At lunch on Wednesday the S&P/ASX 200 index has given back its morning gains and edged lower. At the time of writing the benchmark index is down slightly to 6,694.9 points.
Here's what has been happening on the market today:
Medibank disappoints.
The Medibank Private Ltd (ASX: MPL) share price has sunk lower after a disappointing update. It revealed higher than expected claims are going to hit its profits in FY 2020. These higher claims have been driven by a number of factors. The main one is higher private hospital payments, which reflects an increase in the average benefit size along with the continuation of elevated prosthesis costs.
Boral Q1 update.
The shares of building products company Boral Limited (ASX: BLD) have tumbled lower today after it provided a trading update at its annual general meeting. The tough trading conditions experienced in FY 2019 have carried over to the new financial year. As a result, it continues to expect a 5% to 15% decline in NPAT in FY 2020.
Brickworks acquisition.
The Brickworks Limited (ASX: BKW) share price is pushing higher today despite trading ex-dividend this morning. Investors have been buying its shares after it announced a binding agreement to acquire the assets of US-based brick maker Redland Brick for US$48 million. Management expects the acquisition to optimise production at its existing facilities and strengthen its leadership position in northeast USA.
Best and worst performers.
The best performer on the ASX 200 at lunch is the Pendal Group Ltd (ASX: PDL) share price with a gain of 9%. Although the fund manager posted a sizeable decline in profit in FY 2019, it wasn't as bad as some feared. Going the other way is the Medibank share price. The private health insurer is the worst performer on the index with a sizeable 8.5% decline.
