The Motley Fool

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.

5 “Bounce Back” Stocks To Tame The Bear Market (FREE REPORT)

Master investor Scott Phillips has sifted through the wreckage and identified the 5 stocks he thinks could bounce back the hardest once the coronavirus is contained.

Given how far some of them have fallen, the upside potential could be enormous.

The report is called 5 Stocks For Building Wealth after 50, and you can grab a copy for FREE for a limited time only.

But you will have to hurry — history has shown the market could bounce significantly higher before the virus is contained, meaning the cheap prices on offer today might not last for long.

See the 5 stocks

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.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.