The S&P/ASX 200 Index (ASX: XJO) has fought back from a morning decline and is now in positive territory. At the time of writing, the benchmark index is up a modest 0.1% to 8,223.7 points.
Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are falling:
Fortescue Ltd (ASX: FMG)
The Fortescue share price is down over 3% to $19.12. This follows the release of the mining giant's quarterly update this morning. Although Fortescue's production was only marginally short of consensus estimates, it was wide of the market for costs and pricing. In respect to the former, the miner reported C1 costs of US$20.16 per wet metric tonne (wmt), which is up 9% quarter on quarter and 12% year on year. The consensus estimate was for C1 costs of US$19.20 per wmt for the three months.
Lotus Resources Ltd (ASX: LOT)
The Lotus Resources share price is down 16% to 26.5 cents. This has been driven by the completion of the institutional component of the uranium developer's capital raising. Lotus Resources advised that it has successfully completed its bookbuild for a non-underwritten two tranche placement to raise $130 million before costs. It notes that it received strong demand for the placement from both existing shareholders, as well as new global and domestic institutional investors. These funds were raised at a discount of 25 cents per new share. They will be used to support the accelerated restart of its Kayelekera Uranium Project in Malawi.
Newmont Corporation (ASX: NEM)
The Newmont Corporation share price is down 7% to $81.28. Investors have been selling this gold miner's shares after its third quarter update fell short of expectations. The company revealed that gold production was up 4% on the prior quarter to 1.7 million ounces. This was largely in line with market's estimates. However, with its costs coming in higher than expected, Newmont's earnings per share of 81 US cents missed consensus estimates by 5 US cents.
Reece Ltd (ASX: REH)
The Reece share price is down over 7% to $24.59. This morning, this plumbing parts company released its first quarter update and revealed a 5% decline in sales revenue to $2,232 million. This reflects flat ANZ sales and a 6.5% decline in US sales. Management blamed its sales decline on a challenging trading environment which has continued during the first quarter and is being driven by ongoing softness in housing activity in both regions.
The post Why Fortescue, Lotus Resources, Newmont, and Reece shares are sinking today appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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