The S&P/ASX 200 Index (ASX: XJO) is on course to start the month with a solid gain. In late afternoon trade, the benchmark index is up 0.7% to 7,017.6 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
Aussie Broadband Ltd (ASX: ABB)
The Aussie Broadband share price is down over 1% to $4.17. This follows the release of the telco’s first half trading update this morning. According to the release, Aussie Broadband delivered first half gross revenue growth of 49% to $237.3 million. However, due to heightened promotions and higher usage costs during lockdowns, first half EBITDA (before transaction costs) is only up 7% to $9.1 million.
BHP Group Ltd (ASX: BHP)
The BHP share price is down 3% to $44.90. This follows broad weakness in the resources sector and a pullback in the Big Australian’s US listed shares overnight. In other news, BHP’s unification scheme of arrangement became effective yesterday.
Brambles Limited (ASX: BXB)
The Brambles share price is down 2% to $9.47. This appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded this logistics solutions company’s shares to an underweight rating and cut the price target on them to $9.30. Morgan Stanley made the move on concerns over the impact of current supply chain challenges on its performance.
Champion Iron Ltd (ASX: CIA)
The Champion Iron share price is down 2% to $6.33. Once again, this appears to be due to broad weakness in the resources sector. In addition, profit taking could be weighing on this iron ore miner’s shares. After all, Champion Iron’s shares were the best performers on the ASX 200 in January with an 18.6% gain.
The post Why Aussie Broadband, BHP, Brambles, and Champion Iron shares are dropping 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
- Here are the 3 most heavily traded ASX 200 shares this Tuesday
- Leading brokers name 3 ASX shares to sell today
- Aussie Broadband (ASX:ABB) share price higher after delivering 49% revenue growth
- These were the best performing ASX 200 shares in January
- These 3 ASX 200 shares are topping the volume charts on Monday
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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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/QKB4wdU8e
Leave a Reply