The S&P/ASX 200 index has given back its morning gains and is on course to finish the week on a disappointing note. In afternoon trade the benchmark index is down 0.2% to 6,284.3 points.
Four shares falling more than most today are listed below. Here’s why they are ending the week in the red:
The Adelaide Brighton Ltd (ASX: ABC) share price has continued its slide and is down a further 4% to $3.61. Investors have been heading to the exits this week following the release of a disappointing market update. Due partly to the further softening of demand for construction materials in the residential market, management expects profits to fall between 10% and 15% in FY 2019. This update led to analysts at Citi downgrading its shares to a sell rating with a $3.50 price target.
The Bubs Australia Ltd (ASX: BUB) share price has tumbled 4% to $1.42. I suspect that this decline is the result of profit taking from some investors. After all, as I mentioned here earlier today, the goat milk infant formula company’s shares had more than tripled in value in 2019 following a series of positive announcements. One of those was its decision to expand into cow milk infant formula in the near future.
The Eclipx Group Ltd (ASX: ECX) share price has dropped 4% to 96.5 cents despite there being no news out of the fleet management company. However, as with Bubs, investors appear to be taking profit after an incredible share price rally over the last six weeks. Prior to today the Eclipx share was up an impressive 75% since March 26.
The Qantas Airways Limited (ASX: QAN) share price has tumbled 3% lower to $5.40. This decline appears to have been caused by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded the airline’s shares from outperform to neutral and trimmed the price target on them to $6.00 following its third quarter update. The broker believes a decline in corporate travel, the election, and weak consumer sentiment could weigh on its revenue in FY 2020.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019