Why Alkane, Beach Energy, EOS, and Northern Star shares are dropping today

These shares are ending the week in a disappointing fashion. But why?

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Key points

  • The S&P/ASX 200 Index is slightly up despite some shares dragging down the market due to sector and company-specific issues.
  • Alkane Resources declines on production concerns, while Northern Star Resources falls amid a drop in gold prices linked to improved geopolitical sentiment.
  • Beach Energy is affected by a decrease in oil prices following a ceasefire, and Electro Optic Systems faces profit-taking after significant prior gains.

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory on Friday. In afternoon trade, the benchmark index is up slightly to 8,974 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are ending the week in the red:

Alkane Resources Ltd (ASX: ALK)

The Alkane Resources share price is down 6% to $1.09. Investors have been selling this gold miner's shares after it released its quarterly update. Alkane Resources produced 36,407 ounces of gold equivalent for the three months ended 30 September. This reflects slower production at Bjorkdal over the Swedish extended summer vacation period. Given that this production is run-rating at approximately 145,000 ounces for the full year, investors appear concerned that it could fall short of its guidance for FY 2026. However, management has reaffirmed its guidance for 160,000 ounces to 175,000 ounces with an all-in sustaining cost (AISC) of A$2,600 to A$2,900 per ounce. Commenting on the quarter, the gold miner's managing director, Nic Earner, said: "It has been a significant quarter with the merger with Mandalay completing in early August. Alkane now has three operating mines who together produced 35,527 ounces of gold and 198 tonnes of antimony (36,407 ounces of gold equivalent) over the full quarter."

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 2.5% to $1.12. This follows a pullback in oil prices overnight. Traders were selling down oil after Israel and Hamas agreed to a ceasefire in Gaza. They may believe this peace deal lessens the risk of disruption to oil supplies in the region.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 6% to $8.24. This decline is likely to be due to profit taking from some investors after the defence and space company's shares rocketed higher this year. For example, EOS shares are up over 500% year to date. This buying has been driven by the company reporting a number of major defence contract wins.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 3% to $23.84. This has been driven by a pullback in the spot gold price overnight. Traders were selling the precious metal after the peace deal between Israel and Hamas led to improvements in risk sentiment, which has lowered demand for safe haven assets.

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 Electro Optic Systems. 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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