In afternoon trade the S&P/ASX 200 index has followed the lead of U.S. market and stormed higher. At the time of writing the benchmark index is up 0.5% to 6,685.7 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have sunk lower:
The Santos Ltd (ASX: STO) share price has fallen over 4% to $6.90 after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price sank 4.5% to US$56.43 a barrel and the Brent crude oil price dropped 3.6% to US$62.72 a barrel on Tuesday night due to demand concerns. Oil prices have since bounced back a bit in Asian trade, but not enough to support the Santos share price.
The Speedcast International Ltd (ASX: SDA) share price has fallen heavily again and is down a further 14.5% to $1.76. Investors have been heading to the exits in their droves since the satellite communications company downgraded its guidance. Speedcast expects adjusted calendar year 2019 EBITDA in the region of US$140 million to US$150 million, compared to its prior guidance of $160 million to $171 million. A number of brokers slashed their price target on Speedcast’s shares this morning.
The Superloop Ltd (ASX: SLC) share price has continued its slide and is down over 4% to $1.28. The fibre-optic internet infrastructure company’s shares have been crushed this month after it downgraded its full year EBITDA guidance materially. Superloop now expects to deliver full year EBITDA between $7 million and $8 million in FY 2019, compared to its prior guidance of between $13 million and $18 million. Management blamed the downgrade on delays to a major commercial agreement being signed.
The Vocus Group Ltd (ASX: VOC) share price has fallen 4% to $3.16 on the day of its investor event. The market appears disappointed that management warned shareholders not to expect any earnings growth in FY 2020. This is because it expects its network infrastructure business to be offset by its struggling retail arm.
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