In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has given back its morning gains and has edged lower due largely to declines in the banking sector. At the time of writing the benchmark index is down slightly to 6,091.3 points.
Four shares that have fallen more than most today are listed below. Here’s why they have tumbled lower
The Commonwealth Bank of Australia (ASX: CBA) share price is down almost 3.5% to $71.10 after the release of a surprisingly weak quarterly update. The market is likely to be concerned with the increase in consumer arrears of home loans of more than 90 days. These have risen to 0.65%, an increase of almost 40% in two and half years. If arrears continue to rise it could be a sign of trouble down the track.
The Greencross Limited (ASX: GXL) share price has plunged 20% to $4.30 after the integrated pet care company downgraded its full-year guidance. The company now expects underlying EBITDA of between $97 million and $100 million this year, compared to previous guidance of being “comfortable with market consensus” which stood at around $107 million to $110 million according to the AFR. A detailed breakdown of the cause of the downgrade can be found here. I was a fan of Greencross but now I have concerns about its prospects, especially with such a stretched balance sheet.
The Incitec Pivot Ltd (ASX: IPL) share price has fallen 6% to $3.52 after the manufacturer and distributor of industrial explosives released its half-year results. The market was looking for a 17.8% increase in EBIT to $286 million, earnings per share of 10 cents, and a 5 cents per share interim dividend. It got $240.3 million, 8.8 cents per share, and a 4.5 cents per share interim dividend.
The JB Hi-Fi Limited (ASX: JBH) share price is down 2.5% to $22.42. This morning the retailer was the subject of a bearish broker note out of Deutsche Bank. According to the note, the broker has downgraded JB Hi-Fi’s shares to a hold rating from buy. This appears to have weighed on investor sentiment today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross 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 Scott Phillips.