The S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) is trading 0.12% lower today as some investors lock in profits after two days of healthy gains.
The materials, gold and energy sectors are bearing the brunt of today’s selling, with some good support helping the financial and consumer staples sectors.
Four shares that are being heavily punished today, include:
Boral Limited (ASX: BLD)
Boral shares have finally resumed trading today after the building materials company announced a massive $3.5 billion acquisition on Monday. Investors are clearly concerned about the magnitude of the acquisition and this has seen the shares crash more than 17.5% to $5.07. Following today’s sharp fall, the shares are now trading only marginally higher than the $4.80 per share retail entitlement offer price.
Nearmap Ltd (ASX: NEA)
Shares of Nearmap have fallen more than 5.4% today after coming out of a trading halt following a $20 million institutional capital raising. The aerial imaging company also received a lengthy ‘please explain’ from the ASX following its announcement two days prior that suggested it would not need to undertake a capital raising. This series of events certainly does not reflect well on Nearmap’s management, although investors will look past this if the company can deliver on its ambitious US expansion program.
SDI Limited (ASX: SDI)
After falling more than 32% in the final moments of yesterday’s session, shares of SDI have fallen another 7% today. The sharp move comes after the dental products company released a disappointing market update that pointed to a decline in first half net profit after tax (NPAT). As a result of unfavourable currency movements, the company now expects NPAT to be in the range of $2 million to $2.5 million, down from $3 million in the first half of FY16. SDI did note that it expects the second half to be materially stronger, although this appears to be dependent on favourable currency movements.
EVOLUTION FPO (ASX: EVN)
Evolution Mining is one of the worst-performing gold shares today after the spot gold price fell below US$1,200/oz overnight. The safe haven asset was highly sought after leading up to the US election, but has since been deserted by investors looking for better returns. In fact, the sector as a whole has lost more than 20% since the US election. Although Evolution Mining shares have lost more than 5% today, they have still managed to gain around 40% since the start of the year.
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Motley Fool contributor Christopher Georges 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.