In afternoon trade the S&P/ASX 200 index has given back its morning gains and dropped lower. At the time of writing the benchmark index is down 0.1% to 6,659.6 points.
Four shares that have fallen more than most today are listed below. Here’s why they have sunk lower:
The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has tumbled 4.5% lower to $37.31 after the pizza chain operator was hit with a class action. Law firm Phi Finney McDonald is conducting a class action against Domino’s for widespread underpayment of delivery drivers and in-store workers employed at franchise stores. Domino’s responded by saying that it “takes the proper payment of its team members seriously. Any formal proceedings received will be reviewed and actioned in the ordinary course.”
The Kogan.com Ltd (ASX: KGN) share price is down 8% to $4.57 a day after announcing the launch of Kogan Energy. The Kogan Energy business is expected to launch before the end of the 2019 calendar year and will focus on simplifying the provision of power and gas for millions of Australians. The company’s directors have been known to sell shares following announcements like this, so today’s decline could potentially have been caused by that.
The Nearmap Ltd (ASX: NEA) share price has fallen 5.5% to $3.89 despite there being no news out of the aerial imagery technology and location data company. This decline appears to be a combination of profit taking from investors and weakness in the tech sector today. The S&P/ASX 200 Info Tech index is down 0.7% this afternoon.
The Sandfire Resources NL (ASX: SFR) share price has crashed 10.5% lower to $6.33 after announcing an agreement to acquire MOD Resources Ltd (ASX: MOD). Sandfire has offered the equivalent of 45 cents per share, which values MOD at approximately $167 million and implies a 45% premium to its last close price. The board of MOD has unanimously recommended the offer, in the absence of a superior proposal and subject to the independent expert’s report.
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and Kogan.com ltd. 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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