Insights

Why has the Alumina (ASX:AWC) share price fallen 8% over the last week?

Here’s what might have been weighing on the Alumina share price lately.
The post Why has the Alumina (ASX:AWC) share price fallen 8% over the last week? appeared first on The Motley Fool Australia. –

The Alumina Limited (ASX: AWC) share price has plummeted over the last week despite no news having been released by the company.

Interestingly, the company had a good day on the ASX today. That’s despite the Australian Government pledging to reach net-zero emissions by 2050 ahead of next week’s COP26 climate summit in Glasgow.

As The Motley Fool Australia has previously reported, Alumina is one of the S&P/ASX 300 Index‘s (ASX: XKO) biggest carbon polluters. It also doesn’t have a plan to reach net-zero carbon emissions.

As of Monday’s close, the Alumina share price is $2.11, 1.44% higher than it was at the end of Friday’s session. However, it’s still 8.2% lower than it was this time last week.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.81% in that time. The All Ordinaries Index (ASX: XAO) has also gained 0.84% over the week just been.

Let’s take a look at what might have weighed on the aluminium producer’s share price over the past week.

What’s driving the Alumina share price down?

The Alumina share price’s struggles on the ASX came amid the company’s stock being downgraded by a major broker.

As The Motley Fool Australia reported on Saturday, analysts at Credit Suisse downgraded the company’s stock to a neutral rating and slapped its shares with a price target of $1.90.

The reason behind the broker’s downgrade was its belief that aluminium prices are unsustainable and Alumina’s shares too expensive.

The price of aluminium has slipped since last week. It’s been trending downwards since Wednesday after spending most of October surging higher.

According to data from Business Insider, 1 tonne of aluminium is currently US$2,868.15. That represents a fall of 1.46% over the course of today.  

Additionally, Alumina seems to have suffered through a sell-off last week.

Over the last 4 weeks, an average day has seen around 12.2 million Alumina shares swapping hands.

However, Thursday saw a whopping 41.7 million Alumina shares traded. Wednesday and Friday also saw above-average numbers passed from seller to buyer.

The post Why has the Alumina (ASX:AWC) share price fallen 8% over the last week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alumina right now?

Before you consider Alumina, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alumina wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These were the worst performing ASX 200 shares last week

Which ASX 200 dividend shares have investors been heavily trading this week?

HESTA boss calls out ASX 300 companies without net-zero targets

These 3 ASX 200 shares are topping the volume charts on Thursday

Alumina (ASX:AWC) share price edges lower on quarterly update

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. 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!