At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has fought back from a heavy decline and is now pushing higher. The benchmark index is up 0.1% to 5,250.3 points at the time of writing.
Here's what has been happening on the market today:
Westpac defers its interim dividend.
The Westpac Banking Corp (ASX: WBC) share price is pushing higher today after the release of its half year results. The banking giant posted a statutory net profit of $1,190 million and cash earnings of $993 million. This represents 62% and 70% declines, respectively, over the prior corresponding period. In light of this poor performance and uncertain trading conditions, the board decided to defer its interim dividend decision until a later date.
Afterpay share price rockets 30% higher.
The Afterpay Ltd (ASX: APT) share price rocketed as much as 30% higher this morning after Chinese tech behemoth Tencent Holdings snapped up a 5% stake in the buy now pay later provider. Investors appear to believe that Tencent could hold the key to a successful expansion into the massive Asia market in the future. Tencent is the company behind the hugely popular WeChat app.
Flight Centre making progress.
The Flight Centre Travel Group Ltd (ASX: FLT) share price is tumbling lower today despite revealing that it is making strong progress with its cost cutting. The travel agent is on course to reduce its monthly operating costs to $65 million by July. Management also expects to achieve this with lower than planned restructure costs. One negative, though, was that Flight Centre's total transaction value (TTV) was at 5% to 10% of normal levels during the month.
Best and worst ASX 200 performers.
The best performer on the ASX 200 today has been the Afterpay share price by some distance. It is up 24% at the time of writing following the Tencent news. The worst performer is the Webjet Limited (ASX: WEB) share price with a 6.5% decline. This follows Flight Centre's bleak update on current trading conditions.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group 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.
