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Why Avita Medical, Galaxy, Metcash, & WiseTech shares are sinking lower today

In afternoon trade the S&P/ASX 200 index is a sea of red. At the time of writing the benchmark index is down 2% to 6,721.8 points.

Four shares that are falling more than most today are listed below. Here’s why they are sinking lower:

The Avita Medical Ltd (ASX: AVH) share price has fallen a sizeable 7% to 59.2 cents. This decline appears to be down to profit taking following an impressive gain by the medical technology company’s shares in 2019. Prior to today, the Avita Medical share price was up a remarkable 700% since the start of the year.

The Galaxy Resources Limited (ASX: GXY) share price has tumbled 3% lower to 90 cents. This follows a pricing update from rival lithium miner Orocobre Limited (ASX: ORE) this morning. That update reveals that it expects the weighted average price of its lithium carbonate sales for the December quarter to be approximately US$5,400/tonne FOB. This is well short of its previous guidance of US$6,200 – US$6,500/tonne.

The Metcash Limited (ASX: MTS) share price is down 2% to $2.89. This morning the wholesale distributor revealed that it will recognise a $237.4 million post tax impairment to goodwill and other assets in the Food pillar with its half year results. The review has taken into account 7-Eleven’s advice that it will not be renewing the current supply agreement with Metcash following its conclusion in August.

The WiseTech Global Ltd (ASX: WTC) share price is down 5% to $26.20. This follows a selloff of tech stocks following concerns that a global trade war is brewing. Investors are panicking after President Trump said he will reinstate duties on steel and aluminium from Brazil and Argentina. It isn’t just WiseTech Global sinking lower. At the time of writing the S&P/ASX 200 Info Tech index is down over 2.7% during afternoon trade.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of WiseTech Global. 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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