Why ANZ, Flight Centre, SEEK, & Tabcorp shares are dropping lower

Flight Centre Travel Group Ltd (ASX:FLT) and SEEK Limited (ASX:SEK) are two of four shares dropping lower on Monday. Here's why…

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The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline due largely to weakness in the banking sector. In late morning trade the benchmark index is down 0.45% to 5,901.9 points.

Four shares that are falling more than most today are listed below. Here's why they are dropping lower:

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is down almost 4% to $17.27. Investors have been selling the big four banks on Monday after the Victorian state government declared a state of disaster. This has seen it lock down the state for six weeks in an effort to control the spread of coronavirus.

The Flight Centre Travel Group Ltd (ASX: FLT) share price has sunk 5% lower to $10.00. The travel sector has come under pressure on Monday after the aforementioned lockdowns in Victoria. In addition to this, more new coronavirus cases in New South Wales may be a concern for investors. All in all, the recovery of the domestic travel market looks likely to take a lot longer than first expected.

The SEEK Limited (ASX: SEK) share price is down 2.5% to $21.15. Investors have been selling the job listings giant's shares after it announced that it would be cancelling its final dividend for FY 2020. Management advised that it believes it is better to preserve capital in an uncertain environment in order to fund its long-term growth strategy. This means the 13 cents per share interim dividend paid last month (which was down 46% on the prior corresponding period), will be the only dividend paid in FY 2020.

The Tabcorp Holdings Limited (ASX: TAH) share price is down 1.5% to $3.50. 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. It 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 is a 31% to 32.5% decline year on year.

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended 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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