Why Boral, Corporate Travel Management, United Malt, & Xero are dropping lower

Boral Limited (ASX:BLD) and Xero Limited (ASX:XRO) shares are two of four dropping lower on Friday. Here's why…

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) remains on course to end the week on a high. At the time of writing the benchmark index is up 0.8% to 5,372.5 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:

The Boral Limited (ASX: BLD) share price is down 3% to $2.50. Investors have been selling the building products company's shares following the release of a trading update. Boral revealed that revenues are down in most businesses in the first four months of the second half relative to the prior corresponding period. This is largely due to volume and cost pressures associated with bushfires in Australia in January followed by COVID-19 impacts more broadly. EBITDA margins for the period January to April 2020 are tracking ~3-5% lower than in the first half.

The Corporate Travel Management Ltd (ASX: CTD) share price is down 3% to $10.31. This decline may have been driven by comments out of the International Air Transport Association. It estimates that passenger traffic won't rebound to pre-crisis levels until at least 2023.

The United Malt Group Ltd (ASX: UMG) share price has fallen 7% to $3.99. United Malt's shares have come under pressure after completing a $140 million institutional placement. The malt business raised the funds at $3.80 per share, representing an 11.4% discount to its last traded price. The proceeds will be used to strengthen its balance sheet and provide financial and operational flexibility.

The Xero Limited (ASX: XRO) share price is down 4.5% to $76.32. This decline may have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded the accounting software provider's shares to a neutral rating and cut the price target on them to $75.00. It made the move due to the uncertainty being caused by the pandemic.

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. The Motley Fool Australia owns shares of Xero. 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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