It has been a very positive start to the week for the S&P/ASX 200 index. In afternoon trade the benchmark index has stormed over 1.3% higher to 6,528.1 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have started the week in the red:
The AGL Energy Limited (ASX: AGL) share price has tumbled 6.5% to $19.56 despite tabling a takeover offer for telco company Vocus Group Ltd (ASX: VOC) this morning. This positive development was not enough to offset an announcement on Friday evening which revealed that an outage at its Loy Yang A power station in the Latrobe Valley was expected to hit its FY 2020 profits by as much as $100 million.
The Northern Star Resources Ltd (ASX: NST) share price has dropped 4% to $9.55 after improving investor sentiment and easing trade tensions led to investors switching out of risk off assets. Almost all of Australia’s gold miners have sunk into the red today, leading to the S&P/ASX All Ords Gold index trading 2.3% lower at the time of writing.
The Star Entertainment Group Ltd (ASX: SGR) share price has crashed 17% lower to $3.74 after the casino and resorts operator revealed that trading conditions have deteriorated materially since the end of the first half. According to the release, the company’s domestic revenue growth has slowed considerably due partly to challenging macroeconomic conditions. As a result, normalised FY 2019 EBITDA is expected to be lower year on year.
The Vita Group Limited (ASX: VTG) share price has sunk over 11% lower to $1.40 after it announced changes to its remuneration construct with Telstra Corporation Ltd (ASX: TLS) following the telco giant’s plan to introduce new, simplified mobile plans to the market before the end of June 2019. Management warned that net impact on group earnings will be dependent on Vita’s success in selling across the ecosystem of Telstra products and services, as consumers and small businesses transition to the new plans.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia 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.