In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has dropped notably lower and is off 0.5% at 5,984.9 points.
Four shares that have fallen more than most today are listed below. Here’s why they have tumbled lower:
The Cash Converters International Ltd (ASX: CCV) share price has fallen 8.5% to 33 cents after announcing an underwritten 1 for 4 pro rata non renounceable entitlement offer to raise approximately $39.5 million. The company is conducting the raise at 32 cents per share and will use the funds to strengthen the balance sheet, reduce debt, and pursue growth opportunities.
The Galaxy Resources Limited (ASX: GXY) share price is down 3.5% to $3.30 a day after announcing a US$280 million asset sale to South Korean conglomerate POSCO. Galaxy’s rose strongly following the announcement, which could mean today’s decline is down to profit taking from traders. Many of its lithium peers are also deep in the red today.
The Macquarie Group Ltd (ASX: MQG) share price has dropped almost 3% to $112.80. Today’s decline appears to be related to a selloff of U.S. banks overnight follow the political turmoil in Italy. If the investment bank’s shares were to slide a bit lower over the coming days, I would be interested in snapping some up.
The REA Group Limited (ASX: REA) share price is down 3% to $88.10 following the release of a broker note out of the Macquarie equities desk. According to the note, the broker has downgraded the property listings company’s shares to an underperform rating with an $86.00 price target. The broker believes that its valuation is getting a little stretched now after such a strong run over the last 12 months. While I wouldn’t be a seller of its shares if I owned them, I wouldn’t be a buyer unless they came down towards the $80 mark. But that may be wishful thinking.
These 3 stocks could be the next big movers in 2020
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has recommended REA 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.
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