At lunch on Monday the S&P/ASX 200 index is on course to start the week in the red. At the time of writing the benchmark index is down 0.3% to 6,796.8 points.
Here’s what is happening on the market today:
Bank shares lower.
At lunch on Monday three of the big four banks are trading lower and are weighing on the market. The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.15% at the time of writing. The only big four bank on the rise is the Westpac Banking Corp (ASX: WBC) share price with a 0.4% gain on the back of no news.
Big miners tumble.
Also weighing on the market today have been mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). They are down around 1.5% each following a pullback in the benchmark iron ore price on Friday. The base metal fell 2.3% to US$91.63 a tonne amid oversupply concerns.
The Caltex Australia Limited (ASX: CTX) share price is trading lower after energy giant Chevron provided it with a termination notice in relation to its current licence agreement for the Caltex brand in Australia. Caltex will now have three years to transition to the Ampol brand. Management estimates that the transition will cost approximately $165 million over a three-year period.
Bank of Queensland share purchase plan.
The Bank of Queensland Limited (ASX: BOQ) share price is pushing higher following an update on its share purchase plan. The share purchase plan was aiming to raise $25 million in conjunction with its fully underwritten $250 million institutional placement. However, due to strong demand and the company’s decision not to scale back applications, it now expects to raise $90 million from shareholders.
Best and worst performers.
The best performer on the ASX 200 on Monday is the Xero Limited (ASX: XRO) share price with a 4.5% gain on the back of no news. The worst performer is the under fire Jumbo Interactive Ltd (ASX: JIN) share price. It is down a further 6% following a heavy decline last week after the release of underwhelming guidance for the first half of FY 2020. This morning Morgans downgraded its shares to a hold rating and cut the price target on them to $16.38.
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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 Jumbo Interactive Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Jumbo Interactive 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.