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Why Domino’s, Harvey Norman, WiseTech Global, & Zip shares are dropping lower

Red arrow downward chart

In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course for a subdued finish to an excellent week. The benchmark index is currently down 0.1% to 6,093.9 points.

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

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down 1.5% to $83.16. This follows the release of the latest quarterly update from its US-based parent, Domino’s Pizza Inc. Its shares fell 7% during overnight trade after its earnings fell short of the market’s expectations during the three months ended 30 September. Though, it is worth noting that its international same store sales growth outperformed expectations.

The Harvey Norman Holdings Limited (ASX: HVN) share price has dropped over 4% to $4.63. The catalyst for this decline is the retail giant’s shares trading ex-dividend this morning for its fully franked 18 cents per share final dividend. This will be paid to eligible shareholders on 2 November. Excluding this dividend, Harvey Norman’s shares would be largely flat today.

The WiseTech Global Ltd (ASX: WTC) share price is down 2.5% to $26.74. After the market close on Thursday, the logistics solutions platform provider revealed further share selling by its CEO, Richard White. Between 1 October and 7 October, Mr White offloaded a total of 366,489 WiseTech shares. The chief executive received a total consideration of just under $9.6 million for the shares.

The Zip Co Ltd (ASX: Z1P) share price has sunk over 5% lower to $7.51. This appears to have been driven by profit taking after some very strong gains this week. Prior to today, the buy now pay later provider’s shares were up 22% since the end of last week. A good portion of these gains came on Thursday following a positive quarterly update from one of its industry peers.

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Returns as of 6th October 2020

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of WiseTech Global. 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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