Why these 4 ASX shares got crushed today

Credit: Alex Proimos

In early afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is just managing to stay in positive territory and is higher by 0.2% to 5,218 points.

It hasn’t been the same story for the following four shares though unfortunately. Each has posted a sizable decline today, here’s why:

CYBG PLC CDI 1:1 (ASX: CYB) shares are down almost 5% to $4.40 following the bank’s Capital Markets Day in London after the Australian market closed yesterday. In its presentation the bank was enthusiastic about its medium-term prospects and believes it will deliver double-digit return on tangible equity by the end of FY 2019, one year earlier than originally planned. But in the short-term things aren’t looking so great. The bank lowered its loan growth prospects and indicated it may take a year longer than previously planned to free capital from its balance sheet.

OceanaGold Corporation (ASX: OGC) shares have plunged almost 5% to $4.63. Although almost all of the gold miners have dropped lower today following a fall in the gold price overnight, OceanaGold was up there as the worst performer amongst its peers. With the Federal Reserve’s interest rate decision just over a week away, it is likely to continue to be reasonably volatile for the gold miners for a little while longer.

Santos Ltd (ASX: STO) shares have dropped almost 5% to $3.54 thanks largely to a drop in oil prices. Yesterday the International Energy Agency released an update to the market advising that it believed it may take longer for oil prices to rebalance. The agency pointed to a more severe slowdown in global oil demand growth than previously expected as being the reason.

Superloop Ltd (ASX: SLC) shares have fallen over 9% to $3.00 following an announcement that the dark fibre provider plans to acquire wireless internet specialist BigAir Group Limited (ASX: BGL). In order to fund the deal Superloop completed an institutional placement to raise $65 million through the issue of 21.7 million new shares at $3 per share. The deal has certainly taken many by surprise and although I’m quite sceptical, I’m willing to give them the benefit of the doubt at this stage.

Following these sharp declines now might be an opportune time to check and see if you have either of these three wealth destroying ASX shares in your portfolio.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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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