9 ASX All Ords shares that could be stung by tax-loss selling

Could your shares be a victim of tax-loss selling this month?

Clock with post it as a reminder of Tax Time

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The end of the financial year is fast approaching, which means two things: it's time to start getting your personal taxes in order and ASX shares may see some extra selling pressure.

The S&P/ASX All Ordinaries Index (ASX: XAO) has weathered a 0.8% decline since the beginning of the month. Though, a subset of companies inside the index might receive more punishment this month.

Commonly, investors that are ready to call it quits on an underperforming investment begin to action their sell orders in June as the end of the financial year draws near. As you might imagine, this can momentarily depress the performance of ASX shares.

In particular, companies that have already experienced significant falls in the financial period tend to have a greater chance of landing on the chopping block.

In light of this, here are nine companies that might be subjected to increased selling this month.

ASX All Ords shares that could be tax time targets

One common market adage is, "sell in May and go away." Though, this isn't such a feasible approach for long-term investors. Additionally, the share market isn't predictable enough to confine it to such simple rules. If it were, we'd all be timing the market perfectly — and, we know that isn't the reality.

However, it is always helpful to mentally be readied for potential short-term share price weakness. Furthermore, if these are companies shareholders believe are winners over the long-term, any downside this month could serve as a buying opportunity.

Below is a list of ASX All Ords shares that have experienced the greatest falls during the financial year. Based on the above-mentioned logic, these companies could be in the sights of investors looking to make use of capital losses:

ASX-listed companyShare pricePrice change in FY22
Sezzle Inc (ASX: SZL)$0.47-94.6%
Marley Spoon AG (ASX: MMM)$0.25-90.9%
Zip Co Ltd (ASX: ZIP)$0.68-90.1%
Booktopia Group Ltd (ASX: BKG)$0.36-86.2%
PPK Group Limited (ASX: PPK)$2.52-83.3%
Cettire Ltd (ASX: CTT)$0.48-81.4%
Pointsbet Holdings Ltd (ASX: PBH)$2.52-78.8%
Magellan Financial Group Ltd (ASX: MFG)$13.27-76.4%
Dubber Corp Ltd (ASX: DUB)$0.70-76.2%
Data as at 12:00 AEST

From the above table, we can see that buy now, pay later (BNPL) companies fell out of favour during this time. ASX All Ords shares such as Sezzle and Zip have both been incinerated, tumbling more than 90% since 1 July 2021.

Meanwhile, other ASX shares that could experience further selling this month include former standouts. Companies like Cettire, Pointsbet, and Dubber were all stellar performers in FY21. Unfortunately, this financial year has seen their respective share prices turn and retreat.

A previous version of this article mistakenly included Tabcorp Holdings Limited (ASX: TAH), which has since been removed given YTD share price falls were attributable to The Lottery Corp Ltd (ASX: TLC) demerger.

Motley Fool contributor Mitchell Lawler 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 Cettire Limited, Dubber Corporation, Marley Spoon AG, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has positions in and has recommended Dubber Corporation. The Motley Fool Australia has recommended Cettire Limited, Marley Spoon AG, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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