Why these 4 ASX shares are getting hammered today

Amcor Limited (ASX:AMC) has taken a big hit today.

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It’s been a choppy day for the local share market, with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.2% at the time of writing. It was down more than 0.6% earlier in the session.

Unfortunately for investors, there are a number of businesses experiencing much sharper falls today…

Amcor Limited (ASX: AMC) shares have plunged 8% to $14.86 approaching the end of the session after the global packaging business announced a major impairment on its Venezuelan packaging operations. While you can read more about the update here, hyperinflation and wild swings in the Venezuelan currency’s value are largely behind the US$350 million write down.

Surfstitch Group Ltd (ASX: SRF) has had a horrid run in recent months, compounded by yet another earnings downgrade today. The company now expects to report a loss of between $17.3 million and $18.3 million for the 2016 financial year, which is well below the profit it expected to earn initially. Its shares have fallen 21% to 32 cents, although they did fall as much as 38.3% earlier to 25 cents.

a2 Milk Company Ltd (Australia) (ASX: A2M) shares have dropped 2.3% to a little more than $1.41, reversing some of yesterday’s strong gains. Like other infant formula producers, a2 Milk’s share price has been volatile so far in 2016, with investors unsure what to make of new and tougher regulations in the high-growth market of China.

Estia Health Ltd (ASX: EHE) shares have fallen another 1.6% today, taking its total loss to 10.2% since the beginning of the week. The decline could have been worse if it wasn’t for an intraday rebound on Tuesday. The aged care business is under fire due to investor concerns that government funding to the sector may take a hit, while the complexity of the businesses also make them somewhat difficult to understand (perhaps contributing to any doubts investors may have).

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. 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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