The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed down 1.5%, as falls on overseas markets spooked local investors and our big four banks and resources companies were heavily sold off.
They weren't the only ones, with these 5 stocks' share prices hammered down…
Sims Metal Management Ltd (ASX: SGM) saw its shares drop 9.8% to $7.00, as the metal recycler continues to see its share heavily sold off. It all stems from yesterday's announcement that the company would only break even in the first half of this financial year – just over two months after announcing that it expected an improvement in earnings in the 2016 financial year over the previous year.
Drillsearch Energy Limited's (ASX: DLS) share price dropped 8.3% to 72 cents, following a fall in the benchmark oil price overnight. Brent Crude oil fell 3.4% to US$44.27 a barrel. 10 days ago, the oil price briefly rose above US$50 per barrel, but ongoing oversupply issues continue to weigh on the price, and could easily fall further from here.
Santos Ltd (ASX: STO) saw its share price fall 7.7% to $3.97, as the company attempts to raise $3.5 billion in cash to reduce its debt levels and shore up its balance sheet. Smaller shareholders will get a chance to buy shares at $3.85 shortly, or see their holdings diluted. We've criticised Santos' management for not recognising and acting faster when it had a share price at least double the current price.
Origin Energy Ltd's (ASX: ORG) share price has dropped 7.1% to $4.74 as it too was hit by the falling oil price. Origin, like Santos, was forced to raise capital to shore up its balance sheet, but did so in September, raising $2.5 billion at around $4.00 per share. The company recently began producing LNG from its Australia Pacific LNG plant ahead of first cargo, which should bring in some much needed cash flow.
Metcash Limited (ASX: MTS) saw its share price sink 5.2% to $1.29. The wholesale distributor to IGA supermarkets and owner of Mitre 10 has seen its share price plummet more than 55% in the past 12 months, thanks to increasing competition from the likes of Coles and Aldi. The recent sale of its non-core automotive business should allow management to focus more on its core divisions as competition hots up.
