The S&P/ASX 200 Index (ASX: XJO) has given back its strong morning gains and is trading flat at lunch. At the time of writing the benchmark index is at 5,944.3 points.

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

Bank shares weigh on ASX 200.

The big four banks have taken a tumble today and are weighing heavily on the ASX 200. All four banks are in the red at lunch, with the Westpac Banking Corp (ASX: WBC) share price the worst performer. Australia’s oldest bank is down 1.3% at the time of writing. One broker that would see this as a buying opportunity is Morgans. It has just named Westpac as its top pick in the group.

Woolworths update.

The Woolworths Group Ltd (ASX: WOW) share price is trading lower at lunch after the release of an update this morning. The conglomerate announced major investments to its supply chain which it ultimately expects to lead to lower costs in the future. It also revealed strong fourth quarter sales growth across the business and its guidance for FY 2020. Woolworths currently expects to report earnings before interest and tax (post-AASB 16 and before significant items) of $3,200 million to $3,250 million.

Challenger shares tumble.

The Challenger Ltd (ASX: CGF) share price has crashed 9% lower after returning from its trading halt. This morning the annuities company announced the successful completion of its $270 million institutional placement. These funds were raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. Challenger also announced that it has no plans to pay a final dividend in FY 2020.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Tuesday has been the Western Areas Ltd (ASX: WSA) share price with a 13% gain. This follows a very positive drilling update this morning. The worst performer is the Challenger share price with its 9% decline. Investors appear to be disappointed with its decision to raise capital and cancel its final dividend.

More reading

• Why Altium, Austal, Challenger, & Mesoblast shares are tumbling lower
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• Why AMP, FlexiGroup, Harvey Norman, & Qube shares are charging higher
• Should you buy ANZ, CBA, NAB, or Westpac? Here’s what this broker thinks
• Woolworths share price higher on major supply chain update and FY 2020 guidance

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Woolworths 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.

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After a strong start to the day, the S&P/ASX 200 Index (ASX: XJO) is tumbling lower in late morning trade. At the time of writing the benchmark index is down 0.7% to 5,903.1 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are charging higher:

The AMP Limited (ASX: AMP) share price has jumped 7.5% higher to $1.90. Investors have been buying the financial services company’s shares after the release of a positive announcement this morning. According to the release, AMP has received all the required regulatory approvals for the sale of AMP Life to Resolution life. It expects the transaction to complete after the market close on 30 June.

The FlexiGroup Limited (ASX: FXL) share price has stormed 8% higher to $1.32. The catalyst for this gain was an update by the financial services company this morning. That update reveals that its buy now pay later business has been growing strongly in the second half of FY 2020. In fact, it now has 2.1 million customers using its interest free services and has generated $2 billion in transaction value over the last 12 months.

The Harvey Norman Holdings Limited (ASX: HVN) share price is up 2.5% to $3.53. This morning the retailer released an update on its performance during the 11 months to 31 May 2020. The company’s unaudited profit before tax for the period was up approximately 20% on the prior corresponding period.

The Qube Holdings Ltd (ASX: QUB) share price has charged almost 4% higher to $2.80. This follows the announcement of an agreement with Woolworths Group Ltd (ASX: WOW) for the development of two new major warehouses across 26 hectares at Moorebank Logistics Park, which is the largest intermodal logistics precinct in Australia. Woolies has signed 20 year leases for the warehouses.

More reading

• ASX 200 flat: Westpac tumbles, Woolworths reveals strong sales growth, Challenger sinks
• Woolworths share price higher on major supply chain update and FY 2020 guidance
• FlexiGroup share price on watch after reporting strong BNPL growth
• ASX supermarket shares on the radar
• Here are 3 Australian share market trends to watch this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended FlexiGroup 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.

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The ASX tourism sector was hammered hard in the early stages of the coronavirus pandemic. As countries closed their borders and went into lockdowns, airlines grounded entire fleets. Australia’s second-largest airline, Virgin Australia Holdings Ltd (ASX: VAH), found the conditions especially difficult to navigate and suspended its shares after going into voluntary administration.   

Australian rival, Qantas Airways Limited (ASX: QAN), hasn’t fared much better, although has kept its head above water. Qantas has cancelled a planned off-market share buyback, slashed costs, and increased borrowings by more than $1.05 billion to sure up liquidity.

A suspension of trading may have been what Qantas shareholders preferred. Considering Qantas shares have plunged close to 40% so far this year.

Travel carnage 

The carnage wasn’t limited to just the airlines. Travel booking agents Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Limited (ASX: CTD) also saw massive selloffs. Flight Centre was hit hard by having a large brick and mortar presence; its shares almost 70% down year-to-date.

But with social restrictions in the early stages of relaxing, interstate borders potentially reopening for tourism in the coming weeks. And with talk of a trans-Tasman travel bubble, could the ASX tourism sector rebound in the near future?

Qantas seems to be taking a balanced perspective. In a May update, the company announced it had sufficient liquidity to support operations if market conditions continued to December 2021. It could also ramp up capacity within roughly a week if demand increased from easing social restrictions.

Even if domestic tourism rates increase, international travel (outside of the potential for New Zealand travel) could stay suppressed for years. It’s very uncertain how countries will manage international travel in the era of coronavirus. Plus, many of us may be unable to afford travel in the short-term with unemployment set to surge. 

I will admit that an investment in any of these companies is a pretty enticing option for contrarian investors. Their shares are trading at historic lows just when some tentative green shoots are beginning to emerge. However, we are still comparing their current valuations against their pre-coronavirus highs and that isn’t a like-for-like comparison. The COVID-19 pandemic has fundamentally changed the ASX tourism sector for possibly years to come.

Foolish takeaway

So, while it’s tempting to have a punt on Qantas or Webjet, a better option might be to strengthen your portfolio with companies in the technology and healthcare space that can continue to generate dependable sources of revenue throughout the crisis.

More reading

• ASX 200 finishes flat, ASX travel shares drop
• The ASX stocks worst hit by second wave COVID-19 fears
• Why Altium, Australian Ethical, Flight Centre, & Transurban are dropping lower
• These are the 10 most shorted ASX shares
• Short-sellers are stepping up their attack against these popular ASX shares

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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 Is it time to buy into ASX tourism companies like Qantas and Webjet? appeared first on Motley Fool Australia.

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