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Here’s why these 4 ASX shares got smashed today

Following steep declines yesterday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back with a gain of almost 0.6% to 5,227 points. The materials and energy sectors have been doing a lot of the heavy lifting today, with both posting gains close to 1.5%.

Acting as a drag on the market today have been four shares in particular. Here’s why they have dropped lower:

Cimic Group Ltd (ASX: CIM) shares have dropped almost 16% to $30.25 today following reports in the Australian Financial Review which revealed that Morgan Stanley has concerns over the construction company’s accounts. An analyst at the investment bank believes the company’s reported profits could exceed cash profits by upwards of 30%. This is the latest in a string of controversies that have plagued the company, definitely making it a share to avoid in my opinion.

CIMIC Group shares are still up 29% this year despite today’s declines.

Iluka Resources Limited (ASX: ILU) shares are down over 6% to $6.40 today despite no news being released to the market. It has been a year of ups and downs so far for shareholders of this mineral sands company. Investors will no doubt be praying that the recent CEO appointment of Tom O’Leary from Wesfarmers Ltd (ASX: WES) has a positive effect on the company’s performance and helps turn around its share price.

Iluka Resources’ share price is down around 15% in the last 12 months.

KOGAN.COM LTD (ASX: KGN) shareholders have not had a great first day on the market. Its initial public offering meant Kogan’s shares hit the ASX boards at $1.80 today. But unfortunately they headed lower almost immediately and finished the day down by 16% to $1.51. Whilst Kogan may not have got off to a great start, I still feel that the fledgling online retailer is well worth adding to your watch list and keeping a close eye on.

Kogan.com’s shares were making their first appearance on the ASX today.

Tabcorp Holdings Limited (ASX: TAH) shares have dropped 4% to $4.39 after the New South Wales government announced that it is closing down the greyhound racing industry in the state as of July 1 2017. Although 5% of Tabcorp’s wagering revenue comes from NSW greyhound racing, management appears optimistic that its punters will redirect their betting to its other products. Whilst some may see this sell off as an opportunity to buy shares on the cheap, I feel the increasing competition in the Australian market from international bookmakers should be something to consider first.

Tabcorp shares have dropped by almost 13% in the last 12 months.

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Motley Fool contributor James Mickleboro 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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