In early afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced off its lows and is mostly flat at 5,948 points.
Four shares that have acted as a drag on the market today are listed below. Here’s why they have tumbled lower:
The Sigma Healthcare Ltd (ASX: SIG) share price is down 6% to 82.7 cents following the release of its half-year results. The pharmacy chain operator and distributor reported revenue of $4,130 million and underlying net profit after tax of $59.9 million. This was a 5.4% and 10.5% decline, respectively, on the prior corresponding period. A softer consumer environment has been blamed for the weak result. Sigma also announced the appointment of Goldman Sachs as its financial adviser to assist with M&A and strategic advice.
The Thorn Group Ltd (ASX: TGA) share price has plunged 11% to 63.5 cents after the rental equipment and financial services company provided the market with a trading update. According to the update, a weakening performance by its Radio Rentals business means that it expects to achieve the lower end of its guidance range. This appears to have many investors concerned that it may once again breach its debt covenants.
The Vicinity Centres Re Ltd (ASX: VCX) share price has fallen 3% to $2.41 after the Federal Reserve raised interest rates in the United States overnight. This has led to the yields on treasury bonds widening and appears to have caused bond proxies such as Vicinity Centres to be sold off during trade today.
The Webjet Limited (ASX: WEB) share price is down 4% to $11.58 despite there being no news out of the company. The only related news that I am aware of is a broker note out of Ord Minnett. This morning that note revealed that its analysts have retained their buy rating but cut the price target on the online travel agent’s shares.
I think Webjet is a buy after this decline, just like these top stocks.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. 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 Scott Phillips.