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Why Harvey Norman, Metcash, Resolute, & SKY Network shares dropped lower

In afternoon trade the S&P/ASX 200 index is on course to finish the day higher. At the time of writing the benchmark index is up 0.15% to 6,556.5 points.

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

The Harvey Norman Holdings Limited (ASX: HVN) share price has dropped almost 6% lower to $4.14. The majority of today’s decline can be attributed to the retailer’s shares trading ex-dividend this morning for its 21 cents per share fully franked final dividend. This dividend will now be paid to eligible shareholders in around three weeks on November 1.

The Metcash Limited (ASX: MTS) share price has sunk 4.5% to $2.77 amid concerns that it could be about to lose another large supply contract. According to reports in the AFR, Metcash is frantically trying to save its contract with 7-Eleven. The long-term supply contract is believed to be worth over $350 million a year to Metcash. This is even more than the $270 million contract with Drakes Supermarkets that Metcash recently lost.

The Resolute Mining Limited (ASX: RSG) share price has crashed 11% lower to $1.27 after the gold miner reported issues at its Syama Gold Mine in Mali. According to the release, Resolute has taken its roaster offline after detecting a crack in the main external shell. The roaster is a key component of the sulphide processing circuit at the Syama Gold Mine. Once the roaster has cooled, management will investigate and advise the market of the impact to its FY 2019 production.

The SKY Network Television Limited (ASX: SKT) share price has been smashed for six and is down 17% to 86.2 cents. This morning the company revealed that it has lost the rights to New Zealand Cricket after being its partner for almost 25 years. According to the release, NZ Cricket has awarded a six-year broadcasting rights agreement with Spark Sport from April 2020. NZ Cricket holds the rights for domestic cricket and internationals played in New Zealand.

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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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