Why these 4 shares are getting hammered today

These four shares are suffering a terrible start to the week.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to recoup some of its earlier losses but has still started the week off on the back-foot with a fall of 0.15% to 5,743 points.

The mining sector is the clear underperformer today, although the energy, gold and utilities sectors are posting quite healthy gains.

Four shares that are having a particularly bad day today, include:

South32 Ltd (ASX: S32)

The South32 share price has fallen more than 3.2% today, despite announcing a US$500 share buy-back. The buy-back is equivalent to around 4.5% of the miner's current market capitalisation and will be funded from existing cash reserves. Today's share price reaction is somewhat surprising considering buy-backs are generally quite well received. Nonetheless, shares of South32 have still managed to climb more than 70% over the past 12 months.

BHP Billiton Limited (ASX: BHP)

The BHP share price has plunged more than 3% today as investors react to last week's big drop in iron ore prices. The bulk commodity has enjoyed a huge run over recent months, but it appears traders are starting to lock in profits amid fears that prices may have peaked. Possibly adding to concerns is the wavering confidence in Donald Trump's ability to implement his pro-growth agenda that has also helped to boost mining shares recently.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has fallen more than 7.5% to $2.21 today, after the biotechnology company announced a US$40 million capital raising. The placement will result in 26.25 million new shares being issued to institutional investors at an offer price of A$2.00 per share. Mesoblast will use the funds to advance its phase 3 clinical trials program as well as for developing manufacturing facilities in anticipation of new product approvals.

Stemcell United Ltd (ASX: SCU)

The Stemcell United share price has crashed more than 10.5% today, despite no news from the company. The small-cap company made headlines earlier this month after its shares catapulted more than 3000% in a single day after it announced that it was looking to pursue opportunities in the medical marijuana sector. The shares have since come back down to earth with the market realising there is still little evidence that Stemcell United has any credible prospects of becoming a major player in the sector.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »