It has been another disappointing day for the S&P/ASX 200 Index (ASX: XJO). Concerns over a potential second wave of COVID-19 in the United States has led to the index crashing 2.4% lower to 5,818 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The Jumbo Interactive Ltd (ASX: JIN) share price is down over 7% to $10.60. As well as being caught up in the market selloff, this morning S&P revealed that the lottery ticket seller would be dumped out of the ASX 200 at the next quarterly rebalance. Jumbo will cease being part of the benchmark index from the market open on 22 June 2020.
The Santos Ltd (ASX: STO) share price is down 4% to $5.37. Investors have been selling Santos and other energy shares on Friday after a collapse on oil prices overnight. Concerns over a potential second wave of coronavirus in the United States has spooked traders. If people are forced into lockdown again, demand for oil could take a major hit.
The Westpac Banking Corp (ASX: WBC) share price has fallen almost 5% to $17.65. Investors have been selling the banks again on Friday after Wall Street’s heavy decline. In addition to this, the banking giant revealed that AUSTRAC is further investigating matters that were brought to its attention by the bank recently. The financial intelligence agency has warned that it may amend its statement of claim to include allegations arising from these investigations.
The Zip Co Ltd (ASX: Z1P) share price has dropped 6% to $6.12 despite releasing another positive trading update. The payments company’s update revealed that its strong growth continued in May. During the month, Zip recorded monthly transaction volume of $189.3 million and revenue of $15.6 million. This was a 63% and 78% increase, respectively, over the same period last year.
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More reading
- ASX 200: improved consumer sentiment to near pre COVID-19 levels
- Zip Co share price tumbles lower despite delivering more stellar growth in May
- S&P quarterly rebalance: A2 Milk added to ASX 50 & NEXTDC in the ASX 100
- ASX 200 to sink lower after Wall Street crashes on second wave concerns
- 5 things to watch on the ASX 200 on Friday
James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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.
The post Why Jumbo, Santos, Westpac, & Zip Co shares are crashing lower appeared first on Motley Fool Australia.
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