In afternoon trade the S&P/ASX 200 Index (ASX: XJO) looks set to end the week with a decline. At the time of writing, the benchmark index is down 0.3% to 6,663.3 points.
Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:
CSL Limited (ASX: CSL)
The CSL share price is down 3% to $292.02. Investors have been selling the biotech giant’s shares after it announced the surprise termination of its COVID-19 vaccine trial. Although the phase 1 trial showed that the vaccine caused a robust response towards the virus, it was also causing a false positive on a range of HIV assays. This was due to its molecular clamp, which interferes with certain HIV diagnostic assays. Unfortunately, this means it would have required significant changes to well-established HIV testing procedures to accommodate the rollout of the vaccine.
Lovisa Holdings Ltd (ASX: LOV)
The Lovisa share price has fallen 6.5% to $10.75 despite there being no news out of the fashion jewellery company. However, prior to today, the Lovisa share price was up 67% over the last six months. This may have led to some investors taking a bit of profit off the table today.
Lynas Rare Earths Ltd (ASX: LYC)
The Lynas share price has dropped almost 3% to $3.90. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the rare earths producer’s shares to a neutral rating with a $4.30 price target. UBS made the move largely on valuation grounds after a very strong gain over the last few months. It believes its shares are fully valued now.
Syrah Resources Ltd (ASX: SYR)
The Syrah share price has sunk 9.5% lower to 92 cents after returning from a trading halt. The graphite producer’s shares have come under pressure after completing a fully underwritten placement. Syrah has raised approximately $56 million (US$42 million) through a placement to professional and sophisticated investors at a 11.5% discount of 90 cents. These funds will be used partly to progress its natural graphite Active Anode Material (AAM) facility in the United States towards a final investment decision for the construction of a 10ktpa AAM plant.
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More reading
- ASX 200 down 0.3%: CSL sinks, Zip’s Facebook deal, IGO rockets
- Why the Syrah (ASX:SYR) share price is sinking 10% lower today
- Why the IGO (ASX:IGO) share price shot up 18% in early trade today
- CSL (ASX:CSL) share price on watch after terminating COVID-19 vaccine trial
- The two ASX stocks most impacted by the dangerous rise of the Aussie dollar
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why CSL, Lovisa, Lynas, & Syrah shares are dropping lower appeared first on The Motley Fool Australia.
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