Here's why these 4 ASX shares dropped today

It's been a great day for the S&P/ASX 200 (Index:^AXJO) (ASX:XJO), but the same cannot be said for shareholders of Mesoblast limited (ASX:MSB) and three other ASX shares. Here's why they dropped today…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It is looking likely to be a strong end to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). Following in the footsteps of international markets, the benchmark index has risen 1% to 5,290 points in early afternoon trade.

It hasn't been good news all round though unfortunately. The following four shares had a bad end to the week and dropped sharply. Here's why:

Mesoblast limited (ASX: MSB) shares have dropped 3% to $1.20 possibly due to the fact its shares will be removed from the S&P/ASX 200 when the index is rebalanced after the market closes today. This is the latest setback in what has proven to be a difficult year for shareholders. Year-to-date its share price has dropped by around 35% now.

Mitula Group Ltd (ASX: MUA) shares have plunged 6% to $1.08 following a block trade of its shares executed by Australian broker Baillieu Holst. According to the market release, entities associated with Mitula's majority shareholders and founders agreed to sell approximately 25.5 million shares to institutional investors. Whilst nobody likes to see founders sell shares, management believes it represents a critical step to increasing the liquidity of its shares.

Netcomm Wireless Ltd (ASX: NTC) shares are down by 3% to $2.89 despite no news out of the developer and supplier of broadband products. After a strong 12 months which saw Netcomm's share price climb by around 200% its shares have started to fall out of favour. Personally, I fear there may be further to fall. Its recent full year results were a big disappointment and this leaves its shares trading at 193x earnings.

Resolute Mining Limited (ASX: RSG) shares are lower by 4% to $2.01. Resolute Mining is just one of a good number of Australian gold producers which are dropping lower today after the gold price dropped to a two-week low on Thursday. Despite the release of weak economic data in the United States, traders are still concerned that the Federal Reserve may raise rates at its FOMC meeting next week and cause the gold price to plunge.

Motley Fool contributor James Mickleboro has no position in any 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 Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »