ASX 200 up 0.7%: Zip capital raising, A2 Milk trading halt, Sydney Airport dividend update

A2 Milk Company Ltd (ASX:A2M) and Zip Co Ltd (ASX:Z1P) shares are in the headlines on the ASX 200 on Thursday…

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to build on yesterday's solid gain. The benchmark index is currently up 0.7% to 6,726.8 points.

Here's what is happening on the market today:

Female ASX investor standing with back to camera, reviewing screen of share price charts in front of her

Image source: Getty Images

Zip capital raising.

The Zip Co Ltd (ASX: Z1P) share price is pushing higher today after announcing a $150 million capital raising. The buy now pay later provider has raised $120 million from institutional investors at a 4.1% discount of $5.34 per new share. It will now seek to raise a further $30 million via a share purchase plan. These funds will be used to support its US growth, UK expansion, and product development.

A2 Milk trading halt.

The A2 Milk Company Ltd (ASX: A2M) share price was placed into a trading halt this morning at the company's request. The fresh milk and infant formula company made the request so it could look at the impact of new "information" on its FY 2021 guidance. It commented: "We are requesting a trading halt to provide us with additional time to properly consider the current information and to consider new information as it becomes available, and inform the market."

No dividend from Sydney Airport.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is dropping lower today after it released an update on its dividend plans. According to the release, the airport operator will not be paying a final dividend in FY 2020. Management explained that it made the decision "given the continued significant impact of COVID-19 on the business performance of Sydney Airport over the second half of the calendar year."

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Perenti Global Ltd (ASX: PRN) share price with a 7% gain. This is despite there being no news out of the mining services company. The worst performer has been the Service Stream Limited (ASX: SSM) share price with a 12% decline. This means the network services company's shares are now down 23% in the space of two days following an NBN update.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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