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

In afternoon trade the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen a disappointing 0.5% to 5,897 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 Galaxy Resources Limited (ASX: GXY) share price has continued to slide lower, this time by 4.5% to $2.97. The lithium miners have come under pressure in recent days following the release of a bearish broker note from Morgan Stanley. The broker has tipped a huge increase in supply from Argentina and Australia will lead to prices falling by half by 2021.

The Retail Food Group Limited (ASX: RFG) share price has returned to trade with a massive 34% decline to $1.34. At one stage the food and beverage company’s shares had lost half their value and were as low as $1.03. The future looks bleak for Retail Food Group in my opinion and I would suggest investors stay clear of it.

The Wattle Health Australia Ltd (ASX: WHA) share price has plunged over 11% to $2.13. Last week the infant formula and baby food company released its half-year results which showed little by way of revenue once again. This lack of revenue and its sizeable market capitalisation appears to have caught the eye of the Fairfax media which questioned why its chairman would be paid $600,000 in salary when revenue for the half was just $800,000.

The Xero Limited (ASX: XRO) share price has tumbled 3.3% to $31.79 after the accounting software company announced that Rod Drury has resigned as its CEO. Mr Drury will be moving to a non-executive director role at Xero and be replaced by Steve Vamos. Mr Vamos has previously had senior roles at IBM, Apple and Microsoft, among other tech leaders. While he appears to be a worthy replacement, the market seems concerned by the sudden change.

Need a lift after these declines? Then take a look at these top shares that are shooting the lights out right now.

Top 3 ASX Blue Chips To Buy In 2018

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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 Retail Food Group Limited. 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 Scott Phillips.

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