The S&P/ASX 200 index is out of form on Thursday and has given back the majority of yesterday's gains. In afternoon trade the benchmark index is down 0.6% to 7,087.6 points.
Four shares falling more than most today are listed below. Here's why they are sinking lower:
The Cimic Group Ltd (ASX: CIM) share price has crashed 20% lower to $27.92. Investors have been selling the engineering company's shares after it provided an update on its strategic review of BIC Contracting. CIMIC revealed that it will be offloading the struggling business and exiting the Middle East. In light of this, it expects to recognise a one-off, post-tax impact of around $1.8 billion in FY 2019.
The Downer EDI Limited (ASX: DOW) share price has plummeted 21% lower to $6.93. Investors have been hitting the sell button after Downer downgraded its profit guidance for FY 2020. The leading integrated services provider now expects its NPATA to be $300 million. This compares to its previous guidance of $365 million and implies a decline of 12% year on year. The underperformance of its Engineering, Construction, and Maintenance business is to blame for the downgrade.
The Netwealth Group Ltd (ASX: NWL) share price has fallen 3.5% to $7.73. This morning the fintech company released its second quarter update. During the second quarter Netwealth reported a 12.6% or $3.2 billion quarter on quarter increase in its funds under administration (FUA) to $28.5 billion. Although this was higher than Goldman Sachs' estimate of $28.1 billion, it hasn't stopped investors hitting the sell button.
The Regis Resources Limited (ASX: RRL) share price has dropped 5% to $4.40. The catalyst for this appears to be a broker note out of Macquarie today. Its analysts have downgraded the gold miner's shares to an underperform rating and cut the price target on them to $4.20. Although Regis Resources' production in the December quarter was ahead of Macquarie's expectations, it appears disappointed by the delays to the McPhillamys development.
