Why these 4 ASX shares are ending the week deep in the red

It has been a disappointing end to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the index is down 1.1% to 5,693 points.

Four shares which have fallen more than most today are listed below. Here’s why they are ending the week deep in the red:

The Coca-Cola Amatil Ltd (ASX: CCL) share price has fallen 5% to $8.49 after the beverage company was downgraded by Morgan Stanley. According to a research note out of the investment bank, its analysts were concerned about the loss of more supply contracts following the decision of Domino’s Pizza Enterprises Ltd. (ASX: DMP) to switch to rival Pepsi-Schweppes.

The Compumedics Limited (ASX: CMP) share price has plunged 19% to 51 cents following the release of a business update. Due to restructuring activities in its core capital equipment business, the medical device company expects sales of approximately $33 million for the 12 months ending June 30 2017. This will be a 12% decrease from a year earlier.

The Ellex Medical Lasers Limited (ASX: ELX) share price is down 10% to 96.5 cents after the medical device company released its preliminary full-year sales result. According to the release, Ellex expects sales of $71.7 million in FY 2017, down 1.6% on the previous year. Management plans to respond to the drop in sales with a significant investment in its sales and marketing in FY 2018.

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen 3% to $5.09 following a drop in the iron ore price overnight. According to Metal Bulletin, the iron ore price fell 2.1% to US$61.96 a tonne, bringing its month-to-date decline to approximately 4.6%. With the Australian government tipping iron ore to fall significantly in 2018, I’d consider avoiding Fortescue’s shares for the time being.

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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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