The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a mixed start to the week. In early afternoon trade the benchmark index has given back its early gains and is mostly flat at 6,321.8 points.
Four shares that have acted a drag on the market today are listed below. Here’s why they have started the week deep in the red:
The AVZ Minerals Ltd (ASX: AVZ) share price has fallen almost 11% to 9.8 cents despite there being no news out of the lithium-focused mineral exploration company. AVZ Minerals’ shares have come under pressure in recent times over concerns that its giant mineral resource may be located too far from ports in central Africa to be a viable operation.
The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has dropped 3% to $14.53 after ResMed Inc (ASX: RMD) filed complaints in the U.S. International Trade Commission in relation to two of its mask ranges used to treat sleep apnea. This morning Fisher & Paykel Healthcare advised that it plans to contest the patent allegations made against it. If ResMed wins it could prevent the import of the products into the United States.
The Jatenergy Ltd (ASX: JAT) share price has plunged almost 20% lower to 5.4 cents. Today’s decline could be in relation to its preliminary full year result which revealed a loss of $1.2 million or news that China is making changes to its e-commerce laws. I have concerns that the latter could impact the sales of less established infant formula companies like Jatenergy.
The Retail Food Group Limited (ASX: RFG) share price has continued its decline and is down 10.5% to 51 cents. This morning UBS released a broker note declaring the embattled food and beverage company as a sell with a price target of 50 cents. Although its full year results were in line with expectations, it doesn’t appear to believe that things will get easier for the company in FY 2019. I would agree with this sell recommendation.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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.