Why Austal, Newcrest, Origin, & Virgin Money shares are sinking lower

Austal Limited (ASX:ASB) and Newcrest Mining Limited (ASX:NCM) shares are two of four sinking notably lower on Friday…

| More on:

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 looks set to be a disappointing end to the week for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is down 3.7% to 5,319.6 points.

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

The Austal Limited (ASX: ASB) share price has crashed 18% lower to $2.75. Investors have been hitting the sell button today after the ship builder was overlooked for a major U.S. Navy project. Austal was in a four-way competition to construct Guided-Missile Frigates, but was pipped to the post by Italian rival, Fincantieri. According to Reuters, the 10-ship contract is believed to be worth upwards of US$5.5 billion.

The Newcrest Mining Limited (ASX: NCM) share price has returned from its trading halt and dropped 6.5% to $25.72. This morning the gold miner revealed that it has successfully completed its $1 billion fully underwritten institutional placement. These funds were raised at a 7% discount of $27.54 per new share. Newcrest is now aiming to raise up to $100 million via a share purchase plan. The proceeds will be used to purchase the Fruta del Norte financing facilities and fund future growth options.

The Origin Energy Ltd (ASX: ORG) share price has fallen 4.5% to $5.31. This morning the energy retailer announced a strategic investment into disruptive UK energy retailer and technology company, Octopus Energy. Origin is paying $134 million on completion and $373 million over four financial years for a 20% stake. By using the revolutionary Octopus platform, the company expects pre-tax cash savings of $70-80 million in FY 2022, increasing to $100-$150 million annually. Investors appear unsure about the deal.

The Virgin Money UK PLC (ASX: VUK) share price has dropped 10% lower to $1.49. This follows a similarly severe share price decline by its London-listed shares overnight. Investors may have been selling the UK bank's shares after economic data showed the Eurozone economy shrank at a record pace in the March quarter.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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 Fallers

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 Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

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

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

A smartly-dressed man screams to the sky in a trendy office.
Share Fallers

Why Appen, DroneShield, PWR, and Webjet shares are sinking today

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

Read more »

a car driver sits up and looks alert with wide eyes and an expression of concentration while he holds the wheel of a car.
Share Fallers

Why this ASX All Ordinaries stock just crashed 24%!

Investors are punishing the ASX All Ords company today. Let’s find out why.

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 Elders, KMD, Lovisa, and Telix shares are dropping today

These shares are missing out on the good times on Tuesday. But why?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Life360, Lovisa, NAB, and Resolute shares are falling today

These shares are starting the week in the red. 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.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »