The S&P/ASX 200 index is on course for another decline. In afternoon trade the benchmark index is down 0.5% to 6,717.4 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The ARQ Group Ltd (ASX: ARQ) share price is down 15% to 38.7 cents. Investors have been selling the IT company’s shares following an update on its strategic review and revised guidance for FY 2019. Due to the continued underperformance of its Enterprise division, group underlying EBITDA is expected to be in the range of $13.8 million to $15.8 million. This compares to previous guidance of $16.8 million to $19.3 million.
The Avita Medical Ltd (ASX: AVH) share price has tumbled 8% to 63.5 cents after the medical technology company returned from a trading halt. Avita announced the successful completion of an institutional placement raising $120 million at 59 cents per share. This will be used to fund the pipeline development of new indications. This includes optimising support for clinical trials and development projects, as well as its continued U.S. commercial growth strategy.
The Incitec Pivot Ltd (ASX: IPL) share price has fallen 2% to $3.42. The catalyst for this decline appears to have been a broker downgrade. According to a note out of Morgan Stanley, its analysts have downgraded the industrial chemicals company’s shares to an underweight rating with a $3.20 price target. Although its FY 2019 earnings came in ahead of expectations yesterday, it notes that this was driven by the sale of land.
The OZ Minerals Limited (ASX: OZL) share price has dropped 4% to $10.50. This also appears to have been driven by broker downgrades. This morning Citi downgraded the copper miner’s shares to a neutral rating from buy. It also trimmed the price target on its shares to $12.00. Elsewhere, Ord Minnett downgraded its shares to a lighten rating and cut the price target on them to $9.60. Delays in production at Carrapateena appear to be behind these downgrades.
You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.
So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!
Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...
While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...
Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.
You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!
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.