At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has fought back from a poor start and is edging higher. The benchmark index is currently up 0.1% to 5,933.1 points.
Here’s what is happening on the market today:
Victoria’s “State of Disaster” weighs on shares.
On Sunday the Victorian state government declared a “State of Disaster” and locked down the state. This has put a lot of pressure on certain areas of the market on Monday such as the banking and travel sectors. For example, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price and the Flight Centre Travel Group Ltd (ASX: FLT) share price are down 3.5% and 6%, respectively.
No final dividend for SEEK shareholders.
The SEEK Limited (ASX: SEK) share price has dropped lower on Monday after it announced that it would be cancelling its final dividend for FY 2020. The job listings giant made the move as it believes it is better to preserve capital in an uncertain environment to fund its long-term growth strategy. This means the 13 cents per share interim dividend paid last month, will be the only dividend paid in FY 2020.
Tabcorp’s billion-dollar impairment charges.
The Tabcorp Holdings Limited (ASX: TAH) share price has recovered from a sharp early decline and is trading almost flat at lunch. This morning the gambling company announced that it expects to incur non-cash goodwill impairment charges in the range of $1,000 million to $1,100 million in FY 2020. These charges relate to its Wagering & Media and Gaming Services businesses, which have been impacted by the pandemic. Tabcorp also revealed that it expects to report a net profit before tax and significant items in the range of $267 million to $273 million. This will be a 31% to 32.5% decline year on year.
Best and worst ASX 200 performers.
The best performer on the ASX 200 on Monday has been the Cochlear Limited (ASX: COH) share price. The hearing solutions company’s shares are up 5% despite there being no news out of it. The worst performer has been the Monadelphous Group Limited (ASX: MND) share price with a decline of over 7%. This morning it was hit with legal action by Rio Tinto Limited (ASX: RIO). The mining giant is seeking $493 million in lost earnings and damage for a fire incident in Cape Lambert.
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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Flight Centre Travel Group Limited, and 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.
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