Why Beach, Orocobre, Premier Investments, & QBE shares are dropping lower

Beach Energy Ltd (ASX:BPT) and QBE Insurance Group Ltd (ASX:QBE) shares are two of four dropping notably lower on Monday…

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It has been a disappointing start to the week for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is down 0.55% to 6,678.9 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach share price is down 5% to $1.86. Investors have been selling the energy producer's shares for a couple of reasons on Monday. One is the pullback in oil prices on Friday night due to demand concerns. The other is news that Citi has downgraded its shares from a buy rating to neutral with a $1.94 price target. It feels its shares are fully valued based on medium term oil and gas estimates.

Orocobre Limited (ASX: ORE)

The Orocobre share price is down 4% to $5.08 despite there being no news out of the lithium miner. However, with Orocobre's shares up strongly over the last few months, this could have been driven by profit taking. Even after today's decline, the Orocobre share price is up over 100% since the start of November.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price has fallen 3% to $23.65. This appears to have been driven by news that the CEO of the company's Retail business is stepping down from the role after almost a decade. Premier Retail's Mark McInnes will serve a 12-month notice period. Premier also has the option to restrain Mr McInnes from engaging in specified retail related activities for a further two-year period.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is down 5% to $8.15. This follows the release of an update on its business interruption insurance in the UK. According to the release, the UK Supreme Court has ruled in favour of policyholders and QBE will have to pay out claims. In response to this, the company revealed that its FY 2020 result will now include an additional $185 million risk margin strengthening with respect to potential Australian business interruption claims.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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