At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. The benchmark index is currently up 0.1% to 7,287.3 points.
Here's what is happening on the ASX 200 on Wednesday:
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Bank of Queensland shares fall on FY 2021 results
The Bank of Queensland Limited (ASX: BOQ) share price is tumbling lower today following the release of its full year results. For the 12 months ended 31 August, the regional bank reported an 83% increase in cash net profit after tax to $412 million. This was driven by a 13% increase in total income to $1.26 billion and its improving net interest margin (NIM). While this was in line with expectations, its outlook appears to have spooked investors. Management warned that it expects its "NIM to decline by c.5-7bps in FY22, as competition continues and the low interest rate environment remains."
A2 Milk shares surge higher
It has been a very good day for the A2 Milk Company Ltd (ASX: A2M) share price. The struggling infant formula company's shares are surging higher following the release of an update from one of its smaller rivals Bubs Australia Ltd (ASX: BUB). This morning Bubs reported a 96% year-on-year increase in gross revenue to $18.5 million. This appears to have sparked hopes that the tough times are now behind the infant formula market.
Zip shares downgraded
The Zip Co Ltd (ASX:Z1P) share price is pushing higher despite being downgraded by a leading broker. According to a note out of Citi, its analysts have downgraded the company's shares to a neutral rating from buy. The broker has also cut its price target by 7% to $7.40. Citi made the move to reflect softening app downloads in the key US market.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Wednesday has been the A2 Milk share price with an 8% gain. This follows the update from Bubs this morning. The worst performer has been the Bank of Queensland share price with a 4% decline following its FY 2021 results release.
