The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) closed down 1.3% at 5,266.9 points, led by big falls in the two big retailers and Australia's big four banks. Between them, they accounted for two-thirds of the index fall.
They weren't the only ones feeling the pain, with the following four stocks also heavily sold off…
Ten Network Holdings Limited (ASX: TEN) saw its share price plunge 13.2% to $0.17 after resuming trading following a highly discounted rights issue. Ten completed the first stage of its $77 million rights offer, with new shares offered at 17 cents. Retail investors get their chance to pick up shares at 15 cents from next week – which may put even further downward pressure on the share price.
Metcash Limited (ASX: MTS) saw its share price smashed down 10.5% to $1.20, as fears of a supermarket price war erupted. In an effort to win back customers, Woolworths Limited (ASX: WOW) is investing in lower prices, which could see its competitors also lower prices to maintain their market share. That appears unlikely though, given Woolworths' margins are already much higher.
Dick Smith Holdings Ltd (ASX: DSH) share price plunged 7.7% today to 77.5 cents and has now lost more than 60% since the start of this year. I suspected the float of Dick might be a dud when it listed in 2013, but the chickens have taken some time to come home to roost. As Forager Funds explains here, Dick Smith appeared to be setup to fail, thanks to some questionable practices by its previous private equity owner. Shares may look cheap today, but there's probably a good reason.
iSelect Ltd's (ASX: ISU) share price also continues to drop, losing another 5.4% today, after dropping 8.6% yesterday. As I wrote at the time, losing your newly-appointed CEO and then your CFO in the space of a few months, doesn't engender confidence in the business – despite a potential takeover offer on the table. There's a lack of confidence in the market over that offer too – given its highly conditional, indicative and non-binding – suggesting there's a reasonable chance it won't go ahead.
