Why these 4 ASX shares have sunk lower today

Source: iStock

It certainly has been a great day on the local share market. In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up a solid 1.1% to 5,735 points.

Unfortunately not all shares have been able to follow the market higher. Here’s why these four shares have sunk lower:

The Galaxy Resources Limited (ASX: GXY) share price is down 3% to $1.99 despite there being no news out of the lithium miner. But with its shares rallying incredibly strongly over the last couple of weeks, I suspect this decline is down to a spot of profit taking. This could arguably make it a good opportunity to snap up shares in the miner. Though they are among the more volatile shares on the market and thus largely unsuitable for the average investor.

The Liquefied Natural Gas Ltd (ASX: LNG) share price has fallen 7% to 61.7 cents. Like Galaxy, I believe this decline is likely a result of profit taking. Last week Liquefied Natural Gas’ shares rallied strongly after it announced that its Magnolia LNG business had secured a $1.5 billion commitment from Stonepeak Partners. This is expected to fund the project’s full equity requirement.

The Lynas Corporation Ltd (ASX: LYC) share price has dropped 4.5% to 10.5 cents following the release of its quarterly update. Despite a strong quarter of better-than-expected production, record cash flows, and improved rare earths prices, the market appears to have been expecting an even better quarter.

The Ramelius Resources Limited (ASX: RMS) share price has tumbled 3.5% to 39.5 cents. This latest drop has brought the gold miner’s year-to-date decline to a disappointing 32%. Unfortunately for shareholders, Ramelius has fallen short of its production guidance this year. Furthermore, its all-in sustaining costs have been higher than expected.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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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