Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower

Red arrow going down, symbolising a falling share price.

Red arrow going down, symbolising a falling share price.

The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with another decline. In late trade, the benchmark index is down 0.6% to 6,435 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

Bega Cheese Ltd (ASX: BGA)

The Bega share price is down 8% to $4.00. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the diversified food company’s shares to a neutral rating and cut the price target on them to $4.75. UBS believes that higher input costs are going to stifle Bega’s recovery.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 8.5% to $17.03. Investors have been selling Fortescue and other mining shares today following a pullback in commodity prices. This saw the iron ore price drop a sizeable 7% on Friday night. The S&P/ASX 200 Resources index is down 5.1% this afternoon.

Santos Ltd (ASX: STO)

The Santos share price has dropped 6% to $7.34. Investors have been selling Santos and other energy shares after oil prices sank on Friday night. Traders were selling down oil prices amid concerns that rising rates could cause a global recession and weigh on demand. This has led to the S&P/ASX 200 Energy index falling 5.3% on Monday.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price is down 9% to $1.48. This follows weakness in the gold sector today which has seen the S&P/ASX All Ords Gold index tumble over 5% on Monday. The precious metal pulled back on Friday amid strength in the US dollar.

The post Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower 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 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 Scott Phillips.

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