In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record its third consecutive gain. At the time of writing the benchmark index is up 0.95% to 5,991.2 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why these shares are dropping lower:
The De Grey Mining Limited (ASX: DEG) share price is down 2% to 98.2 cents. This appears to be a case of profit taking after a very strong gain this week. Prior to today, the gold-focused mineral exploration company’s shares were up over 13% week to date. Investors have been buying its shares following impressive drilling results at the Hemi prospect.
The Resolute Mining Limited (ASX: RSG) share price is down 3.5% to $1.17. Investors have been selling the gold miner after a pullback in the price of the precious metal overnight. The gold price dropped lower after the release of stronger than expected economic data. It isn’t just Resolute on the slide. The S&P/ASX All Ordinaries Gold index is down 0.7% at the time of writing.
The Suncorp Group Ltd (ASX: SUN) share price is down almost 1% to $8.78. This morning Credit Suisse downgraded the insurance and banking giant’s shares to an underperform rating and cut the price target on them to $8.75. It made the move after downgrading its earnings estimates following yesterday’s new operating model announcement.
The Webjet Limited (ASX: WEB) share price is down 3% to $3.47. This decline appears to have been driven by the online travel agent’s decision to boost its liquidity further. Webjet is doing this through an offering of 100 million euros (A$163.1 million) convertible notes due in 2027. Webjet’s Managing Director, John Guscic, explained: “This Offering supports our ongoing focus on maintaining a strong balance sheet as we continue to navigate the challenging operating environment caused by COVID-19.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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