In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped lower. At the time of writing the benchmark index is down 0.5% to 5,258.3 points.
Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:
The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 2.5% to $9.65. This morning the travel agent returned from its suspension following the completion of its institutional placement and entitlement offer. It raised a total of $562 million at $7.20 per new share. Flight Centre raised the funds to see it through the tough trading conditions caused by the coronavirus crisis.
The Metcash Limited (ASX: MTS) share price has dropped 10% to $2.68. This decline appears to have been triggered by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded Metcash's shares to an equal-weight rating and trimmed the price target on them to $2.90. It made the move largely on valuation grounds after a strong gain.
The Reece Ltd (ASX: REH) share price has fallen 5% to $8.26. This follows the successful completion of its institutional placement and entitlement offer. The plumbing parts company raised approximately $600 million at a discount of $7.60 per new share. The company will now push ahead with its retail entitlement offer which is aiming to raise a further $190 million. These funds will be used to strengthen its balance sheet.
The Southern Cross Media Group Ltd (ASX: SXL) share price has crashed 23% lower to 12.7 cents. This follows the successful completion of a highly dilutive $149 million institutional placement and entitlement offer by the media company. Southern Cross Media raised the funds at a lowly 9 cents per share. This is a long way from its 52-week high of $1.43.
