After a strong start the S&P/ASX 200 index has given back its morning gains. At lunch the benchmark index is trading slightly lower at 6,686.3 points.
Here’s what has been happening on the market today:
The Westpac Banking Corp (ASX: WBC) share price has returned from its trading halt and sunk lower. Investors have been heading to the exits after the bank slashed its final dividend by 15% to 80 cents per share and launched a $2.5 billion capital raising. This morning Westpac successfully completed the institutional component of its capital raising, pulling in a sizeable $2 billion at $25.32 per share.
ANZ, CBA, & NAB rebound.
Westpac may be sinking today, but the rest of the big four have been pushing higher. At lunch all three other major banks are in positive territory, but National Australia Bank Ltd (ASX: NAB) is leading the way with a 0.7% gain. NAB’s shares fell heavily on Monday amid concerns it too might launch a capital raising.
Speedcast credit rating downgraded.
The Speedcast International Ltd (ASX: SDA) share price has crashed over 6% lower after its credit rating was downgraded. S&P Global has lowered its issuer credit rating to B- from B and maintained the outlook as Negative. One positive, though, is that Speedcast does not have a ratings covenant in its debt facilities. As a result, this change has no direct impact on its current funding costs.
Best and worst performers.
The best performer on the benchmark index on Tuesday has been the Pro Medicus Limited (ASX: PME) share price with a gain of 3.5%. This appears to be a delayed reaction to a new contract win on Monday and management’s response to recent industry developments. Going the other way is the Speedcast share price with its 6% decline. And not far behind with a decline of 4.5% is the Westpac share price.
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James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Pro Medicus 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.