The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is pushing notably higher. In late morning trade the benchmark index is up 1.1% to 5,463.2 points.
Four shares that have failed to follow the market higher on Monday are listed below. Here's why they are dropping lower today:
The Macquarie Group Ltd (ASX: MQG) share price is down over 3% to $101.72. As well as being impacted by general weakness in the banking sector, its shares have come under pressure after going ex-dividend. Eligible shareholders of the investment bank can now look forward to being paid its $1.80 per share partially franked final dividend on July 3. Incidentally, if you're looking to reinvest these dividends, here's where I would put the money.
The Telstra Corporation Ltd (ASX: TLS) share price is down 1% to $3.14. This is despite there being no news out of the telecommunications company today. However, most telco shares are trading lower this morning. This could be down to investors switching out of defensive shares into risk on assets.
The United Malt Group Ltd (ASX: UMG) share price has continued its slide and is down 2.5% to $4.00. United Malt's shares have come under pressure recently after completing a $140 million institutional placement. These funds were raised at $3.80 per share, which represented an 11.4% discount to its last traded price. United Malt intends to use the proceeds to strengthen its balance sheet and provide financial and operational flexibility.
The Westpac Banking Corp (ASX: WBC) share price is down 1% to $15.11. Despite the improving investor sentiment, the big four banks are all trading lower today and acting as a drag on proceedings. Westpac is the worst performer in the group with its 1% decline. This could be down to concerns that the cash rate could go into negative territory later this year.
