ASX 200 down 0.1%: Carsales update impresses, a2 Milk surges higher

A2 Milk Company Ltd (ASX:A2M) and Carsales.Com Ltd (ASX:CAR) shares are making a splash on the ASX 200 on Wednesday. Here's why…

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. The benchmark index is currently down 0.1% to 5,935.3 points.

Here's what has been happening on the market today:

Carsales update.

The Carsales.Com Ltd (ASX: CAR) share price has been a strong performer on Wednesday. Investors have responded positively to the release of a business update by the auto listings company which included guidance for the full year. Carsales expects to report adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) in the range of $228 million to $232 million in FY 2020. This will be a 5% to 6% increase on FY 2019's adjusted EBITDA.

Bank shares acting as a drag.

The big four banks have been acting as a major drag on the ASX 200 on Wednesday. At lunch, all four banks are trading lower despite there being no news out of the group. I suspect that investors may be taking a bit of profit off the table after strong gains on Tuesday. The worst performer in the big four has been the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a 1.5% decline.

CSL exec to join BHP

The CSL Limited (ASX: CSL) share price is pushing higher today despite announcing the exit of its chief financial officer. David Lamont, who has been in the role since January 2016, will leave the biotherapeutics company in October and join mining giant BHP Group Ltd (ASX: BHP). Mr Lamont will replace Peter Beaven as the Big Australian's chief financial officer on 1 December 2020.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the A2 Milk Company Ltd (ASX: A2M) share price with a gain of almost 7%. On Tuesday UBS retained its buy rating and ~$20.64 price target on the company's shares. The worst performer has been the Mayne Pharma Group Ltd (ASX: MYX) share price with a 4.5% decline. Next week the pharmaceutical company will be kicked out of the ASX 200.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended carsales.com 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.

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