Why Challenger, DEXUS, Emeco, & Zip shares are tumbling lower

Challenger Ltd (ASX:CGF) and Zip Co Ltd (ASX:Z1P) shares are two of four dropping lower on Tuesday. Here's why…

In afternoon trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.5% to 6,845.1 points.

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

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Image source: Getty Images

Challenger Ltd (ASX: CGF)

The Challenger share price has crashed 13.5% lower to $6.24 following the release of its half year results. For the first half of FY 2021, Challenger reported a 12% increase in annuity sales to $2.2 billion and a 10% lift in total life sales to $3.4 billion. However, despite the sales growth, normalised net profit before tax (NPBT) fell 30% to $196 million.

DEXUS Property Group (ASX: DXS)

The DEXUS share price has fallen 3% to $8.47. Investors have been selling the property company's shares following the release of its half year results. DEXUS reported a half year net profit after tax of $442.9 million. This was down 55.5% on the prior corresponding period due primarily to net revaluation gains being lower than those recognised a year earlier.

Emeco Holdings Limited (ASX: EHL)

The Emeco share price is down 9% to $1.13. This follows the release of the equipment rental company's half year update. Although Emeco reported a 21.1% increase in revenue to $298.6 million, its net profit fell by a massive 87.7% to $3.3 million.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 2% to $9.62. At one stage today the buy now pay later provider's shares were down as much as 6.5% before recovering slightly. This appears to have been driven by profit taking after some very strong gains in recent weeks. In fact, prior to today, the Zip share price was up a remarkable 75% since the start of the year. This impressive gain was driven largely by a very strong quarterly update last month.

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 and has recommended Challenger 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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