The Decmil Group Limited (ASX: DCG) share price has been cut in half today after shares resumed trading on the ASX for the first time since mid-May.

Decmil offers a range of services to the Australian resources, infrastructure, transport and energy sectors, specialising in engineering, construction, and maintenance. 

The company has a blue-chip customer base across its core markets, which includes big ASX names like BHP Group Ltd (ASX: BHP), Woodside Petroleum Limited (ASX: WPL) and Origin Energy Ltd (ASX: ORG).

Why the Decmil share price has been cut in half

At the end of last month, Decmil announced a $50 million equity raising to strengthen its balance sheet and provide working capital to fund its pipeline of opportunities.

The equity raising is being undertaken via a pro-rata entitlement offer on the basis of 4.2 new shares for every 1 existing share – at an issue price of 5 cents per share. This represents a 75% discount to Decmil’s last trading price of 20 cents per share on 18 May.

As a result, Decmil shares were punished when they were reinstated to official quotation this morning. As part of being reinstated, Decmil announced the successful completion of the bookbuild for the institutional component of its equity raising.

The company received $30 million of commitments during the institutional bookbuild, along with commitments to partially underwrite up to ~$11 million of the retail component.

Decmil will issue around 600 million ordinary shares under the institutional offer. These shares are expected to commence trading on Wednesday, 10 June 2020.

With the retail entitlement offer being partially underwritten, the equity raising will raise a minimum of $41 million and a maximum of approximately $50 million.

The retail offer is expected to open on Friday, 5 June 2020 and close on Wednesday, 17 June 2020.

Management commentary

Commenting on the rationale behind the equity raising last week, CEO Dickie Dique said:

“Decmil had some significant challenges as we entered 2020, including a tight balance sheet. This capital raising addresses that issue and will set us up well to continue pursuing and delivering profitable new contract opportunities”.

“With a reset balance sheet, ongoing contract wins and a refreshed structure, Decmil will be well placed to continue our business turnaround. We also expect that significant infrastructure spending in Australia over the next few years will further drive this turnaround and return Decmil to robust profitability and strong shareholder returns,” he added.

At the time of writing, the Decmil share price is sitting 50% lower for the day at 10 cents per share after plunging 62.5% at the open.

More reading

• 3 founder-led ASX shares to buy for strong long-term returns
• Zip Co share price rockets 44% higher on U.S. expansion news
• Is the CSL share price a buy?
• Could Goldman Sachs’ 2020 predictions for the US share market spell the end of the ASX 200s remarkable rise?
• The 3 ASX tech stocks that helped this fund manager outperform in May

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.

The post Why the Decmil share price is plummeting 50% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cqY3FW

The performance of ASX shares last month defied the market adage of selling in May. But there’s one fund manager whose smile is bigger than most.

This is listed investment manager Monash Absolute Investment Company Ltd (ASX: MA1) as it reported a 12.8% gain in the value of its portfolio in May, which is nearly double the gain on the S&P/ASX 200 Index (Index:^AXJO).

There are a few factors that pumped up the fund’s alpha (performance above the wider market), but its managers credit three ASX tech stocks for doing more of the heavy lifting.

Firing the afterburner

One was the Afterpay Ltd (ASX: APT) share price, which surged 52% last month on the back of two announcements.

The buy now, pay later darling attracted a large investment from China tech titan Tencent Holdings Ltd, which quelled doubts about Afterpay’s outlook and valuation.

Afterpay then surprised the market by announcing it hit five million active customers in the US – a 30% to 40% increase over its weekly run rate from January to February.

However, in a sign that the Afterpay share price may be close to fair value, the fund sold some of its holdings although it said Afterpay remains one of its largest holdings.

Good buy

The second stock that made a big contribution to Monash’s big month was the Kogan.com Ltd (ASX: KGN) share price.

The online retailer’s stock jumped 41% in May as it was one of the few that benefited from the COVID-19 lockdown that drove people to shop on the web.

“We had sold out of Kogan in late February on COVID-19 concerns about its supply chain. The stock subsequently fell and rebounded,” said the fund manager.

“Once it was clear to us there [sic] supply chain issues were limited we bought back into the stock.

“A week after we rebuilt our position it had a positive business update and the stock price continued run.  It ran all the way through May too and we started to take profits.”

The fund manager completely sold out of the stock after making around 50% profit.

Paying off

Another stock that Monash did well out of was EML Payments Ltd (ASX: EML) share price, which jumped 30% that month.

The fund sold some of its holdings before the payment solutions group withdrew earnings guidance due to the coronavirus turmoil even though it said business trends remained favourable.

“With EML however, we managed to rebuild our position close to that low point, in mid-March,” said the fund manager.

“A strong rally started soon after when EML announced a renegotiated outcome for its PFS acquisition, resulting in a strong capital position. A further business update later in May was well received by the market.”

Monash sold a modest amount of shares in EML to control its portfolio weighting.

More reading

• 3 founder-led ASX shares to buy for strong long-term returns
• Could Goldman Sachs’ 2020 predictions for the US share market spell the end of the ASX 200s remarkable rise?
• 3 investing secrets for success with ASX shares
• Is the a2 Milk share price too high to buy?
• ASX 200 investor in your 40s? 3 shares to buy now

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Emerchants 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 The 3 ASX tech stocks that helped this fund manager outperform in May appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3eFs6eB

Investing is one of those disciplines you may never truly master. Even the great Warren Buffett has (and does) make mistakes. All we can hope is to learn from our mistakes and get a little better each day.

As part of my own journey, I like to study what works for the world’s best investors like Buffett and what doesn’t. So here are three investing ‘secrets to success’ I’ve observed experts using which I try and implement into my investing style.

Secret 1: Be your own person

One of the downsides to the rise of the internet is how many different opinions are accessible and can influence your own. For every good idea you have, you can be sure there are ten articles that will completely shoot you down.

Not letting these get in the way of a good high-conviction idea you have is a secret to success. Remember, Afterpay Ltd (ASX: APT) was under $9 a share just two months ago and many said it was done as a company. Today, it’s over $47 a share.

2) Don’t trade your profits away

For some reason, popular culture often paints successful investors as traders – jumping in and out of shares a hundred times a day. This couldn’t be further from the truth in my view. In contrast, the most successful investors I’ve observed (like Warren Buffett and Charlie Munger) seem very happy to not do a whole lot most of the time.

Instead, they wait for once-in-a-decade opportunities to buy the companies they like at the right price. Buffett himself was said to want to own Coca-Cola shares ever since he was a child. But he waited until 1987 (when he was 57 years old) to buy his first tranche. Now that’s patience.

3) Most investors are better off buying the index

Here at the Motley Fool, we think anyone with the right attitude and decent experience can outperform the market over time and get awesome returns. But the sad truth is, most retail investors (and many professional fund managers) simply don’t. As such, these investors would have been better off just buying an index fund like the Vanguard Australian Shares Index ETF (ASX: VAS).

I’m not saying that everyone should just give up and ‘buy the index’. But it’s a sobering statistic that any investor who wants to become successful should always keep in mind.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why the Zip Co share price rocketed 57% higher in May
• 3 top Warren Buffett quotes to start your week right
• I don’t normally buy ETFs, but I would buy these 2
• This ASX fintech share is up 489% since March

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. 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.

The post 3 investing secrets for success with ASX shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gNZzpk

The A2 Milk Company Ltd (ASX: A2M) share price has been one of the standout performers on the S&P/ASX 200 Index (ASX: XJO) during the coronavirus crisis. 

Despite a bit of a push back during May, the company’s share price has risen strongly since the end of January. Sitting at $14.51 only 4 months ago, a2 Milk’s shares are now trading at $17.26 at the time of writing. These gains also follow on from a strong share price rally throughout last November.

Is the a2 Milk share price still a buy?

Strong growth during the March quarter

Let’s first take a recap on a2 Milk’s recent financial and operational performance.

In a trading update in late April, a2 Milk outlined that it has continued to see strong growth since late February, across all regions.

Revenue for the March quarter was in fact, above expectations. The coronavirus pandemic saw many consumers stock up a2 Milk’s products, especially through online and reseller channels.

In particular, demand for its infant nutrition products sold in China and Australia has been very strong.

EBITDA margin predicted to exceed expectations

In addition, higher levels of marketing investment in China and the USA will hopefully pay off for a2 Milk. Both these markets still offer huge growth potential.

This investment is likely to help deliver higher overall revenue growth across key regions during FY 2020. It is also likely to lift a2 Milk’s full year EBITDA margin above the range it advised in February.

It is now predicted to be between 31% to 32%, assisted partly by favourable currency exchange rate movements.

A very healthy result, if it can be achieved.

Is it too late to buy shares in a2 Milk at today’s price?

a2 Milk has been among the top performing shares on the ASX since it listed back in 2015.

The company has cleverly evolved into a highly trusted and recognised brand, renowned for its quality. a2 Milk is now also a very profitable business, after initially running at a loss.

I see no reason why the a2 Milk success story can’t continue, driven by very strong growth opportunities in North America and China.

However, the a2 Milk share price is now definitely looking at bit pricey.

Furthermore, the coronavirus crisis has added some uncertainty regarding earnings growth over the short term with the possibility that both supply chains and consumer demand will be impacted. This could bring about further share price volatility for a2.

Having said that, I still think the company represents a reasonably good buy and hold option for investors with a long-term investment horizon.

I prefer it over other infant formula providers such as Bubs Australia Ltd (ASX: BUB) and Nuchev Ltd (ASX: NUC).

Over the next 5 years I think a2 Milk will continue to be a strong performer and that this is likely to translate to above average share price growth.

More reading

• ASX 200 investor in your 40s? 3 shares to buy now
• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• Is the Newcrest Mining share price a buy?
• Is the NAB share price cheap today?
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears

Phil Harpur owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended BUBS AUST 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.

The post Is the a2 Milk share price too high to buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36Tn4J2

On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX 200 shares:

Costa Group Holdings Ltd (ASX: CGC)

According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this horticulture company’s shares to $2.87. The broker felt that Costa’s annual general meeting update last week was reasonably mixed. And while there were positives in respect to demand and pricing, it wasn’t enough to warrant a change in rating by the broker. The Costa share price is trading at $3.15 this afternoon.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Citi have downgraded this jewellery retailer’s shares to a sell rating and cut the price target on them to $5.85. According to the note, the broker believes the recovery in the Lovisa share price over the last couple of months has been overdone. Especially as it believes Lovisa could fall short of consensus earnings estimates over the medium term. This is due to changing consumer preferences, lower shopping centre traffic, and a slowdown in its store network expansion. Lovisa shares are changing hands at $7.80 on Tuesday.

Vicinity Centres (ASX: VCX)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $1.25 price target on this shopping centre operator’s shares. This follows the company’s announcement of a $1.2 billion placement and the cancellation of its final dividend. Outside this, it fears that Vicinity’s rent rates will fall heavily due to the pandemic and weigh on its income. The Vicinity share price is trading at $1.55 this afternoon.

More reading

• Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower
• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• The latest ASX 200 stocks to be upgraded by top brokers
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP 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.

The post Leading brokers name 3 ASX shares to sell today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Xoab6r

The Bionomics Ltd (ASX: BNO) share price is charging higher today, up 16.67% at the time of writing on the back of a subscription agreement announcement.

Bionomics is a clinical-stage biopharmaceutical company that develops treatments for central nervous system disorders, such as anxiety, depression and Alzheimer’s disease.

Bionomics has a portfolio of drug candidates from early to mid stages of clinical development. This portfolio is fed by the company’s proprietary technology platforms for each step in the drug discovery and development process.

Before we dig into the announcement, it’s important to note that we’re very much at the smaller end of the ASX here. Bionomics shares are currently changing hands at 5.6 cents per share, taking market capitalisation to around $30 million.

Why the Bionomics share price is jumping higher today

This morning, Bionomics announced it has entered into a subscription agreement with Apeiron Investment Group to recapitalise the company and assist in securing further equity capital.

Over the last few years, Apeiron has made investments in several European and US-based biotech companies, with a particular focus on the development of novel treatments for various mental health disorders.

Under the subscription agreement, Apeiron agrees to subscribe or procure subscriptions of 135.83 million shares at an issue price of 4 cents per share – raising $5.43 million. This is to proceed in 2 tranches of 81.5 million shares and 54.33 million shares, with the second tranche being subject to shareholder approval.

On top of this, Apeiron also agrees to underwrite further capital raisings by Bionomics within a 15-month period from an extraordinary general meeting of shareholders (EGM) to be convened. This will have the effect that Bionomics will raise up to $15 million at a minimum issue price of 6 cents per share – subject to approvals from shareholders and the Foreign Investment Review Board (FIRB).

What does this mean?

Overall, if shareholder and FIRB approvals are received, Bionomics expects to raise between $20.4 million and $22 million. This would ensure that the company has significant funds to progress phase 2 clinical trials for its lead compound, BNC210, for the treatment of PTSD and other anxiety and stress-related disorders.

In November 2019, BNC210 received Fast Track Designation from the US Food and Drug Administration (FDA) for the treatment of PTSD.

The recapitalisation will commence with the issue within Bionomics’ existing placement capacity of 81.5 million shares – the first tranche raising $3.26 million. Following completion, Apeiron will own approximately 13% of Bionomics and will be invited to nominate a director to the board.

After this, Bionomics will then call an EGM seeking approval to place a further 54.33 million shares – the second tranche raising $2.17 million. If this proceeds, Apeiron will own approximately 19.9% of Bionomics and will be invited to nominate a second director to the board.

As part of the subscription process with Apeiron, after the completion of the second tranche, an entitlement offer will be launched for eligible shareholders to purchase up to 54.33 million shares at 4 cents per share – the same price as the Apeiron subscriptions across the 2 tranches.

Commenting on today’s update, Bionomics chair Dr Errol De Souza said:

“We are pleased to have secured the support of a world-class and like-minded life science investor of the quality of Apeiron . . . The funding will ensure that we can initiate our second Phase 2b clinical trial in PTSD, which the Board believes will provide shareholders the best prospects to realise value in the Company.”

More reading

• 3 investing secrets for success with ASX shares
• Is the a2 Milk share price too high to buy?
• Leading brokers name 3 ASX shares to sell today
• ASX 200 investor in your 40s? 3 shares to buy now
• Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower

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.

The post Bionomics share price jumps 17% on subscription agreement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3coUErd

S&P/ASX 200 Index (ASX: XJO) investors in their 40s still have 15–25 years until retirement. Investors in this demographic are generally at the peak of their income-earning potential. This should allow them to invest significant amounts of capital into the share market, with plenty of time to generate compounding returns.

ASX 200 investors in their 40s

As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares will be fantastic options for most investors in their 40s, but not for all. 

With so much time left until retirement, growth shares are still a fantastic option for investors in their 40s.

3 best ASX 200 shares to buy now

Nanosonics Ltd (ASX: NAN)

Nanosonics employs a razor and blade business model that I am a huge fan of. The company sells its Trophon disinfection machines at near cost price but then sells high margin consumables to the installed base of users. This provides amazing economics for a business that can grow its installed base.

Nanosonics has said their Q4 and thus FY20 installed base growth may be impacted by direct access to hospitals. Prior to this, their global installed base grew 17% in the last 12 months and 8% in the last 6 months. 

Magellan Financial Group Ltd (ASX: MFG)

Magellan has been an incredible investment since it was founded in 2006 by Hamish Douglass and Chris Mackay. Over the last 15 years, the Magellan share price has provided total returns of nearly 35% per annum.

Magellan offers two market-leading strategies, global equities and global listed infrastructure. The business has multiple funds on offer on the ASX and earns revenue through management fees and the like.

The share price is currently down 21% from its 14 February highs.

Resmed Inc (ASX: RMD)

Resmed is one of the few businesses to have benefited from the coronavirus pandemic, but that doesn’t mean it isn’t a great buy for the long term. 

The medical device company has a large total addressable market, with a focus on sleep apnea. Sleep apnea is majorly under-diagnosed, meaning education is important. As more people become aware of the condition, Resmed could grab market share in a growing market thanks to its high-quality products.

Further to this, the company has more recently looked at data and analysis as growth drivers. The share price is currently 10% below its 20 February highs, presenting a nice long term entry point.

Foolish bottom line

It’s worth noting that I own two of these ASX 200 shares, despite being in my mid-20s. Why? Because they are high-quality businesses with a proven track record over the long term.

More reading

• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• Is the Newcrest Mining share price a buy?
• Is the NAB share price cheap today?
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 2 ASX 200 shares to watch on Tuesday

Lloyd Prout owns shares of Nanosonics Limited and Resmed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. 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 Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and ResMed Inc. 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 ASX 200 investor in your 40s? 3 shares to buy now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZYRqs7

In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower. At the time of writing the benchmark index is down 0.2% to 5,806.9 points.

Four shares that have not been able to follow the market higher today are listed below. Here’s why they are dropping lower:

The Evolution Mining Ltd (ASX: EVN) share price has fallen 2.5% to $6.14. A slight softening of the gold price is weighing on the gold miners today. In other news, this morning Evolution responded to media speculation and confirmed that it has been evaluating the possible divestment of its Cracow gold mine.

The Iress Ltd (ASX: IRE) share price has fallen 2% to $11.00. This morning the financial technology company’s shares returned from a trading halt after raising $150 million via an institutional placement. These funds were raised at $10.42 per new share, which represents a discount of 7%. The proceeds will be used to acquire Onevue Holdings Ltd (ASX: OVH).

The Pro Medicus Limited (ASX: PME) share price is down 3% to $28.48. The catalyst for this appears to be a broker note out of UBS this morning. It has downgraded the healthcare imaging software provider’s shares to a neutral rating with a $29.65 price target. While the broker likes Pro Medicus and was pleased with its latest contract win, it isn’t a fan of its current valuation.

The Vicinity Centres (ASX: VCX) share price has returned from its trading halt and dropped 3.5% to $1.54. This follows the completion of the shopping centre operator’s $1.2 billion institutional placement. Vicinity raised the funds at $1.48 per share, which represents a discount of 8% to its last close price. The proceeds will be used to strengthen its balance sheet during the tough trading conditions it is facing.

More reading

• ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting
• Why you might want to own ASX mining shares in 2020
• Forget cheap stocks. Why investors should watch ASX gold shares instead
• The latest ASX 200 stocks to be upgraded by top brokers
• ASX 200 up 0.6%: NAB charges higher, ACCC investigates Qantas acquisition

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended IRESS 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 Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gJIxbS

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.

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.

The post ASX 200 down 0.1%: Big four banks drag ASX lower ahead of RBA meeting appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2MoomSw