In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced off its lows for the day and is lower by just 0.2% to 5,470 points. The energy sector has been doing its bit today and is the best performing sector with a 0.8% gain.
Four shares which have been acting as a drag on the market are as follows:
BT Investment Management Ltd (ASX: BTT) shares have dropped lower by 3% to $8.88 despite no news out of the fund manager. Today’s decline could be in response to the sharp drop in the British pound overnight. As almost two-thirds of the company’s revenue is earned in the UK, any depreciation of the pound is likely to negatively impact the company’s overall performance.
Estia Health Ltd (ASX: EHE) shares have continued to drop lower, this time by 6.3% to $3.00. The embattled aged care operator’s shares fell sharply yesterday after revising downwards its full year EBITDA guidance just a matter of weeks after initially providing it. With a new management team at the helm now, investors will no doubt be hopeful that the worst is behind them.
Mesoblast limited (ASX: MSB) shares are down 6.0% to $1.175. Yesterday the regenerative medicine company’s shares rocketed higher by 12% following a positive update on the Phase 2 trial of its proprietary allogeneic Mesenchymal Precursor Cell product candidate MPC-300-IV. Whilst the news was positive, there is still a long road ahead before it even comes close to hitting the market. I suspect there may be a spot of profit taking going on today.
Resolute Mining Limited (ASX: RSG) shares have plunged almost 6% to $1.622 after the gold price fell to a four-month low. More positive economic data out of the United States appears to have convinced the market that a rate rise is on the way. Unfortunately for shareholders, I expect the gold price could continue to slide as the Federal Reserve meetings draw closer.
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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.
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