Motley Fool Australia

Why Fortescue, Freedom Foods, QBE, & Singular Health are sinking

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. The benchmark index is currently up 0.6% to 6,748.6 points.

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

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 5% to $19.01. This decline has been driven by a pullback in the iron ore price on Friday night. According to CommSec, the iron ore price fell by a further US$5.80 a tonne or 3.5% to US$160.20 a tonne on Friday. This was driven by reports that Chinese regulators will restrict output for some steel mills in Tangshan until the end of 2021.

Freedom Foods Group Ltd (ASX: FNP)

The Freedom Foods share price has crashed 80% lower to 62 cents. This is actually a big improvement on its earlier performance. In morning trade the diversified food company’s shares returned from their nine-month suspension by crashing a whopping 94% to 18 cents. Freedom Foods’ shares returned to trade after undertaking a major recapitalisation.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price has fallen 2.5% to $9.52. This decline appears to have been driven by concerns that the terrible floods in New South Wales could result in a huge spike in claims. On a more positive note, this morning the insurance giant advised that it has no credit exposure to Greensill entities.

Singular Health Group Ltd (ASX: SHG)

The Singular Health share price has sunk 7% to 64.5 cents despite announcing an acquisition, investment, and contract win. The medical technology company has acquired Virtual Surgical Planning software and will integrate it into its existing MedVR software. In addition to this, Singular Health plans to invest $300,000 for 25% equity stake in Australian Additive Engineering. Finally, leading medical computer aided design company, Lyka Smith, has agreed to purchase 50 software licenses.

Where to invest $1,000 right now

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group 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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