In afternoon trade the S&P/ASX 200 index has given back its morning gains and edged lower. At the time of writing the benchmark index is down slightly to 6,254.8 points.
Four shares that have fallen more than most today are listed below. Here’s why they are ending the week in the red:
The Australian Pharmaceutical Industries Ltd (ASX: API) share price has tumbled 5% lower to $1.44 a day after the release of the pharmacy chain operator and distributor’s half year results. One broker that wasn’t overly impressed with its performance in the first half was Credit Suisse. According to a note out of the investment bank, its analysts thought the quality of its earnings was poor and that its shares are overvalued. As a result, it has retained its underperform rating on its shares.
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has plunged over 11% to $21.62 despite there being no news out of the pharmaceutical company. However, with its shares up significantly since the start of the year, I suspect that today’s selling could be the result of profit taking from some investors.
The Galaxy Resources Limited (ASX: GXY) share price has crashed 11.5% lower to $1.64 after the lithium miner’s quarterly update disappointed. Although Galaxy’s production was strong and its costs came down, the company experienced a significant decline in the amount of concentrate shipped. In addition to this, despite a large number of bidders, management advised that it hasn’t been able to agree a transaction structure for its Sal de Vida asset that provides a valuation that fully reflects the “world class nature” of the asset.
The Zip Co Ltd (ASX: Z1P) share price has continued its slide and is down a further 7% to $2.37. As with Clinuvel, I suspect that some of this selling has been caused by profit taking after an impressive share price rally. In addition to this, 3.2 million ordinary shares were allotted under the share purchase plan at $1.53 per share this morning. Some shareholders may be selling existing shares to make way for these.
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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.