Why Brickworks, Monash IVF, ResMed, & Sonic shares are dropping lower

Brickworks Limited (ASX:BKW) and Sonic Healthcare Limited (ASX:SHL) shares are two of four sinking lower on Friday. Here's why…

a woman

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week on a positive note. At the time of writing the benchmark index is up 3.8% to 4,965.9 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 Brickworks Limited (ASX: BKW) share price has fallen 5.5% to $14.99. This morning the building products company revealed that the Pennsylvania Government has ordered all non-life-sustaining businesses in Pennsylvania to close their physical locations. This is in order to slow the spread of the coronavirus in the state. This means that five of Brickworks' 12 plants currently in operation will close.

The Monash IVF Group Ltd (ASX: MVF) share price has dropped 8% to 55.5 cents. Investors have been selling the fertility treatment company's shares following the release of a coronavirus update. This morning Monash IVF advised that it would be withdrawing its guidance for FY 2020. Management advised that uncertain economic conditions and supply side risk caused by COVID19, is making forecasting full year earnings difficult.

The ResMed Inc. (ASX: RMD) share price is down 8% to $22.76. This is despite there being no news out of the sleep treatment focused medical device company. However, earlier this week Morgan Stanley put a neutral rating and $20.50 price target on its shares. It believes its shares have a rich valuation.

The Sonic Healthcare Limited (ASX: SHL) share price has fallen 9% to $22.56. Investors have been selling the medical diagnostics company's shares after it withdrew its earnings guidance this morning due to potential coronavirus impacts. Management warned that there is potential for diagnostic testing volumes to be impacted in the short to medium term from self-isolating and quarantining.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Brickworks, ResMed Inc., and Sonic Healthcare 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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