In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. At the time of writing, the benchmark index is up 0.85% to 6,736.6 points.
Four shares that have not been able to follow the market higher today are listed below. Here’s why they are dropping lower:
Blackmores Limited (ASX: BKL)
The Blackmores share price is down over 4% to $77.31. Investors appear to have been selling the health supplements company’s shares amid speculation that A2 Milk Company Ltd (ASX: A2M) is about to downgrade its guidance for FY 2021. Given the similar channels they sell in, investors may be worried that Blackmores could be underperforming.
Service Stream Limited (ASX: SSM)
The Service Stream share price has crashed a further 15% lower to $1.79. The network services company’s shares have fallen materially over the last couple of days since the release of an announcement. That announcement revealed that it has been awarded a multi-year contract with the NBN but will be sharing the work with three other providers. This means it will be generating notably less revenue that the market was expecting.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The Sydney Airport share price is down 1.5% to $6.54. Investors have been selling the airport operator’s shares today after it announced that it will not be paying a final dividend this year. This will be the first time in its history that it has not paid shareholders a dividend in a financial year. COVID-19 impacts are of course to blame.
Webjet Limited (ASX: WEB)
The Webjet share price has fallen 2.5% to $5.14. A number of travel shares have taken a tumble on Thursday. This may be down to concerns over a spike in COVID-19 cases in New South Wales. If the situation isn’t brought under control quickly, domestic borders could start to close to Australia’s most populous state.
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More reading
- ASX 200 up 0.7%: Zip capital raising, A2 Milk trading halt, Sydney Airport dividend update
- Sydney Airport (ASX:SYD) share price lower on dividend and traffic update
- ASX 200 rises 0.7% on Wednesday
- Service Stream (ASX:SSM) share price falls despite NBN agreement
- ASX 200 up 1.1%: ANZ AGM, Resolute jumps, travel shares soar
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk, Blackmores Limited, and Webjet Ltd. The Motley Fool Australia has recommended Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why Blackmores, Service Stream, Sydney Airport, & Webjet shares are dropping lower appeared first on The Motley Fool Australia.
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