The S&P/ASX 200 index is off its lows but still trading ever so slightly lower at 6,578.5 points in afternoon trade.
Four shares that have fallen more than most today are listed below. Here’s why they have dropped lower:
The AMP Limited (ASX: AMP) share price is down 3.5% to $1.86. This decline appears to be down to profit-taking after a strong share price gain last week following the release of the financial services company’s half year results and the announcement of a $650 million equity raising. Not even a broker note out of Credit Suisse upgrading its shares as an outperform rating with a $2.00 price target could prevent its shares from falling today.
The Fortescue Metals Group Limited (ASX: FMG) share price has dropped 3.5% to $7.02 after iron ore prices weakened again. Last week the steel making ingredient had one of its worst weeks in years amid falling demand and increasing supply. The rest of the miners with exposure to iron ore are also tumbling lower and are acting as a major drag on the market performance.
The Northern Star Resources Ltd (ASX: NST) share price is down over 2% to $12.98 after the rally in the gold price ran out of steam. This appears to have led to some traders selling shares to make a quick profit. Northern Star isn’t the only gold miner trading lower. At the time of writing the S&P/ASX All Ords Gold index is down 1.7%.
The Orocobre Limited (ASX: ORE) share price has tumbled over 4.5% lower to $2.86. This also appears to be down to profit taking from traders after a strong share price gain last week by the lithium miner. That strong gain was triggered by a positive quarterly update by lithium giant Albemarle. Not only did the company upgrade its full year profit guidance, it suggested that lithium prices would improve over the remainder of the year.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.