In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has given back its earlier gains and is now lower by 0.1% at 5,553 points.
Four shares which have been acting as a drag on the index today are listed below. Here's why they've dropped lower today.
a2 Milk Company Ltd (Australia) (ASX: A2M) shares are down 6% to $2.16 as investors brace themselves for another market update from rival Bellamy's Australia Ltd (ASX: BAL). The latter has placed itself in a trading halt pending "the release of an updated announcement of the impact of trading conditions on the Company's expected financial results". Unfortunately this has bad news written all over it in my opinion. Investors appear concerned a2 Milk may also be facing tough trading conditions.
Flight Centre Travel Group Ltd (ASX: FLT) shares have tumbled 8% to $30.34 after a research note from Morgan Stanley revealed that its analysts have downgraded the travel agent to an underweight rating with a $25 price target. Its analysts have concerns that management is too optimistic on the second half of FY 2017. Despite their concerns, at 13x full year earnings, Flight Centre looks tempting in my opinion.
Mayne Pharma Group Ltd (ASX: MYX) shares have dropped 4.5% to $1.46, despite there being no news out of the company. Whilst I think the pharmaceutical company is a great long-term investment, its shares may remain volatile until the price-fixing investigation by the U.S. Department of Justice is complete.
Resolute Mining Limited (ASX: RSG) shares have plunged 5% to $1.18 after the gold price dropped once again. At the time of writing the spot gold price is currently fetching US$1,159 an ounce. The last time it was at this level was all the way back in February. As rates start to rise in the United States, I expect the gold price to come under more selling pressure. I think investors ought to consider locking in their gold miner gains and moving to other areas of the market.