At lunch on Tuesday the S&P/ASX 200 index looks to have run out of steam. At the time of writing the benchmark index is down a few points to 6,846.1 points.
Here’s what is happening on the market today:
Westpac hit by APRA.
The Westpac Banking Corp (ASX: WBC) share price is trading over 1% lower after APRA formally commenced an investigation into possible breaches of the Banking Act 1959. The regulator also advised that it will impose an immediate increase in Westpac’s capital requirements of $500 million. This is to reflect the heightened operational risk profile of the bank.
ANZ Bank AGM.
The Australia and New Zealand Banking Group (ASX: ANZ) share price has edged lower on the day of its annual general meeting. At the event the bank’s chairman, David Gonski, warned that challenging trading conditions are expected to continue well into the foreseeable future. As will intense competition. However, he believes the bank is “well placed to navigate these challenges” due to its transformation progress.
Northern Star acquisition.
The Northern Star Resources Ltd (ASX: NST) share price remains in a trading halt after announcing the terms of a capital raising to fund a major acquisition. Northern Star has entered into a binding agreement with Newmont Goldcorp to acquire a 50% stake in the Super Pit asset for US$800 million (~A$1,168 million). Northern Star is aiming to part fund this through a $765 million institutional placement at $9.00 per share.
Best and worst performers.
The best performer on the ASX 200 on Tuesday has been the Pro Medicus Limited (ASX: PME) share price with a 6% gain. This appears to be a delayed reaction to its RSNA update on Monday. The worst performer is the Virgin Money UK PLC (ASX: VUK) share price with a 6% decline. This may be down to profit taking from investors after some stellar gains in recent days.
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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 and recommends Pro Medicus Ltd. 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.