AUS
NZ
UK
CA
USA
IND
Highlights
- Boss Energy shares dropped 6.5% amid pressure on the uranium industry and increased short-seller activity.
- Digico Infrastructure REIT stock fell over 9%, continuing its slide since its IPO last week.
- Platinum Asset Management shares down 3.5% following a failed takeover bid and declining funds under management (FUM).
The S&P/ASX 200 Index is enduring another challenging session, dropping by 0.35% to 8,267.6 points at the time of writing. Amid the broader market weakness, several stocks are underperforming significantly. Below is a closer look at four ASX shares that are deep in the red today and the reasons behind their declines.
Boss Energy Ltd (ASX:BOE)
Boss Energy shares have fallen by 6.5% to AU$2.44 amid broader weakness in the uranium sector. The downturn is not limited to Boss, as miners across the industry face downward pressure. However, Boss Energy is grappling with an additional challenge: heightened short-seller activity.
Currently, Boss Energy ranks as the second-most shorted stock on the Australian market. Short sellers are reportedly skeptical about the company’s ability to maintain its forecasted costs, fueling concerns about its operational outlook. With today’s loss, Boss Energy’s share price has now tumbled over 40% since the start of the year.
Digico Infrastructure REIT (ASX:DGT)
Shares of Digico Infrastructure REIT plunged over 9% to AU$4.14, continuing their sharp decline since the company’s IPO last Friday. The data centre-focused property company listed at AU$5.00 per share, meaning it has already lost 17% of its value in just a few trading sessions.
Market sentiment suggests that investors may view the stock as overvalued relative to its competitors in the data centre space. The rocky debut has raised questions about whether Digico Infrastructure’s growth prospects justify its valuation.
Platinum Asset Management Ltd (ASX:PTM)
Platinum Asset Management shares slipped another 3.5% to 63.7 cents, capping off a difficult month for the embattled fund manager. Two primary factors are driving the sell-off:
- Failed Takeover Bid: Regal Partners Ltd (ASX:RPL) recently abandoned its acquisition of Platinum after conducting due diligence, which likely raised concerns about Platinum’s underlying financial health.
- Declining FUM: Platinum’s latest update revealed a significant drop in funds under management during November, further dampening investor confidence.
The collapse of the takeover and the ongoing FUM decline have left investors uncertain about Platinum’s ability to stage a recovery, especially given the scrutiny from Regal Partners.
