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.
How to play the Australian LNG revolution
NEW! “Australian liquefied natural gas exports stand on the cusp of an unprecedented boom” according to The Fin. Review. That’s why our Foolish investment experts have just put the finishing touches on a brand-new report, “The New Gold Rush: 1 Ultra Safe Way to Play Australia’s LNG Revolution.” Click here now for your FREE copy.
Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga