In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.3% to 7,274.2 points.
Four ASX shares that have failed to follow the market’s lead are listed below. Here’s why they are dropping:
Appen Ltd (ASX: APX)
The Appen share price is down 3% to $6.34. Investors have been selling this struggling artificial intelligence data services company’s shares since the collapse of a takeover approach last week. With that deal now off the table, investors have been focusing on the company’s trading update, which was very disappointing. Appen expects its earnings to be materially lower during the first half.
Elders Ltd (ASX: ELD)
The Elders share price is down 2.5% to $13.22. This decline has been driven by the agribusiness company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving its 28 cents per share partially franked interim dividend next month on 17 June.
Predictive Discovery Ltd (ASX: PDI)
The Predictive Discovery share price is down 2.5% to 19.5 cents. This morning the gold explorer announced that it has received firm commitments for a $55 million placement. These funds will be raised at 18 cents per new share, which represents a 10% discount to its last close price. The proceeds will be used partially to grow the 3.65 million ounce inferred resource at the Bankan Gold Project in Guinea, West Africa.
Yancoal Australia Ltd (ASX: YAL)
The Yancoal share price is down 7% to $5.67. This morning Yancoal revealed that a majority shareholder launched a takeover approach. However, the proposal is a 16.6% discount to its last close price rather than a premium. The shareholder, China’s state-owned Yankuang Energy, is seeking to acquire the shares it doesn’t already own and will then delist the company. Given the size of its holding, it will only need to convince a few other major shareholders to get the deal over the line.
The post Why Appen, Elders, Predictive Discovery, and Yancoal shares are dropping appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps
- Why is the Elders share price in reverse today?
- Why these ASX coal shares could be ‘bigger than Ben-Hur’: fundie
- Here’s why the Yancoal share price is crashing 15% lower today
- These are the 10 most shorted ASX shares
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 Appen Ltd. The Motley Fool Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/6nwhkHo
Leave a Reply