It hasn't been a great start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The index has dropped sharply today and in afternoon trade is lower by 0.5% to 5,401 points.
Four shares which have weighed heavily on the index are listed below. Here's why they've dropped lower:
Coca-Cola Amatil Ltd (ASX: CCL) shares are down over 6% to $9.46 after a number of brokers downgraded the company. According to the Australian Financial Review several analysts came away from last Friday's investor day feeling unconvinced over the company's prospects. Rising sugar prices, slowing growth in the Australian market, and a lack of growth in the Indonesian market appear to be the main causes of the concern.
Helloworld Ltd (ASX: HLO) shares are down 4% to $4.50 following the company's announcement of a successful institutional placement. The placement raised approximately $30 million through the issue of 7 million new shares at a price of $4.25 each. Proceeds from the placement will be used to fund the acquisition of 50% of travel consultation company Mobile Travel Holdings Pty. Management expects the mobile travel consultation sector will see strong growth in the short to medium term.
Healthscope Ltd (ASX: HSO) shares have continued their slide, this time plunging a further 5.5% to $2.25. Healthscope's shares came under fire last week when management provided a disappointing trading update to the market. The update revealed that during the first quarter of FY 2017 its hospitals segment has experienced weak trading. Management has warned that if things do not improve as the year goes on there will be no EBITDA growth in FY 2017.
Resolute Mining Limited (ASX: RSG) shares have dropped over 4% to $1.69. A good number of Australia's leading gold miners have dropped lower today despite gold prices remaining relatively stable. But with CME Group predicting a 64% chance of a US rate rise in December, now would be an opportune time to take profits in the sector and reinvest elsewhere in the market in my opinion.
