The S&P/ASX 300 (ASX: XKO) (ASX: XKO) ended the week with a flat day, down 0.09% and 0.8% for the week. Given the gains the market had seen in January & early February, the last week is fairly sobering.
Still, these stocks had a horror day, falling by more than 4%.
First, it was the iron ore miners, Fortescue Metals Group Limited (ASX: FMG), Atlas Iron Limited (ASX: AGO) and Arrium Limited (ASX: ARI) falling 6.1%, 5.7% and 4.9%. The cause was the spot iron ore price falling to a new six-year low of US$59.73 a tonne overnight. Media also reports one Australian cargo being sold at US$58 per tonne, suggesting we haven’t hit bottom yet.
Next it was the gold miners. Regis Resources Limited (ASX: RRL), Kingsrose Mining Limited (ASX: KRM), Resolute Mining Limited (ASX: RSG) and Beadell Resources Ltd (ASX: BDR) all closing down by more than 8%. Regis crashed down 26.7% to $1.40 after reporting lower than expected production for the March quarter.
Spot gold prices have been falling lately, and currently trade at US$1,200 an ounce or A$1,542 an ounce. That suggests many Australian miners should be making a decent margin, but clearly unexpected events can disrupt their results.
GID Dynamics Inc (ASX: GID) had a shocker, losing half its value to close at 15 cents. Illustrating how volatile the biotechnology sector can be, GID fell after the US Food and Drug Administration (FDA) put a hold on enrolment in the company’s EndoBarrier drug trials. Where to from here is anybody’s guess.
MaxiTRANS Industries Limited (ASX: MXI) fell 6.8% to 55 cents. The provider of trailers and truck parts has seen its shares plunge 54% in the past 12 months, as the company takes collateral damage from the slowing resources boom. To make matters worse, poor financial results saw the company dumped from the S&P/ASX 300 index today.
Boart Longyear Ltd (ASX: BLY), a supplier of products and services to the mining industry, including drilling services and drilling equipment, dropped 6.7% to 21 cents, despite two directors buying shares earlier this month.