Why APA has been struggling

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Question asked 08/02/2021

Why APA has been struggling

“Hi there All Thank you for taking these questions Much appreciated I have been looking at APA ( Australian Pipeline ) as an income share (yielding 5% plus after some imputation) but the share price has been inching down in recent times . Any thoughts on reasons for the share price decline? Cheers Shane B.

Answer

Morning Shane,

Natural gas infrastructure company APA has struggled of late as global 10-year bond yields have rallied, a trend we believe has only just started. The 5.6% part franked yield is clearly attractive but I wouldn’t be expecting strong capital gains if longer dated bond yields continue to rally.

APA

MM is neutral APA

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Australian Pipeline (APA)

LAST UPDATED 08/02/2021 10:55

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