In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is on course to record a small decline. At the time of writing, the benchmark index is down 0.15% to 7,344.8 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:
Brickworks Limited (ASX: BKW)
The Brickworks share price is down 4% to $23.75. Investors have been selling this building products company’s shares in response to a broker note out of UBS. According to the note, the broker has downgraded the company’s shares to a neutral rating with a $26.30 price target. The broker believes its property business’ growth could slow in the near term.
Charter Hall Group (ASX: CHC)
The Charter Hall share price is down 7.5% to $20.00. This follows news that the property company is acquiring a 50% interest in Paradice Investment Management (PIM). Charter Hall will pay $207 million for the stake. This comprises 70% in shares and 30% in cash. PIM is a fund manager with around $18.2 billion in funds under management. Some investors don’t appear keen on the move.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price is back in the red on Wednesday and down 3% to $19.98. Investors have been selling down this fund manager’s shares this week after it lost a major contract. The market appears concerned that more could follow, particularly given its high fees and the bitterly disappointing performance of its flagship fund this year.
Rio Tinto Limited (ASX: RIO)
The Rio Tinto share price is down over 2.5% to $98.77 after announcing an acquisition. The mining giant intends to pay US$825 million or A$1.15 billion on the Argentina-based Rincon lithium project. The release notes that it is a large brine project with the potential to be one of the lowest carbon operations in the industry. Investors may believe Rio Tinto is overpaying for the asset.
The post Why Brickworks, Charter Hall, Magellan, and Rio Tinto shares are falling appeared first on The Motley Fool Australia.
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More reading
- ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps
- Charter Hall (ASX:CHC) share price sinks 6% on acquisition news
- Magellan (ASX:MFG) share price flops as fresh talk of turmoil at the top emerges
- Rio Tinto (ASX:RIO) share price slumps amid $1.15b lithium acquisition
- Is it a sell? Why is Morgans saying ‘avoid’ the Magellan (ASX:MFG) share price?
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 Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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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