While the market has been a little volatile recently, the All Ordinaries index (ASX: XAO) is still trading a world away from its 52-week low.
The same cannot be said for the ASX shares listed below which have just dropped to 52-week lows. Hereâs why investors are selling off these shares:
Amcor (ASX: AMC)
The Amcor share price was hit hard on Wednesday and dropped to a 52-week low of $14.68. This has left the ASX share nursing a 12-month decline of 11%.
Investors have been selling this packaging companyâs shares after its performance took a turn for the worse. This led to Amcor reporting a disappointing 34% decline in quarterly net income to US$177 million during the third-quarter.
In light of this poor form, management has downgraded its earnings guidance for the full year. It now expects to deliver earnings per share of between 72 to 74 US cents, which is down from its previous guidance of 77 to 81 US cents. Investors donât appear to believe Amcorâs performance will improve quickly given the challenging economic environment.
Incitec Pivot Ltd (ASX: IPL)
The Incitec Pivot share price hit a 52-week low of $3.10 on Wednesday. This means the industrial chemicals companyâs shares are now down over 21% since this time last year, as you can see below.
Its shares have come under pressure recently after announcing the sale of its American ammonia manufacturing plant in a $2.5 billion deal. Investors don’t appear overly convinced with the decision to offload the asset.
Outside this, concerns over market conditions in the agricultural sector could also be weighing on sentiment.
Syrah Resources Ltd (ASX: SYR)
The Syrah Resources share price sank to a 52-week low of 99 cents on Wednesday. This means this ASX graphite share is now down a whopping 46% over the last 12 months.
A good portion of this decline has come in recent sessions following the release of a bleak quarterly update. Syrah revealed that its unit costs were higher than the price it was receiving for its graphite. In light of this, the company has decided to reduce its production plans until prices recover.
Adding insult to injury for shareholders is news that it has raised $150 million through the issue of new convertible notes to AustralianSuper. This is to support it through this challenging period.
