The S&P/ASX 200 Index (ASX: XJO) is on course to record a reasonably disappointing decline on Tuesday. In afternoon trade, the benchmark index is down 0.4% to 7,276.4 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
Collins Foods Ltd (ASX: CKF)
The Collins Foods share price is down 5% to $12.06 following the release of its full year results. The KFC-focused quick service restaurant operator’s shares hit a record high in early trade before sinking. In FY 2021, Collins Foods reported a 12.4% increase in revenue to $1.07 billion and an 18.2% increase in underlying net profit after tax from continuing operations to $56.9 million. The latter was ahead of the expectations of Wilsons but still not enough to stop its shares from falling.
Genworth Mortgage Insurance Australia Ltd (ASX: GMA)
The Genworth Mortgage Insurance share price has crashed 15% lower to $2.16. This morning the mortgage insurance company was dealt a blow when Commonwealth Bank of Australia (ASX: CBA) advised that it intends to issue a request for proposal relating to its Lenders Mortgage Insurance requirements. Genworth has provided this to CBA for over 50 years, with its current deal contributing more than half of its gross written premiums.
Kathmandu Holdings Ltd (ASX: KMD)
The Kathmandu share price has fallen 3.5% to $1.43. Investors have been selling the adventure retailer’s shares after it warned that COVID-19 lockdowns would lead to it falling short of expectations in FY 2021. Kathmandu estimates that the current lockdowns will hit its earnings by NZ$13 million.
ResMed Inc (ASX: RMD)
The ResMed share price is down 2% to $32.00. The catalyst for this decline appears to be a broker note out of Citi this morning. According to the note, the broker has downgraded the medical device company’s shares to a neutral rating with an improved price target of $32.50. Citi made the move on valuation grounds after a strong gain in June following a competitor product recall.