MENU

Why these 4 ASX shares have started the week in the red

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.

Need a lift after today's heavy declines? Then why not snap up these potential market-beaters.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.