Why Appen, EML, Imugene, and Nanosonics shares are sinking

A man slumps crankily over his morning coffee as it pours with rain outside.

A man slumps crankily over his morning coffee as it pours with rain outside.

The S&P/ASX 200 Index (ASX: XJO) has started the week in a subdued fashion. In afternoon trade, the benchmark index is down a few points to 6,788.5 points.

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

Appen Ltd (ASX: APX)

The Appen share price is down 14% to $5.65. This follows weakness in the tech sector, concerns over demand from social media customers, and a broker note out of Citi. The latter has seen the broker warn investors that Appen’s first half earnings could fall short of estimates. It also has concerns over management’s expectation for a big jump in revenue in the second half.

EML Payments Ltd (ASX: EML)

The EML share price is down 22% to 93 cents. Investors have been selling this payments company’s shares following news that the Central Bank of Ireland has not approved the remediation programme for its European operations. The bank identified “shortcomings” in components of the programme, principally the sequencing and approach taken to the risk assessment of its distributors, corporates and customers.

Imugene Limited (ASX: IMU)

The Imugene share price is down 9% to 23.2 cents. This morning this biotech company released its quarterly update and revealed an operating cash outflow of $10.15 million. Though, the company remains in a strong financial position with a cash balance of approximately $100 million.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 8% to $4.24. This follows the release of the infection prevention company’s business update this morning. Although that update revealed sales ahead of consensus estimates, the lack of commentary around costs appears to have spooked investors. There are concerns that the company’s margins could be crunched by its sales model transition in North America.

The post Why Appen, EML, Imugene, and Nanosonics shares are sinking 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 Appen Ltd, EML Payments, and Nanosonics Limited. The Motley Fool Australia has positions in and has recommended EML Payments and Nanosonics 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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