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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is following the lead of U.S. markets and dropping lower. At the time of writing the benchmark index is down over 1% to 5,365.1 points.
Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:
The Beach Energy Ltd (ASX: BPT) share price is down almost 5% to $1.40. Investors have been selling Beach and other energy shares after a pullback in oil prices overnight. Though, one broker that thinks its shares are in the buy zone is Morgans. This morning it retained its add rating with a reduced price target of $1.66.
The Commonwealth Bank of Australia (ASX: CBA) share price is down 3% to $59.01. This decline may have been driven by a broker note out of Morgan Stanley this morning. In response to its third quarter update, the broker has retained its underweight rating and cut the price target on its shares to $56.00. It doesn't believe Commonwealth Bank deserves to trade at a premium and is expecting a big dividend cut in August.
The Qantas Airways Limited (ASX: QAN) share price has fallen 3.5% to $3.42. Investors have been selling the airline operator's shares after the Queensland government confirmed that it is looking to buy a stake in rival Virgin Australia Holdings Limited (ASX: VAH). The state government appears determined not to let Virgin Australia collapse during the pandemic.
The Xero Limited (ASX: XRO) share price is down almost 4% to $80.62 following the release of its full year results. For the 12 months ended March 31, the business and accounting software company delivered a 30% lift in operating revenue and a 52% lift in EBITDA. Whilst this was strong, the company warned that it is being impacted by the pandemic. As such, no guidance was provided for FY 2021.
