At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has overcome weakness in the banking sector and is pushing higher. The benchmark index is up 0.5% to 5,267 points at the time of writing.
Here's what has been happening:
NAB half year result and capital raising.
National Australia Bank Ltd (ASX: NAB) surprised the market this morning by releasing its half year results ten days earlier than planned. It appears as though the bank wanted to get to the front of the queue with its capital raising. NAB announced a $3.5 billion capital raising. This comprises a $3 billion institutional placement at $14.15 per share and a $500 million share purchase plan. The bank also declared a 30 cents per share fully franked interim dividend.
Bank shares tumble lower.
NAB's sizeable drop in earnings and capital raising have weighed on the rest of the big four banks on Monday. Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) have fallen particularly hard. Investors may believe there is a chance they will follow suit with their own capital raisings.
Tech shares on the rise.
A number of popular tech shares are storming higher today after a positive finish to the week on the technology-focused Nasdaq index. The likes of Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) are up 3.5% and 4.5%, respectively at the time of writing. This has helped drive the S&P/ASX 200 Information Technology index 2.5% higher today.
Best and worst performers.
The best performer on the ASX 200 at lunch is the Domain Holdings Australia Ltd (ASX: DHG) share price with an 11% gain. Prior to today, the property listings company's shares were down almost 50% from their high. Some investors may believe they had been oversold. Going the other way, the Westpac share price is the worst performer on the index with a disappointing 5% decline.
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James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium. The Motley Fool Australia owns shares of Appen Ltd. 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.
