Why Austal, Newcrest, Origin, & Virgin Money shares are sinking lower

Austal Limited (ASX:ASB) and Newcrest Mining Limited (ASX:NCM) shares are two of four sinking notably lower on Friday…

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It looks set to be a disappointing end to the week for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is down 3.7% to 5,319.6 points.

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

The Austal Limited (ASX: ASB) share price has crashed 18% lower to $2.75. Investors have been hitting the sell button today after the ship builder was overlooked for a major U.S. Navy project. Austal was in a four-way competition to construct Guided-Missile Frigates, but was pipped to the post by Italian rival, Fincantieri. According to Reuters, the 10-ship contract is believed to be worth upwards of US$5.5 billion.

The Newcrest Mining Limited (ASX: NCM) share price has returned from its trading halt and dropped 6.5% to $25.72. This morning the gold miner revealed that it has successfully completed its $1 billion fully underwritten institutional placement. These funds were raised at a 7% discount of $27.54 per new share. Newcrest is now aiming to raise up to $100 million via a share purchase plan. The proceeds will be used to purchase the Fruta del Norte financing facilities and fund future growth options.

The Origin Energy Ltd (ASX: ORG) share price has fallen 4.5% to $5.31. This morning the energy retailer announced a strategic investment into disruptive UK energy retailer and technology company, Octopus Energy. Origin is paying $134 million on completion and $373 million over four financial years for a 20% stake. By using the revolutionary Octopus platform, the company expects pre-tax cash savings of $70-80 million in FY 2022, increasing to $100-$150 million annually. Investors appear unsure about the deal.

The Virgin Money UK PLC (ASX: VUK) share price has dropped 10% lower to $1.49. This follows a similarly severe share price decline by its London-listed shares overnight. Investors may have been selling the UK bank’s shares after economic data showed the Eurozone economy shrank at a record pace in the March quarter.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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.

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