In afternoon trade the S&P/ASX 200 index has given back a good portion of its morning gains but is still in positive territory. At the time of writing the index is up almost 0.2% to 6,557.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have tumbled lower:
The Australian Mines Limited (ASX: AUZ) share price has sunk 11.5% to 2.3 cents after the advanced battery materials developer announced an underwritten share purchase plan to raise $5 million. The new shares will be issued at a 20% discount to the Volume Weighted Average Price over the five trading days before the date of issue of the new shares. These funds are being raised to advance its Sconi Cobalt-Nickel-Scandium Project in North Queensland and for general working capital.
The Mayne Pharma Group Ltd (ASX: MYX) share price is down over 4% to 51.7 cents. The pharmaceutical company’s shares have come under significant selling pressure over the last few weeks following the release of a trading update. That update revealed that its key Generics business was struggling once again and had experienced a sharp decline in sales in the second half.
The Prospa Group (ASX: PGL) share price has given back some of yesterday’s gains and is down 6.5% to $4.17. I suspect that some investors have decided to take a bit of profit off the table after the online lender’s shares rocketed higher on their first day on the ASX boards. The Prospa share price is still notably higher than its IPO price of $3.78.
The Vita Group Limited (ASX: VTG) share price has continued its slide and is down a further 7% to $1.31. The retailer’s shares were sold off on Tuesday after it provided an update on its remuneration agreement with telco giant Telstra Corporation Ltd (ASX: TLS). Investors appear concerned by the uncertainty around how profitable the new agreement will be for the company.
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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.
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