The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to build on yesterday’s gain with another push higher. In afternoon trade the benchmark index is up a further 0.55% to 5,714.4 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have dropped lower:
The Fluence Corporation Ltd (ASX: FLC) share price has dropped almost 3% to 34 cents despite media reports linking the diversified water company to a new Mansoura Desalination Plant in Egypt. Management advised that it is in discussions with parties regarding new opportunities, but none of these have been completed. It will continue to inform the market of material new contracts as and when they are entered into.
The Japara Healthcare Ltd (ASX: JHC) share price has fallen 2% to $1.12. Some investors may be heading to the exits ahead of the Aged Care Royal Commission preliminary hearing in Adelaide on January 18. I suspect that investors are concerned that the inquiry could be as damaging to aged care provider shares as the banking inquiry was to bank shares.
The Pilbara Minerals Ltd (ASX: PLS) share price is down 1.5% to 72 cents. The lithium miner’s shares were on fire last week after the release of two positive announcements. It looks as though profit taking could be weighing down its share price on Tuesday.
The Resolute Mining Limited (ASX: RSG) share price has fallen over 4% to $1.15. Most of Australia’s leading gold miners are sinking lower today after investors continue to sell risk off assets following a reduction in market volatility. In addition to this, this morning Resolute denied media speculation that it was planning to spin-off or sell its Ravenswood Gold Mine in Queensland. It is currently undertaking a strategic review of the asset which is expected to complete in the first half of 2019.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.