Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower

Fortescue Metals Group Limited (ASX:FMG) and Zip Co Ltd (ASX:Z1P) are two of four ASX shares that are tumbling lower on Wednesday…

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is on course to end its winning streak. At the time of writing, the benchmark index is down slightly to 6,768.3 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is down 4% to $2.23. This decline is almost entirely attributable to the footwear focused retailer's shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving Accent's 8 cents per share fully franked dividend next week on 18 March.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has fallen 6.5% to $20.74. Investors have been selling the mining giant's shares today after a sharp pullback in the iron ore price overnight. According to CommSec, the spot iron ore price fell US$10.55 a tonne or 6.1% to US$163.60 a tonne. Traders were selling the steel-making ingredient after authorities in Tangshan, China imposed steel production restrictions to counter heavy air pollution.

Western Areas Ltd (ASX: WSA)

The Western Areas share price has plunged 10% to $2.11 following the completion of its institutional placement this morning. According to the release, the nickel producer has commitments to raise $75 million at an 8.1% discount of $2.15. It will now seek to raise a further $15 million via a share purchase plan. Proceeds will be used to complete the Odysseus development, advance organic growth projects at Forrestania and Cosmos, and continue exploration activities.

Zip Co Ltd (ASX: Z1P)

The Zip share price is missing out on the tech rebound and is down 2.5% to $8.57. The catalyst for this appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded Zip's shares to a sell rating with a $6.40 price target. UBS has concerns about Zip's significant execution risks and mounting capital requirements.

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 Accent Group. 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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