Why Mayne Pharma and these ASX shares just sank to 52-week lows

The Mayne Pharma Group Ltd (ASX:MYX) share price and two others have just dropped to 52-week lows. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Tuesday the Australian market tumbled lower amid concerns over global economic growth.

A number of shares fell more than most and some even dropped to 52-week lows or worse. Three shares that made this unwanted milestone are listed below.

Here's why they are at new lows:

The Blackmores Limited (ASX: BKL) share price hit a multi-year low of $79.66 on Tuesday. The health supplements company's shares have come under significant pressure this year due to the softening of demand for its products in the key China market. And judging by its share price weakness this month, it appears that some investors are not overly confident that FY 2020 will be much better. Later this month Blackmores will report its full year results and release its guidance for the next financial year. I would suggest investors keep their powder dry until then.

The CYBG PLC (ASX: CYB) share price tumbled to a multi-year low of $2.57 yesterday. The UK-based bank's shares have been on the slide this month due to the release of a disappointing quarterly update at the end of July. That update saw CYBG warn investors that a large volume of mortgages have been paid off by customers during the third quarter, resulting in a negative impact on its lending income. In addition to this, recent weakness in the British pound due to no-deal Brexit concerns has also weighed heavily on the bank's Australian-listed shares.

The Mayne Pharma Group Ltd (ASX: MYX) share price continued its slide and hit a multi-year low of 47 cents on Tuesday. Investors have been selling the pharmaceutical company's shares this year due to concerns over the underperformance of its key Generics division once again. After a brief recovery, the division's performance has deteriorated materially in the second half of FY 2019 due to challenging trading conditions. Whilst things will inevitably improve again in the future, I'm not overly convinced that it will be a quick fix. In light of this, investors may want to keep a safe distance for the time being.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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.

More on 52-Week Lows

Piggy bank sinking in water symbolising a record low share price.
52-Week Lows

9 ASX 200 shares tumbling to 52-week lows today

Israel's strike on Iran on Friday dragged several ASX 200 shares to new depths.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
52-Week Lows

5 ASX 200 stocks at 52-week lows

These shares are down in the dumps on Tuesday.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
52-Week Lows

Are Telstra shares a no-brainer for income after hitting a fresh 52-week low?

Let's see what analysts think of the telco giant's shares at this level.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

Why is this ASX 200 stock crashing 16% to a 52-week low on Tuesday?

This stock is having a very red start to the week.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
52-Week Lows

3 ASX shares sinking to 52-week lows today

These ASX shares are having a bit of a nightmare this year.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
52-Week Lows

Star Entertainment share price crashes 26% upon return to trade

This is a new 52-week low.

Read more »

Rede arrow on a stock market chart going down.
Materials Shares

Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows

Lithium stocks like Core are exploring new lows today.

Read more »

A man looks nervous as he inflates a balloon, scared it might pop.
Materials Shares

Arafura share price resets 52-week low after quarterly update

The rare earths explorer also announced the results of its share purchase plan today.

Read more »