In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.3% to 7,517.7 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
Air New Zealand Limited (ASX: AIZ)
The Air New Zealand share price has crashed 20% to 92 cents. The catalyst for this decline has been the airline operator’s shares trading ex-rights this morning. Last week Air New Zealand announced a $1.2 billion 2 for 1 rights offer. This meant that shareholders owning shares prior to the open, will now have the right to pick up new shares at a huge discount of 49 Australian cents.
Bank of Queensland Limited (ASX: BOQ)
The Bank of Queensland share price is down 3% to $8.26. This follows a couple of recent broker downgrades. On Friday, the team at Macquarie downgraded its shares to a neutral rating from outperform. This morning, Ord Minnett followed suit and downgraded the bank’s shares to a hold rating.
Domain Holdings Australia Ltd (ASX: DHG)
The Domain share price is down 2% to $3.93. This has been driven by the completion of the institutional component of the property listings company’s entitlement offer. Domain raised $162 million from institutional investors at a 5.2% discount of $3.80 per new share. These funds, together with an accompanying share purchase plan, are being used to acquire Realbase for $180 million. It is a leading campaign management technology platform in the Australia and New Zealand region.
Perpetual Limited (ASX: PPT)
The Perpetual share price has fallen 6% to $32.19. Investors have responded negatively to news that Perpetual has tabled a takeover offer for rival Pendal Group Ltd (ASX: PDL). According to the release, Perpetual has offered the equivalent of a $6.23 per share in scrip and cash to acquire Pendal. This values Pendal at $2.4 billion.
The post Why Air NZ, Bank of Queensland, Domain, and Perpetual shares are dropping appeared first on The Motley Fool Australia.
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More reading
- Perpetual (ASX:PPT) share price halted amid Pendal takeover bid
- ASX 200 (ASX:XJO): Perpetual makes Pendal offer, Iluka hits record high
- Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
- 5 things to watch on the ASX 200 on Monday
- Top brokers name 3 ASX shares to sell next week
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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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