The Motley Fool

ASX 200 lunch update: NAB sinks, Westpac shares halted

The S&P/ASX 200 index has followed the lead of U.S. markets and started the week strongly. At lunch the benchmark index is up a solid 0.45% to 6,698.7 points.

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

Westpac results.

Westpac Banking Corp (ASX: WBC) shares are in a trading halt on Monday after the banking giant announced a $2.5 billion capital raising. These funds will be used to strengthen its balance sheet and improve its CET1 ratio. The bank also released its full year results and revealed a 15% decline in profits. This led to Westpac cutting its final dividend down to 80 cents per share. One positive, though, is that it remains fully franked.

Big four banks sink.

Westpac’s weak result, its subdued outlook, and dividend cut have weighed on the rest of the big four banks. All three are trading notably lower at lunch. National Australia Bank Ltd (ASX: NAB) is the worst performer in the group with a 3% decline. Investors may be concerned it will launch a capital raising of its own.

Miners on the rise.

It has been a solid start to the week for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). They are up 2% and 3%, respectively, at lunch after base metal prices climbed higher on Friday. According to CommSec, base metal prices rose by up to 2.2% on the London Metal Exchange at the end of the week.

Best and worst performers.

The best performer on the ASX 200 on Monday has been the CSR Limited (ASX: CSR) share price with a 7% gain. This morning Macquarie retained its outperform rating on the building products company and lifted its price target to $4.80 following its first half results. Going the other way, the NAB share price is the worst performer on the index with a disappointing 3% decline on Monday.

Non-bank Dividend Shares to Buy.

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement. In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now.

All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of National Australia Bank 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!