Why Beach, Fortescue, Iluka, & Temple & Webster shares are dropping lower

Fortescue Metals Group Limited (ASX:FMG) and Temple & Webster Group Ltd (ASX:TPW) shares are two of four dropping lower today…

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on track to record a sizeable decline. The benchmark index is currently down 0.8% to 6,771.6 points.

Four ASX 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 4% to $1.78 following the release of its second quarter update. The energy producer reported production of 6.2 MMboe for the quarter, which was down 8% from the prior quarter and 3% from the prior corresponding period. This, together with a decline in oil prices over the last 12 months, led to Beach reporting a 25.5% decline in sales revenue to $344 million.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 6% to $23.78. Investors have been selling the mining giant's shares after the price of iron ore pulled back. According to CommSec, the iron ore price fell by 2.3% or US$3.85 to US$164.65 a tonne after Chinese steel mill profitability weakened.

Iluka Resources Limited (ASX: ILU)

The Iluka share price has fallen 5% to $6.69. This morning the mineral sands producer released a production update which revealed zircon, rutile and synthetic rutile (Z/R/SR) production of 585,000 tonnes in 2020. This was down from 702,000 tonnes in 2019. The company also revealed that it will suspend Synthetic Rutile Kiln 2 production for three to six months from February in order to reduce stocks of synthetic rutile. A contractual dispute has left the company with elevated stock levels.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has sunk 11% lower to $12.00 despite there being no news out of the online furniture and homewares retailer. This decline could be due to profit taking ahead of its half year update next week. Prior to today, the Temple & Webster share price was up 340% since this time last year.

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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