Why Kogan, MyState, Regional Express, & Strike shares are sinking

Kogan.com Ltd (ASX:KGN) and MyState Limited (ASX:MYS) shares are two of four sinking on Wednesday. Here’s why…

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is edging lower. The benchmark index is down slightly to 7,111.4 points.

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

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 6% to $10.02. This is despite there being no news out of the ecommerce company today. However, prior to today, the Kogan share price was up 21% since the end of last week. This may have led to some investors deciding to take a bit of profit off the table. Kogan’s shares were sold off last week after another disappointing update.

MyState Limited (ASX: MYS)

The MyState share price is down 2.5% to $4.73. This follows the successful completion of the institutional component of its ~$80 million equity raising. The diversified financial services company raised a total of approximately $31.3 million from institutional investors at an 11.3% discount of $4.30 per new share. It will now seek to raise the balance via a retail entitlement offer at the same price.

Regional Express Holdings Ltd (ASX: REX)

The Regional Express share price has fallen 3% to $1.26. A number of travel shares have been under pressure today amid another rise in COVID-19 cases in Melbourne. This has led to a number of border restrictions being announced. There are concerns that if it gets out of control, it could derail the travel market recovery.

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down 4% to 31.7 cents. This follows the release of another update on its West Erregulla operation. While the company is making progress with its drilling, it also revealed that additional flow testing and de-sanding equipment will be required. Procurement processes are underway.

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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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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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