The S&P/ASX 200 Index (ASX: XJO) is back on form and edging higher on Wednesday. At the time of writing, the benchmark index is up 0.2% to 7,731.9 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:
APA Group (ASX: APA)
The APA Group share price is down 1% to $7.88. Investors have been selling this energy infrastructure company’s shares after it announced a non-cash impairment of approximately $145 million to the Moomba Sydney Ethane Pipeline (MSEP). The expected impairment would result in a full write down of the current book value of the MSEP. Management notes that the impairment is non-cash, represents approximately 1% of APA’s market capitalisation, and has no impact on liquidity. Furthermore, there is no change to its FY 2024 distribution or underlying EBITDA guidance.
Chalice Mining Ltd (ASX: CHN)
The Chalice Mining share price is down 11% to $1.34. This is quite a turnaround for the mineral exploration company’s shares. They were up as much as 8% this morning before sinking deep into the red. Investors were buying its shares after it announced a non-binding memorandum of understanding (MOU) with Mitsubishi Corporation. This MOU will see two parties work together with the intention of forming a potential strategic partnership to develop the 100%-owned Gonneville PGE-Nickel-Copper-Cobalt Project in Western Australia. However, given how MOUs are non-binding, investors don’t appear to see much value in the announcement at this stage.
Guzman Y Gomez Ltd (ASX: GYG)
The Guzman Y Gomez share price is down 1% to $25.25. Investors continue to sell down this quick service restaurant operator’s shares due to concerns over its sky-high valuation. Not even a bullish broker note out of Morgans has been enough to stop its shares from falling today. Morgans has initiated coverage on the company with an add rating and $30.00 price target.
Monadelphous Group Ltd (ASX: MND)
The Monadelphous share price is down 3% to $12.69. This appears to have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has downgraded this mining services company’s shares to a hold rating (from buy) with a trimmed price target of $14.00 (from $15.40). Its analysts said: “We have adopted a conservative short-to-medium term outlook for EC division activity, reflecting a quietening major project development pipeline, with limited visibility on near-term contract awards.”
The post Why APA Group, Chalice Mining, Guzman Y Gomez, and Monadelphous shares are falling appeared first on The Motley Fool Australia.
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More reading
- Top brokers name 3 ASX shares to buy today
- ASX 200 stock slips on $145 million impairment
- Down 18% since listing, should you buy Guzman Y Gomez shares now?
- Guess which ASX mining stock is jumping 8% on deal with Mitsubishi
- Why Guzman Y Gomez, MacMahon, Strike Energy, and WiseTech shares are sinking
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 positions in and has recommended Apa Group. 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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