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ASX 200 drops 2% on bank pain

The S&P/ASX 200 Index (ASX: XJO) fell another 2% today as investor concerns rose about the banks’ ability to pay dividends in 2020.

What happened to the banks?

Today it was announced that the Reserve Bank of New Zealand had agreed with New Zealand banks that no dividends would be paid during this period. Which means no subsidiary dividends can be passed on to the main ASX banks.

Compared to the last month or so, the share price drop wasn’t that hard. But it’s declines after declines. These were the falls today:

The Commonwealth Bank of Australia (ASX: CBA) share price dropped 3.8%.

The Westpac Banking Corp (ASX: WBC) share price fell 4.3%.

The Australia and New Zealand Banking Group (ASX: ANZ) share price declined 5.3%.

The National Australia Bank Ltd (ASX: NAB) share price dropped 5.6%.

Webjet Limited (ASX: WEB) returns to trade

The share price of Webjet dropped another 26% after coming back to trade to finish at $2.78 today.

Webjet announced it had been successful with the institutional part of its capital raising and had increased it a bit more.

Management feel that the company is now strongly positioned to get through the rest of the year even if conditions remain very tough for the travel industry.

Free childcare

In another interesting day of government announcements, it was announced that people will be getting free childcare even if the parents aren’t working. And those childcare providers will also be eligible for the wage subsidy.

Obviously this was great news for the childcare industry which has been suffering heavily during this period, just like the rest of the economy.

The strongest performer within the ASX 200 today was childcare provider G8 Education Ltd (ASX: GEM), which saw its share price climb 28.6%.

Amid all of this share market volatility there are a lot of opportunities out there. These are some of the best I’ve seen.

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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 and has recommended Webjet Ltd. The Motley Fool Australia owns shares of National Australia Bank 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.

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