The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday’s sharp decline. In afternoon trade the benchmark index is up 0.35% to 5,857.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are sinking lower.
The Cash Converters International Ltd (ASX: CCV) share price has tumbled 8% lower to 28.5 cents despite there being no news out of the retailer. This latest decline means that the struggling company’s shares have now drifted to a new 52-week low. Investors have been heading to the exits in their droves since its CEO suddenly resigned following the release of its full year results in August.
The Eden Innovations Ltd (ASX: EDE) share price has plunged 22% lower to 9.4 cents. Although the clean energy company released a positive update on its EdenCrete admixture product, it wasn’t enough to stop day traders from selling shares after some extreme share price gains in recent days. As I mentioned yesterday, I thought the buying was overdone and suspected that a selloff could have been imminent.
The Hutchison Telecommunications (Aus) Ltd (ASX: HTA) share price is down 12% to 11 cents. The telco sector was one of the better performing areas of the market on Monday but this hasn’t been the case today with declines being seen across the sector. Incidentally, Telstra held its annual general meeting today and its shares gave back their early gains as the meeting went on.
The Praemium Ltd (ASX: PPS) share price has continued its decline and is down a further 5.5% to 85 cents. On Monday the fintech company released its latest quarterly funds under administration (FUA) update. In the first quarter of FY 2019 Praemium’s FUA reached $8.6 billion, up 3.6% on the end of FY 2018. Investors may be concerned by the slowdown in its FUA growth. Annualised, this would mean growth of 14.4%, compared to 35% growth in FY 2018.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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.