Why Bank of Queensland, Navigator, Westpac, & Zip Co are dropping lower

Bank of Queensland Limited (ASX:BOQ) and Westpac Banking Corp (ASX:WBC) shares are two of four tumbling notably lower on Wednesday…

a woman

The S&P/ASX 200 Index (ASX: XJO) has fought hard to bounce back from a heavy decline this morning. In afternoon trade the benchmark index is down 0.45% to 5,229.4 points.

Four shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

The Bank of Queensland Limited (ASX: BOQ) share price is down 3% to $4.99 after the release of its half year results. For the six months ended February 29, the regional bank achieved cash earnings after tax of $151 million. This was down 10% on the prior corresponding period and 1% on the second half of FY 2019. Whilst this was a decent result, investors appear disappointed that the bank has deferred its interim dividend until the market outlook is clearer.

The Navigator Global Investments Ltd (ASX: NGI) share price has crashed 24% lower to $1.76 after the release of an update. Navigator warned that its assets under management for the March quarter will be negatively impacted due to its investment performance and increased redemptions. Some of its clients have indicated a need to exit some of their hedge fund positions in order to generate liquidity in their broader portfolios.

The Westpac Banking Corp (ASX: WBC) share price is down 3.5% to $15.55. Westpac and the rest of the big four banks have come under pressure today for two reasons. The first is news that APRA has requested that dividend payments should be limited in the coming months. The second was a credit downgrade by Fitch Ratings. The credit agency has downgraded all the four major Australian banks' credit ratings to A+ from AA-.

The Zip Co Ltd (ASX: Z1P) share price has fallen 5.5% to $2.04 despite the release of a record quarterly result. Zip reported quarterly revenue of $45 million, up 96% year-on-year and 17% from the second quarter of FY 2020. Investors may be disappointed that it is delaying its UK launch because of the coronavirus pandemic.

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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