Why Appen, Elders, Predictive Discovery, and Yancoal shares are dropping

These ASX shares are dropping on Monday…

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.3% to 7,274.2 points.

Four ASX shares that have failed to follow the market’s lead are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 3% to $6.34. Investors have been selling this struggling artificial intelligence data services company’s shares since the collapse of a takeover approach last week. With that deal now off the table, investors have been focusing on the company’s trading update, which was very disappointing. Appen expects its earnings to be materially lower during the first half.

Elders Ltd (ASX: ELD)

The Elders share price is down 2.5% to $13.22. This decline has been driven by the agribusiness company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving its 28 cents per share partially franked interim dividend next month on 17 June.

Predictive Discovery Ltd (ASX: PDI)

The Predictive Discovery share price is down 2.5% to 19.5 cents. This morning the gold explorer announced that it has received firm commitments for a $55 million placement. These funds will be raised at 18 cents per new share, which represents a 10% discount to its last close price. The proceeds will be used partially to grow the 3.65 million ounce inferred resource at the Bankan Gold Project in Guinea, West Africa.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is down 7% to $5.67. This morning Yancoal revealed that a majority shareholder launched a takeover approach. However, the proposal is a 16.6% discount to its last close price rather than a premium. The shareholder, China’s state-owned Yankuang Energy, is seeking to acquire the shares it doesn’t already own and will then delist the company. Given the size of its holding, it will only need to convince a few other major shareholders to get the deal over the line.

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 positions in and has recommended Appen Ltd. The Motley Fool Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Close up of a sad young Caucasian woman reading about Leigh Creek Energy's declining share price on her phone
Share Fallers

Why Beach, Bendigo and Adelaide Bank, Opthea, and Paradigm shares are sinking

These ASX shares are having a bad start to the week...

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the Electro Optic Systems share price declines today on news the CEO has resigned
Share Fallers

Why Baby Bunting, PointsBet, ResMed, and Suncorp shares are dropping today

These ASX shares are ending the week in the red...

Read more »

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.
Share Fallers

Why AMP, OFX, Rio Tinto, and Telstra shares are dropping

These ASX shares are missing out on the good times today...

Read more »

ASX shares downgrade A young woman with tattoos puts both thumbs down and scrunches her face with the bad news.
Share Fallers

Why A2 Milk, Appen, Boral, and REA shares are dropping today

These ASX shares are having bad days...

Read more »

A couple sit at a desk with tissues and tears in their eyes while they look at a laptop computer screen with a camera set up in the foreground suggesting they are making a video.
Technology Shares

What’s going so wrong for ASX 200 tech shares on Wednesday?

ASX 200 tech shares are leading the market's losses today. What's going on?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the Electro Optic Systems share price declines today on news the CEO has resigned
Share Fallers

Why Block, CBA, Mesoblast, and NAB shares are dropping today

These ASX shares are dropping on Tuesday...

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Alliance, Aurizon, MVP, and Suncorp shares are dropping today

These ASX shares are out of form on Monday...

Read more »

A person plunges into the pool with only their feet visible above the surface, diving through a heart-shaped inflatable ring.
Share Fallers

Here’s why the Medical Developments share price is sinking 17% on Monday

The share has caught sellers attention today.

Read more »