The Australian sharemarket has continued its recovery today in a rally led by the Big Four banks. Investors are defying a heavy drop in the iron ore price overnight as well as worries related to Greece’s loan default, pushing the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) and ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) indices 0.5% higher.
On the other hand, here are five stocks that aren’t doing so well…
Fortescue Metals Group Limited (ASX: FMG) shares have crashed 5.4% to trade within 6 cents of a new six-year low at $1.81. The iron ore price fell 3.2% overnight with many experts predicting another heavy drop over the coming months. As it stands, the commodity trades for roughly US$59 a tonne with Capital Economics suggesting it will fall below US$40 a tonne by the year’s end.
Newcrest Mining Limited (ASX: NCM) has extended on its loss from yesterday, falling another 2.9% to $12.64. Although gold should arguably be popular amongst investors right now, considering the uncertainty being caused by Greece’s debt situation, the price of gold fell 0.6% overnight, ultimately weighing on the producers themselves.
Kathmandu Holdings Ltd (ASX: KMD) was the market’s top performing stock on Tuesday after Briscoes Group announced its intentions to launch a takeover of the New Zealand-based retailer. As it stands, no further comments have been made regarding the takeover so some investors may be taking their profits off the table in case a deal falls through. The stock is down 2.1%.
Nine Entertainment Co Holdings Ltd (ASX: NEC) fell 1.8%, despite the absence of any company-specific news which would explain the drop. Australia’s free-to-air networks are in an uphill battle against falling advertising revenues and diminishing audience rates as consumers switch onto Netflix and other sources of entertainment. Some analysts have even predicted the end for the networks by 2020, which doesn’t bode well for investors in the sector.
1-Page Ltd (ASX: 1PG) has fallen another 3.6% today, giving it a total decline of 6.5% since the beginning of the week (although, it’s still up 21% over the last fortnight). 1-Page is a speculative bet in that it is trying to revolutionise the way in which employers hire staff. While it is no cheap investment right now, it could prove very rewarding if everything goes according to plan.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.