The S&P / ASX 200 Index (Index: ^AXJO) (ASX: XJO) has fallen 0.3%, reversing yesterday’s gain, to end at 4,709.5, as the big miner’s fell over concerns about cyclone Narelle approaching the north coast of Western Australia. So far, the storm has forced the closure of ports and cut off supplies of natural gas and oil in the region.
The Australian dollar continues its rise against the US dollar, currently buying 105.8 US cents.
Despite the market rising, these three stocks lost more than 4%.
Sydney Airport (ASX: SYD) fell 5.5% to close at $3.08, as analysts suggest that Sydney Airport will reach full capacity 20 years before its management admits. CBA analysts have forecast that Sydney will reach its limit in 2025. That may put further pressure on both the state and federal governments to speed up a decision on a second airport for the city.
Copper miner, Discovery Metals Limited (ASX: DML) saw its shares drop 4.8% to close at $1.48, with the takeover offer from Cathay Fortune Corp and its partner China-Africa Development Fund set to expire today. Discovery’s board had recommended investors ignore the bid, which was priced at $1.70 per share. With Cathay holding just 14% of Discovery, and the offer expiring today, it seems likely that the takeover will not proceed. Before the bid, Discovery’s shares were trading around $1.30.
Mount Gibson Iron (ASX: MGX) lost 4.7%, to end at 81 cents. Shares in the iron ore miner have rallied by 44% since the end of November, on the back of the strong recovery in iron ore prices. The iron ore price has surged 60% since falling below US$90 a tonne in September 2012. Fears about the approaching cyclone may have pushed the company’s shares down today.
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Motley Fool writer/analyst Mike King owns shares in Discovery Metals. The Motley Fool’s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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