In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down slightly to 5,835 points due largely to declines in the consumer staples sector.
Four shares acting as a drag on the market today are listed below. Here's why they have started the week in the red:
The Asaleo Care Ltd (ASX: AHY) share price has plunged 10% to $1.60 after it emerged that its CEO and managing director Peter Diplaris offloaded half of his holding in the company. Whilst Mr Diplaris has stated that his share sale was for personal reasons, the market appears to be concerned that there is more to it. I wouldn't be a buyer at the current share price, especially after the insider selling.
The Myer Holdings Ltd (ASX: MYR) share price has fallen almost 4% to 91 cents. The department store operator's shares have come under increasingly heavy selling pressure in recent days following a very disappointing third-quarter result last week. Whilst its shares do look cheap now, the potential launch of Amazon in Australia later this year could be a huge negative for the company. In light of this I would stay clear of the retailer.
The Syrah Resources Ltd (ASX: SYR) share price has dropped 5% to $2.57 despite there being no news out of the graphite miner. But with short interest in its shares rising strongly since last week, it appears that this negative sentiment is weighing on its shares. I think the company could have a bright future ahead of it, but I would suggest investors hold back until short interest subsides.
The Vita Group Limited (ASX: VTG) share price has continued to sink lower, this time by 7% to $1.37. This latest decline means the retailer's shares have now fallen approximately 40% in May. The catalyst for this was news that it is in discussions with Telstra Corporation Ltd (ASX: TLS) regarding the telco giant's future plans for the retail stores that Vita operates on its behalf. Whilst it may be cheap, I would stay clear of the company until things become clearer.
