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Why Altium, Pro Medicus, Reliance Worldwide, & Rural Funds crashed lower today

The S&P/ASX 200 index is on course to record another disappointing decline on Tuesday. In afternoon trade the benchmark index is down 2.6% to 6,467.8 points.

Four shares that have fallen more than most today are listed below. Here’s why they have crashed lower:

The Altium Limited (ASX: ALU) share price is down 5% to $31.82 after tech shares continued to be sold off by investors. The Australian tech sector has come under pressure this week after the escalating trade war between the U.S. and China led to the Nasdaq index sinking notably lower. I think this sell off has created a buying opportunity, though it may be best to wait for the dust to settle before making a move. The S&P/ASX 200 Info Tech index is down 4.5% at the time of writing.

The Pro Medicus Limited (ASX: PME) share price has crashed 18% lower to $24.36. As with Altium, this healthcare technology company’s shares have been caught up in a selloff which appears to be targeting companies on high price to earnings ratios. And once again, I think this could be a buying opportunity when the high level of market volatility eases.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is down over 3% to $3.23 following the release of a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the plumbing parts company’s shares to an equal-weight rating from overweight and slashed the price target on them to $3.75. Morgan Stanley believes Brexit, U.S. tariffs, and subdued home construction activities in Australia could weigh on its performance in the near term.

The Rural Funds Group (ASX: RFF) share price has crashed 42% lower to $1.36 after the agriculture-focused property group was targeted by a short seller. A note out of Bonitas Research described the company’s shares as worthless after alleging that the company has overstated assets by 100% and fabricated rental income. Rural Funds has placed its shares in a trading halt pending a response to the allegations.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Reliance Worldwide 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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