Insights

Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking

These ASX shares are sinking on Wednesday…
The post Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is having a disappointing afternoon after a solid morning session. At the time of writing, the benchmark index is down 0.5% to 7,214.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is sinking 6.5% to $6.09. This follows news that the embattled infant formula company has been hit with a class action by Slater & Gordon Limited (ASX: SGH). The law firm alleges that a2 Milk Company was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact its financial performance.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down over 2% to $103.11. This appears to have been driven by news that APRA intends to tighten lending rules to ensure that heavily indebted borrowers are able to meet future repayments. APRA notes that one in five new loans approved during the June quarter were at more than 6x the borrowers’ income.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has fallen 5.5% to $23.04. This decline may have been driven by profit taking from investors after some strong recent gains in the travel sector. For example, even after this decline, the Flight Centre share price is up over 30% since this time last month.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down over 3% to $32.81. This follows the release of the fund manager’s latest funds under management (FUM) update this morning. Magellan finished September with total FUM of $113.3 billion. This is down 4% or ~$4.5 billion since the end of August. Magellan’s shares dropped to a 52-week low on the news.

The post Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Which ASX shares are leading the way in the ASX 300 today?

Leading brokers name 3 ASX shares to sell today

CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration
ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound

ASX 200 bank shares fall flat amid flurry of new regulations

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!