The S&P/ASX 200 Index (ASX: XJO) has experienced a challenging start to the week, with the benchmark index falling by 2.9% to 7,714.6 points. Several ASX shares have been hit particularly hard, with notable declines observed in the following companies:
Alcoa (NYSE:AA) Corporation (ASX: AAI) The share price of Alcoa Corporation has dropped by 8% to $44.01. This decline follows the release of the company’s quarterly update, which revealed a significant disparity in financial performance. For the second quarter, Alcoa reported sales of US$2.9 billion but only a modest profit of US$20 million. This is an improvement compared to the same period last year, when the company posted a US$102 million loss. However, the first half of FY 2024 saw Alcoa generating sales of US$5.5 billion alongside a substantial loss of US$232 million. Alcoa's recent entry onto the ASX boards was a result of its acquisition of Alumina Limited (ASX: AWC).
FBR Ltd (ASX: FBR) Shares in FBR Ltd have decreased by nearly 17% to 4 cents. This decline follows the completion of an institutional placement, through which FBR raised approximately $12.5 million before costs. The placement involved issuing approximately 328.9 million shares at a price of 3.8 cents each, representing a 20.8% discount to the previous trading price. Despite receiving strong support from institutional and sophisticated investors, the placement has led to a drop in share value. The raised funds are intended to bolster working capital and support key upcoming milestones.
Santos Ltd (ASX: STO) Santos Ltd’s share price has fallen by almost 4% to $7.57. This decrease comes in the wake of a sharp drop in oil prices observed on Friday. According to Bloomberg, WTI crude oil prices fell by 3.7% to US$73.52 per barrel, while Brent crude prices dropped by 3.4% to US$76.81 per barrel. The decline in oil prices is attributed to concerns about the U.S. economy and the potential for a recession, impacting energy shares broadly.
Wildcat Resources Ltd (ASX: WC8) Wildcat Resources Ltd’s share price has decreased by over 9% to 22.2 cents. This decline occurs despite the company’s announcement of high-grade intercepts at the Tabba Tabba Lithium Project near Port Hedland. The project’s results demonstrate significant grades at the Leia Pegmatite and reveal a new high-grade zone at Chewy North. Despite these promising findings, which are located near major hard-rock lithium mines such as the Pilgangoora Project and the Wodgina Project, the company’s shares have been under pressure.
The ASX 200 Index and several key shares are facing notable declines amid broader market challenges and sector-specific issues.