In afternoon trade the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has rebounded from yesterday's decline with a gain of over 0.4% to 6,021.9 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are sinking lower:
The Afterpay Touch Group Ltd (ASX: APT) share price has fallen by 5% to $8.08 despite there being no news out of the fintech company. This morning the company was the subject of a reasonably negative piece by the AFR criticising its lack of risk protocols. This may have weighed on sentiment and led to some profit taking today.
The Domino's Pizza Enterprises Ltd (ASX: DMP) share price has dropped 4% to $51.22. I suspect that Domino's may also be coming under pressure from profit taking today. The pizza chain operator's shares have been on fire over the last 30 days and are still up almost 22% during the period even after accounting for today's decline. This could be a buying opportunity for investors willing to make a long-term patient investment.
The Metcash Limited (ASX: MTS) share price has tumbled 2.5% lower to $2.69 after the wholesale distributor revealed that it will be impairing its supermarket assets by $352 million. The impairment charge comprises $318 million of goodwill and other intangibles, with the remaining $34 million related to net assets in the Supermarkets and Convenience segment. I think Metcash is a share to avoid.
The Retail Food Group Limited (ASX: RFG) share price has continued its decline and is down a further 6% to 71.5 cents. Yesterday the embattled food and beverage company released its earnings guidance for FY 2018. Management expects the company to post an underlying net profit after tax of $34.5 million, down almost 55% from $75.7 million in FY 2017. This could put it in danger of breaching its banking covenants, making the company another to avoid.
