The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has posted another down day, closing down 0.7%, but it could've been much worse if we'd followed the lead of US markets. On Friday, the Dow Jones plunged 2.4%, while the broader S&P 500 was heavily sold off – losing 2.2%.
That makes it 10 down days in 11 trading sessions. Year-to-date the ASX 200 is down over 8%, similar to US markets.
These four companies fell even more than the index…
Santos Ltd (ASX: STO) saw its share price plunge 8.4% to $2.63 as oil prices took another hit, with the benchmark Brent Crude falling 6.3% to US$28.94 a barrel. The future doesn't look any brighter either, with Bloomberg reporting that Iran is expected to boost exports of oil now that sanctions have been lifted – adding even further to the global oversupply and oil prices at 12-year lows.
Mesoblast limited (ASX: MSB) saw its share price sink 7.1% to $1.51, and shares have now lost 62% of their value in the past 12 months. A highly-rated biotech company amongst institutional investors, Mesoblast has a number of stem cell products it wants to bring to market, including 5 in Phase 3 trials. Mesoblast listed on the US NASDAQ exchange late last year at a substantial discount to the equivalent trading price on the ASX, and it's been all downhill since.
The Magellan Financial Group Ltd (ASX: MFG) share price dropped 6.3% to $23.35 as investors bet that equity market falls will take a toll on the fund manager's funds under management (FUM). Most fund managers charge a percentage of FUM as their fee, so lower FUM means lower revenues. However, Magellan's share price has now lost more than 16% year-to-date – double the losses on US and Australian share markets – suggesting it may have been oversold.
Adacel Technologies Limited (ASX: ADA) share price sank 7.6% to $2.08. One of 2015's hot companies, with the share price rising more than 700%, Adacel provides traffic control software and simulators. The company has forecast a 50% increase in revenues in the 2016 financial year for a number of reasons – which we outlined here. Perhaps Adacel shares have soared too high, and some investors have decided to take some profits.
