The S&P/ASX 200 Index (ASX: XJO) has started the week very strongly. In late morning trade the benchmark index is up 1.6% to 5,583.9 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The Leigh Creek Energy Ltd (ASX: LCK) share price is down 5.5% to 8.3 cents. On Thursday the gas producer put its shares in a trading halt pending a material announcement in relation to a proposed capital raising. This morning the company launched an underwritten share purchase plan to raise just $1 million. It is raising the funds at a 20% discount to the five-day volume weighted average price on June 15.
The Lynas Corporation Ltd (ASX: LYC) share price is down 2% to $2.07. Investors have been selling the rare earths producer’s shares after it revealed doubts over its U.S. activities. Last month the U.S. Department of Defense revealed that it plans to award a Phase I contract for a U.S. based Heavy Rare Earth separation facility to Lynas. Since then there have been objections to its construction. So much so, Lynas understands that plans are now on hold while political issues are addressed.
The Monadelphous Group Limited (ASX: MND) share price has fallen 3.5% to $10.35. This decline appears to have been driven by a broker note out of Ord Minnett. This morning the broker retained its lighten rating on the engineering company’s shares and slashed the price target on them to $10.00. It has concerns over the impact of the pandemic on its operations.
The TechnologyOne Ltd (ASX: TNE) share price has continued its slide and is down a further 4% to $9.53. The enterprise software company’s shares have come under pressure since the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium that its shares trade at.
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More reading
- ASX 200 Weekly Wrap: ASX rallies on mining highs
- 5 things to watch on the ASX 200 on Monday
- Top brokers name 3 ASX shares to sell next week
- What to watch on the ASX 200 next week
- These were the best performing ASX 200 shares last week
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
The post Why Leigh Creek, Lynas, Monadelphous, & TechnologyOne are dropping lower appeared first on Motley Fool Australia.
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