In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing, the benchmark index is up a sizeable 2.3% to 6,088.4 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
IDP Education Ltd (ASX: IEL)
The IDP Education share price is down 2% to $19.30. This is despite there being no news out of the student placement and language testing company. However, with COVID-19 cases surging globally, investors may be concerned that its recovery from the crisis could take longer than first expected.
Sandfire Resources Ltd (ASX: SFR)
The Sandfire share price has dropped 5.5% to $4.20. This morning the copper producer revealed that it has settled its dispute with Adriatic Metals. Sandfire has agreed to pay Adriatic $8.7 million. This dispute relates to proceeding CIV 1820 of 2020 brought by Sandfire against Adriatic in the Supreme Court of Western Australia.
Telix Pharmaceuticals Ltd (ASX: TLX)
The Telix share price is down over 2% to $2.11. This appears to be a case of profit taking after a massive gain on Monday. Investors were buying the pharmaceuticals company’s shares after it announced a strategic commercial partnership with China Grand Pharmaceutical and Healthcare Holdings. That agreement is for its portfolio of Molecularly-Targeted Radiation products and includes US$25 million up-front non-refundable prepayment to Telix. It also comes with up to US$225 million in regulatory and commercial milestone payments.
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine Estates share price has dropped 2% to $9.05. This morning analysts at Ord Minnett retained their hold rating and $10.00 price target on the wine company’s shares. It appears to believe that the Treasury Wine share price could struggle until China’s investigation into wine dumping is complete.
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Returns as of 6th October 2020
More reading
- Best and worst performing ASX shares in the staples sector
- Sandfire Resources (ASX:SFR) share price lower amid China copper ban rumours
- Why Abacus, Amaysim, CSR, & Telix shares stormed higher today
- Telix (ASX:TLX) share price jumps 30% to an all-time high. Here’s why.
- 3 ASX stocks are outperforming today after brokers upgraded them to “buy”
Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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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