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Why Flight Centre, PointsBet, Westpac, & Zip Co are sinking lower

In afternoon trade the S&P/ASX 200 index (ASX: XJO) is on course to end its horrific week with another sizeable decline. At the time of writing the benchmark index is down 7.5% to 4,909.6 points.

Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:

The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 15% to $16.69. Investors have been selling the travel agent’s shares after it withdrew its guidance for FY 2020. Management advised that total transaction value (TTV) trends were generally in line with expectations early in the second half, but the spread of the coronavirus and increased travel restrictions mean demand is softening significantly. It also notes that the timeframe for a recovery is unclear at this stage.

The PointsBet Holdings Ltd (ASX: PBH) share price has crashed 20% lower to $2.08. Investors have been selling the sports betting company’s shares after it acknowledged that the suspension of sporting competitions because of the coronavirus outbreak would impact its business. However, management notes that it has a very healthy balance sheet. At the end of December it had A$147.9 million of corporate cash.

The Westpac Banking Corp (ASX: WBC) share price has dropped almost 12% to $15.66. Investors have been selling Westpac and the big four banks on Friday amid concerns over the economic impact of the coronavirus outbreak. It isn’t just Westpac sinking lower. Three of the big four banks have made double digit share price declines today. Also weighing on Westpac’s shares was news that it has been hit with a class action this morning.

The Zip Co Ltd (ASX: Z1P) share price has crashed 13.5% lower to $1.19. Investors have been selling the buy now pay later company’s shares despite the release of an update which revealed that its business has not been impacted by the coronavirus. It also advised that it has experienced healthy customer growth, transaction volume and has a strong pipeline of enterprise partners in integration or in advanced discussions.

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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 Pointsbet Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Pointsbet Holdings 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.