Why Bega, Corporate Travel Management, Fortescue, & OceanaGold are sinking lower

Corporate Travel Management Ltd (ASX:CTD) and Fortescue Metals Group Limited (ASX:FMG) shares are two of four sinking lower on Monday…

| 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 is off its lows but is still trading sharply lower in afternoon trade. At the time of writing the benchmark index is down 1.6% to 6,335.4 points.

Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:

The Bega Cheese Ltd (ASX: BGA) share price has fallen 4.5% to $3.87 following the release of its half year results. For the first half of FY 2020, the food company posted a 21% decline in normalised profit after tax to $15 million. Management advised that this was caused by a reduced milk supply and the softening of Chinese infant formula demand. Bega also restated its FY 2019 financial statements after identifying data errors. The company revealed that it incorrectly calculated costs of sales. This resulted in an understatement of trade and other payables of $9 million and an overstatement of inventories of $1.5 million.

The Corporate Travel Management Ltd (ASX: CTD) share price has fallen 5.5% to $13.17. Investors have been selling the corporate travel agent's shares after VGI Partners released a report which raised five concerns with its half year results. Corporate Travel Management responded to the report by refuting the concerns. Management also suggested the timing of its release appears to be an attempt to use the current uncertainty caused by Covid-19 to promote further market uncertainty.

The Fortescue Metals Group Limited (ASX: FMG) share price has fallen heavily and is down 10% to $9.07. Whilst some of this decline is due to the market selloff, the majority of it can be attributed to its shares going ex-dividend for its mammoth interim dividend. Eligible shareholders can now look forward to being paid the iron ore producer's fully franked 76 cents per share interim dividend on April 6.

The OceanaGold Corp (ASX: OGC) share price is down 6.5% to $2.34. OceanaGold and the rest of the gold miners have fallen heavily on Monday after a sharp pullback in the price of the precious metal on Friday night. However, a solid rebound in the gold price during Asian trade has led to many of the gold miners narrowing their declines this afternoon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. 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 Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Qantas, Resimac, Tyro, and Soul Patts shares are falling today

These shares are having a tough session today. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Betr, Evolution, NIB, and West African Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Elders, IDP Education, Life360, and Pilbara Minerals shares are falling today

Let's see why investors are selling these shares.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

The 5 worst performing ASX 200 shares in May unmasked

These five ASX 200 shares got smashed in May. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Brazilian Rare Earths, Mineral Resources, Pilbara Minerals, and Syrah shares are falling

Why are these shares starting the week in the red?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

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

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Black Cat, Boss Energy, and Soul Patts shares are falling today

These shares are falling on Thursday. Let's find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »