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Why AusCann, Fortescue, Nick Scali, & Southern Cross Media dropped lower

James Mickleboro
ASX Share Down

It has been a mixed day of trade for the S&P/ASX 200 index on Tuesday. Although it is off its lows, the benchmark index is trading ever so slightly lower at 6,639 points this afternoon.

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

The AusCann Group Holdings Ltd (ASX: AC8) share price has crashed 13% lower to 27 cents. Investors have been selling the cannabis company’s shares after its major shareholder and strategic partner, Canopy Growth Corp, dumped its entire 13% stake. In addition to this, concerns over the oversupply of cannabis continues to weigh on sentiment in the industry.

The Fortescue Metals Group Limited (ASX: FMG) share price is down over 3% to $8.67. This decline appears to have been triggered by a fall in the iron ore price overnight. The spot price for benchmark fines fell by US$1.15 or 1.2% to US$91.50 a tonne on Monday night. Nickel and lead prices also fell heavily amid U.S. and China trade talk doubts.

The Nick Scali Limited (ASX: NCK) share price has plunged 19% lower to $5.84. This afternoon the furniture retailer warned that trading conditions have remains tough in FY 2020. Monthly store traffic has been down 10–15% during the period, which has had a significant impact on its like-for-like store sales. In light of this, it expects its first half profit to be in the range of $17 million to $19 million. This compares to $25 million for the corresponding period in FY 2019.

The Southern Cross Media Group Ltd (ASX: SXL) share price has sunk 19% lower to 93.5 cents. The media company’s shares have been hammered following the release of a trading update this morning. According to the release, media markets have been weak during the first quarter of FY 2020. As a result, its revenue for the quarter ended September 30 was down 8.5% on the prior corresponding period. This is expected to lead to a sizeable drop in first half earnings.

The post Why AusCann, Fortescue, Nick Scali, & Southern Cross Media dropped lower appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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