The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) managed to eke out a tiny 0.1% gain today, thanks to a sharp drop in the unemployment numbers amid surging new jobs.
The market had plunged 0.8% at the open with a number resources and energy stocks smashed.
However, not all companies saw their share prices recover…
Santos Ltd's (ASX: STO) share price ended the day down 27% at $4.30, after coming out of a trading halt following a massive $2.5 billion capital raising. Shares were being issued to institutions at $4.60, above the offer price of $3.85. Retail investors get their chance to buy shares at $3.85 each, or sell their rights on the market.
Sims Metal Management Ltd (ASX: SGM) saw its share price plunge 19% to $7.76, after the company announced that it would only break even for the first half of the 2016 financial year (FY) – despite telling the market in August 2015 that it expected to see an improvement in earnings in FY16. The scrap metal recycler has never been an investment grade company, shown by the fact that today's share price is the lowest level in at least 10 years.
Dick Smith Holdings Ltd (ASX: DSH) saw its share price fall 4.5% to 75 cents, continuing its rollercoaster ride of the past two weeks. In late October, Dick Smith shocked the market with a profit downgrade, with fears there could be more to come. In stark contrast, fellow consumer electronics retailer JB Hi-Fi Limited (ASX: JBH) announced strong sales growth the day after Dick Smith and maintained its guidance for the FY16 year.
South32 Ltd (ASX: S32) fell 4.2% to $1.36 – a far cry from the $2.45 share price shortly after the diversified miner was demerged from BHP Billiton Limited (ASX: BHP) in May this year. Concentrating on the production of alumina, aluminium, coal, manganese, nickel, silver, lead and zinc, South32 has seen many commodity prices continue to fall, while production of a number of its commodity is forecast to fall this financial year. That suggests a double hit to earnings.
TPG Telecom Ltd (ASX: TPM) shares fell 3.9% to $10.40 after the telco announced a $300 million capital raising priced at $10.40. A share purchase plan has also been announced to allow existing shareholders to purchase up to $15,000 worth of shares, at the same discounted price offer to the institutions. The company says the funds will be used to partly repay debt raised to acquire rival iiNet.
