Why IAG, Phoslock, Resolute, & Technology One shares are tumbling lower

The Insurance Australia Group Ltd (ASX:IAG) share price and the Resolute Mining Limited (ASX:RSG) share price are two of four ending the week in the red…

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The S&P/ASX 200 index looks set to finish the week on a positive note. In afternoon trade the benchmark index is up 0.2% to 7,102.9 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The Insurance Australia Group Ltd (ASX: IAG) share price has sunk 5.5% to $7.30. Investors have been selling the insurance giant's shares after it downgraded its FY 2020 guidance. Following a review of its full year net natural peril claim costs, Insurance Australia Group now expects its FY 2020 reported insurance margin to be in the range of 14.5% to 16.5%. This compares to its previous guidance of 16% to 18%. It also advised that its half year results will contain a post-tax provision of approximately $80 million for a customer refund program.

The Phoslock Environmental Technologies Ltd (ASX: PET) share price is down 3% to 81.5 cents. This follows the release of a coronavirus update by the environmental technology company this morning. Phoslock advised that it completed its first applications in the city of Wuhan in September and October. As a result, it currently has no personnel in the locked down city and has not been impacted financially. Though, it is scheduled to return to Wuhan in April.

The Resolute Mining Limited (ASX: RSG) share price has fallen 3% to $1.16. This decline appears to have been driven by a broker downgrade this morning. According to the note out of the Macquarie equities desk, it has downgraded the gold miner's shares to a neutral rating and cut the price target on them to $1.20. This follows the launch of a $196 million equity raising earlier this week.

The Technology One Limited (ASX: TNE) share price is down 5% to $8.35 despite there being no news out of the enterprise software company. However, one of its major shareholders has been selling shares this week. On Thursday Pinnacle Investment Management revealed that it has sold ~3 million shares. This has trimmed its stake in Technology One from 9.04% to 8.03%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Insurance Australia 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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