In late trade, the S&P/ASX 200 Index (ASX: XJO) has fought hard to get its head above water. At the time of writing, the benchmark index is up a fraction to 7,052.7 points.
Four ASX shares that are weighing on proceedings are listed below. Here’s why they are dropping:
GrainCorp Ltd (ASX: GNC)
The GrainCorp share price is down 2.5% to $10.29. This is despite the grain exporter releasing its half-year results and reporting record-breaking profits. GrainCorp reported a 49.9% increase in revenue to $3,842.1 million and a 200% jump in EBITDA to $427 million. However, it appears as though some investors were betting on the company upgrading its full-year guidance for a third time in as many months. Whereas management has only reaffirmed its most recent guidance.
Link Administration Holdings Ltd (ASX: LNK)
The Link share price is down almost 15% to $4.24. This appears to have been driven by concerns that the takeover of the administration services company by Dye & Durham could collapse. The scheme booklet reveals that Dye & Durham is taking out a loan that is more than three times its own market capitalisation to fund the deal.
National Australia Bank Ltd (ASX: NAB)
The NAB share price is down 4.5% to $30.33. A portion of this decline can be attributed to the banking giant’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving NAB’s fully franked 73 cents per share interim dividend in their bank accounts on 5 July.
Pendal Group Ltd (ASX: PDL)
The Pendal share price is down over 3% to $5.16. This morning a number of brokers responded to the fund manager’s half-year results. Two of those brokers, Credit Suisse and Morgan Stanley, downgraded the company’s shares to neutral ratings from the equivalent of buys. Both brokers were impressed with Pendal’s half-year result but feel the next 12 months could be tough.
The post Why GrainCorp, Link, NAB, and Pendal shares are sinking today appeared first on The Motley Fool Australia.
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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 Link Administration Holdings Ltd. 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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