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Why Afterpay, Austal, Perenti, & SEEK shares are tumbling lower

A businessman holds his glasses in concern, indicating uncertainly in the ASX share price
Image source: Getty Images

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is charging higher. At the time of writing, the benchmark index is up 0.55% to 6,818.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down a sizeable 8% to $136.89. Investors have been selling Afterpay and other tech shares today following a very poor night of trade on Wall Street’s technology-focused Nasdaq index. So much so, at the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 4.4%. In addition to this, investors may be nervous ahead of Aftetpay’s half year results on Thursday.

Austal Limited (ASX: ASB)

The Austal share price is down 9% to $2.25. Investors have been selling the shipbuilder’s shares after it revealed that investigations are being conducted by US regulatory authorities. According to the release, these investigations are looking into historical matters concerning Austal’s Littoral Combat Ship (LCS) program.

Perenti Global Ltd (ASX: PRN)

The Perenti share price has crashed 12% lower to $1.25. This has been driven by the release of the mining services company’s half year results this morning. Perenti posted a 4.8% increase in revenue to $1,056.2 million but a 25.8% reduction in underlying net profit to $44.6 million.

SEEK Limited (ASX: SEK)

The SEEK share price has tumbled 8% lower to $27.79. This is despite the job listings giant upgrading its full year earnings guidance this morning. Today’s decline appears to have been driven by weakness in the tech sector and news that its founder and CEO, Andrew Bassat, is stepping down. Mr Bassat will be replaced by former Commonwealth Bank of Australia (ASX: CBA) boss, Ian Narev, on 1 July. Mr Narev is currently SEEK’s COO. The company also announced plans to sell down its stake in the China-based Zhaopin business.

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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended SEEK 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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