The S&P/ASX 200 Index (ASX: XJO) is a sea of red on Friday and on course to record a disappointing decline. In afternoon trade, the benchmark index is down 1.6% to 7,471.6 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:
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BHP Group Ltd (ASX: BHP)
The BHP share price is down 4% to $48.57. Investors have continued to sell this mining giant's shares after its third quarter update revealed a cut to some of its guidance due to COVID-19 related disruptions. While analysts at Macquarie Group Ltd (ASX: MQG) expect strong commodity prices to offset much of this, the broker has still cut its price target slightly.
Megaport Ltd (ASX: MP1)
The Megaport share price has tumbled again and is down a further 9.5% to $9.06. This morning Morgans responded to Megaport's third quarter update by retaining its hold rating but cutting its price target by 27% to $10.65. It said: "We remain convinced that MP1 has global potential. That said, investors need to see proof points of the scalability, so a lot hangs on a sales acceleration."
OZ Minerals (ASX: OZL)
The OZ Minerals share price is down 6% to $24.59. The catalyst for this was the miner's quarterly update. That update revealed that its gold and copper production fell 6% and 16%, respectively, over the previous quarter. OZ Minerals also reported an increase in its all-in sustaining costs for the period. And while management expects its performance to improve as the year progresses, it hasn't been enough for some investors to stick with the company.
Zip Co Ltd (ASX: ZIP)
The Zip share price is down 3% to $1.11. This buy now pay later provider's shares have come under pressure again on Friday after brokers responded negatively to its third quarter update. For example, the team at Jefferies retained their underperform rating and slashed their price target by 46% to $1.00. The broker was disappointed by Zip's softening transaction volumes, which it feels will only get worse as it tightens its credit settings to combat worsening credit losses.
