4 ASX stocks tumbling today

The All Ordinaries (Indexasx:XAO) drops 0.5% but these 4 fell more than 5%

| More on:
a woman

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

The All Ordinaries (Index: ^AORD) (ASX: XAO) has posted a 0.5% fall lead by the big miners and banks. It seems the Reserve Bank of Australia is being blamed for the fall, following its decision to keep the cash rate on hold yesterday. The market was disappointed, after factoring in a 25 basis point cut, which would have likely stimulated the markets.

These four stocks took a tumble today and here's our view…

Online retailer Ensogo Ltd (ASX: E88) – ex-iBuy Group – dropped 13.8% to 12.5 cents. Shares have now fallen 26.5% in the past week. It seems the issue of 69 million new shares to a cornerstone shareholder in VipShop Holdings has diluted shareholders by around 12%. Not only that, but shares were issued at a significant discount – 10.8 cents – to the prevailing share price at the time of around 17.5 cents.

Chinese retailer Sunbridge Group Ltd (ASX: SBB) slipped 12.5% and hit a new all-time low of 4.5 cents, as concerns were again raised over the transparency of foreign-listed Chinese companies. We covered the issue in more detail here. Add in a number of odd accounting practices and lack of a decent dividend – despite $30 million cash in the bank – and Sunbridge is one of the highest risk stocks on the ASX.

Biotechnology stock Acrux Limited (ASX: ACR) dropped 11.8% to 90 cents, as investors fret over the risks associated with the company's flagship testosterone treatment product, Axiron. As colleague Ryan Newman points out here, the US Food and Drug Administration (FDA) expressed its concern over possible increased risk of heart attack and stroke associated with testosterone treatments.

Fortescue Metals Group Limited (ASX: FMG) dropped 5.4% to $2.29, as the iron ore price fell 1% overnight to US$62.24 a tonne, close to its lowest level in nearly six years. Chinese steel demand is hardly growing as China's growth slows, leading to lower iron ore prices. Suggestions that the price may recover next month appear to be more hope than reality.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

More on ⏸️ Investing

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 »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »