- The Australian benchmark index S&P/ASX200 ended Tuesday declining by 0.92% to 7,267.40 points.
- Transurban Group (ASX: TCL) presented itself at the Macquarie Australia Conference 2023 on Tuesday.
- A2B Australia Limited (ASX: A2B) fell 2.848% to AU$1.535 by the end of Tuesday’s trading session.
The Australian benchmark index S&P/ASX200 ended Tuesday declining by 0.92% to 7,267.40 points. Along with it, Transurban Group (ASX: TCL) and A2B Australia Limited (ASX: A2B) decreased 1.876% and 2.848%, respectively.
Let’s look at the reasons causing the fall in the share price of 2 ASX industrial stocks- TCL and A2B.
Transurban Group (ASX: TCL)
The road operator company ended Tuesday lower by 1.876% to AU$14.640.
The company presented itself at the Macquarie Australia Conference 2023 on Tuesday, which mentioned an upgraded FY23 distribution guidance to 58 cps, representing a nearly 41% rise on FY22, along with one cps more than the previously given guidance of 57 cps.
The FY23 guidance was revised due to continued confidence in traffic momentum and better-than-anticipated results on financing costs, which more than offset greater investment in strategic development.
TCL said that it is well-placed for the present inflation and interest rate setting. It is expanding its portfolio in important markets with the opportunity pipeline to back long-term growth.
A2B Australia Limited (ASX: A2B)
The market leader in the personal transport sector fell 2.848% to AU$1.535 by the end of Tuesday’s trading session despite having no price-sensitive news today.
Last week, the company updated that its board and Daniela Fontana have mutually consented to Daniela stepping down as CEO & MD, effective 27 April. Mark Bayliss will continue to lead A2B as its Executive Chairman for the foreseeable future.
Also, on 30 March, A2B Australia notified that it had exchanged contracts for divesting its O’Riordan Street property to an entity linked with Double Space for AU$78 million.
The net amount from divesting the company’s properties in O’Riordan Street and Bourke Road (after costs and repayment of debt) are anticipated to be nearly AU$73 million. The company’s board is planning to return these net proceeds to stakeholders through a 100% franked distribution by 2023 end subject to the completion of the O’Riordan Street property taking place by this date.
The company anticipates a negative effect on EBITDA because of divesting both O’Riordan Street and Bourke Road properties. The lease back of O’Riordan Street should be nearly AU$2 million for FY24, and about AU$4 million for FY25, considering the anticipated timing of the finalisation of both properties.