Why Bellamy’s, IOOF, Pendal Group, & Perseus Mining shares dropped lower today

The S&P/ASX 200 index has had a disappointing start to the week despite gains on Wall Street on Friday. In afternoon trade the benchmark index is down 0.1% to 6,245 points.

Four shares that have fallen more than most today are listed below. Here’s why they have started the week in the red:

The Bellamy’s Australia Ltd (ASX: BAL) share price has continued its slide and is down a further 5% to $9.39. On Friday the infant formula company’s shares came under pressure after being downgraded by analysts at Citi. According to the note, its analysts downgraded Bellamy’s shares to a neutral rating with a $10.50 price target largely on valuation grounds after a strong share price rise since the start of the year.

The IOOF Holdings Limited (ASX: IFL) share price is down almost 2.5% to $6.44 after the embattled wealth management company advised that it has been served with a class action filed by Quinn Emanuel Urquhart & Sullivan. Quinn Emanuel alleges that between May 27 2015 and August 9 2018 IOOF contravened its continuous disclosure obligations under the ASX Listing Rules and engaged in misleading or deceptive conduct.

The Pendal Group Ltd (ASX: PDL) share price has crashed 8% lower to $8.54. On Friday the fund manager released a disappointing funds under management update. This hasn’t gone down well with analysts at Credit Suisse. According to a note out of the investment bank, its analysts have retained their underperform rating and trimmed the price target on the company’s shares down to $7.80.

The Perseus Mining Limited (ASX: PRU) share price has tumbled almost 7% to 45.2 cents after the gold price dropped notably lower. According to CNBC, the spot gold price is trading a further 0.35% lower on Monday at US$1,290.70 an ounce. The S&P/ASX All Ords Gold index is down a sizeable 2.7% at the time of writing.

Need a lift after these declines? Then check out these growth shares that have been rated as buys.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bellamy's Australia. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!