Why Fortescue, Karoon Energy, Nickel Mines, & Orocobre shares are sinking

These ASX shares are sinking on Monday…

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The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a big decline. In afternoon trade, the benchmark index is down 1.8% to 7,267 points.

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

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 4.5% to $14.56. Investors have been selling the mining giant’s shares after the iron ore price pulled back again on Friday night. Unfortunately, iron ore futures are pointing to further declines during tonight’s trading session. Concerns over the potential collapse of Evergrande in China appear to be weighing on prices.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price has fallen 7% to $1.36. This morning the energy company released its full year results. In FY 2021, the company reported sales revenue of US$170.8 million and an underlying net profit of US$33.4 million.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price is down almost 9% to 99.5 cents. The nickel producer’s shares have come under pressure today amid concerns that the company could be negatively impacted by tax changes in Indonesia. An announcement notes that on Friday, the Indonesian Investment Minister was reported as suggesting that Indonesia is exploring the possibility of levying an export tax on nickel products with less than 70% nickel content.

Orocobre Limited (ASX: ORE)

The Orocobre share price has tumbled 7% to $8.66. While broad market weakness is weighing on this lithium miner’s shares, it was also the subject of a mixed broker note out of Bell Potter. According to the note, its analysts have resumed coverage on the company with a hold rating and $9.30 price target. This was broadly in line with where its shares were trading prior to today’s decline. Bell Potter is a fan of Orocobre but felt its shares were fully valued.

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Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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