Why Computershare, Newcrest, Prospa, & ResApp are sinking lower

Computershare Limited (ASX:CPU) and Newcrest Mining Limited (ASX:NCM) shares are two of four sinking lower today. Here's why…

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The S&P/ASX 200 index is tumbling notably lower this afternoon. At the time of writing the benchmark index is down 2.15% to 5,811.9 points.

Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:

The Computershare Limited (ASX: CPU) share price is down 2.5% to $11.52. The transfer agency and share registration company's shares have come under pressure after falling interest rates forced it to downgrade its FY 2020 management earnings per share guidance. According to the release, Computershare expects to report a 15% decline this year, compared to previous guidance of a 5% decline. Management also warned that trading conditions are expected to worsen in FY 2021

The Newcrest Mining Limited (ASX: NCM) share price has dropped over 8% to $26.79. Investors have been selling the gold miner's shares today after it downgraded its production guidance for FY 2020. This was due to the underperformance of its troubled Lihir mine in Papua New Guinea.

The Prospa Group Ltd (ASX: PGL) share price has sunk 11% lower to $1.20. The catalyst for this decline appears to be a broker note out of Macquarie this morning. According to the note, the broker has downgraded its shares all the way from an outperform rating to underperform. It has also taken an axe to its price target and cut it all the way down to 94 cents. It believes the current environment could threaten its earnings and funding model.

The ResApp Health Ltd (ASX: RAP) share price has crashed 50% lower to 84 cents following the release of two updates. The first revealed that healthcare giant Sanofi has not exercised its option to enter into exclusive negotiations for a pilot phase of a joint consumer health-focused product using ResApp's novel respiratory disease diagnostic algorithms. The second update revealed that the US FDA has advised that ResApp's De Novo classification request for ResAppDx-US has not been approved.

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.

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