Why TPG, FAR and Southern Cross shares are lower today

While the S&P/ASX 200 Index (INDEXASX: XJO) is up by 0.50% at the time of writing, here are 3 ASX shares that haven't fared so well.

| 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

The S&P/ASX 200 Index (INDEXASX: XJO) is up by 0.50% at the time of writing, with a number of companies displaying solid share price gains.

However, here are 3 ASX shares that haven't fared so well. Let's dig into what might be behind their share price falls.

TPG Telecom Ltd (ASX: TPM)

TPG shares surged yesterday after the Federal Court announced its judgment in relation to the proposed merger between telco companies Vodafone Australia and TPG. The court decided to overturn the ACCC's initial decision it made in last May and approved the merger.

The new entity will now potentially be in a strong position to compete with the two current largest telcos in Australia, Telstra Corporation Ltd (ASX: TLS) and Optus, in both the fixed broadband and mobile segments of the market. In particular, the merger will place Vodafone in a much stronger position to roll out a competitive 5G offering.

However, TPG's are sinking lower today, down by 3.4% at the time of writing to be trading at $7.87. I believe that today's falls are most likely due to investors taking some profit off the table on the back of yesterday's 10% gain.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross share price is down by 4.3% so far today and is currently trading at $0.775. The fall doesn't seem to be linked to any recent announcement, but rather appears to be part of a recent downhill share price trend.

Southern Cross Media's share price dropped to a 5-year low in October last year, triggered by a downgrade in guidance. Management revealed that weak media markets had seen revenue in 1QFY20 down 8.5% compared to the prior year, with both audio and television segments declining.

The company is focused on maximising its market share while maintaining cost control across all divisions. Advertising markets, however, remain very challenging in Australia.

According to CommSec, Southern Cross shares are currently trading on a low price-to-earnings ratio of 9.64 and offer a very high dividend yield of 8.6%, fully franked.

The company is set to announce its interim group results on 20 February 2020. It will be interesting to see if Southern Cross will still be positioned to offer this high yield.

FAR Ltd (ASX: FAR)

FAR is an Australian oil and gas producer with assets in East Africa, West Africa, and Australia; and interests in Senegal, Guinea Bissau, and Kenya.

FAR has had a poor run on the ASX since early July last year when its share price reached a 52-week high of $0.081. Since then, FAR shares have tumbled a massive 61% to be currently trading at $0.0315. So far today, its share price is down by 7.4%.

Today's decline appears to be linked to an ASX announcement that was released this morning. In the release, it was stated that the International Court of Arbitration of the International Chamber of Commerce had rejected FAR's pre-emption claims related to a case back in 2019.

Motley Fool contributor Phil Harpur has no position in any of the 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 Scott Phillips.

More on Share Market News

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

A businessman compares the growth trajectory of property versus shares.
Share Market News

How ASX shares vs. property performed in October

The national home value rose for the 21st consecutive month while the ASX 200 dipped.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »