In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing the benchmark index is down 2.3% to 5,137.3 points.
Four shares that have fallen more than most today are listed below. Here’s why they are tumbling lower:
The Challenger Ltd (ASX: CGF) share price is down 9% to $4.15. This decline appears to be down to profit taking after a stellar gain this week. Prior to today, the annuities company’s shares were up 34% week to date. Investors had been buying Challenger’s shares after it provided an update on its capital position.
The National Australia Bank Ltd (ASX: NAB) share price has fallen 5.5% to $15.99. As well as coming under pressure due to the general market weakness, the big four were dealt a blow from across the pond today. This morning the Reserve Bank of New Zealand announced that it will be blocking New Zealand-based banks from paying dividends.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has crashed 8.5% lower to $5.31. The catalyst for this decline appears to be a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded its shares to an underperform rating with a $4.50 price target. The broker suspects that a full recovery might take until 2023 for domestic passengers and 2024 for international passengers.
The Webjet Limited (ASX: WEB) share price has dropped 16.5% to $3.14 after returning from its suspension. The online travel agent’s shares dropped lower after it completed the institutional component of its equity raising. Webjet is raising a total of $346 million at $1.70 per new share, which is a 55% discount to its last close price. These funds will be used to see the company through until the end of the year.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited, Sydney Airport Holdings Limited, and 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.