The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is storming higher on Tuesday thanks to gains in the banking sector. At the time of writing the benchmark index is up 2.3% to 6,025.2 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have sunk lower:
The FlexiGroup Limited (ASX: FXL) share price has dropped 7% to $1.17 after the financial solutions company downgraded its full year cash profit guidance. Due partly to a $12 million after tax impairment on its Commercial Leasing business, the company now expects FY 2019 cash net profit after tax to be in the range of $76 million to $80 million. Previous guidance had been for cash net profit after tax in the range of $95 million to $100 million.
The Mortgage Choice Limited (ASX: MOC) share price has crashed 26% lower to 77.5 cents after the Royal Commission final report recommended that trailing commissions for mortgage brokers are banned for new loans written after July 1 2020. Mortgage Choice CEO, Susan Mitchell, warned that this could “give more pricing power to the major banks which would lead to less choice, less access to credit and higher interest rates for consumers.” Industry peer Australian Finance Group Ltd (ASX: AFG) has also been hammered today.
The OceanaGold Corp (ASX: OGC) share price has fallen 5% to $4.58. As well as falling with the gold price, OceanaGold appears to have disappointed the market with its 2019 cost and production guidance which was released after the market close on Monday. It expects production of 500,000 to 550,000 ounces of gold and 14,000 to 15,000 tonnes of copper at an AISC of $850 to $900 per ounce.
The Syrah Resources Ltd (ASX: SYR) share price has given back some of yesterday’s gains and is down 3% to $1.44. The graphite miner’s shares rebounded strongly on Monday following a savage selloff last week. Investors have been selling Syrah’s shares after its pricing and cost guidance for FY 2019 fell well short of expectations.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended FlexiGroup 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.