In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 7,282.8 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Chorus Ltd (ASX: CNU)
The Chorus share price is down 3% to $6.50. This follows the release of the New Zealand Commerce Commission’s final decision on its new fibre regulatory regime. The Commission has determined a regulated asset base of NZ$5.425 billion, compared to NZ$5.427 billion in its August draft decision.
CSL Limited (ASX: CSL)
The CSL share price has tumbled 8% to $272.90. This follows the completion of the biotherapeutics giant’s institutional placement. CSL raised US$4.5 billion (A$6.3 billion) at an 8.2% discount of A$273.00 per new share following strong support from existing shareholders and new investors. The proceeds will support the acquisition of Vifor Pharma for US$12.3 billion (A$17.2 billion).
Qantas Airways Limited (ASX: QAN)
The Qantas share price is down almost 2% to $4.78. This morning the airline operator released a market update which revealed that it expects to post a loss of $1.1 billion during the first half. Qantas’ CEO, Alan Joyce, revealed that that Qantas has faced “one of the worst halves of the entire pandemic.” Qantas also warned that its costs would increase in the second half as its employees return to work.
Sims Ltd (ASX: SGM)
The Sims share price has dropped 2.5% to $15.06. Investors have been selling the metals recycling company’s shares despite it announcing an acquisition this morning. Sims has agreed to acquire the assets of United States-based metal recycler, Atlantic Recycling Group for US$37 million plus working capital adjustments. This implies an EV/EBITDA multiple of 4.2x on a pre-synergies basis.
The post Why Chorus, CSL, Qantas, and Sims shares are dropping appeared first on The Motley Fool Australia.
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More reading
- Qantas (ASX:QAN) share price descends on $1.1bn half year loss guidance
- ASX 200 (ASX:XJO) midday update: CSL sinks, Qantas’ $1.1bn+ first half loss
- CSL (ASX:CSL) share price down 8% after raising US$4.5bn
- Qantas (ASX:QAN) share price on watch after ‘one of the worst halves of the entire pandemic’
- 5 things to watch on the ASX 200 on Thursday
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. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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