Why these 4 ASX shares are sinking lower today

The Thorn Group Ltd (ASX:TGA) share price is one of four sinking lower today. Here's why…

| 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

Although it has given back some of its earlier gains, the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has pushed higher again today and is up 0.6% to 5,883 points in afternoon trade.

Four shares which haven't been able to follow the market higher today are listed below. Here's why they are sinking lower:

The Perseus Mining Limited (ASX: PRU) share price has fallen almost 4% to 34.7 cents. Yesterday the gold miner released a reasonably mixed quarterly production update. This led to UBS retaining its neutral rating and 40 cents price target on the gold miner's shares.

The Thorn Group Ltd (ASX: TGA) share price has fallen a further 9% to 82.5 cents. The financial services company has come under heavy selling pressure after it downgraded its full-year profit guidance on Monday. Management now expects earnings to be 30% lower than in FY 2017. I would suggest investors avoid its shares no matter how cheap they appear.

The WAM Capital Limited (ASX: WAM) share price is down 3.5% to $2.40. The vast majority of today's decline is related to WAM Capital's shares going ex-dividend this morning. Its 7.5 cents per share fully franked dividend is expected to be paid to shareholders on October 27.

The XERO FPO NZX (ASX: XRO) share price has tumbled 3.5% to $31.06 despite there being no news out of the accounting software company. I suspect today's decline is a case of profit taking. After all, Xero's shares recently hit an all-time high of $32.44. While I think Xero could be a great buy and hold investment, I'd hold out for a better entry point.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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 »