Why AMP, Develop Global, Red 5, and Westgold shares are dropping

These ASX shares are having a tough time on Wednesday.

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A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.

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The S&P/ASX 200 Index (ASX: XJO) is out of form on Wednesday. In afternoon trade, the benchmark index is down 0.25% to 7,260.5 points.

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

AMP Ltd (ASX: AMP)

The AMP share price is down 6% to $1.07. This morning, the financial services company released an update on proceedings brought against it on behalf of advice practices authorised by AMP Financial Planning (AMPFP) as of 8 August 2019. AMP revealed that the Federal Court has ruled in favour of the claims of the lead applicant and sample group member. The company is still working out what the full damage will be.

Develop Global Ltd (ASX: DVP)

The Develop Global share price is down 3.5% to $3.34. This follows the completion of the institutional component of the lithium developer's capital raising. Develop Global raised $30 million via a placement and $10.9 million through a non-renounceable entitlement offer at a 7.5% discount of $3.20 per new share. It will now seek to raise a further $9.1 million from retail investors.

Red 5 Limited (ASX: RED)

The Red 5 share price is down 6% to 19.25 cents. Investors have been selling this gold miner's shares following the release of its production update. Red 5 revealed that it delivered 102,572 ounces for the half year to 30 June. This is in line with the top end of its guidance range of 90,000 to 105,000 ounces. Its all-in sustaining cost (ASIC) is also expected to be within the guidance of A$1,750 to A$1,950 an ounce. Investors appears to have been expecting better.

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is down 3% to $1.57. Once again, this is despite the gold miner revealing that it achieved the top end of its guidance range. For the 12 months ended 30 June, Westgold delivered a production of 257,116 ounces. This compares to its guidance of 240,000 to 260,000 ounces. Costs are expected to be in the middle of its guidance range.

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 Scott Phillips.

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