In late morning trade positive COVID19 vaccine news has given the S&P/ASX 200 Index (ASX: XJO) a major lift. At the time of writing the benchmark index is up a sizeable 2% to 5,572.6 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:
The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price has fallen 2% to $27.82. Investors may believe that the prospect of a COVID19 vaccine being released in the near future will lead to a reduction in demand for this medical device company's ventilators.
The Mesoblast limited (ASX: MSB) share price has crashed 8% lower to $3.82. This decline also appears to have been driven by the vaccine news. Mesoblast has been busy trialling its own treatment for COVID19, with promising results. If a vaccine is successful then there would arguably be little need for a treatment.
The Northern Star Resources Ltd (ASX: NST) share price is down over 3% to $14.14. Investors have been selling Northern Star and other gold miners today after a sharp pullback in the price of the precious metal. The prospect of a vaccine has given risk on assets a major boost and led to a fall in demand for safe haven assets.
The TechnologyOne Ltd (ASX: TNE) share price is down over 1.5% to $9.66. This enterprise software company's shares were down as much as 5% following the release of its half year update. Investors appear underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Especially given the significant premium of 52x trailing earnings that its shares trade at. TechnologyOne provided guidance for the full year and expects net profit before tax to increase 8% to 12% year on year.
