The S&P/ASX 200 Index (ASX: XJO) fell 4.5% last week. Are there going to more declines next week on the ASX?
The drop happened at the start of the week over the first two days and then it was almost flat for the rest of the week.
Countries including Australia are now talking about plans to start open up their countries after long lockdowns. However, the infection rate in the US remains stubbornly consistent rate.
Here are some of the ASX 200 highlights from the week:
Ramsay Health Care Limited (ASX: RHC) capital raising
The lack of elective surgeries has taken its toll on one of the world's largest private hospital operators.
Ramsay announced this week that it was going to raise up to $1.4 billion in a capital raising. It has already completed its $1.2 billion capital raising from institutional investors and it's also going to raise up to $200 million from regular shareholders.
The sad part for dividend investors is that Ramsay has temporarily suspended its dividend payment. A very strong dividend record within the ASX 200 has come to an end.
ASX 200 success story: A2 Milk Company Ltd (ASX: A2M) growth continues
A2 Milk seems to be one of the few businesses that is continuing to grow earnings during this difficult period.
Management announced that there continues to be stronger-than-expected demand for its range of products as consumers focus on quality brands.
A2 Milk has been spending less money on travel and recruitment which, combined with higher revenue, is now expected to result in an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of between 31% to 32% this year. But it's still aiming for a 30% margin over the medium-term by investing for growth.
National Australia Bank Ltd (ASX: NAB) announces profit hit
The ASX 200 bank announced a few profit hits to the upcoming result.
It said there was a net increase in provisions for customer-related remediation matters of $268 million before tax ($188 million after tax).
There has been a change to the application of the software capitalisation which will reduce NAB's capitalised software balance at 31 March 2020 by $1.056 billion and reduce earnings by $742 million after tax.
Finally, NAB said it has impaired the carrying value of its investment in MLC Life by $214 million (before and after tax).
These items will reduce NAB's CET1 ratio by approximately 6 basis points.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
