Why these 4 ASX shares started the week in the red

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down a disappointing 0.2% to 6,018 points.

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

The Bubs Australia Ltd (ASX: BUB) share price is down 10% to 86.5 cents after a major shareholder reduced its stake in the company. Next Step Global Limited has trimmed its holding down from 14.6% to 12.4%.

The Iress Ltd (ASX: IRE) share price has fallen 5% to $10.93 after providing the market with a trading update. Although revenue growth is expected to be strong this year, rising costs and the timing of client decisions means that IRESS expects Segment Profit between $123 million and $128 million on a constant currency basis in FY 2017. This compares to $123.5 million in FY 2016.

The Westpac Banking Corp (ASX: WBC) share price is down 3% to $32.30. Today’s decline is attributable in full to the banking giant’s shares going ex-dividend this morning. The Australia and New Zealand Banking Group (ASX: ANZ) share price is also down for the same reason.

The XERO FPO NZX (ASX: XRO) share price has fallen 4.5% to $27.77 after Credit Suisse downgraded the accounting software provider to an underperform rating on valuation grounds. The broker appears to believe the market has priced in too much future growth and that fair value is around the $26.96 mark. I would wait for the dust to settle before considering an investment.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

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