The S&P/ASX 200 Index (ASX: XJO) has given back its strong morning gains and is trading flat at lunch. At the time of writing the benchmark index is at 5,944.3 points.
Here's what has been happening on the market today:
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Bank shares weigh on ASX 200.
The big four banks have taken a tumble today and are weighing heavily on the ASX 200. All four banks are in the red at lunch, with the Westpac Banking Corp (ASX: WBC) share price the worst performer. Australia's oldest bank is down 1.3% at the time of writing. One broker that would see this as a buying opportunity is Morgans. It has just named Westpac as its top pick in the group.
Woolworths update.
The Woolworths Group Ltd (ASX: WOW) share price is trading lower at lunch after the release of an update this morning. The conglomerate announced major investments to its supply chain which it ultimately expects to lead to lower costs in the future. It also revealed strong fourth quarter sales growth across the business and its guidance for FY 2020. Woolworths currently expects to report earnings before interest and tax (post-AASB 16 and before significant items) of $3,200 million to $3,250 million.
Challenger shares tumble.
The Challenger Ltd (ASX: CGF) share price has crashed 9% lower after returning from its trading halt. This morning the annuities company announced the successful completion of its $270 million institutional placement. These funds were raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. Challenger also announced that it has no plans to pay a final dividend in FY 2020.
Best and worst ASX 200 shares.
The best performer on the ASX 200 on Tuesday has been the Western Areas Ltd (ASX: WSA) share price with a 13% gain. This follows a very positive drilling update this morning. The worst performer is the Challenger share price with its 9% decline. Investors appear to be disappointed with its decision to raise capital and cancel its final dividend.
