The S&P/ASX 200 index has given back its morning gains and is trading lower this afternoon. At the time of writing the benchmark index is down slightly to 6,693.8 points.
Four shares that are falling more than most today are listed below. Here’s why they have tumbled lower:
The A2 Milk Company Ltd (ASX: A2M) share price has fallen a further 3.5% to $11.37. The infant formula company’s shares have come under pressure this week following a broker note out of Citi. Its analysts retained their sell rating and warned that its margins could soften due to management’s focus on growth over profitability. In addition to this, it is concerned by news that a Chinese infant formula producer has launched an a2-only product. This is the first local producer to enter the market.
The Bank of Queensland Limited (ASX: BOQ) share price is down 3.5% to $8.84. Today’s decline is almost entirely attributable to the regional bank’s shares trading ex-dividend on Wednesday. Eligible shareholders can now look forward to being paid its fully franked 31 cents per share final dividend on November 27.
The Medibank Private Ltd (ASX: MPL) share price has crashed over 8% lower to $3.12 after a disappointing update. Medibank warned that it expects higher than forecast claims to impact its profits this year. These higher claims are due to a number of factors. The main one is higher private hospital payments. This reflects an increase in the average benefit size along with the continuation of elevated prosthesis costs.
The OceanaGold Corp (ASX: OGC) share price has tumbled over 6% lower to $3.10. A sharp decline in the gold price overnight following an improvement in investor risk sentiment is largely to blame for this decline. OceanaGold isn’t the only gold miner which is on the slide today. At the time of writing the S&P/ASX All Ords Gold index is trading a sizeable 2.7% lower.
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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 A2 Milk. 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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