Why Paladin Energy, Red 5, Woodside, & Zip shares are sinking

Paladin Energy Ltd (ASX:PDN) and Zip Co Ltd (ASX:Z1P) are two of four ASX shares sinking on Friday. Here's why…

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. In afternoon trade, the benchmark index is down 0.5% to 6,714.3 points.

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

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 12.5% to 40.2 cents. Investors have been selling the uranium company's shares following the completion of an institutional placement and entitlement offer. According to the release, Paladin Energy has raised $192.5 million and will now seek to raise a further $26.2 million from retail shareholders. The company raised the funds at a 20% discount to its last close price. The proceeds will be used to reset its balance sheet and provide enhanced financial flexibility ahead of a future Langer Heinrich mine restart.

Red 5 Limited (ASX: RED)

The Red 5 share price is down 14.5% to 16.2 cents. This decline has also been driven by the completion of an institutional placement and entitlement offer. The gold miner raised $60 million at a 16% discount of 16 cents. The proceeds will be applied to King of the Hills development, drilling and development programs at the Darlot Gold Mine, and general working capital.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 3% to $24.20. Investors have been selling Woodside and other energy producers following a sharp decline in oil prices overnight. Both Brent and WTI crude oil sank 7% lower last night following the strengthening of the US dollar, a build-up in US inventories, and concerns over the COVID-19 vaccine rollout.

Zip Co Ltd (ASX: Z1P)

The Zip share price has fallen 3% to $8.22. The catalyst for this was decline was a very poor night on Wall Street's Nasdaq index overnight. The technology-focused index tumbled 3% lower after bond yields surged higher and spooked investors.

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 no position in any of the stocks mentioned. 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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