In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the new financial year with a small decline. At the time of writing, the benchmark index is down 0.3% to 7,741.8 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:
Guzman Y Gomez Ltd (ASX: GYG)
The Guzman Y Gomez share price is down 8% to $25.20. This may have been driven by concerns over the quick service restaurant operator's lofty valuation. Shortly after listing, the Mexican food chain had a $3 billion valuation. This meant that its shares were trading on a crazy multiple of 500x estimated FY 2025 earnings. This latest decline means that Guzman Y Gomez's shares are now down almost 20% from their high. And with short sellers loading up on its shares, there could be further declines to come.
Macmahon Holdings Ltd (ASX: MAH)
The Macmahon share price is down almost 9% to 26.5 cents. This morning, this mining services company revealed that it had significant exposure to the collapse of gold miner Calidus Resources Ltd (ASX: CAI). It said: "Macmahon provides mining and drill and blast services to Calidus at their Warrawoona mine. Macmahon's preliminary assessment of net current exposure under the contract is circa $33.9 million. Macmahon also holds an equity interest in Calidus listed shares with a value of $5.7 million at the close of trading on 28 June 2024." Calidus called in administrators on Friday.
Strike Energy Ltd (ASX: STX)
The Strike Energy share price is down 13.5% to 24.2 cents. Investors have been hitting the sell button after the energy company released an update on the status of the gas supply agreement for West Erregulla with Wesfarmers Ltd (ASX: WES). Due to delays receiving environmental approvals, the firm gas supply agreement has reverted to back to an original agreement. This means that the fixed gas price that had been agreed under the firm gas supply agreement will revert to the option price as calculated under a gas sales option agreement.
WiseTech Global Ltd (ASX: WTC)
The WiseTech Global share price is down 5% to $95.18. While the logistics solutions company announced more insider sales on Friday evening, this is generally seen as a positive by the market. That's because the sales indicate that the company is (at least) performing in line with its guidance for FY 2024. The decline may have been driven by a broker note out of Goldman Sachs. It has slapped a neutral rating and $91.00 price target on its shares.
