Why Block, Evolution, Fortescue, and Magellan shares are sinking today

These ASX shares are ending the week in the red…

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It has been another day to forget for the S&P/ASX 200 Index (ASX: XJO) on Friday. In afternoon trade, the benchmark index is down 1.2% to 6,933.3 points.

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

Block Inc (ASX: SQ2)

The Block share price is down 6% to $109.34. This follows a similarly sharp decline by the payments company’s NYSE listed shares overnight amid weakness in the tech sector. Wall Street was a sea of red on Thursday night ahead of a key inflation data release later today.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is down over 3% to $3.46. This has been driven by weakness in the gold sector and a broker note out of Macquarie. In respect to the latter, the broker has reiterated its underperform rating this morning. It believes the gold miner’s earnings are at risk from higher electricity prices.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 2% to $21.14. Weakness in the resources sector and a bearish note out of Goldman Sachs appear to be behind this decline. The latter has seen Goldman reiterate its sell rating and cut its price target on Fortescue’s shares to $13.50. This implies potential downside of 36% for the Fortescue share price from current levels.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has continued its slide and is down a further 3.5% to $12.37. Investors have been selling this fund manager’s shares this week after the release of another disappointing funds under management update. In addition, S&P Dow Jones Indices revealed that it was kicking Magellan out of the ASX 100 index later this month at the next rebalance.

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 Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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