ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles

The ASX 200 is having a tough start to the week…

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An ASX200 market analyst holds his hand to his chin and looks closely at his computer screens watching share price movements

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. The benchmark index is currently down 0.4% to 7,276.8 points.

Here’s what is happening on the ASX 200 today:

Magellan shares crash lower

The Magellan Financial Group Ltd (ASX: MFG) share price has crashed to a multi-year low on Monday after announcing the termination of the St James’s Place mandate. The release notes that the mandate represents approximately 12% of the company’s current annual revenues. As a result, the termination of the mandate at this point in the financial year is anticipated to impact its FY 2022 revenues by 6%.

CIMIC shares tumble

The CIMIC Group Ltd (ASX: CIM) share price is also sinking on Monday. This follows allegations reported in the Australian Financial Review of broken promises, extreme personal and financial hardship, and millions of dollars in unpaid wages from Australia’s biggest construction company. The CIMIC share price is trading at a 52-week low at lunch.

Energy shares drop

It has been a tough start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). Both energy shares have come under pressure after oil prices ended the week deep in the red. According to Bloomberg, on Friday night the WTI crude oil price dropped 2.1% to US$70.86 a barrel and the Brent crude oil price fell 2% to US$73.52 a barrel. The weakness in oil prices was caused by demand concerns relating to rising Omicron cases and lockdowns.

Best and worst ASX 200 performers

The Viva Energy Group Ltd (ASX: VEA) share price is the best performer on the ASX 200 on Monday with a 3% gain. This morning the fuel retailer revealed that it expects its earnings to almost double in FY 2021. The worst performer by some distance has been the Magellan share price with a 28% decline following its announcement.

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. 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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