These 2 Stocks Slumped on Monday. Here’s Why
The U.K.’s controversial decision to leave the EU sent markets into a tailspin, but the sell-off continued on Monday throughout global markets. While losses were modest compared to Friday, declines of up to 2.5% was proof that the vote’s result was still impacting markets.
But two stocks were hit harder than most on Monday: Mosaic (MOS) and Barclays (BCS). Here’s why:
1. Mosaic Falls as Fertilizer Prices Slump
Mosaic took a hit on Monday, falling 8%. The dip came after the company’s main competitor, The Belarus Potash Company, announced that it had signed a supply contract with India for 700,000 metric tons of potash at $227 per metric ton. The contract, which goes into effect on July 1, indicates weakness in fertilizer prices, which has been a lingering problem for years.
With natural gas prices in a slump, potash is facing increased pressure, as nitrogen-based fertilizers are now cheaper to make.
2. Barclays Plunges on Negative Analyst Comments
Barclays plummeted 21% on Monday, adding to its Friday losses, after receiving negative comments from analysts. Analysts say Barclays and other London-based banks may incur major capital expenditures to build a presence in Europe and avoid losing customers to the European Union.
Barclays and its peers will continue to face pressure until the banking sector in Britain stabilizes.
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