The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a terrible start to the week and is down 1.5% to 6,025 in early afternoon trade.
Four shares weighing heavily on the market today are listed below. Here's why they have started the week deep in the red:
The Downer EDI Limited (ASX: DOW) share price has fallen 5% to $6.53 after the services company announced that it would impair the carrying value of the goodwill for its Mining division. According to the release, the division's historic high levels of returns have reduced significantly due to non-renewal of two material contracts and delays in securing alternative contracts. As a result, a pre-tax charge of $77 million will be recorded in Downer's half-year results.
The Orocobre Limited (ASX: ORE) share price has tumbled 6% to $6.70 due to a sell off in the lithium miner industry. Almost all lithium miners have seen their shares plunge lower today due to investors turning to risk-off mode and amid concerns that the industry will face an oversupply in the coming years.
The Syrah Resources Ltd (ASX: SYR) share price has been the worst performer on the index with a 7.5% decline to $3.47. As well as being caught up in a sell-off of resources shares, the graphite miner has come under pressure in recent days after commenting on the prices it is receiving for its graphite. In its quarterly update, management advised that prices for its initial shipments are lower than the basket price inferred by price reporting agencies.
The Wesfarmers Ltd (ASX: WES) share price has fallen 5% to $41.95 following the release of a trading update. According to the update, the company's UK hardware business has not been performing well. As a result, Wesfarmers will take a $795 million write-down on goodwill recognised on the acquisition of Homebase. It will also write down a further $66 million worth of excess or unsuitable stock and take $70 million in provisions on store closures.
