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Why CYBG, Pilbara Minerals, Sigma, Whitehaven shares dropped lower

In afternoon trade on Thursday the S&P/ASX 200 index has followed the lead of U.S. markets and charged higher. At the time of writing the benchmark index is up 0.85% to 6,608.1 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have dropped lower:

The CYBG PLC (ASX: CYB) share price has crashed 19.5% to $2.00 after the UK-based bank was forced to increase its provisions for legacy PPI costs by between £300 million and £450 million. Management advised that this was primarily due to an unprecedented volume of PPI Information Requests received during August in advance of the August 29 deadline.

The Pilbara Minerals Ltd (ASX: PLS) share price has returned from its trading halt and is down over 4% to 33.5 cents. This morning the lithium miner announced the successful completion of the institutional component of its $91.5 million equity raising. The company raised a total of $36.5 million from institutional and sophisticated investors at 30 cents per share. This will now be followed by a $55 million strategic placement with leading Chinese battery manufacturer for electric vehicles, Contemporary Amperex Technology.

The Sigma Healthcare Ltd (ASX: SIG) share price has dropped 4% to 58.5 cents following the release of the pharmacy chain operator and distributor’s half year results. Sigma posted a disappointing 19.8% decline in EBITDA compared to the prior corresponding period. This reflected the net impact of one-off restructuring costs, offset by a favourable litigation settlement, and changes to the lease accounting standard.

The Whitehaven Coal Ltd (ASX: WHC) share price is down by a sizeable 9.5% to $3.19. The majority of this decline is attributable to the coal miner’s shares going ex-dividend this morning for its final and special dividends. Combined, a total of 30 cents per share is being paid to eligible shareholders on September 19.

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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.

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