The S&P/ASX 200 Index (ASX: XJO) fell another 3.6% today and has entered a bear market.
What’s a bear market? It’s when the share market falls 20% or more, which the ASX 200 has sadly done since 20 February 2020.
The volatility is continuing with investors being unimpressed by the stimulus delay in the US and Australia.
The heaviest falls
It was a painful day for various industries. Lithium miner Pilbara Minerals Ltd (ASX: PLS) suffered the worst fall within the ASX 200, it dropped 13%. The share price of NRW Holdings Limited (ASX: NWH) also dropped by 11.7%.
However, yet again gold miners didn’t provide the defensive protection that investors may have hoped. The Gold Road Resources Ltd (ASX: GOR) share price fell almost 10% and the Regis Resources Limited (ASX: RRL) share price dropped 9.9%.
Banks punished again
Investors continue to worry about a recession and there are concerns that bank profits will head lower.
The Commonwealth Bank of Australia (ASX: CBA) share price went down 6.6%.
The Westpac Banking Corp (ASX: WBC) share price dropped 5.25%.
The National Australia Bank Ltd (ASX: NAB) share price fell 6.25%.
The Australia and New Zealand Banking Group (ASX: ANZ) share price declined 5.5%.
Major banks are a large part of the index and they are a sizeable part of the index’s decline today.
Webjet Limited (ASX: WEB) withdraws FY20 guidance
The Webjet share price fell 5.2% after the travel business withdrew its FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) guidance.
People are cancelling at short notice prior to travel, so this is reducing visibility on future earnings.
To tackle this, Webjet is trying to minimise costs which is expected to result in $10 million in savings for the rest of FY20. Webjet leadership have agreed to voluntarily reduced their remuneration by 20%.
The travel business said it had a strong balance sheet with low net debt levels.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Webjet 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.
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