Here's why these 4 ASX shares are plummeting today

Slater & Gordon Limited (ASX:SGH) are amongst the big decliners once again. Here's why these four shares dropped…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It certainly has been a disappointing day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The benchmark index has dropped lower by over 1% to 5,420 points today with every sector in the red.

Four shares which have performed even worse than the market are as follows:

Adelaide Brighton Ltd. (ASX: ABC) shares are down over 5% to $5.18 following the release of a disappointing half year result. Although revenue grew slightly to $686 million, net profit after tax dropped 6.7% to $77.1 million. Management provided full year net profit after tax guidance of between $190 million to $200 million, including an estimated $7 million net profit after tax from property transactions. This will be a disappointing drop from the $208 million net profit after tax it produced in FY 2015.

Independence Group NL (ASX: IGO) shares dropped over 4% to $3.65 after releasing its full year results to the market. Despite gold being at elevated prices this year, the miner posted a statutory net loss after tax of $58.8 million. Management has shrugged off the poor performance and believes FY 2016 has been about the creation of the future platform of growth for the company. If the gold price rises then the company may be poised to profit greatly. But that is a big if right now.

St Barbara Ltd (ASX: SBM) shares plummeted 7% to $2.83 following a broad sell off of the gold miners. With many believing that the US Federal Reserve could be about to raise interest rates at long last, the gold price has come under heavy selling pressure. All eyes will be on Friday's US non-farm payroll release. A good reading on that piece of data could give the Fed the green light to raise rates in around three weeks' time.

Slater & Gordon Limited (ASX: SGH) shares have continued their decline, this time by over 9% to 43 cents. Yesterday its shares dropped 13% following the release of its full year results which revealed a $1 billion loss. As tempting as it may be for bargain hunters, I don't believe Slater & Gordon has the all clear just yet. The uncertainty around proposed changes to UK personal injury legislation is something which management is likely to have to work through next year. For this reason I would steer clear of its shares and focus on other areas of the market.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »