Why Beach, Block, Magellan, and St Barbara shares are dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen just short. At the time of writing, the benchmark index is down slightly to 7,321.1 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 5% to $1.80. Investors have been selling Beach Energy and other energy producers on Tuesday after oil prices tumbled overnight. Traders were selling oil amid concerns that the US Federal Reserve will cause a recession with its interest rate hikes.

Block Inc (ASX: SQ2)

The Block share price is down 4.5% to $95.11. This follows a similarly sharp decline by the payments giant’s NYSE listed shares overnight. Investors were selling tech shares on Wall Street amid concerns that interest rates will now rise more than expected.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 3% to $9.23. This has been driven by the release of the fund manager’s latest funds under management (FUM) update. That update revealed that Magellan recorded a further $2.5 billion fund outflow during the month of November. Magellan’s FUM is now down approximately 57% since this time last year.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 5.5% to 64.7 cents. Investors have been selling this gold miner’s shares after the price of the precious metal fell overnight. This was driven by higher interest rate expectations. It isn’t just St Barbara dropping today. The S&P/ASX All Ordinaries Gold index is down 1.9% this afternoon.

The post Why Beach, Block, Magellan, and St Barbara shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Magellan share price tumbles on $2.5b fund haemorrhage in November
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Guess which gold share is being booted out of the ASX 200
• Warrego Energy share price leaps 12% as takeover battle continues

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 Block. The Motley Fool Australia has positions in and has recommended Block. 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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