In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,278.2 points.
Four ASX shares that are falling more than most are listed below. Here’s why they are dropping:
Bank of Queensland Limited (ASX: BOQ)
The Bank of Queensland share price is down 5% to $9.25. Investors have been selling the regional bank’s shares following the release of its full year results. Although the bank delivered an 83% increase in cash net profit after tax to $412 million, its outlook appears to have spooked investors. Management warned that it expects its net interest margin to decline by ~5 to 7bps in FY 2022. This is due to competition and the low interest rate environment.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price is down 5% to $14.07. This appears to have been caused by weakness in iron ore prices overnight. According to CommSec, the spot benchmark iron ore price tumbled US$8.45 or 6.2% to US$128.50 a tonne during overnight trade. Low grade iron ore prices also tumbled along with the benchmark price.
Liontown Resources Limited (ASX: LTR)
The Liontown Resources share price is down 3.5% to $1.40. This may have been driven by profit taking from some investors. After all, prior to today, the lithium developer’s shares were up a massive ~250% since the start of the year. Earlier this week Liontown spun off its gold operations via an IPO.
Pact Group Holdings Ltd (ASX: PGH)
The Pact share price has sunk 11% to $3.05. This morning the packaging company released a trading update which revealed that it has had a mixed start to the year. While some sides of the business are performing well, the Contract Manufacturing (CM) segment is underperforming. In light of the latter, the company has decided against selling the CM business as it doesn’t believe it will get a fair price in the current environment.