Why these 4 shares are sinking on the ASX today

Credit: greig davidson

Today, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) stabilised, drifting mostly flat in the final hour of trading, following seven consecutive down days.

However, the cheery uplift in the broader market wasn’t enough to keep the following four shares from sinking lower.

Here are four of today’s biggest losers on the ASX.

  1. Gindalbie Metals Ltd. (ASX: GBG) – down 62%

Gindalbie, a small-cap iron ore miner fell steeply in share price following a market announcement this morning. Gindalbie said it could face collapse, in light of the recent weakness in iron ore markets, if its Chinese joint-venture partner pulls funding for the Karara project. “A decision by Ansteel to withdraw funding support could lead to claims under various operating and financing guarantees against Gindalbie, which if successful could cast doubt on Gindalbie’s ability to continue as a going concern,” the company said.

  1. Beach Energy Ltd (ASX: BPT) – down 7%

Beach Energy, an Australian oil and gas producer with key interests in the Cooper Basin, is already 18% lower for 2016 thanks to ongoing falls in oil prices. Nonetheless, in a statement to the ASX this morning, Beach announced the appointment of Matthew Kay as its Chief Executive Officer (CEO). Mr Kay is the Executive General Manager of Strategy and Commercial at Oil Search Limited (ASX: OSH). He has also spent time at Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO).

  1. Santos – down 6.5%

The share price of Santos, a fellow oil and gas producer, also fell hard in trading today. Santos shares are currently priced at $3.01 – down 59% in the past 12 months. Santos’ share price hasn’t traded below $3 since the early 1990s. However, with oil prices rapidly approaching $US31 a barrel overnight, down from more than $US111 a barrel in 2014, it could once again test those low levels.

  1. Energy Resources of Australia Limited (ASX: ERA) – down 6.5%

Uranium producer ERA watched its shares tank 6.5% today after the group issued its December quarter operations review. In the update, the company revealed total production of 669 tonnes of uranium, but said it had initiated a “strategic review” of its business following advice from the Gundjeihmi Aboriginal Corporation. The advice said that the traditional land owners where ERA’s Ranger 3 Deep project is located do not support an extension of the project. The project remains on care and maintenance.

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Motley Fool writer/analyst Owen Raszkiewicz has no position in any stocks mentioned.

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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.

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