The S&P/ASX 200 index has started the week on a subdued note. In early afternoon trade the benchmark index has edged ever so slightly higher to 6,670.6 points.
Four shares that are acting as a drag on the market today are listed below. Here’s why they have dropped lower:
The Appen Ltd (ASX: APX) share price has continued its slide and is down a further 3% to $21.21. A combination of profit taking after an impressive share price gain over the last 12 months and concerns over the performance of its recently acquired Figure Eight business appear to be the drivers of this recent weakness. The Appen share price is now down by over 33% from its 52-week high.
The Qantas Airways Limited (ASX: QAN) share price has hit a spot of turbulence and is down 4.5% to $6.11. Investors have been selling the airline’s shares today after oil prices spiked following drone attacks on major oil fields in Saudi Arabia. At the time of writing both Brent and WTI crude oil prices are trading over 10% higher according to Bloomberg. Investors appear concerned that this could lead to a rise in fuel costs.
The Sims Metal Management Ltd (ASX: SGM) share price has crashed 13% lower to $10.90 after the scrap metal company warned that its first half result would be down materially compared to the prior corresponding period. Management advised that this has been driven largely by the negative impact of the trade war on demand and the prices of ferrous and no-ferrous metals.
The TPG Telecom Ltd (ASX: TPM) share price is down 3% to $6.90 despite there being no news out of the telco company. However, last week TPG Telecom’s shares charged notably higher after investors became more confident that it would win its appeal and overturn the ACCC’s decision to block its merger with Vodafone Australia. Some investors may have decided to take a bit of profit off the table today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen 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.