The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to bring a disappointing week to a close with a 0.3% decline to 5,628 points today. This will bring its weekly decline to just over 1.5%, pushing it into the red year-to-date.
Four shares in particular have acted as a drag on the market today. Here's why they have slumped lower:
Fortescue Metals Group Limited (ASX: FMG) shares have dropped 5% to $6.41 despite there being no news out of the iron ore producer. With its shares up over 300% in the last 12 months, I wouldn't be surprised if today's decline was the result of profit-taking. After all, iron ore prices have been tipped to fall significantly this year.
James Hardie Industries plc (ASX: JHX) shares have fallen 4% to $19.98 after the leading manufacturer of fibre cement home panelling surprised the market with a profit downgrade this morning. Higher production costs has led management to cuts its full-year net profit guidance from between $260 million and $290 million, to $245 million and $255 million. This means little by way of growth from FY 2016 when it posted net profit of $244 million.
Qantas Airways Limited (ASX: QAN) shares have tumbled almost 3% to $3.20 following the release of a trading update from rival airline Virgin Australia Holdings Ltd (ASX: VAH). Virgin Australia blamed a weak domestic market for its 38% drop in profit before tax. Investors may be concerned that Qantas will also report a similarly disappointing domestic performance later this month.
Slater & Gordon Limited (ASX: SGH) shares have plunged 4% to 25 cents despite there being no news out of the embattled law firm. Considering the company is being investigated for allegedly falsifying its books, I can't say I'm surprised to see Slater & Gordon's share come under heavy selling pressure. This is definitely one share I would avoid right now.
