Why Afterpay, Platinum, Star, & Strike Energy shares are sinking

These ASX shares have started the week deep in the red…

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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.3% to 7,296.9 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4% to $117.80. This follows broad weakness in the tech sector. A disappointing finish to the week on Wall Street’s tech-focused Nasdaq index appears to be behind these declines. Afterpay is falling more than most due to the Square share price dropping over 4% on Friday night. It is currently in the process of acquiring Afterpay in an all-scrip deal.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 5% to $3.22. This appears to have been driven by the release of another disappointing funds under management update after the market close on Friday. One broker that wasn’t impressed was Credit Suisse. In response, the broker retained its underperform rating and cut its price target of $3.20.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 22% to $3.33. Investors have been selling this casino and resorts operator’s shares following media reports alleging money laundering, organised crime, large-scale fraud, and foreign interference. Star has responded stating that it “is concerned by a number of assertions within the media reports that it considers misleading.”

Strike Energy Ltd (ASX: STX)

The Strike Energy share price has sunk 16% to 23.5 cents. This follows the release of its maiden Perth Basin Gas Reserve. According to the release, 300 petajoule (PJ) 2P and up to 372 PJ 3P gross gas Reserves at the West Erregulla gas field in the Kingia Sandstone have been certified. This appears to have fallen well short of the market’s expectations.

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Motley Fool contributor 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 and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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