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Why Domino’s, Oil Search, Resolute, & Zip shares are dropping lower

Red and white arrows showing share price drop
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It has been a tough day of trade for the S&P/ASX 200 Index (ASX: XJO) amid U.S. stimulus concerns. In early afternoon trade the benchmark index is down 0.65% to 6,151.1 points.

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

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s Pizza share price is down 4% to $88.41 despite there being no news out of the pizza chain operator. However, with its shares up materially since the start of the year, some investors may be taking a bit of profit off the table today. Even after this decline, the Domino’s share price is up 64% since the beginning of 2020.

Oil Search Limited (ASX: OSH)

The Oil Search share price is down over 4% to $2.82. Investors have been selling Oil Search’s shares today following a sizeable pullback in oil prices overnight due to low gasoline demand in the US. One broker that remains positive on the company is Citi. This morning it retained its buy rating but trimmed its price target ever so slightly to $3.80.

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price has sunk 7.5% lower to 86.5 cents. The gold miner’s shares have come under pressure today following the release of a disappointing third quarter update. Resolute’s production was down notably quarter on quarter, leading to a jump in costs. In light of this, its full year production is expected to be at the low end of its guidance range and its costs will be at the high end.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price is down 4% to $6.78. The catalyst for this was news that Westpac Banking Corp (ASX: WBC) has sold its 10.7% stake in the buy now pay later provider to institutional investors. The banking giant was able to fetch $6.65 per share for its 55.46 million Zip shares. This valued them at approximately $368.8 million and was a 6% discount to its last close price. The two companies intend to keep working together in the future.

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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 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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