Why these 4 shares are getting hammered today
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has started the week on a strong note, inspired by the gains recorded by international equity markets on Friday. Unfortunately, however, a number of shares are not enjoying the same level of success today, with some trading deep in the red…
iCar Asia Ltd (ASX: ICQ) shares are trading 14.6% lower, although they did fall as much as 21.5% this morning to a low of 51 cents. The company said its revenue had been adversely impacted by market conditions in three of its major geographical regions, while it has also invested more aggressively than anticipated in consolidating its leadership position in those markets in light of rising competition. The shares have fallen nearly 43% since the beginning of 2016.
MMA Offshore Ltd (ASX: MRM) shares have fallen 11.8% today to 30 cents. The company said one of its key contracts in South East Asia had been suspended, impacting the rates and utilisation for two of its vessels, while it also expects a “significant rate reduction” on a separate three-vessel contract in the Middle East. It expects the total impact on earnings before interest, tax, depreciation and amortisation (EBITDA) to be around $10 million.
St Barbara Ltd (ASX: SBM) is the worst performing share from the ASX 200 group today, falling 7.3% to $3.04. The gold miner is suffering as a result of a sharp pullback in the price of gold during the latest session. This was likely influenced by better-than-expected jobs data from the United States, which could open the door for an interest rate hike in that country sooner rather than later.
1-Page Ltd (ASX: 1PG) shares have also lost another 7.8%, taking the stock’s total loss to nearly 94% since peaking at $5.69 last September. Although the company hasn’t released any news that would specifically explain today’s decline, it seems investors are simply growing increasingly doubtful of 1-Page’s ability to grow its cash flows and revenues. Momentum selling may also be playing a role in the stock’s heavy decline.
After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.
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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has started the week on a strong note, inspired by the gains recorded by international equity markets on Friday. Unfortunately, however, a number of shares are not enjoying the same level of success today, with some trading deep in the red?
iCar Asia Ltd (ASX: ICQ) shares are trading 14.6% lower, although they did fall as much as 21.5% this morning to a low of 51 cents. The company said its revenue had been adversely impacted by market conditions in three of its major geographical regions, while it has also invested more aggressively…