The S&P/ASX 200 Index (ASX: XJO) is having a disappointing afternoon after a solid morning session. At the time of writing, the benchmark index is down 0.5% to 7,214.3 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:
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A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is sinking 6.5% to $6.09. This follows news that the embattled infant formula company has been hit with a class action by Slater & Gordon Limited (ASX: SGH). The law firm alleges that a2 Milk Company was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact its financial performance.
Commonwealth Bank of Australia (ASX: CBA)
The CBA share price is down over 2% to $103.11. This appears to have been driven by news that APRA intends to tighten lending rules to ensure that heavily indebted borrowers are able to meet future repayments. APRA notes that one in five new loans approved during the June quarter were at more than 6x the borrowers' income.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price has fallen 5.5% to $23.04. This decline may have been driven by profit taking from investors after some strong recent gains in the travel sector. For example, even after this decline, the Flight Centre share price is up over 30% since this time last month.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price is down over 3% to $32.81. This follows the release of the fund manager's latest funds under management (FUM) update this morning. Magellan finished September with total FUM of $113.3 billion. This is down 4% or ~$4.5 billion since the end of August. Magellan's shares dropped to a 52-week low on the news.
