In afternoon trade the S&P/ASX 200 index has broken through the 7,000 points mark and is on course to record another solid gain. At the time of writing the benchmark index is up 0.6% to 7,036.4 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:
The Codan Limited (ASX: CDA) share price is down 4.5% to $8.05. This decline appears to have been due to profit taking after some very strong gains. For example, prior to today, over the last 12 months the electronics products company’s shares had gained a whopping 184%. This has been driven by its strong profit growth thanks to increasing demand for metal detectors due to the rising gold price.
The Mosaic Brands Ltd (ASX: MOZ) share price has continued its slide and dropped a further 6.5% to a 52-week low of $1.70. This retailer’s shares have come under pressure this week after it revealed that the bushfires have been impacting its performance. Mosaic, formerly known as Noni B, reported a sharp drop in same store sales during December.
The Super Retail Group Ltd (ASX: SUL) share price has fallen 5% to $9.88. Investors have been selling the retail group’s shares after Ord Minnett downgraded them to a hold rating with a $10.00 price target. According to the note, the broker has concerns that the bushfires could be impacting demand for camping and outdoors products sold by its BCF and Macpac businesses.
The Syrah Resources Ltd (ASX: SYR) share price has dropped 5% to 62.5 cents despite there being no news out of the graphite producer. However, improving sentiment in the battery materials industry has sent its shares hurtling higher in recent weeks. Prior to today, Syrah Resources shares were up 32% since the start of the year. This could mean that traders are taking a bit of profit off the table today.
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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 Super Retail Group Limited. 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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