Why BHP, Jumbo, Pendal, and Rio Tinto shares are sinking today

Red arrow going down and symbolising a falling share price.

Red arrow going down and symbolising a falling share price.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. At the time of writing, the benchmark index is off its intraday lows but still down 0.65% to 6,606.4 points.

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

BHP Group Ltd (ASX: BHP)

The BHP share price is down 3.5% to $36.10. Investors have been selling BHP and other miners today after the iron ore price pulled back. According to CommSec, the iron ore futures price dropped US$5.30 or 4.8% overnight to US$104.96 a tonne. The steel making ingredient came under pressure after Chinese authorities grappled with a wave of mortgage boycotts sweeping the country’s property sector.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price has sunk 15% to $12.26. This follows the release of the lottery ticket seller’s preliminary full-year results. Jumbo’s revenue and earnings came in short of the market’s expectations. In addition, the company warned that margin pressures would persist in FY 2023 even before an increase in its service fee to Lottery Corporation Ltd (ASX: TLC) from 2.5% to 3.5%.

Pendal Group Ltd (ASX: PDL)

The Pendal share price is down 8% to $3.76. The catalyst for this has been the release of the fund manager’s latest funds under management (FUM) update. That update revealed that Pendal’s FUM tumbled 11% during the June quarter.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 2% to $93.96. This mining giant’s shares are falling after the iron ore price pullback offset the release of the company’s second quarter update. During the quarter, the mining giant delivered iron ore shipments of 79.9Mt. This was ahead of the market consensus estimate of 79.3Mt. Rio Tinto also reaffirmed its full year iron ore guidance for costs and shipments.

The post Why BHP, Jumbo, Pendal, and Rio Tinto 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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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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