Why these 4 ASX shares are falling today

Investors are enjoying a strong session today with the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) gaining more than 1.1%. Most sectors are in the green with the materials and financials leading the way higher.

Not all stocks have been so lucky, however, and these four companies have been left behind in today’s rally:

Lovisa Holdings Ltd (ASX: LOV)

Shares of Lovisa have fallen more than 6% today following the release of its third quarter trading update. Although the jewellery retailer re-affirmed its previous full year EBIT guidance of $23.5-$25.5 million for the full year, the company also announced a number of management changes including a new chairman and Chief Financial Officer. This appears to have overshadowed the fact that trading conditions look as though they have stabilised with operating margins remaining at 74% and like-for-like sales increasing by 3% in the latest quarter.

Aconex Ltd (ASX: ACX)

Aconex has been a star performer over the past 12 months with its shares rising more than 190%. Today’s 5% share price fall, therefore, is unlikely to overly concern long-term holders. The company today released the results of its share purchase plan which was unsurprisingly oversubscribed. The company was initially seeking to raise $5 million from shareholders but the demand was so great that the board has decided to take the opportunity to instead raise $12 million at an issue price of $5.20 per share. The issuing of a larger-than-expected number of shares (which will have a larger dilution impact on existing holders) could explain some of today’s share price weakness.

Ainsworth Game Technology Limited (ASX: AGI)

Shares of Ainsworth Game Technology have fallen more than 3.8% today despite no news being released from the company. Investors are still waiting for the opportunity to vote on the proposed sale of Len Ainsworth’s 172.1 million share holding to Austrian-based gaming company, Novomatic. Details of the extraordinary general meeting (EGM) are yet to be released and some investors may be losing patience in the process. It is still unclear as to whether the proposed transaction will benefit shareholders as Novomatic will receive a 53% controlling stake in the company. An independent expert report is due soon and minority investors will be eagerly awaiting the experts’ opinion.

Senex Energy Ltd (ASX: SXY)

The overnight fall in the oil price hasn’t helped many of the oil producers today, but Senex is one of the worst performers in the sector. The shares had fallen by as much as 6.7% earlier in the day, but have regained some of these losses and are now trading at 28.5 cents a share – down 3.4% for the day. The company is leveraged to moves in the oil price and its share price movement can be volatile. As a result, today’s trading should be probably be viewed purely as a reaction to the short-term moves of the oil price.

As the ASX flirts with 5,000, some experts are predicting a market crash...

Is a share-market crash coming? Get our analysts' exclusive inside take now, in The Motley Fool's newly updated report, "What to Do When the Sharemarket Crashes" -- including expert tips on how to protect YOUR portfolio. Click here for your FREE copy now.

Motley Fool contributor Christopher Georges owns shares in Senex Energy and Ainsworth Gaming Technology. 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.