In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. At the time of writing the benchmark index is down 0.9% to 5,819 points.
Four shares that are falling more than most today are listed below. Here’s why these shares are tumbling lower:
The Beach Energy Ltd (ASX: BPT) share price is down 4% to $1.28. Investors have been selling Beach and other energy shares on Friday after a sharp pullback in oil prices overnight. Concerns that rising coronavirus cases could impact demand has been weighing heavily on oil prices. In addition to this, news that OPEC’s production was stronger than expected added to the selling pressure.
The Fortescue Metals Group Limited (ASX: FMG) share price has fallen over 2% to $16.33. This iron ore producer’s shares have come under pressure today after the price of the steel making ingredient weakened overnight. According to CommSec, the spot iron ore price dropped just over 2% to US$123.98 a tonne.
The Mesoblast limited (ASX: MSB) share price has crashed 34.5% lower to $3.33. This follows an announcement which reveals that the US FDA has not approved its remestemcel-L (RYONCIL) product for paediatric patients with steroid-refractory acute graft versus host disease (SR-aGVHD). Instead, the FDA has requested that Mesoblast undertake at least one additional randomised, controlled study in adults and/or children. This is to provide further evidence of the effectiveness of remestemcel-L for SR-aGVHD.
The SeaLink Travel Group Ltd (ASX: SLK) share price has dropped 2.5% lower to $5.72. The catalyst for this decline appears to be a broker note out of Macquarie this morning. According to the note, the broker has downgraded its shares to a neutral rating with a $5.37 price target. It made the move on valuation grounds after a strong gain recently.