Why Codan, CommBank, Rio Tinto, & Starpharma shares are sinking

It has been a bad start to the week for these ASX shares…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.8% to 7,233.7 points.

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

Codan Limited (ASX: CDA)

The Codan share price has fallen 11.5% to $17.09. This is despite there being no news out of the metal detector manufacturer. However, with the gold price plummeting, investors may believe that demand for metal detectors has now peaked. Some recent insider selling by its CEO may also be weighing on its shares.

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank share price is down almost 5% to $98.84. This is despite the banking giant announcing the sale of its general insurance business this morning. However, all of the big four banks are tumbling lower today. This may be due to profit taking after some stellar gains in 2021.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 2.5% to $120.31. This morning analysts at UBS downgraded the mining giant’s shares to a sell rating with a $104.00 price target. The broker made the move largely on valuation grounds and concerns that iron prices may have peaked. It suspects prices could halve in value over the next 18 months.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price has tumbled 9% to $1.55. Investors have been selling the dendrimer products developer’s shares following an update on its UK operations. According to the release, its UK retail partner, LloydsPharmacy, has received correspondence from the UK Medicines and Healthcare Products Regulatory Agency  regarding the promotional claims for the company’s Viraleze antiviral nasal spray. This relates to references to SARS-CoV-2 and COVID-19. Sales have been suspended in the country while the matter is resolved.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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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