In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a disappointing note. The benchmark index is currently down 0.65% to 6,559 points.
Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:
Kathmandu Holdings Ltd (ASX: KMD)
The Kathmandu share price has dropped 5% to $1.16 after announcing the exit of its CEO. According to the release, Xavier Simonet is resigning from the company to take up a senior role with the Australian Public Service. Mr Simonet will serve a six-month notice period before leaving to become the head of Austrade.
Resolute Mining Limited (ASX: RSG)
The Resolute share price is down 4% to 75.7 cents. Investors have been selling Resolute and other gold miners on Monday after the price of the precious metal pulled back on Friday night. Softening demand for safe haven assets has been weighing on the gold price. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 1.7%.
Select Harvests Limited (ASX: SHV)
The Select Harvests share price has fallen 4% to $5.96. This follows the release of the almond producer’s full year results this morning. Select Harvests reported a 52% decline in net profit after tax to $25 million. This was driven by a fall in global almond prices and delayed shipments, which offset a record almond crop.
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine Estates share price is down 7.5% to $8.53. Investors have been selling the wine company’s shares after it responded to news that China is placing tariffs on Australian wine exports. Management expects demand for its portfolio in China to be extremely limited because of these tariffs. This is bad news given that China contributed 30% of its earnings in FY 2020. Management is aiming to limit the damage by reallocating its Penfolds Bin and Icon range from China to other key luxury growth market.
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Returns as of 6th October 2020
More reading
- ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
- The Select Harvests (ASX:SHV) share price is sinking 6% lower today. Here’s why.
- Treasury Wine (ASX:TWE) share price sinks 12% after responding to China export tariff
- Kathmandu (ASX:KMD) share price on watch after CEO resigns
- ASX 200 Weekly Wrap: ASX 200 on track for a top month
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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