Most investors are celebrating today as they observe the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) soar 1.1%. In fact, the broader market has now lifted 2.6% since it closed on Monday, driven by some of the country's fastest growing businesses.
Unfortunately, however, not all companies have taken part in the rally. Here are five businesses that are sinking today…
Estia Health Ltd (ASX: EHE) shares rocketed higher on Tuesday, closing at a high of $2.82. However, they have now given up much of that gain with the shares once again trading at $2.65, down 4% for the day. Although the aged care operators rose as a result of a government announcement earlier in the week, investors may now realise that the respite for the industry may only be temporary. An investment in Estia Health isn't without its risks.
Regis Healthcare Ltd (ASX: REG), which also operates in the aged care sector, has fallen 2.3% as well – likely for the same reasons as Estia Health.
Northern Star Resources Ltd's (ASX: NST) share price has declined 1.5%, despite a slight uptick in the price of gold (to US$1,175 an ounce). Earlier this year, it seemed investors couldn't get enough of gold as the precious metal soared higher on global economic uncertainty. Although there is still plenty of uncertainty investors appear more confident that US interest rates will soon rise which has taken some of the shine out of gold – and the companies that produce it. The shares are now fetching $3.38, down 42.6% from their 52-week high less than six months ago.
Bega Cheese Ltd (ASX: BGA) shares have fallen another 1.7% to $4.55, extending their decline to 8.1% since last Friday. Indeed, that was the day that Bellamy's Australia Ltd (ASX: BAL) provided the market with a 'business update' in reporting a substantial slowdown in sales. Bega Cheese is also exposed to China, impacting investors' confidence levels in the business.
Dorsavi Ltd (ASX: DVL) shares have also tumbled 6.8% to 55 cents, although that isn't a result of any bad news. Indeed, the company's shares soared almost 16% on Wednesday after the company announced it had signed a new US sales agent for its workplace solution, ViSafe. In other words, today's decline is likely to be a case of profit taking, or else investors have simply had more time to process yesterday's news to give it a more appropriate valuation.
