Why Austal, Ecofibre, Northern Star, & Nufarm are dropping lower

Austal Limited (ASX:ASB) and Northern Star Resources Ltd (ASX:NST) shares are two of four dropping notably lower on Thursday. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another very strong gain. At the time of writing the benchmark index is up 1.3% to 6,018.3 points.

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

The Austal Limited (ASX: ASB) share price is down over 3% to $3.37. The shipbuilder's shares have come under pressure since it announced the retirement of its CEO on Wednesday. Austal has found its replacement already, though. Chief Operating Officer, Patrick Gregg, will take over from the retiring David Singleton on 1 January 2021. Until then, Mr Singleton will continue to work closely with his replacement to ensure there is a smooth handover.

The Ecofibre Ltd (ASX: EOF) share price has crashed 7% lower to $2.88. This morning the hemp products company advised that the protests in the United States are expected to impact near term sales in its core Ananda Health business. In light of this, Ecofibre has withdrawn its second half guidance.

The Northern Star Resources Ltd (ASX: NST) share price is down 7% to $13.27. Investors have been selling Northern Star and the rest of the gold miners on Wednesday after the price of the precious metal sank lower. Improving risk appetite is weighing heavily on the price of gold and other safe haven assets. At the time of writing the S&P/ASX All Ordinaries Gold index is down 3.8%.

The Nufarm Limited (ASX: NUF) share price has dropped almost 9% to $5.01. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded Nufarm's shares to an underperform rating with a $4.85 price target. Its analysts appear concerned over the company's prospects in the important fourth quarter.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on Share Fallers

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Cogstate, European Lithium, GQG Partners, and Lindian Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Bapcor, Emeco, Liontown, and PWR shares are tumbling today

These shares are having a poor session on Tuesday. What's going on?

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Share Fallers

Why is the Bapcor share price crashing 19% on Tuesday?

Investors are punishing Bapcor shares today. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Andean Silver, Boss Energy, Chalice Mining, and Rio Tinto shares are falling today

These shares are starting the week in the red. But why?

Read more »

asx silver shares represented by silver bull statue next to silver bear statue
Share Fallers

Up 118% in 2025, why is this All Ords ASX silver share crashing on Monday?

Investors are punishing this outperforming ASX silver share today. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Collins Foods, Monash IVF, Premier Investments, and Step One shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Firefly Metals, Pantoro Gold, Step One, and Vulcan Energy shares are sinking today

These shares are having a tough session on Thursday.

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop computer in front of him.
Share Fallers

Why Block, Collins Foods, Perseus Mining, and Robex Resources shares are falling today

These shares are having a tough time on hump day. But why?

Read more »