The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday. In afternoon trade, the benchmark index is up 0.65% to 7,438.8 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The Domino’s share price is down 4.5% to $107.06. This appears to have been driven by an update from its US parent overnight. According to CNBC, the pizza giant warned that it is expecting “unprecedented” food cost increases in 2022. Domino’s US is forecasting an 8% to 10% rise in its food basket costs. This is three to four times the food inflation experienced in a typical year.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price is down 1.5% to $20.85. Investors have been selling the mining giant’s shares following the release of a broker note out of Citi. According to the note, the broker has downgraded the company’s shares to a sell rating with a $17.20 price target. Citi made the move largely on valuation grounds.
Medibank Private Ltd (ASX: MPL)
The Medibank share price is down 2% to $3.48. This decline could have been driven by calls for the private health insurer to give more of its COVID savings back to members. The Private Hospitals Association chief executive, Michael Roff, has questioned the transparency of how health funds returned COVID-related savings. He has called for formal government monitoring of health fund balance sheets.
Metcash Limited (ASX: MTS)
The Metcash share price is down 4% to $4.09. This is despite there being no news out of the wholesale distributor. However, investors may be concerned that Metcash could be struggling from current supply chain issues which have left many supermarket shelves bare.
The post Why Domino’s, Fortescue, Medibank, and Metcash shares are falling appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- Leading brokers name 3 ASX shares to sell today
- ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
- Why this top broker says the Fortescue (ASX:FMG) share price is overinflated
- 3 fantastic ASX growth shares rated as buys
- Medibank (ASX:MPL) share price shrugs off further questions over profit paybacks
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 recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3Fj2yB0
Leave a Reply