Why ARQ Group, Australian Ethical, Objective Corp, Panoramic are dropping lower

The Australian Ethical Investment Limited (ASX:AEF) share price and the Panoramic Resources Ltd (ASX:PAN) share price are two of four dropping lower…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In afternoon trade the S&P/ASX 200 index is on course to end the week on a high. At the time of writing the benchmark index is up 0.15% to 6,805.3 points.

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

The ARQ Group Ltd (ASX: ARQ) share price is down 5% to 36 cents. This decline means the IT company's shares have given back all their gains since they charged higher following a strategic review update on Christmas Eve. That update revealed that its lenders have continued to be supportive despite it breaching its debt covenants. Management also reaffirmed its recently downgraded EBITDA guidance for calendar year 2019.

The Australian Ethical Investment Limited (ASX: AEF) share price has fallen 5% to $3.50. This is despite there being no news out of the ethical investment company. However, with its shares up significantly year to date, this decline could be due to profit taking from some investors. Australian Ethical Investment recently provided its half year guidance. It expects an underlying profit after tax of between $4.2 million and $4.6 million. The mid-point of this range represents a 38.7% increase.

The Objective Corporation Limited (ASX: OCL) share price has dropped 4.5% to $6.25. The catalyst for this might be news that independent non-executive director, Nick Kingsbury, recently sold a large number of shares. The director offloaded 120,000 shares for a total consideration of $704,790.

The Panoramic Resources Ltd (ASX: PAN) share price has crashed 19% lower to 32.7 cents. This follows news that Independence Group NL (ASX: IGO) has pulled the plug on its takeover approach for its fellow nickel producer. Independence intends to let its takeover offer lapse on the evening of January 17. According to the release, it made the move after a number of defeating conditions of its offer were breached.

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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Evolution Mining, Karoon Energy, ResMed, and Sayona Mining shares are dropping today

These ASX shares are having a tough session. But why?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why Australian Strategic Materials, Boral, Dubber, and Macquarie Technology are falling today

These shares are having a tough hump day. But why?

Read more »

a sad gambler slumps at a casino table with hands on head and a large pile of casino chips in the foreground.
Share Fallers

'Catastrophic' risk: Why Star shares have lost 25% in 4 days

The outcome of this inquiry could determine whether Star Entertainment hits Blackjack or bust.

Read more »

A male investor erupts into a tantrum and holds his laptop above his head as though he is ready to smash it, as paper flies around him, as he expresses annoyance over so many new 52-week lows in the ASX 200 today
Share Fallers

Why Domino's, Macmahon, Star, and Zip shares are sinking today

These ASX shares are falling more than most today.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Avita Medical, NextDC, Predictive Discovery, and Star shares are tumbling today

These shares are starting the week in the red.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Avita Medical, Cettire, Domino's Pizza, and Star shares are falling today

These ASX shares are having a tough end to the week. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Avita Medical, Netwealth, Peninsula Energy, and Zip shares are sinking today

These ASX shares are having a tough session. But why?

Read more »