SYD) share price today? appeared first on The Motley Fool Australia. –
Sydney Airport Holdings Pty Ltd (ASX: SYD) shares are up today, and with no news from the airport, some investors are scratching their heads.
Having risen 3.94% from yesterday’s closing price, the Sydney Airport share price is currently trading at $6.20.
While today’s rise is the most significant in a while, the airport’s share price has been climbing since late February. Interestingly, Australians began receiving COVID-19 vaccines around the same time.
Let’s take a deep dive into how the Sydney Airport share price has been behaving lately.
We’ve got lift off
The Sydney Airport share price is once again launching towards a positive year-to-date return. At the time of writing, it’s down by just 3.59% in 2021.
The only news we’ve heard out of the airport this month is its traffic performance report for February. It stated there was a considerable increase in domestic traffic last month when compared with January. The number of domestic travellers using the airport in January 2021 was down 91% compared to January 2020. Whereas February saw only 70% less domestic traffic than the same period last year.
Perhaps this increase in traffic is helping to drive the airport’s share price.
Additionally, its shares have been trending upwards since the first COVID-19 vaccination was given to an Australian on 23 February. Currently, it is 10.95% higher than it was the day before vaccinations began.
There was a visible dip on Thursday last week which still hasn’t quite corrected itself yet. The ASX is a complex beast, but the dip aligns with news of the initial COVID case confirmed in Brisbane, which eventually resulted in the region’s 3-day lockdown.
On that note, perhaps today’s rise reflects this morning’s more positive news from Queensland.
It’s also worth mentioning the Auckland International Airport Limited (ASX: AIA) share price is tracking very similarly. Its currently up by 3.32% today.
What does the future hold?
It would be lovely to have a crystal ball right now, or any time when trying to predict the ASX.
Nearly a fortnight ago, Motley Fool looked at international airport stocks’ share price trajectory. What we are seeing from Sydney Airport shares recently is similar to how many international airport shares rose in value after vaccinations began in other countries.
In fact, Corporacion America Airports (NYSE: CAAP), which operates more airports globally than any other company, saw its share price rise by 20% since US vaccinations began.
No one can predict if, when or where virus outbreaks will pop up in Australia again, particularly since Brisbane is currently in lockdown.
But, if our relatively small COVID-19 outbreaks continue to be but bumps in the road and the global vaccination rollout continues, investors will be hoping to soon see the light at the end of the tunnel for the Sydney Airport share price.
Sydney Airport share price snapshot
The Sydney Airport share price is up by 13.76% over the last 12 months.
It has a market capitalisation of around $16 billion, with 2.7 billion shares outstanding.
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Motley Fool contributor Brooke Cooper 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.