The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a disappointing day of trade on Tuesday. In afternoon trade the index is down 0.3% to 6,115 points.
Four shares that have weighed heavily on the market today are listed below. Here’s why they have slumped lower:
The Automotive Holdings Group Ltd (ASX: AHG) share price has plunged 10% to $3.05 after the automotive retail and logistics company released a disappointing trading update. Due to challenging conditions for its Automotive Retail business and the timing of the sale of its Refrigerated Logistics business, full‐year operating NPAT is expected to be approximately $75 million. This will be a decline from $87.3 million in FY 2017 and $97.2 million in FY 2016. I would suggest investors stay well clear of the company.
The GWA Group Ltd (ASX: GWA) share price has given back all of yesterday’s gains and is down 5.5% to $3.72. Today’s decline is likely to be attributable to a note out of Macquarie this morning. According to the note, although the broker is positive on its decision to sell its Door and Access business, it has retained its neutral rating and increased its price target to just $3.52. This is well below the last close price.
The National Australia Bank Ltd (ASX: NAB) share price has fallen 3% to $27.65. All of today’s decline can be attributed to the banking giant’s shares going ex-dividend this morning for its 99 cents per share interim dividend. Eligible shareholders will be paid this dividend on July 5.
The Telstra Corporation Ltd (ASX: TLS) share price has continued its decline and is down a further 4% to $2.91. Today’s decline comes after the release of a bearish note out of Citi following yesterday’s trading update. According to the note, the broker has retained its sell rating and slashed the price target on its shares to $2.70. Citi felt that its recent update highlights a quicker than expected decline in its core earnings.
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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 Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Automotive Holdings Group 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.