The S&P/ASX 200 Index (ASX: XJO) has failed to follow the lead of Wall Street and is edging lower. In afternoon trade, the benchmark index is down 0.1% to 7,142.7 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
Nufarm Ltd (ASX: NUF)
The Nufarm share price is down 14% to $5.01. The catalyst for this is news that a major shareholder has sold down its position in the agricultural chemicals company. Sumitomo Chemical Company has decided to sell its 15.9% shareholding in Nufarm for an average of $5.38 per share. This was a 7.8% discount to its last close price.
Sayona Mining Ltd (ASX: SYA)
The Sayona Mining share price is down a further 12% to 20.7 cents. This lithium explorer’s shares have come under pressure since the release of a disappointing pre‐feasibility study (PFS) for the North American Lithium operation in Canada. That PFS found that the project has a pre‐tax net present value of A$1 billion, which was a lot lower than many were expecting.
Tabcorp Holdings Limited (ASX: TAH)
The Tabcorp share price is down 81% to 99.7 cents. The catalyst for this was the demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX: TLC). This will leave Tabcorp with its wager and media and gaming services businesses. The good news is that the combined market capitalisation of Tabcorp and The Lottery Corporation is more than Tabcorp was valued at yesterday. So, investors are still better off despite this huge decline.
TechnologyOne Ltd (ASX: TNE)
The TechnologyOne share price is down 1.5% to $10.23. This follows the release of the enterprise software company’s half-year results. While TechnologyOne reported a 19% increase in revenue to $172.5 million and a 44% jump in SaaS annual recurring revenue (ARR) to $225.1 million, its earnings fell short of expectations. This was driven softer than expected margins.
The post Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne 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
- Here are the 3 most traded ASX 200 shares on Tuesday
- Here’s what you need to know about the Tabcorp demerger
- The Lottery Corporation share price debuts on the ASX boards
- Here’s why ASX 200 tech shares are under pressure on Tuesday
- ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
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 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 Scott Phillips.
from The Motley Fool Australia https://ift.tt/VelFGgC
Leave a Reply