Three ASX stocks that fell more than 6 per cent on Thursday

The market was down, but these three companies really got whacked during the most recent day's trade

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Many investors have been looking for a market correction after a fairly steady rise since the start of the year. On Thursday, the last day of trading before the Easter public holidays, they got what they wanted (or perhaps feared) with the S&P/ ASX 200 Index falling by 14 points to 4319.8, a drop of 0.3 per cent, after recovering from a 1 per cent fall at noon.

This followed on from a fall in the Dow Jones Index of 1 per cent, as job market fears rose thanks to a weak US employment report.

Amid the red ink, three stocks managed to stand out by falling by more than 6 per cent.

Macmahon Holdings Limited (ASX: MAH) fell by 6.7 per cent to 75 cents, continuing on from a 5 per cent fall from the day before. Perhaps there was some profit-taking in the stock, after the company's share price had risen almost 40% since the beginning of the year. The mining services sector has been one of the market's favourites in 2012, with many mining contractors and mining services firms seeing their prices rise handsomely.

Intrepid Mines Limited (ASX: IAU) also suffered a large fall of 6.5 per cent to 69.5cents, hitting a 52 week low of 67 cents at one stage. The gold miner and explorer has seen its share price fall off a cliff, after Indonesia changed its project ownership rules, requiring at least 51 per cent local equity by the 10th year of production. Intrepid has an 80 per cent interest in a large copper-gold mining project, Tujuh Bukit, in east Java. There appears to be a fair bit of confusion about how the rules will apply to this project, adding to investor uncertainty and therefore downward pressure on the share price.

Linc Energy Limited (ASX: LNC) fell 6 per cent, having seen its share price fall by over 60 per cent since July 2011. Linc is involved in coal exploration, and the development of coal-to-liquids processes through a combination of underground coal gasification (UCG) and gas-to-liquid (GTL) technologies, but has yet to produce a profit from them. Linc has also expanded into oil production, with the purchase of 13 oil producing fields and related infrastructure from ERG Resources in October 2011.

It looks like the market doesn't have too much confidence in the viability of these new technologies.

If you're looking for ASX investing ideas, look no further than "The Motley Fool's Top Stock for 2012." In this free report, Investment Analyst Dean Morel names his top pick for 2012…and beyond. Click here now to find out the name of this small but growing telecommunications company. But hurry – the report is free for only a limited period of time.

More reading

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Click here to be enlightened by The Motley Fool's disclosure policy.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »