In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has tumbled lower after the U.S. Federal Reserve cut interest rates to zero. At the time of writing the benchmark index is down a sizeable 7.6% to 5,117.2 points.
Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:
The Challenger Ltd (ASX: CGF) share price is down 15.5% to $5.60 following an update on its FY 2020 guidance. Challenger was expecting its FY 2020 normalised net profit before tax to be around the top end of its guidance range of $500 million to $550 million. However, in light of recent market developments, it now expects it to be in the middle of its guidance range.
The Cochlear Limited (ASX: COH) share price has crashed 18% lower to $176.96. Investors have been selling the hearing solutions company's shares after it announced that it would be withdrawing its earnings guidance in response to the spread of coronavirus. The company notes that the spread of the virus has caused a growing number of countries to defer elective surgeries, including cochlear implant surgeries.
The Collins Foods Ltd (ASX: CKF) share price has dropped a massive 21% to $4.72. Investors have been hitting the sell button on Monday following the release of an update on its European operations. According to the release, in response to the coronavirus outbreak, the Dutch Government has announced that all restaurants in the country must close with immediate effect until April 6. The KFC and Taco Bell restaurant operator has 23 KFC restaurants in the Netherlands.
The oOh!Media Ltd (ASX: OML) share price is down 16% to $1.30 after providing an update on the coronavirus impact on its business. Management notes that the deteriorating macroeconomic conditions and market uncertainty caused by COVID-19 has made forecasting full year revenue in the current environment difficult. This is particularly the case for oOh!media given the company has nine months left to run on its financial year. As a result, it has withdrawn its earnings guidance for FY 2020.
