At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to follow the lead of U.S. markets and record a sizeable decline. The benchmark index is currently down 2.2% to 5,830.5 points.

Here’s what has been happening on the market today:

Westpac AUSTRAC update.

The Westpac Banking Corp (ASX: WBC) share price is trading notably lower again on Friday. As well as being caught up in the market selloff, an AUSTRAC update could also be weighing on its shares. This morning Westpac revealed that AUSTRAC is further investigating matters that were brought to its attention by the bank recently. Westpac commented that the agency has advised that it may amend its statement of claim to include allegations arising from these investigations.

ASX 200 quarterly rebalance

This morning S&P Dow Jones Indices announced the June 2020 quarterly rebalance of the S&P/ASX Indices. The benchmark index will welcome Centuria Industrial REIT (ASX: CIP), Megaport Ltd (ASX: MP1), Mesoblast limited (ASX: MSB), Omni Bridgeway Ltd (ASX: OBL), and Perseus Mining Limited (ASX: PRU) to the illustrious index. Heading to the exits are Estia Health Ltd (ASX: EHE), Hub24 Ltd (ASX: HUB), Jumbo Interactive Ltd (ASX: JIN), Mayne Pharma Group Ltd (ASX: MYX), Pilbara Minerals Ltd (ASX: PLS), and Pinnacle Investment Management Group Ltd (ASX: PNI).

TPG Telecom special dividend.

The TPG Telecom Ltd (ASX: TPM) share price is pushing higher on Friday after providing an update on its special dividend plans. If its merger with Vodafone Australia completes successfully, TPG Telecom plans to pay a fully franked special dividend in the range of 49 cents per share to 52 cents per share.

Best and worst ASX 200 performers.

The best performer on the ASX 200 has been the TPG Telecom share price with a 2% gain. This follows its special dividend update. The worst performer has been the Platinum Asset Management Ltd (ASX: PTM) share price with a massive 12% decline. Investors may be concerned that Platinum’s fund outflows will accelerate again because of the market volatility.

More reading

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• Estia Health share price tumbles after being cut from the ASX 200
• Why Jumbo, Santos, Westpac, & Zip Co shares are crashing lower
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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 MEGAPORT FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited and MEGAPORT FPO. 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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The Estia Health Ltd (ASX: EHE) share price is tumbling lower today as the ASX responds to bleak trading in the US overnight.

At the time of writing, Estia shares are down 8.39% while the S&P/ASX 200 Index (ASX: XJO) sits 3.10% lower.

Estia Health shares have been included in the benchmark index since March 2015. However, this is set to soon come to an end.

The S&P Dow Jones Indices announced the June 2020 quarterly rebalance of the S&P/ASX Indices this morning. And with a current market capitalisation of just $370 million, it comes as no surprise that Estia didn’t make the cut.

As a result, Estia will cease being part of the benchmark index from the market open on 22 June 2020.

What’s going on with the Estia Health share price?

Estia Health shares were sold-off alongside the rest of the market earlier this year, falling to a 52-week low of 90 cents at the bottom of the March bear market. 

Since then, despite positive investor sentiment driving the market higher, Estia’s rebound has been relatively subdued. Accordingly, the Estia share price is still down more than 40% for the year.

The company’s most recent update was delivered in late May. In the release, Estia shed some light on trading conditions and its financial position.

At the time of the announcement, the aged care provider assured investors that none of its residents had tested positive for COVID-19. However, the company had 3 confirmed cases within its workforce of around 7,500 staff which occurred in March and April.

In terms of operations, occupancy in mature homes fell during the early stages of lockdown restrictions from 93.8% on 17 March to 91.7% on 26 April.

The company attributed the reduction to a number of factors, including the cancellation of travel and elective surgeries, and visitor restrictions.

Nonetheless, Estia Health has been buoyed by government support. At the beginning of May, the government announced a one-off payment to residential aged care providers of either $900 or $1,350 for each resident, depending on the location. As a result, Estia expects the payments to contribute up to $5.2 million of additional revenue in FY20.

Financial position

Looking to the balance sheet, net bank debt at 22 May 2020 stood at $108.5 million. This was an increase of $11.9 million since 31 December 2020. Estia noted that it expects to remain in full compliance with its banking covenants at 30 June 2020 and hasn’t sought covenant relief.

In terms of expenses, the company flagged an increase in staff costs and costs associated with supplying personal protective equipment and other medical supplies. However, as part of its approach to capital management in response to COVID-19, Estia made the move to temporarily defer several refurbishment and development projects.

Prior to this announcement in late May, Estia provided its first COVID-19 update in mid-March and delivered its first-half FY20 results in late-February.

While Estia is exposed to ageing population tailwinds, I believe there are better options out there for income and growth.

More reading

• Tech shares! Should we even invest in anything else?
• Keep a watch on these 3 ASX trends next week
• ASX 200 down 2.2%: Westpac tumbles, TPG reveals special dividend plans
• ASX 200: improved consumer sentiment to near pre COVID-19 levels
• 3 ASX 200 shares to buy and hold for decades

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. 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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The coronavirus pandemic has presented investors with some tremendous investment opportunities. Following its steep decline earlier this year, the S&P/ASX 200 Index (ASX: XJO) has bounced more than 30% from its lows in March. Despite the volatility, quality shares with great, long-term growth potential have come out shining. Here are 2 ASX growth shares that have led the charge and could blossom even further in 2020 and beyond.

Pointsbet Holdings Ltd (ASX: PBH)

The PointsBet share price has bolted an astounding 450% from its lows in mid-March. Yesterday, PointsBet hit a new all time high of of $7.92 before falling back to $6.14 in today’s trade. PointsBet is a corporate bookmaker that offers wagering services for sports and betting products through its cloud-based platform. With local and international sport beginning to resume, investors have acknowledged the boost this will have on the business operations of PointsBet and, subsequently, the growth of the company’s share price.

In a trading update last month, PointsBet highlighted that despite the disruptions of the coronavirus pandemic, the company managed to record ‘net wins’ for both February and March. PointsBet also provided an update on its Australian operations, with the company recording a net win of $18.2 million for the period 1 April to 25 May.

Furthermore, PointsBet elaborated on its agreement to become the exclusive wagering partner for Fox Sports AFL (Fox Footy) for the 2020 season. The agreement highlights PointsBet’s continued approach to targeting media assets to build increased client acquisition and wagering volumes.

Nanosonics Ltd. (ASX: NAN)

The coronavirus pandemic has highlighted the need for better infection prevention and control in medical settings. My second growth share pick, Nanosonics, is a global provider of sterilisation devices to hospitals and healthcare centres. Investors have acknowledged the potential for the company to benefit from the growing demand in this field. This has seen the Nanosonics share price recover more than 50% from its March lows.

Nanosonics boasts a solid revenue model and services a projected 20% of the global market. In addition to generating attractive margins from the sale of its ‘trophon’ devices, Nanosonics also generates recurring revenue from its patented consumable components.

The company released a trading update in early April, informing the market that unaudited sales were significantly up from the prior corresponding period. In addition, Nanosonics also advised that the sale of its consumables were in line with pre-coronavirus expectations.

Should you buy these potential growth shares?

The coronavirus pandemic has put pressure on the earning prospects of many companies on the ASX. As a result, it would be wise for investors to exercise caution and not jump in and attempt to buy growth shares because they ‘look’ cheap. 

However, in my opinion both the PointsBet and Nanosonics share prices have experienced growth because they boast business models capable of withstanding the economic downturn whilst also having great, long-term growth prospects. 

More reading

• 3 great shares to buy now if you’re an ASX 200 investor in your 20s
• Where to invest $500 into ASX shares right now
• The Sezzle and Pointsbet share prices have hit new, all time highs. Time to invest?
• 10 ASX 200 shares that are fit for the Queen
• 3 stellar ASX growth shares I would buy right now

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Nanosonics Limited and Pointsbet Holdings Ltd. 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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