Why Beach, BHP, Bubs, and Galileo Mining shares are sinking

The S&P/ASX 200 Index (ASX: XJO) has taken a tumble on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 6,603.1 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach share price is down over 7% to $1.62. Investors have been selling energy shares after oil prices crashed during overnight trade. According to Bloomberg, the WTI crude oil price fell more than 10% before closing the session 8.2% lower at US$99.50 per barrel. Brent crude oil ended the session 9.45% lower at US$102.77 a barrel. Recession fears are weighing on prices.

BHP Group Ltd (ASX: BHP)

The BHP share price is down over 5% to $37.83. The Big Australian and other mining shares are falling heavily today after recession concerns put pressure on commodity prices. This has led to the S&P/ASX 200 Resources index trading a sizeable 5.4% lower at the time of writing.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 5% to 60.5 cents. The catalyst for this was the completion of the junior infant formula company’s institutional placement and entitlement offer. Bubs has raised a total of $40.1 million at a sizeable 18.8% discount of 52 cents per new share. The company will now aim to raise $22.9 million from retail shareholders. These funds will be used to support its growth plans.

Galileo Mining Ltd (ASX: GAL)

The Galileo Mining share price is down over 3% to $1.28. This morning the palladium and nickel explorer announced that it has received firm commitments from sophisticated and institutional investors for a $20.4 million placement. These funds are being raised a $1.20 per new share, which represents a 10% discount to its last close price. The proceeds will be used to support accelerated diamond and RC drill programs at the Callisto palladium-nickel discovery.

The post Why Beach, BHP, Bubs, and Galileo Mining shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• How is the oil price plunge impacting ASX 200 oil shares today?
• ASX lithium stocks avoid share price shock amid commodities lashing
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Why is the Bubs share price crashing 15% today?

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 recommended BUBS AUST FPO. 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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