At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and dropped lower. The benchmark index is currently down 0.5% to 5,982 points.

Here’s what is happening on the market today:

Bank shares tumble.

The big four banks have taken a tumble today and are acting as a drag on the ASX 200 index. At lunch, all four banks are in the red. The worst performer in the group has been the Westpac Banking Corp (ASX: WBC) share price with a decline of 1.7%. The Commonwealth Bank of Australia (ASX: CBA) share price is the best performer in the four with its 0.25% decline.

Afterpay raises $650 million.

The Afterpay Ltd (ASX: APT) share price is trading lower today after returning from its trading halt. The payments company’s shares were halted on Tuesday while it undertook an institutional placement. This morning Afterpay successfully raised $650 million after receiving strong support from existing and new shareholders. The company was able to raise the funds at $66.00 per new share. This represents a discount of only 2.9% to its last close price and compares favourably to its underwritten floor price of $61.75 per new share. It will now push ahead with its $150 million share purchase plan.

Northern Star update.

The Northern Star Resources Ltd (ASX: NST) share price is storming higher on Wednesday after the release of the gold miner’s fourth quarter update. Northern Star generated underlying free cashflow of $217.9 million from the sale of 262,717 ounces of gold during the second quarter. This took its FY 2020 sales to 900,388 ounces from gold production of 905,177 ounces. In addition to this, due to its strong financial position, the gold miner has announced that it will pay its postponed interim dividend next week.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the Northern Star share price with a 5.5% gain. This follows its fourth quarter update. Going the other way, the worst performer is the Domain Holdings Australia Ltd (ASX: DHG) share price with a 5% decline. Investors appear concerned that the lockdowns in Melbourne could have a negative impact on property listings.

More reading

• QuickFee share price plummets 10% despite record results
• The Afterpay share price among ASX stocks hit by a broker downgrade today
• Why Afterpay, Alumina, Magellan, & Webjet shares are dropping lower
• Why Coles, Kogan, Northern Star, & Splitit are charging higher
• Afterpay share price lower after raising $650 million via institutional placement

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of AFTERPAY T 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 Afterpay Ltd (ASX: APT) share price fell in early trade but that was always to be expected in the wake of its capital raise, although that isn’t the only thing pressuring the market darling.

The buy-now, pay-later (BNPL) superstar fell 1.7% to $66.87 as it emerged from its trading halt after launching an $800 million capital raise yesterday.

Stocks normally trade lower in the aftermath of such news as new shares are sold at a discount to the last traded price. Even gravity defying Afterpay is no exception.

Uncertainties piling up

But the stock is facing another headwind as Macquarie Group Ltd (ASX: MQG) downgraded the stock to “neutral” from “outperform” today.

While the broker was impressed with the group’s accelerating sales momentum and customer sign-ups in key markets, these weren’t enough to keep recommending Afterpay as a buy.

“Afterpay’s execution is strong across all three key markets. The acceleration in growth during the current half bodes well for momentum in the years ahead, and for entry into new markets,” said Macquarie.

However, there are a number of uncertainties facing the stock and given its stellar share price run, the broker thought it prudent to pare its enthusiasm on the tech darling.

Macquarie’s 12-month price target on Afterpay is $70 a share.

Running out of fizz

Another S&P/ASX 200 Index (Index:^AXJO) stock to get hit with a downgrade is the Coca-Cola Amatil Ltd (ASX: CCL) share price.

The popular beverages group dipped 0.2% to $8.74, which isn’t too bad considering that Credit Suisse chopped its rating to “neutral” from “outperform”.

Perhaps perceptions of the group’s relatively defensive characteristics is keeping Coca-Cola Amatil in good stead with investors as the COVID-19 pandemic rears its ugly head again.

But this is precisely why Credit Suisse downgraded the stock. The second lockdown of large parts of Victoria to combat a second wave of coronavirus infections is a negative for sales.

Around half of beverage sales under the group are sold at restaurants, cafes and other leisure businesses. These businesses will be forced to close for six weeks from tomorrow and the broker estimates that Victoria accounts for around a fifth of national beverage consumption.

The Victorian shutdown will likely exacerbate another negative trend that Credit Suisse observed in the last few months.

“Early signs of consumers seeking value in the beverage category are emerging as we lap the container deposit schemes and contend with the pandemic’s economic effects,” said the broker.

“Discount water volume has started to grow above category rates again. Our data is lagged (March) and the trend is apparent for but a few months.”

Credit Suisse’s price target on the stock is $9 a share.

Getting too rich

Meanwhile, the Magellan Financial Group Ltd (ASX: MFG) share price is also under pressure this morning.

Shares in the international fund manager fell 1.6% to $62.99 at the time of writing after Citigroup downgraded its call on the stock to “neutral” from buy”.

Just like Afterpay, the Magellan share price is a strong performer and there’s lots to like in the stock. But Magellan may have run too high too fast.

“We remain attracted to MFG’s positive leverage to equity markets, solid investment performance and strong net cash,” said Citi.

“But following share price rise of ~90% since late March and a FY21E PE of ~26x currently, we see the risk reward as less compelling.”

However, the broker did lift its earnings forecast for the group to reflect the strong rally in global equities and the group’s ability to collect more performance fees for the strong returns.

This pushes Citi’s share price target on the group to $66 from $40 a share.

More reading

• QuickFee share price plummets 10% despite record results
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble
• Why Afterpay, Alumina, Magellan, & Webjet shares are dropping lower
• Afterpay share price lower after raising $650 million via institutional placement
• Why the IGO share price could outperform other ASX stocks on this gloomy day

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T 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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When it comes to buying ASX shares, most investors will select investments that suit their particular ASX share focus. Those investors who invest for dividend income will normally pick an ASX dividend payer for their portfolio. Conversely, if you’re a growth investor, you might choose a company that has been growing their revenue at a high rate, even if it doesn’t necessarily pay a dividend.

But the 2 ASX shares I name below would fit well into any ASX portfolio, in my view. I think both offer solid growth prospects, the potential for dividend income and are trading at a fair valuation today. And best of all, I’m putting my money where my mouth is because I own both. Here they are:

Ramsay Health Care Limited (ASX: RHC)

Ramsay is the largest operator of private hospitals in Australia and also has a growing presence overseas. I love Ramsay as I think it is well-positioned to take advantage of our ageing population demographics with its top-notch hospitals. Ramsay has long been a growth share. It has delivered investors an average of nearly 17% per annum over the past 10 years (not including dividend returns).

Speaking of dividends, it was disappointing to learn that Ramsay is set to break its 20-year streak of annual dividend increases in 2020. However, I acknowledge this was a move made with prudence in mind. I’m sure Ramsay is set to resume its dividend growth in 2021 and beyond.

I’m excited about my own position in Ramsay and I look forward to benefitting from the company’s great management and business expansion plans for years to come.

VanEck Vectors Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) is one of my favourite investments. It’s not an index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ). Rather, it only invests in a select group of US companies that have characteristics that indicate the presence of a ‘wide moat’.

A moat is a concept popularised by Warren Buffett and translates into a durable competitive advantage a company might possess. This ‘moat’ protects the company from competition and disruption. Apple is a great example of a company with a wide moat. Think about Apple’s brand power. It enables the company to charge relatively high prices for its products compared with any competitor. Not a bad trait for an investment to have.

At the time of writing, the MOAT ETF has 47 holdings. These include famous names like American Express, Amazon.com, Boeing, Buffett’s own Berkshire Hathaway, and Harley Davidson. I’m more than happy to own such a basket of famous brands myself.

MOAT has returned an average of 15.69% over the past 5 years. A  pretty good showing from an ETF. As such, I think MOAT can merit a place in any ASX portfolio, but especially those lacking in some American exposure.

More reading

• Do you have $5,000 to invest? Here are the ASX shares I would buy right now
• Is the Ramsay Health Care share price a buy?
• 3 of the best blue chip ASX 200 shares to buy in July
• Do you want to get rich by investing? Then do this
• Australian businesses are running out of cash

Motley Fool contributor Sebastian Bowen owns shares of American Express, Ramsay Health Care Limited, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia has recommended Ramsay Health Care Limited and VanEck Vectors Morningstar Wide Moat ETF. 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 S&P/ASX 200 Index (ASX: XJO) is having a mixed day and is down slightly in late morning trade. At the time of writing the benchmark index is down a few points to 6,011.2 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The Afterpay Ltd (ASX: APT) share price has fallen 1.5% to $67.02. This follows the successful completion of the payments company’s institutional placement. Afterpay raised $650 million via a placement which was strongly supported by existing and new shareholders. As a result of the support, the placement price rose to $66.00 per new share. This represents a discount of just 2.9% to its last close price and compares favourably to its underwritten floor price of $61.75 per new share.

The Alumina Limited (ASX: AWC) share price is down 5% to $1.62. This morning the company revealed that the ATO is going after the local operation of US aluminium giant Alcoa. Alumina has a 40% interest in the business. The tax office has hit Alcoa of Australia with a bill of over $900 million due to transfer pricing allegations.

The Magellan Financial Group Ltd (ASX: MFG) share price has dropped 1.5% to $63.17. This morning analysts at Citi downgraded the fund manager’s shares to a neutral rating with a $66.00 price target. Although it is a fan of the company, it appears to believe its shares are fully valued now. On Tuesday Magellan released its latest funds under management update and revealed net fund inflows of $249 million.

The Webjet Limited (ASX: WEB) share price is down 3% to $3.19. A number of travel shares have been sold off today amid concerns over the recovery of the domestic travel market. This follows the announcement of a six-week lockdown in Melbourne after a spike in coronavirus cases. These latest lockdowns will impact around five million people.

More reading

• Afterpay share price lower after raising $650 million via institutional placement
• Afterpay and 1 other ASX share to buy and hold beyond 2025
• Why Etherstack and these shares were the most traded on the ASX last week
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops on return of lockdown in Melbourne

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T 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 Saracen Mineral Holdings Limited (ASX: SAR) share price is edging higher today after the gold miner reported record gold production for FY20. Gold production for the full year was 520,414 ounces, above the company’s previous guidance of +500,000 ounces. Production of more than 600,000 ounces of gold is slated for the current financial year. 

About Saracen Mineral Holdings

Saracen Mineral Holdings is an Australian gold mining company that operates three mines near Kalgoorlie, Western Australia. These consist of the Carosue Dam, Thunderbox, and 50% of the Super Pit. The Saracen share price has benefitted from the rise in gold prices over 2020. The company’s shares have risen from a low of $2.91 in March to their current price of $6.12, at the time of writing. The increasing share price resulted in Saracen joining the S&P/ASX 100 (ASX: XTO) in the most recent quarterly rebalance. 

What did Saracen report? 

Sarcen released a trading update this morning which revealed its FY20 full year production was above guidance. In the June quarter, Saracen produced 145,830 ounces of gold, contributing to a full year production of 520,414 ounces. 

Managing Director, Raleigh Finlayson, commented “We have now met or exceeded guidance for seven straight financial years”. He went on to say “We are also meeting our undertakings to continue to drive growth and we expect this to be clearly evident in our strong news flow over the coming months”.

Saracen reported gold sales of 148,011 ounces in the June quarter at an average price of $2,280 per ounce. This resulted in sales receipts of $337.5 million. At the end of the June quarter, Saracen had a net cash position of $48 million. This was up from a net debt position of $21 million at the end of the March quarter. 

What is the outlook for the Saracen share price? 

Like other gold miners, the Saracen share price has been lifted by the increase in the price of gold. This has risen from below $2,300 per ounce in January to nearly $2,600 per ounce currently. Further news is expected out of Saracen in the coming months. This will include detailed information on the performance of its mines as well as the company’s full FY20 results. To date, COVID-19 has had a limited impact on the company, which has continued to execute its long-standing strategy to future-proof the business. 

More reading

• Is the NextDC share price still a buy despite hitting an all-time high?
• Why Domino’s and these ASX 200 shares have just hit new highs
• 5 things to watch on the ASX 200 on Friday
• Should you buy ASX gold shares like Saracen Minerals in July?
• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses

Motley Fool contributor Kate O’Brien 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 Carbon Revolution (ASX: CBR) share price crashed more than 30% lower in early trade following the company’s recent trading update. Carbon Revolution shares are currently sitting at $1.40 per share, a drop of 29.75%.   

COVID-19 impacting demand

Earlier today, Carbon Revolution released a market update that highlighted the impact of COVID-19 on its global automotive supply chains. Given the evolving nature of the COVID-19 pandemic, Carbon Revolution informed the market that sales growth and demand for its wheels in the first quarter of FY21 will be affected.

As a result, the company also withdrew is guidance for FY20 and has implemented a series of operational changes. These changes include a reduction in its production workforce and the restructuring of working shifts. The company’s management believe that the changes will have no effect on the medium to long-term demand for its wheels or growth prospects.

How has Carbon Revolution performed?

Carbon Revolution is an Australian-based company that manufactures lightweight, carbon fibre wheels for the global automotive industry. The company produces wheels which are about 40% lighter than conventional wheels to car makers including Ferrari, Ford and Renault.

In late April, the company released a business update that highlighted the impact of CVOID-19 on its sales. Carbon Revolution noted that the business had been impacted by disruption of global supply chains, which has affected freight availability, costs and also resulted in supply issues for raw materials. Despite the setbacks, Carbon Revolution reported that wheel sales grew 184% for the third quarter ending 31 March 2020, in comparison to the third quarter of 2019.  

Carbon Revolution began trading on the ASX in late November after a public float with an issue price of $2.60. Market volatility during the COVID-19 pandemic saw the company’s share price sink to an all-time low of 80 cents in late March. Despite the share price volatility, Carbon Revolution was added to the All Ordinaries Index during the June rebalance.

It is also important to note that Carbon Revolutions operations are based in Geelong and could be further impacted given the new restrictions imposed in Victoria.

Foolish takeaway

At the time of writing the Carbon Revolution share price is trading more than 29% lower for the day at $1.40 per share, having hit an intra-day low of $1.36.

More reading

• Why Afterpay, Alumina, Magellan, & Webjet shares are dropping lower
• Saracen share price rising on report of record gold production
• Why Coles, Kogan, Northern Star, & Splitit are charging higher
• Why the Reject Shop share price could be a recession-buster
• ASX small cap SRG Global secures new NZ$25 million contract

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 Carbon Revolution Limited. 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and dropped lower. At the time of writing the benchmark index is down 0.5% to 5,983.7 points.

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

The Coles Group Ltd (ASX: COL) share price is up 1.5% to $17.61. This gain appears to have been driven by news that Melbourne is going into lockdown again to combat the spread of COVID-19. Investors may be betting on the supermarket giant benefiting from panic buying again.

The Kogan.com Ltd (ASX: KGN) share price is up 1% to $16.90. This morning the ecommerce company announced the successful completion of its share purchase plan (SPP). Given the strong support shown by eligible shareholders, Kogan decided to increase the SPP size by $5 million above its original target of $15 million. As a result, it has raised a total of $120 million (including its placement) to fund its future growth.

The Northern Star Resources Ltd (ASX: NST) share price is up 5% to $14.62 after the release of its fourth quarter update. During the quarter, Northern Star generated underlying free cashflow of $217.9 million from the sale of 262,717 ounces of gold. This took its full year sales to 900,388 ounces from gold production of 905,177 ounces. This was 1.6% lower than its withdrawn guidance. The gold miner also announced that it will pay its postponed interim dividend later this month.

The Splitit Ltd (ASX: SPT) share price has jumped 15% to $1.57. This follows the release of the buy now pay later provider’s second quarter update. Splitit reported Merchant Sales Volume (MSV) of US$65.4 million for the second quarter. This was a record 260% increase on the prior corresponding period and a 176% lift on its first quarter MSV.

More reading

• Splitit share price surges 24% higher after record second quarter growth
• Northern Star share price on watch after fourth quarter update
• These ASX shares are swept up by the new Victorian COVID-19 lockdown
• You’re probably a customer of these 3 ASX shares. Should you own them too?
• Why retirees should buy Coles and Telstra shares for income

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Kogan.com 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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