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ASX 200 lunch time report: Afterpay, Fortescue, & Vocus lower

The S&P/ASX 200 index has followed the lead of U.S. markets and dropped lower on Monday. At lunch the benchmark index is down 0.2% to 6,539.1 points.

Here’s what has been happening on the benchmark index today:

Bank shares higher.

It has been a positive start to the week for all the big four banks. Possibly due to encouraging auction results at the weekend, bank shares have been pushing higher on Monday. Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares are leading the way with gains of 0.8% and 0.7%, respectively.

Resources sector lower.

Weakness in the resources sector has acted as a drag on the Australian share market on Monday. The worst offenders have been the Fortescue Metals Group Limited (ASX: FMG) share price which is down 4.5% and the Rio Tinto Limited (ASX: RIO) share price which has fallen 2%. A pullback in iron ore prices appears to be behind this weakness.

AGL pulls out of Vocus deal.

The Vocus Group Ltd (ASX: VOC) share price has crashed 30% lower after AGL Energy Limited (ASX: AGL) pulled out of a deal to acquire the telco company following a period of due diligence. The energy retailer wasn’t convinced that the deal would add value for its shareholders.

Afterpay slides again.

The Afterpay Touch Group Ltd (ASX: APT) share price has continued to slide lower amid concerns over AUSTRAC’s audit of the payments company. Investors appear to be worried that the financial intelligence agency could force changes to the way it operates its platform. The Afterpay share price is down 4% at lunch.

Best and worst performers.

The best performer on the benchmark index at lunch is the Emeco Holdings Limited (ASX: EHL) share price with a gain of 9%. Its shares have been on fire since the release of a positive trading update last week. Going the other way, Vocus is far and away the worst performer on the ASX 200 at lunch with its 30% decline. The next worst performer is the Pilbara Minerals Ltd (ASX: PLS) share price which has sunk 5% lower following a disappointing update.

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Motley Fool contributor James Mickleboro 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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