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.
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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.