The S&P/ASX 200 index is on course to start the week on a disappointing note. At lunch the benchmark index is down 0.4% to 6,287 points due largely to declines in the banking sector.
Here's what has been happening on the market today:
CBA result disappoints.
The Commonwealth Bank of Australia (ASX: CBA) share price is down 2.5% at lunch after the release of a disappointing third quarter update. The banking giant posted a 28% decline in cash earnings due largely to a $714 million provision. Excluding one-offs, CBA posted an 8% decline in underlying cash earnings.
Lendlease takeover speculation.
The Lendlease Group (ASX: LLC) share price has jumped 8% higher amid speculation that it is a takeover target of a big Japanese company. According to the report, a major Japanese company, suspected to be Mitsui, is believed to be interested in buying the company and then breaking it up.
Reliance Worldwide slammed.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price crashed as much as 26% lower this morning after the plumbing parts company released a dismal trading update. Due to weakness across all of its core business, Reliance Worldwide downgraded its full year EBITDA guidance from between $280 million and $290 million to between $260 million and $270 million.
Eclipx impairments and CEO exit.
The Eclipx Group Ltd (ASX: ECX) share price also fell heavily this morning after announcing that it expects to recognise non-cash impairment charges of between $110 million and $130 million in its first half results. These charges relate to the underperformance of its Grays and Right2Drive businesses. The company also advised that its CEO has agreed to resign with immediate effect.
Best and worst performers.
The best performer on the ASX 200 at lunch is the Lendlease share price with a gain of 8%. Not far behind is the Alumina LImited (ASX: AWC) share price with a gain of 5%. Going the other way is the Reliance Worldwide share price with a decline of 14%, followed by the Smartgroup Corporation Ltd (ASX: SIQ) share price which is down 5% after Morgans cut the price target on its shares from $10.20 to $9.50. The broker has a hold rating on its shares.
