It has been a disappointing day of trade for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is down almost 0.4% to 6,251 points.
Four shares that have fallen more than most today are listed below. Here’s why they have dropped lower:
The Eclipx Group Ltd (ASX: ECX) share price has plunged 45% lower to $1.68 after a surprise profit downgrade. Eclipx expects to report FY 2018 NPATA of between $77 million and $80 million, up between 13% and 17% on FY 2017, but a downgrade from previous guidance for growth between 27% and 30%. The underperformance of the Grays eCommerce business it acquired last year has been blamed for the poor result.
The Galaxy Resources Limited (ASX: GXY) share price has given back some of yesterday’s gains and is down almost 4% to $2.73. Almost all of Australia’s lithium miners have taken a tumble today after making strong gains on Monday. Opinion remains divided on the lithium miners and future prices of the battery-making ingredient.
The Neuren Pharmaceuticals Ltd (ASX: NEU) share price has sunk a massive 43% to $1.52 despite announcing an exclusive North American license agreement with ACADIA Pharmaceuticals for the development and commercialisation of trofinetide for Rett syndrome and other indications. Neuren will receive an upfront fee of US$10 million plus potential milestones of up to US$455 million and tiered, escalating, double-digit percentage royalties on net sales of trofinetide. The market appears to have been expecting a better deal.
The Ramsay Health Care Limited (ASX: RHC) share price has fallen 4% to $54.70 despite there being no news out of the private hospital operator. Short interest in Ramsay’s shares has been rising quickly in recent weeks and may be behind today’s decline. I would stay clear of Ramsay until there is a major improvement in trading conditions and its overall performance.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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.
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