MENU

Why these 4 ASX shares are crashing today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has been sold off heavily today with several mid-cap businesses suffering heavy falls. The cause of the pain is a rough session for global equity markets after the European Central Bank’s stimulus package failed to impress liquidity-hungry investors.

Let’s take a look at some of today’s big losers and what might be behind the excess falls.

Henderson Global plc (ASX: HGG) shares have dropped 5% to $6.07 today despite releasing no specific news to the market. The falls are likely the result of Henderson’s leverage to equity markets with both US and European markets tumbling overnight. Henderson is a globally focused fund manager based in the UK, where equity markets fell heavily on Thursday.

Magellan Financial Group Ltd (ASX: MFG) is another international equities fund manager suffering from investor nerves over the outlook for global equity markets. The share price is down 8% today with the falls perhaps accelerated by the fact the group announced net institutional outflows of $89 million for the month of November. Still, total net inflows were $130 million with the group’s retail FUM flows stronger than ever.

Japara Healthcare Ltd (ASX: JHC) shares are down 5.9% to $3.03 despite the company releasing no specific news to the market. This is likely the result of some profit taking with the stock up 20% over the last month until today’s big falls. The business has some powerful tailwind as an aged care provider and remains a growth stock to watch.

Seven West Media Ltd (ASX: SWM) shares are down 5.9% today to 79.5 cents as the newspaper, television and magazine operator continues to attempt to map out a sustainable path into the digital future. The group’s Channel 7 television station remains its flagship asset that is reliant on advertising revenues to help create a profitable business. The stock looks one to watch from the sidelines as it operates in a fast-changing and competitive environment.

NEW REPORT!

Forget Seven West Media! These 3 "new breed" top blue chips for 2016 pay fully franked dividends and offer the very real prospect of significant capital appreciation. Click here to learn more.

The report is free! No credit card required.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.