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It looks set to be a disappointing end to the week for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is down 3.7% to 5,319.6 points.
Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:
The Austal Limited (ASX: ASB) share price has crashed 18% lower to $2.75. Investors have been hitting the sell button today after the ship builder was overlooked for a major U.S. Navy project. Austal was in a four-way competition to construct Guided-Missile Frigates, but was pipped to the post by Italian rival, Fincantieri. According to Reuters, the 10-ship contract is believed to be worth upwards of US$5.5 billion.
The Newcrest Mining Limited (ASX: NCM) share price has returned from its trading halt and dropped 6.5% to $25.72. This morning the gold miner revealed that it has successfully completed its $1 billion fully underwritten institutional placement. These funds were raised at a 7% discount of $27.54 per new share. Newcrest is now aiming to raise up to $100 million via a share purchase plan. The proceeds will be used to purchase the Fruta del Norte financing facilities and fund future growth options.
The Origin Energy Ltd (ASX: ORG) share price has fallen 4.5% to $5.31. This morning the energy retailer announced a strategic investment into disruptive UK energy retailer and technology company, Octopus Energy. Origin is paying $134 million on completion and $373 million over four financial years for a 20% stake. By using the revolutionary Octopus platform, the company expects pre-tax cash savings of $70-80 million in FY 2022, increasing to $100-$150 million annually. Investors appear unsure about the deal.
The Virgin Money UK PLC (ASX: VUK) share price has dropped 10% lower to $1.49. This follows a similarly severe share price decline by its London-listed shares overnight. Investors may have been selling the UK bank's shares after economic data showed the Eurozone economy shrank at a record pace in the March quarter.
