The S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. In afternoon trade, the benchmark index is up 0.85% to 7,157.7 points.
Four ASX shares that have failed to follow the market’s lead today are listed below. Here’s why they are dropping:
Austal Limited (ASX: ASB)
The Austal share price is down 1.5% to $2.03. Today’s decline is entirely attributable to the shipbuilder’s shares trading ex-dividend this morning for its unfranked 4 cents per share interim dividend. Eligible shareholders can look forward to receiving this dividend in their bank accounts next month on 21 April.
Contact Energy Limited (ASX: CEN)
The Contact Energy share price has dropped 5.5% to $7.32. This morning the New Zealand based energy company released its operating report for the month of February. While that report revealed a decent increase in customer connections year on year, it also showed a meaningful jump in energy costs.
Nanosonics Ltd (ASX: NAN)
The Nanosonics share price is down 3.5% to $3.74. This is despite there being no news out of the infection prevention company. However, with its shares among the most shorted on the Australian share market, sentiment certainly is low right now. Short sellers have been building up positions in response to its shock sales model update in the US.
Uniti Group Ltd (ASX: UWL)
The Uniti share price is down 2% to $3.94. Investors may be taking a bit of profit off the table today following a very strong rise in the Uniti share price on Tuesday. The telco’s shares rocketed over 30% higher after confirming reports that it was in takeover talks. According to the release, Morrison & Co. has tabled a non-binding $4.50 cash per share offer to acquire the company.
The post Why Austal, Contact Energy, Nanosonics, and Uniti shares are dropping appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Austal Limited and Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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