EVN, NCM, ZIP: Why these ASX shares fell over 3% yesterday

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Highlights

  • The ASX 200 ended Monday’s session 1.94% higher at 6,706.

  • ASX-listed banking shares led the gains yesterday.

  • However, several other shares failed to register gains, with some even falling over 20%.

The Australian share market started the week on a robust note, ending the session 1.94% higher at 6,706, with ASX-listed banking shares leading the gains. Additionally, energy shares also contributed to the overall gains, becoming the second highest gainers yesterday. The market also saw a decline in volatility as the volatility indicator, A-VIX declined 1.67%. While the broader market traded on a strong note yesterday, several shares failed to register gains, with some even falling over 20%.

Here we discuss why these ASX-listed shares fell more than 3% on Monday:

Evolution Mining Ltd (ASX:EVN)

Evolution Mining operates, identifies, and develops gold projects in Australia and New Zealand. The share price of Evolution Mining fell 21.89% and settled at AU$2.64 on Monday. The stock is down 35.29% on a year-to-date (YTD) basis.

The stock was under pressure following the release of a muted business update by the company. Evolution Mining further revised down its production guidance for the fiscal year 2022. The gold explorer also revealed higher cost expectations in the update.

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Newcrest Mining Ltd (ASX:NCM)

Newcrest Mining is focused on exploration and development of gold mines. It is also engaged in operations and sale of gold, and gold & copper concentrate. The share price of Newcrest Mining fell 5.64% and settled at AU$21.74 on Monday. The stock is down 11.23% on a YTD basis.

The stock may have traded on a weak note on Monday following a muted update by Evolution, which had a weakening impact on the entire sector. Meanwhile, the ASX All Ordinaries Gold index fell over 6% on Monday.

Zip Co Ltd (ASX:ZIP)

Zip provides payment solutions to merchants and customers. The share price of Zip fell 3.74% and settled at AU$0.52 on Monday. The stock is down 88.11% on a YTD basis.

The stock was down on Monday after traders booked profit following a robust gain during the later part of the last week. Last Friday, the stock rose 20% on Friday following an improvement in the overall market sentiment.

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Meanwhile, there were also reports that the buy-now-pay-later (BNPL) market, in which Zip operates, is expected to see heated competition with more players jumping in. In the latest, payment solutions provider Revolut has revealed that it is mulling to come up with a BNPL product, starting with Ireland. It may weigh on the share prices of the existing players such as Zip.


 


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