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Why these 4 ASX shares have tumbled lower today

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 0.1% to 5,730 points thanks largely to gains in the healthcare sector.

Four shares which haven’t been able to follow the market higher are listed below. Here’s why they are in the red today:

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen 4% to $4.66 after the iron ore price fell again overnight. Due to oversupply concerns the 62% fines spot price fell 2.5% to US$57.02 a tonne according to Metal Bulletin. Although its shares do look dirt cheap, I would suggest investors hold off an investment until the iron ore price finds a bottom.

The GBST Holdings Limited (ASX: GBT) share price has dropped 5% to a 52-week low of $2.53 despite there being no news out of the wealth management software provider. Its shares have been under significant pressure since its half-year results in February when it reported a disappointing 20% decline in revenue.

The Kidman Resources Ltd (ASX: KDR) share price is lower by 5% to 56.5 cents. Today’s decline is likely to be a spot of profit taking after the lithium miner’s shares rocketed 21% on Wednesday. Whilst its court battle over lithium rights with Marindi Metals Ltd (ASX: MZN) has now concluded, a final decision will be handed down in due course. Although I expect a positive result, investors may want to stay clear of Kidman until the final decision is announced.

The Wesfarmers Ltd (ASX: WES) share price has tumbled 4% to $41.01. Today’s decline is likely to be attributable to a research note out of Morgan Stanley. Its analysts downgraded Wesfarmers to underweight with a $36.00 price target after assessing the impact Amazon would have on the retail conglomerate’s business. Like most retail shares, I feel Wesfarmers may be best avoided at this point.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Amazon. Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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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