The Australian sharemarket has suffered a minor setback today following a mixed night for equity markets around the world. The S&P/ASX 200 (index: ^AXJO) (ASX: XJO) has dropped a mere 0.3% after the Dow Jones fell 0.7%, although the NASDAQ index rose 0.2%.
Unfortunately, there are plenty of companies suffering more painful declines than the broader market, including these four…
Fortescue Metals Group Limited (ASX: FMG) has fallen more than 7% to just $1.83 after it decided to scrap its US$2.5 billion bond sale, citing "volatility in the US credit markets" as the reason why its terms were not met. It's likely that US investors had been wanting higher returns than what Fortescue was hoping to pay given the risks facing the industry, which is not a good sign for the miner.
Senex Energy Ltd (ASX: SXY) has watched its shares drop 6.3% as oil prices declined overnight. In fact, US oil prices hit a new six-year low on fresh oversupply concerns whereby US oil inventories are sitting at an 80-year high. Now trading at 29.5 cents, the stock has dropped a shattering 62% since April 2014.
TPG Telecom Ltd (ASX: TPM) shares have retreated another 3.5% today, erasing some of the gains achieved on Friday after it announced its intentions to acquire iiNet Limited (ASX: IIN) for $1.4 billion. Since having soared as high as $9.24, the stock has retreated to $8.60 which can likely be attributed to investors expecting another party to submit a counter offer, forcing TPG Telecom to raise its offer price.
DuluxGroup Limited (ASX: DLX) has also suffered a setback today with its shares trading 4.6% lower at $6.07. Yesterday, the group announced construction of new production facilities to cope with excessive demand. While excess demand is normally a good sign for a business, investors are likely concerned with the costs associated with the project, with $165 million having been allocated for construction of the new facility.
