It hasn't been a great end to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The benchmark index has followed the lead of international markets and dropped lower. In early afternoon trade it is down 0.9% to 5,716 points.
Four shares have made notable declines today. Here's why:
Bellamy's Australia Ltd (ASX: BAL) shares have slumped 6% to $4.13 today as the selling pressure on its shares continues. The infant formula manufacturer has now lost almost two-thirds of its market value in the last three months. After such a steep drop in its share price I'm sure many investors are wondering if it is a bargain buy now. My colleague doesn't think it is a bargain and I'd have to agree.
Resolute Mining Limited (ASX: RSG) shares have dropped 3.5% to $1.32, despite the spot gold price holding firm at US1,194 an ounce. With the majority of Australia's gold miners dropping lower today, it would appear as though investors are taking profit after the recent rally. This seems sensible in my opinion as I believe that the gold price is unlikely to appreciate significantly moving forward.
Surfstitch Group Ltd (ASX: SRF) has fallen 3% to 18 cents after it announced that its point of sale and inventory management software provider Streamline Retail had ended its contract with the retailer. Furthermore, the release also revealed that lawyers for Streamline (which is owned by former Surfstitch CEO Justin Cameron) have indicated that it asserts ownership and control of certain intellectual property rights. Management does not yet know what impact this will have on the company.
Western Areas Ltd (ASX: WSA) shares have fallen a massive 16% to $2.76 after nickel prices fell sharply overnight. The decision by the Indonesian government to lift its ban on nickel ore exports was the reason nickel fell to a four-month low. Up until recently many had tipped nickel prices to rebound in 2017, but this increase in supply is likely to put a stop to that. Independence Group NL (ASX: IGO) shares have also plunged 9.5% to $4.19 on the news.
