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Why these 4 ASX shares sank lower today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course for another disappointing decline. In afternoon trade the index is down 0.4% to 6,022 points due largely to declines in the resources sector.

Four shares weighing heavily on the index today are listed below. Here’s why they have sunk lower:

The Galaxy Resources Limited (ASX: GXY) share price is down 4.5% to $4.07 a day after releasing its latest quarterly update. Although it was a strong result, it wasn’t enough for a number of brokers to change their ratings. Analysts at UBS, Morgan Stanley, and Macquarie have all retained their neutral ratings on the lithium miner’s shares. It is worth noting also, that each broker has a price target below the current share price.

The Rio Tinto Limited (ASX: RIO) share price has fallen almost 3% to $78.95. Despite the release of positive broker notes following yesterday’s quarterly update, it wasn’t enough to hold up its share price amid a sell-off in the resources sector after a pull-back in commodity prices. I think Rio Tinto could be worth a look after this recent decline.

The South32 Ltd (ASX: S32) share price is down 1.5% to $3.92 following the release of its quarterly update. While the diversified miner delivered a solid quarterly result that was in-line with market expectations, it wasn’t enough to protect it from the resources sell-off today unfortunately.

The Vocus Group Ltd (ASX: VOC) share price has tumbled almost 3% to $3.06. Yesterday the telco company’s shares were downgraded to an underperform rating by analysts at Macquarie. According to the note, the broker has a $3.05 price target on its shares at the moment. In light of this, investors may want to wait for a further pull-back before considering it as an investment.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Vocus Communications 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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