In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing the benchmark index is down 0.5% to 5,356.5 points.
Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:
The ALS Ltd (ASX: ALQ) share price is down almost 6.5% to $6.32. This decline appears to have been driven by a broker note out of Ord Minnett this morning. Although the broker has retained its neutral rating on the testing services company’s shares, it has slashed its price target down from $9.00 to $7.00. It appears concerned that FY 2021 could be a soft year due to coronavirus disruption.
The Commonwealth Bank of Australia (ASX: CBA) share price is down 1.5% to $59.48. Although there has been no news out of the big four banks today, they are trading notably lower and acting as a major drag on the ASX 200. Though, with Commonwealth Bank due to release its third quarter update next week, some investors may be getting nervous.
The Corporate Travel Management Ltd (ASX: CTD) share price is down 3.5% to $11.57. This morning the corporate travel specialist revealed that it has more than halved its cost base and its lender has waived all financial covenants for calendar year 2020. Management believes this leaves the company in a strong liquidity position. It also noted that Chinese domestic airline utilisation has recovered to 47% of 2019 volumes since mid-March.
The Mesoblast limited (ASX: MSB) share price is down 5% to $3.51. This appears to have been driven by profit taking after a strong share price gain over the last couple of days. Investors have been buying the biotech company’s shares due to its promising COVID-19 ARDS trial. On Wednesday Mesoblast advised that it has just dosed the first patients of its phase 2/3 trial.
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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 and has recommended Corporate Travel Management 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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