Why Adbri, Domino's, Event, & Viva Energy shares are dropping lower

Adbri Ltd (ASX:ABC) and Domino's Pizza Enterprises Ltd (ASX:DMP) shares are two of four dropping lower on Monday. Here's why…

After a poor start to the day, the S&P/ASX 200 Index (ASX: XJO) is in positive territory in afternoon trade. At the time of writing the benchmark index is up 0.1% to 6,065.3 points. 

Four shares that are acting as a drag on proceedings are listed below. Here's why they are tumbling lower today:

The Adbri Ltd (ASX: ABC) share price is down a further 7% to $2.18. Investors have been selling the building materials company's shares after it announced last week that Alcoa of Australia will not be renewing its lime supply contract when it expires at the end of June 2021. A number of brokers have responded negatively to the news, such as UBS. This morning its analysts downgraded the building materials company's shares to a sell rating (from buy) and slashed the price target on them to $2.00.

The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is down 0.5% to $71.96. Investors have been selling the pizza chain operator's shares on Monday after it was downgraded by a leading broker. Analysts at Ord Minnett have downgraded Domino's to a hold rating with an improved price target of $70.00. It made the move on valuation grounds after strong gains in 2020.

The Event Hospitality and Entertainment Ltd (ASX: EVT) share price is down 3.5% to $8.57 following the release of a business update. Event revealed that it has taken on more debt to see it through the crisis. It has increased its debt facilities by $205 million to $750 million. This gives it ~$320 million of liquidity. In addition to this, it revealed that the majority of its cinemas are now open in the ANZ region.

The Viva Energy Group Ltd (ASX: VEA) share price is down almost 2% to $1.76 on the day of its annual general meeting. At the meeeting, Viva Energy noted that it experienced a sharp reduction in demand for its fuel from consumers and the aviation industry during the pandemic. However, it advised that retail sales have begun to recover as restrictions ease and domestic flights return.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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.

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