At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. At the time of writing the benchmark index is up 2.3% to 5,184 points.
Here's what has been happening on the market today:
Bank shares push higher.
The big four banks have started the week in a positive fashion and are doing some of the heavy lifting today. All four banks are pushing notably higher, but the best performer is the Australia and New Zealand Banking Group (ASX: ANZ) share price with a 2.7% gain. Positive coronavirus developments in Australia appear to be spurring on the banks.
SEEK update.
The SEEK Limited (ASX: SEK) share price is storming higher on Monday after providing an update on how its businesses are performing during the coronavirus pandemic. The company has experienced a sharp decline in billings during the second half of March. However, based on the assumption that billings will remain 60% lower for the remainder of the financial year, the company still expects revenue growth in FY 2020. It has suggested that current conditions point to annual revenue of ~$1,600 million and EBITDA of ~$410 million.
Flight Centre capital raising.
The Flight Centre Travel Group Ltd (ASX: FLT) share price took a step closer to returning to trade this morning. This morning it announced a ~$700 million fully underwritten equity capital raising, comprising a ~$282 million institutional placement and a ~$419 million entitlement offer. These funds are being raised at $7.20 per new share, which represents a 27.3% discount to the last traded price of $9.91. Management also revealed that its cost reductions are expected to lead to a monthly cash operating cost base of approximately $65 million from July.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Monday is the NRW Holdings Limited (ASX: NWH) share price with a gain of 12%. This is despite there being no news out of the mining services company. The worst performer is the Webjet Limited (ASX: WEB) share price with a decline of 7%. This morning analysts at Morgan Stanley upgraded its shares to an equal-weight rating but cut the price target on them materially to $2.50.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool Australia has recommended SEEK 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.
