It has been a volatile day of trade for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. At lunch the benchmark index has given back its late morning gains and is now down 0.1% to 5,812.6 points.
Here’s what has been happening on the market today:
Bank shares drop lower.
The big four banks are trading lower ahead of the Reserve Bank’s meeting this afternoon. At lunch all of the big four are in the red and acting as a drag on the index. The worst performer in the group has been the Westpac Banking Corp (ASX: WBC) share price with a 1% decline.
ANZ asset sale.
The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is trading lower today after announcing an asset sale. ANZ has agreed to sell its New Zealand asset finance business, UDC Finance, to Japan’s Shinsei Bank for NZ$762 million. The sale will provide ~A$439 million (~10bps) of Level 2 Group CET1 capital at settlement. It will also release more than NZ$2 billion of funding provided by ANZ New Zealand.
Vicinity completes placement.
The Vicinity Centres (ASX: VCX) share price has dropped lower after returning from its trading halt. This follows the completion of its $1.2 billion institutional placement. These funds were raised at $1.48 per share, representing a discount of 8% to its last close price. Management advised that the equity raising will strengthen its balance sheet and provide the shopping centre operator with flexibility to respond to the uncertainty caused by COVID-19 and the evolving retail landscape.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Tuesday has been the Domain Holdings Australia Ltd (ASX: DHG) share price with an 8.5% gain. This may be down to better than expected Australian house price data. The worst performer has been the Vicinity share price with a 3.5% decline after its placement.
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More reading
- ASX 200 investor in your 40s? 3 shares to buy now
- Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower
- Is the Newcrest Mining share price a buy?
- Is the NAB share price cheap today?
- ANZ share price climbs higher on asset sale
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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