In afternoon trade the S&P/ASX 200 index is on course to start the year on a positive note. At the time of writing the benchmark index is up 0.2% to 6,698.6 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:
The Perenti Global Ltd (ASX: PRN) share price is down 2% to $1.59. The mining services company’s shares have come under pressure in recent weeks following the loss of a key equipment hire contract with Ghana Manganese Company. This led to management downgrading its FY 2020 underlying NPAT guidance from $140 million to between $115 million and $120 million. Perenti was previously known as Ausdrill.
The Perseus Mining Limited (ASX: PRU) share price is down almost 2% to $1.14 after the gold price edged 0.1% lower. In addition to this, I suspect that profit taking could be weighing on the gold miners after some stellar gains earlier this week. Perseus isn’t the only gold miner dropping lower. In afternoon trade the S&P/ASX All Ords Gold index is down by 0.65%.
The Polynovo Ltd (ASX: PNV) share price has sunk 3.5% lower to $1.90. The medical device company’s shares are tumbling lower despite there being no news out of it. However, with its shares up over 220% in 2019, this could also be down to profit taking from some investors.
The Sezzle Inc (ASX: SZL) share price has crashed almost 17% lower to $1.74. The buy now pay later company’s shares have come under pressure after it confirmed that the California Department of Business Oversight (DBO) has issued a public statement regarding its intention to not approve an application by Sezzle for a California Financing Law license to make loans. Industry rival Afterpay Ltd (ASX: APT) has had its application approved. Sezzle intends to apply again and is optimistic it will find a resolution.
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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 AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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.