Why Dropsuite, Fortescue, Northern Star, and Peninsula shares are sinking today

These ASX shares are having a tough time on Wednesday.

| More on:
Young woman dressed in suit sitting at cafe staring at laptop screen with hands to her forehead looking tense

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 decent gain. At the time of writing, the benchmark index is up 0.4% to 7,313.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Dropsuite Ltd (ASX: DSE)

The Dropsuite share price is down 24% to 28 cents. This follows the release of a business update from the cloud backup provider. Investors may be concerned that Dropsuite's growth has slowed quarter on quarter.

Fortescue Metals Group Ltd (ASX: FMG)

The Fortescue share price is down 2.5% to $22.15. This is despite there being no news out of the mining giant today. However, some commentary out of rival Rio Tinto Ltd (ASX: RIO) may have spooked investors. It said: "China's economic recovery has fallen short of initial market expectations, as the property market downturn continues to weigh on the economy and consumers remain cautious despite monetary policy easing."

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down over 6% to $12.52. Investors have been selling this gold miner's shares following the release of its quarterly and full-year updates. In respect to the latter, Northern Star delivered on its FY 2023 guidance with 1,563koz gold sold at an all-in sustaining cost (AISC) of A$1,759 per ounce. Looking ahead, management has guided to 1,600-1,750koz gold sold at an AISC of A$1,730-1,790/oz in FY 2024. However, it has warned that this will be weighted to the second half.

Peninsula Energy Ltd (ASX: PEN)

The Peninsula Energy share price is down 22% to 14 cents. This follows news that the uranium developer's agreement with resin processing provider Uranium Energy Corp has been terminated. This is expected to result in a "significant delay" to the previously announced imminent restart of production at Lance.

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.

More on Share Fallers

A worried man holds his head and look at his computer.
Share Fallers

Why Accent, Austal, Newmont, and Sandfire shares are plunging today

These ASX shares are ending the week in the red. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Clinuvel, Medibank, Sayona Mining, and Tabcorp shares are sinking today

These ASX shares are out of favour with investors on Thursday. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing

These ASX shares are being sold off on Wednesday. But why?

Read more »

gambling asx share price fall represented by woman in soccer had looking frustrated at tablet screen
Share Fallers

This ASX stock has halved in 6 months. It could be a bargain buy

Remember, what the share price did in the past has nothing to do with what it could do in the…

Read more »

A businesswoman ponders why her boat is sinking in the ocean.
Materials Shares

Down 7%: What's gone so wrong for Lake Resources shares today?

Lake Resources shares have been put out to dry today.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Baby Bunting, Humm, Liontown, and Star shares are sinking today

These ASX shares are having a rough time on Tuesday. But why?

Read more »

A young man in a blue suit sits on his desk cross-legged with his phone in his hand looking slightly crazed.
Share Fallers

Down 76% in a year, why is the Core Lithium share price getting smashed again today?

Core Lithium and rival ASX 200 lithium miners are deep in the red on Tuesday.

Read more »

Red arrow going down symbolising a falling share price.
Share Fallers

3 ASX All Ords shares crashing as much as 24% on results

It’s a difficult day for shareholders of these stocks.

Read more »