At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and dropped lower. At the time of writing the benchmark index is down 2.8% to 5,112.24 points.
Here's what has been happening on the market today:
Bank shares tumble.
The big four banks have all taken a tumble on Thursday and are acting as a major drag on the ASX 200's performance. The worst performer in the group is the National Australia Bank Ltd (ASX: NAB) share price with a decline of 5.7%. This morning the Reserve Bank of New Zealand announced that it will be blocking New Zealand-based banks from paying dividends.
Westpac names its new CEO.
The appointment of its new CEO has not stopped the Westpac Banking Corp (ASX: WBC) share price from dropping lower. This morning the banking giant revealed that acting CEO, Peter King, has been given the role on a permanent basis. Westpac's new chairman, John McFarlane, explained that he believes management stability and strength are vital during moments of global stress and uncertainty.
IDP Education rockets on return.
The IDP Education Ltd (ASX: IEL) share price has rocketed higher after returning from its suspension. This morning the student placement and language testing company successfully completed a $225 million placement to institutional investors. This was higher than the $175 million it was aiming to raise. Management advised that this was due to significant demand from domestic and global investors.
Best and worst ASX 200 performers.
The best performer on the ASX 200 at lunch is the IDP Education share price. It is up 26% after investors responded positively to its successful institutional placement. The worst performer on the index is the Webjet Limited (ASX: WEB) share price by some distance. The online travel agent's shares are down 20% after it completed its capital raising. Webjet raised $231 million at $1.70 per new share. This was a 55% discount to its last close price.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.
