At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. The benchmark index is currently up 1% to 6,168.8 points.
Here's what is happening on the market today:
Challenger result and guidance disappoints.
The Challenger Ltd (ASX: CGF) share price has come under pressure on Tuesday after the release of its full year results. For the 12 months, the annuities company posted an 8% decline in normalised net profit before tax to $507 million. This excludes a significant negative investment experience relating to the COVID-19 pandemic market sell-off. Including this, Challenger recorded a statutory loss after tax of $416 million. Looking ahead, in FY 2021 Challenger expects to record a normalised net profit before tax in the range of $390 million to $440 million. This represents a 13.2% to 23% decline year on year.
A2 Milk Company shares lower on after announcing new CEO.
The A2 Milk Company Ltd (ASX: A2M) share price is trading lower on Tuesday after naming its new chief executive officer. The infant formula and fresh milk company has appointed David Bortolussi. He will replace interim CEO Geoffrey Babidge early in the 2021 calendar year. Mr Bortolussi was previously the Group President – International Innerwear, at HanesBrands. He has experience in the China market and also with M&A activities during his time with Fosters.
Sydney Airport to raise $2 billion.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is in a trading halt today after launching a fully underwritten pro rata accelerated renounceable entitlement offer to raise $2 billion. Eligible securityholders will be able to acquire one new Sydney Airport share for every 5.15 shares held at a price of $4.56 per new share. The airport operator is raising funds to strengthen its balance sheet while it navigates an uncertain aviation market. Sydney Airport also revealed a loss after tax of $53.6 million for the first half.
Best and worst ASX 200 shares.
The James Hardie Industries plc (ASX: JHX) share price is the best performer on the ASX 200 on Tuesday with a 5.5% gain. This morning the building materials company posted an adjusted net operating profit (NOPAT) of US$89.3 million for the first quarter. This was in line with the prior corresponding period. The worst performer by some distance has been the Mesoblast limited (ASX: MSB) share price with a massive 20% decline. Investors may be nervous ahead of its meeting with the FDA on Thursday evening.
