As we approach the early finish the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks set to miss out on five days of gains with a 0.3% drop to 5,629 points.
Four shares that helped drag the market down today are listed below. Here’s why they’ve been crushed:
Fortescue Metals Group Limited (ASX: FMG) shares have fallen over 3.5% to $5.81 after a drop in the iron ore price overnight. According to Metal Bulletin iron ore settled 2.8% lower at US$77.10. Unfortunately I expect further pressure on iron prices next year due to increased supply, which could lead to Fortescue’s share price falling further.
PMP Limited (ASX: PMP) shares have fallen a further 6% to 67 cents, extending the printing company’s weekly decline to over 16%. Its shares tumbled after the ACCC announced that it has concerns over its planned merger with fellow printing company IPMG. I believe the merger looks very doubtful now, which is a shame for shareholders because it would’ve created a real force in the industry.
Shaver Shop Group Ltd (ASX: SSG) shares have plunged almost 15% to 70 cents after the retailer provided a disappointing trading update. The company has experienced weaker-than-expected sales in recent weeks due to the underperformance of its Hair Styling category. It also blamed the poor performance on the temporary closure of its Queensgate store in New Zealand following the recent earthquake. As a result it expects December sales to be between $26.5 million and $28 million, compared to its previous forecast of $29.5 million.
Tatts Group Limited (ASX: TTS) shares have dropped 3% to $4.41 after its board decided to reject a takeover approach from a consortium led by Macquarie Group Ltd (ASX: MQG). After a review of the proposal the board deemed its proposed merger with Tabcorp Holdings Limited (ASX: TAH) to be superior. I feel the board made the right decision.
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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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