The S&P/ASX 200 (Indexasx: XJO) (ASX: XJO) has closed the day down 0.6% at 5,356.5, and 2.1% down for the week. Gold, energy and resources stocks took another hiding today, with the gold sector down 4%, energy losing 3.5% and resources 2%.
Syrah Resources Ltd (ASX: SYR) share price dropped 7.1% to $3.16. The miner is currently raising $211 million to fund the development of its Balama graphite mine in Mozambique. But the offer price for the new shares was at $3.25, suggesting that existing shareholders could buy shares cheaper on the ASX than through the 4 for 19 renounceable rights issue. That might mean Syrah’s underwriter may be forced to pick up a big lump of shares and offload them at cheaper prices.
Gold miner EVOLUTION FPO (ASX: EVN) saw its share price sink 6.5% to $1.00. Fellow gold miner Northern Star Resources Ltd (ASX: NST) slipped 5.3% to $1.96, as investors become increasingly concerned over the gold price. Overnight, the spot gold price fell 0.8% to US$1,115 an ounce, and there are fears it could fall much further.
Transfield Services Limited (ASX: TSE) fell 5.5% to $1.13. The contractor has seen its share price almost halve since it rejected two takeover offers from Spanish Infrastructure Group Ferrovial for around $2.00. Shareholders might be kicking themselves now, and Transfield’s board will come under immense pressure as colleague John Hopkins outlined here.
Bradken Limited (ASX: BKN) lost 4.6% to $1.03. That’s despite the news that super fund First State Super had become a substantial holder in the mining equipment and accessories producer. Bradken’s share price moves around like a rollercoaster and has fallen 78% since the beginning of this year. Earlier this week the company reported a 58% fall in underlying net profit, which may deter a number of bidders hovering around the company.
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Motley Fool contributor Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga
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.