Why is the Boss Energy (ASX:BOE) share price dumping 5% today?

Downward red arrow with business man sliding down it signifying falling asx share price.Downward red arrow with business man sliding down it signifying falling asx share price.Downward red arrow with business man sliding down it signifying falling asx share price.

Key Points

  • Boss Energy shares are sliding into the red during afternoon trading.
  • There’s been no market sensitive info released by the company today.
  • However, ASX energy shares are softening amid a sector-wide selloff on Friday.
  • The broad indices are also down, indicating weakness across all sectors to close the week.

Shares in Boss Energy Ltd (ASX: BOE) are sliding down at pace and now trade 5% in the red at $2.40 apiece.

It’s been a bumpy ride for Boss Energy shareholders these past few weeks with price dispersion saw-toothing up from a bottom of $2.08 in December.

Whilst there’s been no price-sensitive info out of the company’s camp today, investors are cycling back out of the name and shares are now trading back at a key support level. Let’s take a look.

Why is the Boss Energy share price sliding today?

In the absence of any market-moving news or information on the company today, it’s not abundantly clear if today’s loss is specific to Boss Energy or a part of a wider move in the broad market.

For instance, the S&P/ASX 200 Energy Index (XEJ) is also down more than 1% on the day as traders re-evaluate market conditions moving forwards.

Weakness in the broad energy sector today follows a period of upward momentum that’s been in situ since late December, amid a shifting rates regime out of the US and a rotation of capital in response to the same.

In the last month, the index has climbed almost 7%, alongside other defensible pockets of the market like financials and industrials.

However, gains are sparse across the ASX today as each of the major indices pare gains amid a market-wide selloff.

ASX financials, metals and mining players are each facing pressures today – and funds haven’t just been re-routed back into growth or tech names either, with the broad tech majors each extending losses from the open.

The S&P/ASX 200 Index (ASX: XJO) is also heading lower throughout today’s session, currently trading less than 1% down at 7,409.2 points.

Aside from that, the price of Uranium is heading sideways after its impressive rally in 2021. After a period of wide volatility, price action has since cooled off and price tensions in Kazakhstan, the world’s largest producer, sort through internal political tensions.

Despite the pullback, Boss Energy remains on track to touch Bell Potter’s valuation on the company of $3.47 per share. The broker likes Boss’ prospects in 2022 and notes the company’s “exploration upside” across its tenements.

Boss Energy share price summary

In the last 12 months, the Boss Energy share price has gained almost 173% after climbing another 3% in the past month.

It has started the year off well and has spiked 7% since January 1, well ahead of the benchmark index.

Over the last week of trading, however, Boss Energy has slipped almost 2% into the red.

The post Why is the Boss Energy (ASX:BOE) share price dumping 5% today? appeared first on The Motley Fool Australia.

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The author has no positions 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 Bruce Jackson.

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