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Why BHP, Costa, Link, and Syrah shares are dropping

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the Electro Optic Systems share price declines today on news the CEO has resigned

Image source: Getty Images

The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a sizeable decline. In afternoon trade, the benchmark index is down 1.3% to 6,490.7 points.

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

The BHP share price is down almost 5% to $36.38. Investors have been selling BHP and other mining shares on Monday amid concerns that rising interest rates could cause a global recession. This could lessen demand for commodities and put pressure on prices. The S&P/ASX 200 materials index is down 4.75% this afternoon.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is down over 13% to $2.20. This follows the shock announcement of the exit of Costa’s CEO after just 18 months in the top job. According to the release, Sean Hallahan will step down with immediate effect and be replaced on an interim basis by former CEO, Harry Debney.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 9% to $3.00. Investors have been selling this administration services company’s shares after it confirmed that the $4.81 per share takeover by Dye & Durham has now collapsed. One positive is that the company will now pay a special dividend to shareholders. It is also looking for other way to unlock value.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price has crashed 21% to $1.51. This has been driven by news that Syrah’s Balama Graphite Operation in Mozambique has been interrupted by illegal industrial action by a small contingent of local employees and contractors. Management advised that it is working to restore operations as soon as possible.

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